Kesoram to demerge tyre division, help to pare Rs 1000cr debt

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,"
Offering rationale for the demerger, the Kesoram management said, "Enabling a dedicated management for tyre will help focus and accelerate growth of both the tyre and cement businesses, unlocking significant value for Kesoram shareholders and accessing varied sources of funds for the rapid growth of both businesses."