Videocon plans to demerge power and energy biz

NEW DELHI: Expressing its interest to actively pursue expansion in the power and energy sectors, Videocon Industries on Monday said it planned to create separate verticals for which it could rope in private equity or operating partners.
   
The company informed stock exchanges that it proposed to have separate verticals for different lines of activities such as thermal power, oil and gas, mining of natural resources, including coal, and renewable energy like solar energy.
   
"These verticals will be housed in one or more special purpose vehicles, which will be wholly-owned by the company," it said, adding that it might consider funding for each respective project, induction of private equity and/or operating partner on case-to-case basis.
   
When contacted, Videocon Industries Chairman Venugopal Dhoot said the company has diversified its interest into power and energy sectors for the group's future overall growth.
   
The company has already initiated steps to separate the verticals by amending its memorandum of Association, it said, adding that if required, the verticals could be demerged subject to regulatory approvals.
   
Videocon currently is in partnership with PSU ONGC, Command Petroleum of Australia and Singapore-based RAVVA Oil for for development of discoveries in RAVVA oil & gas field contract area, and also for exploration of leads and prospects.