Sterlite Power Transmission Limited (SPTL), a leading power transmission developer and solutions provider in India and Brazil, announced the strategic decision to demerge its Power Transmission Infrastructure business (BOT model), spread across India and Brazil.
The demerged SPTL entity will continue to hold the Global Products & Specialised EPC Services business as well as the Convergence – Fiberco business.
This move comes as part of the Company’s intent to create ‘pure play’ business verticals based on their end-customer base, investor class and returns.
Globally, the power transmission network is expected to double in the next 8 years to meet aggressive renewable energy additions.
The demand for Power Products is expected to remain strong over the medium term on the back of healthy demand, amid aggressive global capex earmarked for Renewables capacity addition, T&D expansion, benefits from ‘China+1’ theme and favourable tariff structures in the US.
The Power Transmission Infrastructure business encompasses the transmission assets in India and Brazil, which will now be transferred to Sterlite Grid 5 Limited (SGL 5).
Both SPTL and SGL5 will have independent Boards and focused executive management teams.
Under the Board of Directors-approved Demerger scheme.
The company has filed the Demerger scheme with National Company Law Tribunal (NCLT) Mumbai for approval.
The approval process is expected to be concluded within the next 6 to 8 months, as it entails securing a range of approvals, including those from shareholders, creditors, and various regulatory authorities.