Kesoram Industries – Paving the Way for a Brighter Future

Introduction

Kesoram Industries, India’s leading tyre and cement manufacturer, has been making significant strides in its journey towards a sustainable and profitable future. The company’s focus on innovation, cost optimization, and customer satisfaction has helped it thrive in the highly competitive market.

In this article, we will take a closer look at Kesoram’s current state and its plans for the future.

Current State

Kesoram Industries has a diverse business portfolio that includes tyres, cement, rayon, and the latest addition – VSF (Viscose Staple Fibre). The company’s tyre division has consistently delivered above-average financial performance in recent years, despite facing stiff competition from both domestic and international players.

The cement division, on the other hand, has been struggling due to overcapacity in the industry, a sluggish demand environment, and rising input costs. However, Kesoram has taken several measures to reduce costs, improve efficiency, and streamline operations in this business.

The company’s rayon division has also been performing well, thanks to its focus on value-added products and efficient operations. Kesoram’s latest addition, the VSF business, has enormous potential due to the growing demand for eco-friendly textile materials. The company has already set up a 120,000 TPA VSF plant in Odisha, which is expected to contribute significantly to its revenue in the coming years.

Future Plans

Kesoram Industries has outlined an ambitious growth plan for the future, which includes expanding its tyre business, reviving the cement division, and growing its VSF and rayon businesses. Let’s take a closer look at each of these plans.

Expansion of the Tyre Division: Kesoram plans to invest in expanding its tyre capacity by setting up a new plant in Andhra Pradesh. The company expects this plant to be operational by 2023 and contribute significantly to its revenue.

Revival of the Cement Division: Kesoram is focused on improving the performance of its cement division by reducing costs, increasing efficiency, and leveraging technology. The company is also exploring various strategic options, such as partnerships and asset sales, to optimize its portfolio.

Growth of the VSF and Rayon Businesses: Kesoram is bullish on the prospects of its VSF and rayon businesses and plans to invest in expanding their capacities. The company is also exploring opportunities to develop new value-added products and enhance its product portfolio.

Kesoram Industries is also focused on sustainability and has taken several initiatives to reduce its carbon footprint, conserve water, and promote renewable energy. The company’s tire manufacturing plants are equipped with solar power systems, and its cement division has implemented several measures to reduce energy consumption.

Conclusion

In conclusion, Kesoram Industries is well-positioned to capitalize on the opportunities presented by the growing Indian economy. The company’s diverse business portfolio, focus on innovation, and commitment to sustainability make it an attractive investment option for investors looking for long-term growth.

Kesoram’s growth plans, coupled with its cost optimization measures and focus on customer satisfaction, are likely to drive the company’s revenue and profitability in the coming years. As India continues to evolve as a global economic power, Kesoram Industries is set to play a significant role in shaping the country’s growth story.