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Kesoram Industries to reduce working capital requirement

23 Dec 2013 Evaluate

In a bid to pare its debt, Kesoram Industries is planning to reduce its working capital requirement by around Rs 300 crore this fiscal. The company is also planning to sell some of its unproductive assets. Moreover, the diversified company plans to improve the debt-equity ratio from nearly 4.5:1 now to a more manageable 3:1 over the next couple of years.

As of now, the company’s total debt stood at Rs 4,700 crore and of the total debt around Rs 1,300 crore is working capital borrowing.

Kesoram Industries (KIL) is engaged in the manufacture of cement, tyres, tubes, rayon, paper, heavy chemicals and spun pipes. KIL is also listed on Societe de la Bourse de Luxembourg stock exchange.

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