Kemrock Industries & Exports Ltd. to invest $400 m in 5 years

Kemrock Industries & Exports Ltd, the Vadodara-based company that supplies parts to Formula 1’s McLaren-Mercedes and BMW manufactured with reinforced polymer (FRP) composite, an alternate material for steel and aluminium made from resin and fabric glass fibre plans to invest $300-400 million in the next 4-5 years.

The company has signed memoranda of understanding for forming joint ventures in advanced composite, renewable energy and aerospace segments, which will be announced in the next quarter.

The export oriented unit which is also planning backward integration is aiming an annual growth of 55-70%.

Kemrock will expend Rs 300-400 crore for a joint venture with German company Saertex to be funded through debt and equity.

The company at present has a debt of Rs 400 crore and has raised $50 million through a GDR issue recently. It has postponed its rights issue by one more quarter as it is waiting for the right timing, Kalpesh Patel, chairman and managing director, said.

A company official who did not wish to be identified said, “Kemrock had supplied cable for the KG-D6 basin and is now in discussion for cooling towers.”

The company has set up India’s first carbon fibre composite plant which would produce light weight components for critical engineering like aerospace and non-critical ones too.

In the first phase the plant would have a capacity of 400 tonnes per annum (tpa) which will rise to 800 tpa in the second phase.

The total project cost is Rs 250 crore and production would start in the next 4 months.