Plastics firm Sintex Industries is to spin off its textiles division into a separate firm called Bharat Viay Mills. This new company has a paid-up capital of Rs70 lakh and will be responsible for textile operations which previously accounted for around 40 per cent of Sintex's turnover.

The demerger was approved by the Sintex board back in June as part of a plan to revamp of its operations, separate two unrelated areas of businesses, and make way for a joint venture collaboration. The two divisions have always operated independently and the break-away should be completed by 1 April 2002.

According to financial sources, Sintex is now looking for a joint venture partner to bring new technology in to the textiles division. The new company will also inherit the composite textile mill at Kalol in Gujarat.

Under the proposed demerger scheme, Sintex shareholders will be issued one share in Bharat Vijay for each share held.