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Kesoram to spin off its tyre business

Kesoram to spin off its tyre business

Kesoram Industries Limited, as a part of its restructuring efforts, decided to demerge its tyre business, Birla Tyres, create a new entity.

In a filing to the BSE, it says upon grant of the requisite approvals, Birla Tyres Ltd (BTL) will also become a listed company with its shareholding pattern mirroring Kesoram.

The Appointed Date for such Demerger will be commencement of business January 1, 2019, said the company

The demerger proposed is part of an ongoing exercise undertaken by Kesoram over the past few months in further realigning and recalibrating

operations. The objective has been to transform each business into entities that are market driven in their approach.

For BTL, especially, the proposition and its implementation will open new growth vistas as it looks at opportunities with renewed vigour. The

process is expected to act as a stimulant for further investments into BTL, added the company.

 

“Resultantly, BTL will be benefitted through the revitalising of its existing product portfolio range by extension of reach into a much wider spectrum of tyre segments and markets; and leveraging of the positive brand image of Birla Tyres and the  enormous brand equity of the “Birla” name to take on a rapidly growing yet discerning tyre market,” said Kesoram Industries.

With the proposed spin-off , Kesoram’s focus on the both its businesses viz. cement and tyre will get even further sharpened and pave the way

for their robust growth, added it.

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