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.
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.
