B K Birla group company Kesoram Industries Limited today said it wants to increase industrial footprint in Bengal to justify the buyback of its spun pipe and heavy chemicals businesses within two years after they were sold off to Camden Industries Limited.
"We want to increase our industrial footprint. It can be everywhere including here (Bengal)," Kesoram whole-time director and CFO Tridib Kumar Das said here on the sidelines of the company's AGM.
He said Kesoram has bought back similar valuation of around Rs 400 crore at the price they had sold their spun pipe and heavy chemicals businesses and claimed Camden is not part of the promoter group companies.
The spun pipe and foundry division, in which work remained suspended since 2008, is located at Hooghly's Bansberia.
Das, however, was not able to give any indication on what kind of industrial activity the B K Birla group company envisaged in Bengal.
Currently, both tyre and cement activities of Kesoram are based outside the state.
Das also ruled out foraying into any new line of business and said the company will remain in the tyre, cement and rayon sector.
According to a Care Rating document of April 2016, Camden Industries was incorporated in June 2015 and did not have any business activity till date, and the company is now proposing to raise Rs 430 crore via three year NCDs.
Back in March 2016, Kesoram had sold stakes worth at least Rs 428 crore in several listed companies, including Aditya Birla Nuvo and Grasim Industries, through open market bulk transactions, which were acquired by Camden Industries.
Speaking on the turnaround once the tyre business revives, Das said it will be back in profit and Kesoram will be emphasising on marketing and sales efforts.
He said the company has ability to reduce the debt level by Rs 1,841 crore in FY17'.
Hiving off the Haridwar tyre unit to J K Group for an enterprise value of Rs 2,195 crore has helped Kesoram to pare some high debt burden, company sources said.
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