Kolkata, Sep 28: The board of directors of Gujarat NRE Coke Limited (GNCL), the largest independent coke producer in India, Friday cleared its decision to amalgamate Bharat NRE Coke Limited (BNCL) with the company.
BNCL is an unlisted group company of Gujarat NRE group.
Speaking on the occasion, Arun Kumar Jagatramka, CMD, GNCL, said: “This amalgamation would help in improving the organisational capability and leadership. We aim to achieve greater integration coupled with financial strength and flexibility for the amalgamated company.”
As per the scheme of amalgamation, BNCL shareholders would receive two shares of GNCL, the flagship company of the group, for every share held by them in BNCL. This would result in increase of paid up capital of GNCL by approximately 8.8 percent.
“We also expect that we will be able to minimise costs due to more focused operational efforts, standardisation and simplification of business processes, thereby enhancing productivity,” Jagatramka added.
BNCL owns a met coke producing facility at Dharwad in Karnataka with an installed capacity of 0.32 million tonnes per annum (MTPA).
The current met coke production capacity of GNCL is 0.930 MTPA and would go up by 34.8 percent subsequent to this merger, according to a company release here.