Kesoram Industries Ltd

Kesoram Industries Limited, formerly known as Kesoram Industries & Cotton Mills Limited was incorporated on October 18, 1919. Again the name of the Company was changed from Kesoram Industries & Cotton Mills Limited to Kesoram Industries Limited on July 9, 1986. The Company markets its automobile tyres under the brand name 'Birla Tyres' and the core businesses of the Company are manufacturing and trading of tyres. The First Plant of the company for manufacturing of rayon yarn was established at Tribeni, District Hooghly, West Bengal and the same was commissioned in December of the year 1959 and the plant for manufacturing of transparent paper was also set up at the same location at Tribeni, District Hooghly, West Bengal, in June of the year 1961. It has the annual capacity to manufacture 3,600 metric tons per annum (mtpa) of transparent paper. The second plant was commissioned in the year 1962 enabling it to manufacture 4,635 metric tons per annum (mtpa) of rayon yarn. KIL diversified into manufacturing of cast iron spun pipes & pipe fittings at Bansberia, District Hooghly, West Bengal, with a production capacity of 45,000 metric tons per annum (mtpa) of cast iron spun pipes and pipe fittings in December of the year 1964. Subsequently, the company diversified into the manufacturing of Cement and in 1969 established its first cement plant under the name 'Kesoram Cement' at Basantnagar, Dist. Karimnagar (Andhra Pradesh) and to take advantage of favourable market conditions, in 1986 another cement plant, known as 'Vasavadatta Cement', was commissioned by it at Sedam, Dist. Gulbarga (Karnataka). The shaft kiln for calcinations of the company was commissioned in the year 1987 and the balancing equipments were installed. In the year 1990, a technical collaboration agreement was signed with M/s. Pirelli Ltd. of U.K and KIL had commissioned a plant at Balasore known as Birla Tyres in Orissa, for manufacturing of 10,00,000 mtpa automotive tyres and tubes in the first phase during March of the year 1992, in collaboration with same Pirelli Ltd., U.K., a subsidiary company of the world famous Pirelli Group of Italy. In the same year 1992, the company undertook a programme of gradual conversion of its existing conventional spinning machines to lube spinning, superior production process etc. to improve productivity and quality. It has small manufacturing capacities of various Chemicals at Kharda in the State of West Bengal also. The Textile Unit of the company had received ISO 9002 Certificate from D.N.V. Netherlands in the year 1996. During the year 1999, the manufacturing units of the company, which include cement, tyre, rayon, spun and pipe, had received the ISO 9002 certification. As part of the restructuring exercise the company had merged Bharat General & Textiles Ltd (BG&TL), a 100% subsidiary of the company and an unlisted Hindustan Heavy Chemicals Ltd and Birla Century Finance Ltd (BCFL), a listed company. The Kolkata High Court had approved the merger plan in September of the year 2001. FITCH gives 'Ind D1+' rating for Rs.40cr commercial paper programme of the company in the year 2002. All the assets and liabilities of KICM Investment Ltd, a wholly subsidiary was transferred under amalgamation with company from 1st April of the year 2003. KIL had entered into an agreement in 3rd April of the year 2004 to hive off the refractory Division of the company on a hire purchase basis. During September of the year 2004, KIL had acquired 950007 Shares (unlisted) of Assam Cotton Mills Ltd in an Off Market deal and consequently ACML has become 100% subsidiary of the company. Assam Cotton Mills, a wholly owned subsidiary KIL was amalgamated with the company with effect from 1st April of the year 2005. During the year 2006-2007, the company made expansion in cement division, the clinker capacity by 1.25 MTPA and cement capacity by 1.65 MTPA, which was termed as Unit III and successfully commissioned. The commercial production of the same was started from 1st March of the year 2007. KIL had started the commercial generation of power in the captive thermal power plant in April of the year 2007 at the Unit-III in Vasavadatta cement, section of the company at Sedam in the state of Karnataka. Kesoram Industries divided into two entities to Manjushree Khaitan and to Kumar Mangalam Birla in accordance with the succession plan for the company. KIL had received FAPCCI Award for Excellence in Industrial Productivity- 2007 and also the Best Management Award 2007 from the Government of Andhra Pradesh. The Company commenced its commercial production for the first phase of its new 257 metric tons per day Greenfield project of truck tyres at Laskar, Haridwar in Uttarakhand from 28th May of the year 2008. KIL planed to invest Rs 8.40 billion for expanding its operation at its Uttarakhand tyre complex during May of the year 2008 and also the company planned a power plant of 175 MW at an estimated cost of Rs 5,000 million. The Company introduced a new supply chain process. This ensures that minimum stock levels are maintained across 103 depots and 13 regional distribution centres around the country. So the dealers can be confident that they have the stock as and when required. The Company has a dedicated team of sales engineers at major locations across the country to provide services to customers. The regional management teams are empowered to provide service, distribution and marketing support in each region, making it easier and quicker to give the dealers quality support. The Indian vehicle manufacturers (OEMs) respect the quality and value of tyres and fit as original equipment on their new commercial vehicles, scooters, motorcycles and 3-wheelers. The Company have been factory fitted on new vehicles such as, Ashok Leyland, Tata Motors, VE Commercial Vehicles and Volvo to give their customers safety and reliability. The Company is recognized for effectiveness and success in supplying to export markets. The Company exports to more than 20 countries including Bangladesh, Philippines, Sri Lanka and Vietnam, as well as many others across Africa, Asia, the Middle East and South America, with as much as 15% of production of bus and truck tyres going to export. It has been the recipient of CAPEXIL Special Export Awards and is recognized by the Indian Government for export achievement in respect of Automobile Tyres, Tubes and Flaps. The Board of Kesoram Industries Limited (the Demerged Entity), to reorganize its operating businesses proposed a 'spin off' of the Tyre Business through the demerger route into a new Company, Birla Tyres Limited (the Resultant Entity) effective commencement of business, 1st January, 2019. Pursuant to restructuring, the Tyre Business of the Company was demerged and vested with Birla Tyres Limited through the Scheme of Arrangement for Demerger and made effective on December 4, 2019. The Board of Directors of the Company at its meeting held on, November 30, 2023 has approved a Scheme of Arrangement between the Company and UltraTech Cement Limited on April 1, 2024 to demerge the Cement business and merge with UltraTech Cement Limited.