Kesoram Industries Gears Up for Major Transformation Amid Cement Business Demerger

Kesoram Industries, a B K Birla group firm, expresses its commitment to its loss-making subsidiary, Cygnet Industries Ltd. The company plans to engage with Japanese partner Futamura as a strategic investor post the cement business demerger. Cygnet aims to scale its innovative packaging product business, anticipating a turnaround with fund infusion.

Kesoram Industries, part of the B K Birla group, has announced its commitment to the struggling subsidiary, Cygnet Industries Ltd. During Kesoram's 105th AGM, officials revealed plans to engage with Japanese technical partner Futamura as a strategic investor following the demerger of its cement business.

The meeting, held Tuesday, was chaired by newly elected chairman Satish Narain Jajoo. The company aims to accomplish the demerger by December, paving the way for Cygnet's turnaround with its innovative biodegradable packaging products, said Kesoram's whole-time director and CEO, P. Radhakrishnan.

With a major portion of its revenue from cement, now sold to UltraTech Cement, Kesoram eyes Cygnet's growth through a fund infusion of Rs 45-60 crore. Despite current losses, the firm is optimistic about scaling Cygnet's turnover to Rs 1,000 crore, leveraging its unique position as a manufacturer of biodegradable cellulose transparent paper in Southeast Asia.

(With inputs from agencies.)