It is emerging now, that in today's fiercely competitive global market landscape where factors like business cycles, economics and investment requirements determine the fate of a business entity, demerger makes sense.Aperceptible change in the business paradigm has been taking place the world over. Globally, companies are either selling off or demerging divisions that are not integral to their core activity. This is a marked change from the era of diversification when de-risking of the business model was at the center of the growth strategy. What has been driving this change? With the core competency emerging as the new mantra for growth, corporates are either abandoning the peripheral businesses or demerging them in order to remain focused.

As long as there was a sharing of common interest between different businesses of a corporate, diversification emerged as a better strategy for growth. However, with the difference between various businesses now standing out more clearly than ever before, demerger has evolved as a better strategic tool in the corporate survival game. It is emerging now, that in today's fiercely competitive global market landscape where factors like business cycles, economics and investment requirements determine the fate of a business entity, demerger makes sense.

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