Industrial chemicals and fertilisers manufacturer Deepak Fertilisers and Petrochemicals Corporation (DFPCL) on Thursday announced a corporate restructuring plan under which it will demerge its mining chemicals and fertilisers businesses.

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The board of Smartchem Technologies (STL), a wholly-owned subsidiary of DFPCL, in a meeting on Thursday approved a corporate restructuring plan that will help unlock the growth potential of each of the businesses, the company said in a statement.

It approved the demerger of the TAN business (mining chemicals) from STL to DMSPL, a wholly owned subsidiary of DFPCL, and amalgamation of Mahadhan Farm Technologies (MFTPL), a wholly-owned subsidiary of STL, with STL.

"Over past few years, DFPCL has improved its operational performance, generated cash flows, and strengthened the balance sheet while focusing on increasing investments in greenfield expansions.

"The proposed corporate restructuring shall considerably help create strong independent business platforms within the larger DFPCL brand umbrella, hence enhancing stakeholders' value over time," DFPCL Chairman and Managing Director Sailesh C Mehta said.

Earlier, he said, DFPCL Group's strategy was primarily focused on production, cost optimisation, capacity utilisation and efficiency improvement.

"This radical shift in strategy was deemed necessary to significantly improve customer experience, enhance market share, and build a sustainable brand. In terms of growth trajectory and value creation, both TAN and Crop Nutrition business have attained a strategic size and relevance to deserve stand-alone corporate identities and focussed leadership," Mehta said.

Shares of the company on Thursday closed at Rs 812.40, up 1.12 per cent on BSE.