After cement deal, Kesoram to pare debt

Text Size

• Small
• Medium
• Large

KOLKATA: The top priority of B K Birla Group firm

Kesoram

will be to reduce

debt

to stay afloat after the

demerger

of the

cement

business to

UltraTech

last year. At the first AGM after the demise of Kesoram chairman Manjushree Khaitan, CEO & wholetime director P Radhakrishnan said the company will focus on rayon and transparent paper business. The demerger of cement is pending with NCLT.
Radhakrishnan said Kesoram now has no operating business but its subsidiary Cygnet Industries has rayon and transparent paper business.

Cygnet Industry has a debt of Rs 220 crore. “Our priority is to reduce debt,” he added. Cygnet has signed an agreement with Futumera of Japan for transparent paper business as well. According to Radhakrishnan, rayon and transparent paper business taken together has a turnover of Rs 300 crore and the potential to go up to Rs 500-600 crore. Last Nov, Kesoram had decided to demerge its cement business and merge it with UltraTech, the country’s largest cement producer, through a share-swap deal.