KOLKATA: B K Birla group company Kesoram Industries on announced demerger of its tyre business in a major second round of restructuring in the wake of unsustainable debt of the company.
Kesoram, in a statement, said the company approved the demerger of the tyre undertaking into a new entity, Birla Tyres Limited.
“We are open for investors but will continue to be in the business of tyres,” Kesoram CFO Radhakrishnan told PTI.
Two years ago, the company had sold off the Laksar tyre plant near Haridwar to JK Tyres for close to Rs 2,000 crore in a bid to control its debt of Rs 5,300 crore.
The company has been continuously paring debt which currently stands at Rs 3,500 crore, but was grappling to manage it.
The turnover of the demerged tyre d…
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