Grasim to restructure business?

According to an announcement to the Bombay Stock Exchange, the Board of Grasim [BSE: 500300] will meet on Oct 3, 2009 ie tomorrow to consider a proposal for the restructuring of business.

Larsen and Toubro had sold its residual stake in Ultratech Cement earlier this year. It may be possible now, that Grasim may transfer its cement business to Ultratech. There is another possibility- a merger of Ultratech and Grasim.

There were rumours of the latter case earlier this year, when Grasim declined them- saying there "was not much value in merging with Ultratech".

If Grasim hives off its cement biz to Ultratech, that would be a serious blow to its top line as well as its bottom line. Cement accounted for nearly 80% of its revenue last year. And thus, the latter case may be more probable.

Let's see what happens- if you're a Grasim investor, you better watch tomorrow's news!