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Tuesday, July 23, 2024

Kesoram emphasizes reducing debt as top priority post cement business demerger

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In Short:

Kesoram Industries, a BK Birla Group company, aims to reduce debt after demerging its cement business to Ultratech. The company plans to focus on its subsidiary, Cygnet Industries, and engage with its Japanese partner, Futamura. The approval for demerger is awaited, with a focus on turning around Cygnet with innovative products. New chairman Satish Narain Jajoo prioritizes debt reduction following the demise of former chairperson Manjushree Khaitan.

Kesoram Industries focuses on debt reduction post demerger with Ultratech

Breaking news from BK Birla Group firm Kesoram Industries! They are on a mission to tackle their debt head-on after the demerger of their cement business to Ultratech. This Kolkata-based company is determined to keep sailing smoothly, even after the significant move.

The Commitment to Cygnet Industries

Despite facing losses, Kesoram Industries is standing by its subsidiary, Cygnet Industries. They have big plans to discuss with their Japanese technical partner, Futamura, who might come onboard as a strategic investor post the cement business demerger.

  • Also read: Kesoram Industries Chairperson Manjushree Khaitan passes away at 68

The Cygnet Turnaround

In the recent AGM, CEO and Whole-time Director P Radhakrishnan emphasized the company’s pivot towards the rayon and transparent paper business still intact within the organization. The demerger approval for the cement business is pending with NCLT.

Radhakrishnan expressed, “We are not looking to divest Cygnet at the moment. Our focus is on concluding the demerger process by December this year. We strongly believe in bringing Cygnet back on track, especially with its range of innovative packaging products.”

  • Also read: NCLT approves resolution plan of Himadri and Dalmia Bharat to acquire B K Birla group

New Leadership in the Spotlight

Satish Narain Jajoo took the reins as the new chairman during the AGM, succeeding the late Manjushree Khaitan, who played a pivotal role in the company until her passing on May 16. Khaitan, the daughter of renowned industrialist BK Birla, had been leading Kesoram Industries since 2019.

“Our main focus right now is on reducing our debt,” added Radhakrishnan.

Last November, Kesoram announced the decision to demerge its cement business and merge it with UltraTech, a major player in the industry, through a share-swap deal.

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