NEW DELHI: Diversified conglomerate ITC today said its board will consider demerger of the non-engineering business of subsidiary Wimco Ltd to be merged with itself.
"A meeting of the board of directors of the company will be held on August 28 to consider a proposal for demerger of the non-engineering business comprising safety matches business and agri ( forestry) business of Wimco into the company," ITC Ltd said in a filing to the BSE.
ITC along with Russell Credit Ltd, a wholly owned unit, holds 98.21 per cent of Wimco's share capital, it added.
Apart from the agri and matches businesses, Wimco has interests in manufacturing packaging machinery.
ITC's net sales for the first quarter ended June 30 increased 10.31 per cent to Rs 7,338.52 crore, while net profit was Rs 1,891.33 crore.
The Kolkata-based company has interests in FMCG, hotels, paperboards and packaging, tobacco products and information technology.
ITC shares rose 0.10 per cent to Rs 308.25 at the close on the BSE.