One of Aditya Birla’s cos is heading for a London Stock Exchange listing soon

Chairman of the Aditya Birla group, Kumar Mangalam Birla said they are going to list Mauritius-based holding company for carbon black SKI Carbon Black (India) Pvt Ltd in overseas markets, after consolidating the business.

The company will be either listed in London Stock Exchange or New York Stock Exchange and it will take at least two years.

Carbon black is a raw material used to make tyres and ink.

The SKI Carbon Black’s listing would be the first listing by the group in the overseas market after Birla took over in 1995.

Under Birla, the company went on to become world's largest carbon black maker with 2-million tonne capacity a year.

Experts point out that after the listing, company will get a better leverage ratio and capital to expand both in India and overseas.

Reportedly, in 2013, Aditya Birla Nuvo Ltd had divested its carbon black business to SKI Carbon Black (India) Pvt. Ltd, for Rs 1,451 crore.
The company had then said in a filing to the BSE the Aditya Birla Nuvo's carbon black business, by itself, accounts for merely 2% of the global industry capacity.

Moreover, in view of the company's capital commitment towards funding growth of its other businesses, it is extremely challenging for the company to become a global carbon black player.