THE Chairman of Century Textiles and Industries, Mr B.K. Birla, says the group isnot looking at merging any BK Birla and AV Birla business as of now.

He says the group may look at the possibility of a merger four to five years down the line. It is looking at setting up a cement plant in West Bengal. Further, he says the group is expecting a favourable outcome in the Birla-Lodha case.

Excerpts from CNBC-TV18's interview:

Now that Mr Kumar Birla is on the board — would the first step be to eventually spin out Century Textiles cement business and merge it with Grasim?

I don't think so. The intention is to continue as it is and only after three to four years other possibilities will be examined.

What are your plans for the mill land or the textile land that you own in Mumbai — is there a feeling that you can move your textile manufacturing business to Gujarat and may be look at selling some of your Mumbai properties?

At the moment, we don't have any such moves but it depends on the future. As you are aware, we are operating both spinning and weaving and compared to peak looms we are about one-third.

What is the business plans for Century Textiles for the next financial year?

In Century Textiles, we have got many kind of industries. We are expanding our cement and also paper business. We are also examining the possibility of starting a cement plant in Bengal.

Give us more clarity on this Mumbai land that Century Textile owns, the mill land — do you own it or is it for a long-time lease from the Wadia's and whether you have any plans of converting that lease into an asset of your own?

At the moment, we don't have any plans and now we are operating the mill but plans could change after three to five years.

Are you saying there will be no changes in the structure of how the BK Birla group operates its companies with Mr Kumar Mangalam Birla on your board?

I had asked Mr Kumar Mangalam that I would be happy in case he takes over Century, but he said that as long as I am active and in good health I should continue. So with this background, I don't think we have any plans of amalgamating any part of my companies with Mr Kumar Mangalam's company. He is on the board and I will take his valuable advice but ultimately it will be a separate management.

Is there a plan to put in fresh funds in any of these businesses to help them expand?

We are trying to expand all the industries under my group Kesoram and Century. We have got our own finances but in case we need more we can easily get them from our bankers and out of our own profits. We are not going to issue new capital.

Has Mr Kumar Mangalam privately expressed any desire to you to up his stake in your group companies?

My holding and Mr Kumar Mangalam's holding is the same and we don't say it as his holding and my holding. We have got complete co-operation and love and affection between us. I am 85 years old and don't have any serious plans but whatever expansion is possible in Kesoram and Century and other companies of my group, I will try my best to do it. But ultimately after three to four years these industries will go to Mr Kumar Mangalam Birla.

Any observations that you would like to make of the recent rulings against Mr Lodha?

I don't have any special comments about that. He is also very anxious to fight and we are also very anxious to ensure that our point of view is upheld by the High Court. The last one, we have already won and the other very important judgment is expected within a month and a half, which also we hope to win but then we can't express any definite opinion.

How do you see the tea business panning out? Your assessment of how prices and volumes are moving in the Indian market in the context of what has happened in Kenya and what you expect to see this year?

A few months ago the outlook was bad, everyone was afraid of the tea business. In the last two to three months things have changed a lot, lack of rains in the African countries and even in Assam, the rain is not up to the mark and with this background people have become optimistic and I think things are going to improve.

Here I would like to compliment Mr Khaitan as he has bought two big groups about four to five months ago, so he had the foresight to purchase two big groups of tea in anticipation of improvement in the market.

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