One of the largest domestic producers of yarn and denim, Suryalakshmi Cotton Mills, has effectively completed the process of de-merger of its two Strategic Business Units (SBUs) based on Sathguru’s advice. This would provide Suryalakshmi a world of opportunities in harnessing competitive market with the emergence of value chain consolidation and product specialization as the imperative characteristics for achieving leadership, post disbanding of quota regime under the Multi Fiber Arrangement from January this year.

Sathguru’s study on restructuring options suggested that the company could offer product specialization and forge independent strategic relationships that could formulate its growth, enhance shareholder value and attract foreign investments. Its denim unit, which has 12 percent share in the domestic denim market, would have chances of multi-fold growth in the next few years. Similarly, the profits from its yarn unit could also increase.

The Board of Directors of Suryalakshmi approved this strategic approach. Sathguru strategised the whole process of de-merger and executed each of those steps until completion within the time plan originally drawn, much to the appreciation of the company’s management. The consultants from Sathguru worked on this project from start to finish, leveraging the experience gained in successful completion of several similar assignments in the past.