Date:30/06/2007 URL: http://www.thehindu.com/2007/06/30/stories/2007063050691600.htm

Business

Kesoram to ramp up cement, tyre manufacturing capacity

Lines up Rs. 1,200 crore investment

Acquires 103 acres in Uttaranchal
Funding through internal accruals, loan

— Photo: A. Roy Chowdhury

SUCCESSION PLAN: B. K. Birla, Chairman, Kesoram Industries, addressing the 87th annual general meeting of the company in Kolkata on Friday.

KOLKATA: The B K Birla group company, Kesoram Industries Ltd. (KIL), had lined up investment plans totalling Rs. 1,200 crore to ramp up its cement and tyre manufacturing capacity through greenfield and brownfield expansion.

“We will invest Rs. 700 crore in a new car radial tyres at Uttaranchal and Rs. 500 crore to expand our cement production capacity,” KIL Director S. K. Parik told reporters on the sidelines of the company annual general meeting here on Friday.

The investment would be made in the next two years and the company, he said, would finance the expansion through internal accruals and loan.

“Internal accruals will be to the tune of Rs. 300-350 crore and the balance will be funded by ICICI Bank and SBI and the entire loan amount has been tied up,” Mr. Parik said.

The company would add 1.6 million tonne of cement capacity in Karnataka to take its consolidated capacity to five million tonnes (clinker and cement combined).

The greenfield car tyre unit will have a capacity to produce 320 tonnes. KIL’s existing tyre capacity is 230 tonnes. “We have already acquired 103 acres at Uttaranchal for the tyre unit,” Mr. Parik said. Speaking about Hindustan Heavy Chemicals, Mr. Parik said the company was scouting for buyers for the division but yet to get a proper offer. — PTI

Reuters reports:

No time frame

Kesoram Industries Chairman B. K. Birla said on Friday that he had not set a time frame to pass on the control of the company to grandson and head of the Aditya Birla group, Kumar Mangalam Birla.

“We will do it, but I do not know yet how, nor have we chalked out a time frame,” Mr. Birla, 87, said after the annual shareholders’ meet. “Kumar Mangalam wants me to continue and I will be happy working till 90.”