Archive · 7 Nov 2025
SRF May Demerge Performance Films and Foils Business Post EBITDA Milestone
Imagine a company called SRF that makes different things like special plastics, packaging, and strong fabrics.
Right now, all these businesses work together, and the money from the strong fabric business helps the other two grow faster.
The boss, Ashish Bharat Ram, said that they might split the plastic and packaging part into its own company.
They will only do this if that part of the business starts making a lot of money, between 1,000 and 1,200 crore rupees before certain costs.
He said this could help people see the value of each part more clearly.
But keeping them together also helps all the parts grow better because they can share money easily.
So, they are thinking about it, but it depends on how well the plastic and packaging business does.
SRF Ltd. is considering a demerger of its performance films and foils business.
The demerger is contingent on the business achieving annual EBITDA between ₹1,000 crore and ₹1,200 crore.
Keeping businesses consolidated allows for cash fungibility, benefiting growth in chemicals and packaging divisions.
A demerger could provide immediate clarity of value for public shareholders.
The performance films and foils business reported ₹259 crore EBIT in the first half of FY25.
- Who
- SRF Ltd., its Chairman and Managing Director Ashish Bharat Ram
- What
- SRF is considering demerging its performance films and foils business.
- When
- Once the business reaches annual EBITDA levels between ₹1,000 crore to ₹1,200 crore.
- Where
- India (implied, as SRF Ltd. is an Indian company and discussions are with CNBC-TV18)
- Why
- To create more value for public shareholders and potentially unlock specific business segment potential.
Consolidation Advantage
Demerger Advantage
Capital Allocation and Growth
Consolidation Advantage
Keeping businesses together allows for cash fungibility, where the cash cow (technical textiles) fuels faster growth in chemicals and packaging divisions, leading to potentially higher consolidated returns.
Demerger Advantage
Separating businesses could provide immediate clarity of value for shareholders, allowing each segment to operate independently and potentially unlock specific market opportunities.
Shareholder Value
Consolidation Advantage
Consolidation offers the potential for higher overall returns through strategic internal capital redeployment.
Demerger Advantage
A demerger could offer greater transparency and immediate recognition of value for public shareholders in each distinct business vertical.
- Company
- SRF Ltd.
- Potential Demerger Business
- Performance Films and Foils
- EBITDA Milestone for Demerger
- ₹1,000 crore to ₹1,200 crore
- Current Financial Year-to-Date (FY25) EBIT (Films & Foils)
- ₹259 crore
- Full Financial Year (FY24) EBIT (Films & Foils)
- ₹356 crore
- Stock Performance (2025 YTD)
- +31%