Jain Irrigation, a manufacturer of quality drip irrigation products, on Tuesday said the board of the company have approved the sale of its food business by way of 'Slump Sale' to Jain Farm Fresh Foods Limited to create strategic focus on fast growing food business.
"The board of directors of the company at its meeting held on August 24, 2015, have approved the sale of its food business by way of 'Slump Sale' to Jain Farm Fresh Foods Limited, an effective Wholly Owned Subsidiary (WoS) of the company to create strategic focus on fast growing food business and consequent value creation opportunities," Jain Irrigation Systems said in a filing to BSE.
The food business of the company comprises of food manufacturing units at Jalgaon (Maharashtra), Vadodara (Gujarat) and Chittoor (Andhra Pradesh) besides the indirect subsidiaries carrying on food business activities namely: SQF2009 Limited UK and Cascade Specialities Inc, USA.
The board has also formed a sub-committee comprising of 3 directors to take all decisions regarding the transaction referred above.
To obtain the Shareholders approval, the board had already formed and delegated authority on the August 10, 2015 to convene a Postal Ballot as per Section 110 of the Companies Act 2013 read with Rule 22 of the Companies (Management and Administration ) Rules 2014.