Kesoram Industries, the diversified flagship company of the BK Birla group, is planning to hive off its rayon business to Cygnet Industries for an estimated Rs 480 crore. The move is part of the company’s strategy to reorganize and realign its existing businesses and assets including tyre and cement.
The company’s rayon business, which clocked gross revenue of Rs 257 crore in FY 2014-15, will be transferred to Cygnet Industries. Incidentally, Kesoram Industries’ rayon business accounts for less than 5 % of its total turnover of Rs 4873 crore as on March 31, 2015. It has a net worth of Rs 109 crore.
Kesoram Industries is engaged in the manufacture of cement, tyres, tubes, rayon, paper, heavy chemicals and spun pipes.
