Treet to demerge its battery trade

KARACHI: Treet Corporation Limited has announced it will demerge its maintenance-free battery manufacturing business from First Treet Manufacturing Modarba (FTMM) and list it as Treet Battery Limited.

Speaking at a corporate briefing the other day, Group CFO of Treet Mohtasim Aftab said, “The demerger shall help value creation for the Modarba certificate holders and will also enable the new company to raise fund from the market which may be used to retire its expensive debt, which is hurting the group’s bottom line on the whole.”

In 2018, Treet Group launched its maintenance-free and deep cycle battery manufacturing facility as well as acquired 58 percent stake in dialysis concentrate manufacturer, Renacon Pharma Limited. The group's existing product portfolio includes razor manufacturing, corrugation, soaps and motorbikes.

Regarding another ongoing venture of the group, Renacon Pharma, the CFO explained that under the company’s expansion and diversification plan, the production capacity of Renacon would be increased by almost ten times. “Company is confident that upon completion, Renacon will be able to tap the export potential for its products outside Pakistan,” he added.