The Hindu Business Line : Kesoram Industries decides to borrow more

Mr B.K. Birla, Chairman, said here that the shareholders had passed an enabling resolution to raise the borrowing limit by Rs 1,000 crore to Rs 3,000 crore at the annual general meeting.

Mr S.K. Parik, Director of Kesoram, said, with lending rates hardening this year, the company might not go in for further borrowing unless it could get a favourable rate from lenders till December. He said the average rate that company paid so far on its borrowings was 8.49 per cent.

The company has been banking largely on borrowings for its Rs 2,150-crore expansion plans for cement as well as tyres.

The on-going expansion projects, both greenfield and brownfield, would take the tyre capacities to 753 tpd and would be completed by end of 2008 and enhance the cement capacity to 7.5 million tonne a year.

“For further expansion, we would take a call in the last quarter of this year,” Mr Birla said.

He said Ernst and Young had been appointed for Kesoram’s effort to cash in on carbon credits from both tyre and cement manufacturing. Mr Birla said the company would take a hard look at the loss-making spun pipes division, which has been closed for some time now. But, he ruled out sale or hiving off of the rayon and transparent paper division as it was still making profits, though small.

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