Sintex Industries has proposed to demerge its textiles division into a separate company while retaining its plastics business, subject to approval from its lead financial institution.

Following the demerger scheme, the A (adequate safety) rating assigned to its Rs 3.73-crore NCD issue and the FA+ (adequate safety with relatively higher standing within the category) rating assigned to its fixed deposit programme have been put on rating watch with developing implications by Crisil.

Crisil expects improvement in profitability of the company due to the de-merger of the relatively low profit textiles business.