Industry

Mohan Breweries to merge with Binny

Mohan Breweries and Distilleries Ltd., (MBDL) will move its 40-year-old brewery and bottling plant located on the outskirts of Chennai to Kancheepuram district by January next.

The new unit would be spread across 50 acres. The exercise would cost the company around Rs.300-350 crore. However, there would not be any change in production and bottling capacity of the relocated unit. The entire cost of relocation would be met through internal accruals and income from the real estate business.

It was decided to move the plant to Kancheepuram as the present site had become highly populated.

MBDL merger

To provide more value addition to the shareholders, the board of the company has decided to merge MBDL, along with its subsidiary Arthos Breweries Ltd., with Binny Ltd.

Talking to The Hindu, Binny Executive Chairman M. Nandagopal said: “We have not paid dividend for a long time. Hence, it was decided to go for the merger. MBDL has a turnover of Rs.1,200 crore, and after the merger, EBITA will be Rs.140-150 crore. The merger ratio will be announced in three-four days time.”

Binny is a listed company, while MBDL is a public limited company. Arthos was once listed on the Hyderabad Stock Exchange. But now, it is an unlisted company. MBDL has bottling and brewing units in Tamil Nadu, Puducherry and Seemandhra. Arthos is present in Seemandra and Kerala.

“After the merger, the Binny name will stay. It will be associated with brewery and distillery as well as real estate business,” he said.

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Printable version | May 6, 2021 11:43:50 AM | https://www.thehindu.com/business/Industry/mohan-breweries-to-merge-with-binny/article6652224.ece

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