BK Birla Group’ diversified outfit, Kesoram Industries has committed combined investment worth Rs 485 crore for completing a new cement grinding unit and a delayed passenger car tyre project. About Rs 235 crore would be for its ‘semi-completed’ tyre project at its existing Balasore (Odisha) plant. The company has existing facilities for commercial tyres sold under ‘Birla Tyres’ brandname. The projects will be part-financed through the recent rights issue proceeds of Rs 416 crore.
Kesoram Industries has earmarked Rs 250 crore for the cement grinding unit at Sholapur (Maharashtra). This is the company’s first standalone grinding unit outside its production bases in Karnataka and Andhra Pradesh with a total capacity of 7.2 million tonne a year. The new grinding project’s first phase of 1.5 million tonne would be complete in the next months, said Arvind Kumar Singh, CEO – Business Operations.
After the rights issue, its net worth now stands at Rs 996 crore and the total debts at Rs 4,700 crore. The rights issue has also increased the promoters’ stake to 49.28 per cent of the enhanced equity of Rs 109.77 crore, from pre-rights 27.12 per cent.