The board has also approved that each shareholder holding 100 equity shares of Rs 10 face value in Gulshan Sugars & Chemicals (before demerger) shall be issued 80 equity shares of Rs 10 face value in Gulshan Sugars & Chemicals (demerged entity), 50 and 20 each equity shares of Rs 10 each in two new resultant companies. The cut off date has been fixed as April 1, 2000.

The demerger would enable the company to bring synergy into its operation with a focused business approach on each activity and to foster strategic alliances and collaborations. The proposal is subject to approval by the financial institutions, creditors, shareholders and the Delhi High Court.

Gulshan Sugars has appointed an independent consultant to review its business structure . The company is a market leader in the manufacture of speciality chemicals such as calcium carbonate etc.The company has the largest manufacturing facilities to produce calcium carbonate and sorbitol in India. Its clients include Colgate, Hindustan Lever, Balsara etc.