The Hindu Business Line : Kesoram Ind to hive off heavy chemicals unit

THE Rs 1,759-crore Kesoram Industries Ltd, the flagship company of the B.K. Birla Group, has decided to hive off its loss-making heavy chemicals business.

This was stated by Mr B.K. Birla, Chairman of the company, on Thursday while talking to presspersons after chairing the 86th annual general meeting. According to him, the rayon and transparent paper division is also registering losses.

"However, we have no plans to sell it off. Yes, we would like to sell the chemicals business if we get a good offer. There are buyers and we might have discussions with them," Mr Birla said.

Kesoram Industries' activities are spread over a number of sectors. Apart from rayon and chemicals, it is a cement and tyre major too. The company also produces spun pipes and foundries. According to Mr S.K. Parik, Managing Director of Kesoram, the tyre business generates 44 per cent of the revenue, followed by cement with 39 per cent and rayon with 10 per cent. Chemical and spun pipes together generate seven per cent of the revenues.

"Our core business is cement and tyre. We will focus more on these two sectors in the near future. Our plants were set up in the licensed era. They need refurbishment now. So, we are expanding the capacities," Mr Birla said.

The company has already undertaken an expansion programme of the cement division. Fresh capacity of 16.5 lakh tonnes is being added at a cost of Rs 425 crore and it is likely to be commissioned by the end of the next year.

"Once we are over with the expansion of the cement capacity we will think of increasing the tyre capacity but nothing has been finalised," the Chairman said.

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