White Organic Agro Ltd today announced that it will divest its stake in subsidiary White Organic Retail Ltd to Suumaya Retail Ltd, a wholly owned subsidiary of Suumaya Industries Ltd.
The company cited the capital-intensive nature of the retail division as a reason for divestment.
“The subsidiary has performed well in the past few years and now is the right time to grasp the opportunity to disinvest and focus on core activities,” it said.
The company feels that there is enormous opportunity in agriculture commodity trading and farming -- an area of expertise for the firm.
“For exploring many unidentified avenues in agriculture commodity trading, expanding horizons, and exploring research and development of seeds and different activities the company would need additional liquidity and the same shall be generated by disinvestment in the said subsidiary,” the statement said.
White Organic Agro provides organic fruit, vegetables, food, and beauty and wellness products. The company offers salts, spices and condiments, juices, mouth freshners, sweeteners, flour, snacks, cereals, pulses, grains, pickles, and medicinal herbs.