Assets of ‘Kemrock Industries and Exports Ltd.’ acquired by Reliance Industries Ltd.

Wednesday, September 6, 2017

Vadodara: Reliance Industries Ltd. acquired the assets of “Kemrock Industries and Exports Ltd.” for Rs. 605 Crores in an online e-bidding by Allahabad Bank as the lead bank of the consortium of 11 Banks that took over the assets of this Company for defaulting the loan repayments.

Kermock was the only Company in India which was producing Aerospace grade Carbon Fibre which is an essential raw material to manufacture Aircraft, Satellites and Nuclear reactors. The Carbon Fibre plant of Kemrock was inaugurated by Dr. A P J Abdul Kalam in 2010 and the products were certified by CEMILAC for Aerospace use in 2011. Unfortunately the unexpected time and cost overrun in establishing new technologies resulted in Kemrock’s inability to repay the loan in time and this led to the Banks taking over the assets and selling it off.

"This acquisition of Kemrock assets is a part of Reliance’s efforts to enter the Composites business and establish a leadership position in this large and growing market in India. Composites are used in a variety of applications and industries such as renewable energy, mass transportation, infrastructure and a host of other industrial products.
The assets will pave the way for Reliance to foray into new materials (Composites and Carbon Fibre) and further strengthen its petrochemicals business portfolio. The Company is in the process of complying with the necessary formalities for acquisition of assets" stated a media release from Reliance. .

"Acquisition of the assets of Kemrock by Reliance is the best thing that could have happened to this world class facility at this juncture as Reliance with enormous resources available under its command could revive and grow this Company to greater heights and substantially contribute to the development of our Country" said Mr. Mahendra Patel, former CEO of Carbon Fibre project and Technology Director of Kemrock.

Kemrock was the only Company in India which was certified by Delhi Metro Rail Corporation to manufacture Metro Coach interiors. Since Kemrock was closed down Metro coach interiors are currently imported from Korea for the growing requirements of the country.

Kemrock Industries and Exports Ltd started by Mr. Kalpesh Patel in 1984 in his garage grew over the years under his leadership and had a turnover of about Rs.900 Cr. in 2011 with a profit close to Rs. 250 Cr. according to information available online. Kemrock was employing about 3500 people when it was fully functional until 2012.

"As a Technocrat I am happy that we established Kemrock as one of the largest Composite Companies in the world with every latest Composite technology deployed in our facilities to produce a variety of high technology products well accepted by our clients world over.
We tried everything possible to keep our Company afloat but were sad to see the Company falling apart due to non-availability of working capital in spite of huge orders from abroad on a continuous basis.
I will be the happiest person if all our employees who joined hands with me in building this Company brick by brick, including many tribals from the vicinity of our factory for whom this was their only source of livelihood get back their jobs" said Mr.Kapesh Patel.

About Reliance Industries Limited (RIL): Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated turnover of INR 330,180 crore ($ 50.9 billion), cash profit of INR 42,800 crore ($ 6.6 billion), and net profit of INR 29,901 crore ($ 4.6 billion) for the year ended March 31, 2017. RIL is the first private sector company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 203rd in terms of revenues, and 110th in terms of profits. The company stands 106th in the ‘Forbes Global 2000’ rankings for 2017 – the top-most among Indian companies. It ranks 10th in LinkedIn’s ‘Top Companies Where India Wants to Work Now’ (2017). RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.