Kesoram industries to invest Rs 1,500 crore in expansion

Kesoram Industries, the flagship firm of the B K Birla group, will invest Rs 1,500 crore in expanding its tyre and cement businesses.

Kesoram Industries Chairman B K Birla said the board was examining the plan that entailed an investment of Rs 800 crore at Balasore for radial tyres and Rs 750 crore in Vasavadatta Cement. The total cement capacity of Kesoram Industries is 7.25 million tonnes. Capacity of 1.65-million tonnes would be added to Vasavadatta Cement.

The plan would be approved by the board in three months and would be implemented in two years.

Birla said, around a month-and-a-half production cut had to observed in its tyre units due to poor demand by original equipment manufacturers (OEMs).

The company’s off-the-road (OTR) project at Balasore was complete and the greenfield project at Haridwar with a production capacity of 257 tonnes a day had started commercial production.

A motorcycle tyre project with production capacity of 70 tonnes a day was sanctioned this year. The plant would entail capital expenditure of Rs 190 crore. Depending on the economic scenario, the company would embark on further expansion, Birla added.

Succession plans
Birla today said that his grandson Kumar Mangalam Birla would take over the company.

Addressing shareholders of Kesoram Industries, Birla said, “The company was purchased by my father in 1920-21. My father was in-charge and then my elder brother. I came into the picture in 1937. My grandson, who is in Mumbai, will take over the company.”

Later responding to media queries on a succession plan for the Rs 10,000-crore group, Birla said the majority of the companies would go to Kumar Mangalam Birla. The major companies included Kesoram and Century Textiles.

Daughters — Jayshree Mohta and Manjushree Khaitan — would get Jay Shree Tea & Industries and Manjushree Plantations, respectively. He also said that granddaughter, Vidula Jalan (Khaitan’s daughter) and her family would get Mangalam Cement. His latest will was approved by family members a month ago.