The Hindu Business Line : Kesoram to go slow on truck radial plan

THE B K Birla flagship, Kesoram Industries, has decided to go slow on its tentative proposal for manufacturing radial truck tyres. Mr S.K. Parik, Director and Secretary of company, responding to queries recently on the proposal, said that Pirelli, an Italian tyre major, which has collaboration with Kesoram's Birla Tyres division, suggested that in view of the road conditions of the country and practice of overloading by truckers did not augur well for introduction of radial truck tyres in the domestic market.

Birla Tyres, however, already markets steel radial tyres for the passenger cars and LCVs in collaboration with Pirelli.

Meanwhile, Kesoram has posted a 125 per cent jump in net profit at Rs 63 crore in 2003-04, its highest ever, against Rs 28 crore in 2002-03.

The Kesoram board has recommended a dividend of Rs 2.5 for a share of Rs 10 each. During 2002-03, the company paid a dividend of Rs 2 per share. The earnings per share have also increased to Rs 14 per share from Rs 6 per share.

According to Mr Parik, better working of the cement and tyre units, lower burden of interest (down to Rs 34 crore from Rs 50 crore year-on-year) and some exceptional revenue items were behind the sharp improvement in the bottom line. The loss making refractory unit was hived off in April 2004, Mr Parik added. The AGM is scheduled to be held on June 30, 2004.

He informed that the response to the initiative of the company in association with the share registrar, MCS Ltd, for minority shareholders, holding less than 50 shares in physical form, have so far been good. The scheme entails unloading of such shares by the small investors and the company takes the responsibility of dematerialisation and sale in the market. The sale proceeds are then sent to the investors.