Economy

Kesoram to set up cement packaging unit in AP

Our Bureau Kolkata | Updated on February 11, 2011

BK Birla Group outfit, Kesoram Industries, is setting up a 2,000-tonne a day packaging unit in Medak district of Andhra Pradesh at a cost of Rs 8 crore, according to a filing by the company to the stock exchanges. The proposed unit would cater to the packing needs of its cement manufacturing unit at Sedam in Karnataka. The diversified company's principal market for the cement is in the southern region.

Despite poorer performance in the quarter to December 31, 2010, the board of the company on Thursday proposed an interim dividend of Rs 2.25 a share of Rs 10 each. It reported a net loss of Rs 15.26 crore in the Q3 against a profit of Rs 36.83 crore.

The management said, it was witnessing a drop in demand and fall in cement prices in the southern region as well as steep increase in rubber prices this year. To top it all, the operations of the company's tyre unit in Uttarakhand remains suspended since September 19 last year on account of havoc caused by floods. Against two claims from the insurer of Rs 4.16 crore and Rs 22 crore respectively on account of damages at the plant, the company has received Rs 29.08 crore.

The stock closed at 2.44 per cent up at Rs 193 on the NSE.

Published on February 10, 2011

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