Kesoram embarks on Rs 1200 cr expansion plan

Kolkata, Jun 29: Kesoram Industries Limited, a B K Birla group company, has embarked upon a Rs 1200 crore expansion plan for its cement and tyre businesses.

Speaking to mediapersons on the sidelines of the 88th Annual General Meeting, B K Birla Group Chairman Basant Kumar Birla said, ''The Kesoram Industries will increase the total cement capacity from 3.5 MT to 5 MT by next two years.'' Around Rs 500 crore will be invested in a 1.65 Million Tonne cement plant under Vasavdatta Cement. The expansion of the clinker and cement plant, from the existing 1.25 MT, capacities would be undertaken by the next two years. The new plant is part of the existing plant, company secretary Sujit Kumar Parik said.

''A greenfiled tyre manufacturing project has been planned in Uttarakhand with an investment of Rs 700 crore. The plant, to be commissioned in the next two years, will have a production capacity of 320 MT,'' Mr Birla said. The project would be funded through equity of Rs 250 crore and the rest would be debt. SBI and ICICI banks are the main bankers for the project.

Birla Tyre has another plant in Balasore with a capacity of 250 MT.

Kesoram Industries Limited has registered Profit After Tax of Rs 265.68 crore in 2006-07 compared to Rs 45.71 crore in the previous year. Dividend has been increased from Rs 3 to Rs 4 per share.

UNI