Archive · 31 Jul 2025
Triveni Engineering Demerger Aims to Unlock Value
Triveni Engineering, which has businesses in sugar and engineering, is separating into two companies.
One company will focus on sugar and ethanol, while the other will concentrate on engineering.
The goal is to make each part of the business more valuable.
The market may not be properly valuing the engineering part.
A similar split in the past led to a big increase in value for the engineering company.
The current demerger could lead to increased value.
Triveni Engineering is splitting its sugar and ethanol business from its engineering divisions.
The engineering segments contribute over a third of operating profits with ~10% of revenue.
The market may undervalue Triveni due to its diverse operations.
The demerger aims to sharpen focus and allow each business to be valued independently.
Triveni previously spun off its steam turbine business, Triveni Turbine Ltd (TTL), which is now a large listed entity.
- Who
- Triveni Engineering & Industries Limited
- What
- Triveni Engineering is demerging its sugar and ethanol business from its engineering divisions.
- When
- The demerger was announced in December 2024.
- Where
- N/A
- Why
- To unlock value and allow each business to be valued independently.
Market Valuation Concerns
Potential for Re-rating
Valuation Discrepancies
Market Valuation Concerns
The market may be undervaluing Triveni Engineering due to its diverse operations.
Potential for Re-rating
The current market price may reflect the value of the company's parts.
- Market Cap
- Rs 7900 crore
- Engineering Revenue
- ~10%
- Engineering Segment PBIT Margin
- 34%
- Sugar + Distillery Revenue
- Rs 6,559 crore (FY25)
- Power Transmission (Gearbox) revenue
- Rs 604 crore (FY25)
- P/E Ratio
- 34
- EV/EBITDA
- 19
