Published On:December 2 2014
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Mohan Breweries' Rs. 1,200-crore business to come under Binny fold.
Mohan Breweries and Distilleries, which is to be merged with Binny Ltd., will shift its factory to a new location after the land on which the current one is located on Chennai's outskirts is sold to a real-estate developer.
M Nandagopal, Chairman of Binny, who holds the entire stake in Mohan Breweries, said the company has sold the 12-acre factory site at Valasaravakkam for over Rs. 266 crore to city-based real-estate developer SPR Group.
Mohan Breweries, with revenue of about Rs. 1,200 crore, will operate from the new location near Kanchipuram, about 75 km south of the city, where a factory is coming up.
Binny told the BSE that its board has approved in-principle a plan to merge Mohan Breweries and a subsidiary, Arthos Breweries, with itself.
Nandagopal said operating a factory in the city posed logistical and workforce movement problems. So, a new unit of similar capacity of 7.2 million cases of Indian made foreign liquor and 10 million cases of beer annually is being built.
He said minority shareholders will benefit after the merger of the liquor business with Binny in which he holds close to a 75 per cent stake. Binny has become an asset-based company with all its dues paid off but without any operations. The liquor business will now come under the listed company and the details of share allocation are being worked out, he said.
The board of Binny was also informed of a joint development agreement for an integrated township at Perambur, the BSE announcement said.