After receiving the Delhi High Court approval for demerger of Orient Abrasives and Orient Refractories, SG Rajgrahia, managing director of Orient Abrasives says Orient Refractories is most likely to be listed by January 2012.

Rajgrahia expects both companies to earn combined revenue of around Rs 500 crore. "The companies are expected to grow at the rate of 10-15%, on the topline Both the businesses are doing well but since we wanted independence in the operation of both the divisions both businesses are separated," he explains.

As to the reason for this demerger, he said:"Both the businesses are quite independent of each other, although the raw material business does supply some raw materials to the refractory division. The customer profile is also different whereas the refractory supplies to all the steel companies. We are primarily a company which manufactures refractories for steel only. The raw material business feeds the refractory industry and also the abrasives industry. Hence, the focus of both the businesses is different. We wanted independence in the operation of both the divisions so that each could focus on its own business and grow independently. We thought there would be greater growth if they were separated instead of keeping them together. Globally, we have the same perception."

He also explained that the power division has two parts, one is the captive power plant in the raw materials division which meets the requirement of fused alumina production and we have certain wind turbines capacity of 11 megawatt which is green power and we supply that to the state electricity boards. It is another revenue generating area. So, it goes with the raw materials company-Orient Abrasives and not with the refractory company.

Orient Abrasives has received the approval of the High Court yesterday and it will take about two months to issues the shares of Orient Refractories to the present shareholders of Orient Abrasives. Thereafter, Orient Abrasives will submit an application to the stock exchanges for listing which may take another two months. The total timeline for listing of Orient Refractories shares should be estimated at around four months from now. So, may be in the month of January Orient Refractories should be listed.