Kanoria Chemicals and Industries Ltd plans to use the proceeds from the divestment of its chloro-chemicals division for expansion of the speciality and fine-chemicals business. Also planned is an entry into solar energy, preferably in Rajasthan.
Kolkata-based Kanoria sold its flagship chloro-chemicals business to Aditya Birla Chemicals (India) Ltd for Rs 830 crore in April, and is now left with the fine-chemicals business through its formaldehyde plant in Visakhapatnam. The company says it will now focus on production of a wider range of fine and speciality chemicals from Vizag.
“Of the Rs 830 crore that we got from the divestment, close to Rs 330 crore was spent on repaying the debt, Rs 32 crore went towards dividend payment and Rs 100 crore for tax payment. We are now left with approximately Rs 370 crore in cash, and this will be invested in 4-5 new businesses,” the Chairman and Managing Director, Mr R.V. Kanoria, told newspersons on the sidelines of the Federation of Indian Chambers of Commerce and Industry's national executive committee meeting here on Saturday.
According to him, the company also plans foray into the renewable energy sector, preferably solar.
“We are interested in renewable sector such as solar. We will take a long-term bet on it, but the initial investment will not be too high. Rajasthan will be a preferred destination for such foray,” he said. He refused to divulge further details of the project.