Parasrampuria mulls polyester spinoff

14 July 1997 00:00  [Source: ACN]

PARASRAMPURIA Synthetics is considering spinning off its polyester division into a joint venture with a multinational company.

The troubled Indian polyester filament yam and textiles producer is also planning to swap high-cost rupee debt with low-cost external commercial borrowings.

'Poor market conditons over the past two years have forced several polyester producers to either cut down production or closedown completely,' said general manager of finance Rajiv Mahajan.

'We recognise that market conditions will remain poor, which is why our management has planned strategic restructuring.'

The company would not disclose which company it is in negotiations with. It is also considering spinning off its terry-towel and cotton-spinning divisions into separate joint ventures with other multinationals.

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