business

Kothari Industrial Corpn. new promoters unveil aggressive plans

On Aug 27, 2024 By The Hindu Bureau

City-based Kothari Industrial Corporation Ltd., (KICL) has got a fresh lease of life with the induction of a new promoter J. Rafiq Ahmed, who has vowed to take it back to its hey days.

As a first step in this direction, Mr. Ahmed has pumped in funds to keep KICL afloat as a going concern and got it relisted on the BSE after a gap of 20 years.

Mr. Ahmed stake is set to raise to 73% post the completion of proposed open offer, following the acquisition of controlling stake in the wake of preferential allotment of shares. Currently, he holds 47%.

“We have drawn up aggressive plan. The future of Kothari is going to change. The glory will come back,” Vice Chairman and Managing Director J. Rafiq Ahmed told the journalists.

Mr. Ahmed said that he would be focusing on core sectors such as fertilisers, footwear, synthetic textiles, food sector, drone manufacturing and setting up training centres.

“We will complete major projects in these areas within the next two years. Overall investment will be around ₹16,000 crore. We are yet to finalise the shareholding pattern and investment structure among others,” he said.

According to Mr. Ahmed, KICL is exploring the setting up of a 1.2 million tonnes fertiliser plant in Qatar. In this regard, he said that talks are on with the Qatar Government and a company patronised by Qatar’s ruling family may invest in KICL. A representative of the company may also join the board of KICL soon, he added.

Mr. Ahmed said the Perambalur landscape has changed with the setting up of Footwear Components Park there providing jobs to hundreds of people. They have already roped in Crocs and Fila and many more footwear brands are set to join hands with Phoenix Kothari Footwear Ltd. Besides, Amazon retails KICL’s eight footwear brands.

Asserting that they are planning to set up drone training centre in Madurai as there was shortage of drone pilots, he said it would be followed by the manufacture of drones.

KICL is also planning to set up a vegetarian restaurant once in every three months. The first one was opened in Chennai recently.

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