The promoter group of Ballarpur Industries (BILT) is pumping in around Rs 300 crore in the firm to strengthen the balance sheet and provide funds to repay overseas investors, a top company executive said. Overseas investors own foreign currency convertible bonds (FCCBs) worth $52 million that is coming up for redemption in July this year.
“The fund infusion will improve cash position of the company to meet FCCB redemption,” B Hariharan, chief financial officer of Avantha Group told ET.
Meanwhile, the country’s largest paper producer said it expects paper prices to go up within the next three months that will help offset rising raw material costs. Bilt is also banking on recently added production capacity to generate higher volumes that will drive revenue growth.
“Margins have been impacted by higher raw material costs but we feel pulp prices are close to their peak so it is unlikely to hurt further. Higher cost of pulp is going to push up paper prices which may happen either at the end of the three months ending March’10 or at the beginning of the next quarter which will help recover margins,” said Mr Hariharan.
