| +91-8088-090-090
(Mon - Sat | 10 AM - 7 PM)

Kesoram Industries Ltd. Demerger On The Cards This Month

birla tyres

Kesoram Industries Limited, a B. K. Birla Group flagship is mulling demerging of its loss-making tyre unit to optimise its potential. For this purpose, the company has reportedly already appointed an investment banker to induct a strategic partner for its tyre business. Kesoram Ltd. is currently engaged in cement, rayon and tyre businesses. And has denied the rumour that a strategic partner has already been identified.

The company in 2017-2018 has posted a standalone loss of INR. 463 crore while the consolidated loss was estimated at INR. 577 crore. The tyre business alone brought a loss of INR. 129 crore in 2017-2018 while in 2016-2017 it was INR. 67 crore. In the recent past quarter too, the tyre unit reported heavy losses.

Kesoram Industries sells tyres under Birla Tyres brand and does not have a presence in high margin passenger radial segment in the country. It had earlier sold its Haridwar tyre unit to JK Tyres for INR. 2,195 crore in 2015. The tyre business of the company makes up almost 35% of the total turnover.

About Kesoram Industries Limited:

Founded in the early twentieth century in the year 1919, Kesoram Industries Limited is headquartered at Kolkata. The company has three major businesses namely: Kesoram Rayon, Birla Tyres and Birla Shakti Cement. The company ranked 121 in the 2010 ET500 list with a net income in excess of INR 5,000 crore.

Leave a Reply

Your email address will not be published. Required fields are marked *

Need Expert Advice

Help us with your details