Domestic office automation giants Gestetner India and Ricoh India on Tuesday announced their merger into a single entity.
"The feasibility of the merger was approved by the boards of both the companies," said Gestetner India Managing Director K Swetharanyan at a press conference in New Delhi.
The share-swap ratio has been recommended at 1:6 whereby six shares of Ricoh India would be allotted for one share of Gestetner India.
The merger decision has been taken to maximise the operational efficiencies and leverage the core strengths, Ricoh India Ltd Managing Director Nilava Maitra said.
As per the proposed scheme, Gestetner India would merge with Ricoh India subject to the approval of the high courts in Kolkata and Mumbai.
Both the companies are the subsidiaries of $18 billion Japanese automation major Ricoh and command 22 per cent domestic market share for digital multifunctional copiers with an annual combine sales turnover of Rs 150 crore.
Ernst & Young carried out the feasibility study of the merger.
Representative of the parent company N Fukuda said Ricoh would be willing to waive Rs 10.6 crore arrears of Ricoh India as part of the overall capital restructuring plan.
The merged entity would aim at doubling sales to Rs 300 crore with 30 per cent market share by 2007, Fukuda added.
