VINYLCHEM

Vinyl Chemicals (India) Ltd. has informed the Exchange that "The Board of Directors of our Company had approved, in principle, the Demerger of our manufacturing unit at Mahad into Pidilite Industries Ltd which Company has also informed you likewise. At that Board Meeting, our Company had appointed an Implementation Committee consisting of some of our Directors with a view to carrying forward the process, formalities, etc. required for such Demerger. That Committee appointed Valuers for recommending a fair ratio for allotment of shares pursuant to such Demerger as also appointed Law firms, etc

Vinyl Chemicals (India) Ltd. has informed the Exchange that: "A Board Meeting of this Company was held today (March 21, 2007) and the Board approved, in principle, the proposal for the demerger of our manufacturing unit at Mahad into Pidilite Industries Ltd. with effect from April 1, 2007, which will now be processed in terms of Section 391 and 394 of the Companies Act, 1956 and would be subject to the respective approvals of the Shareholders and the High Court at Mumbai."