Kesoram, the flagship of B K Birla Group, to hive off tyre division

Radhakrishnan said the group will be able to leverage its potential in each of the segments through this demerger

Striving to get a strategic partner or a private equity player to rescue its stressed tyre business, Kesoram Industries, the flagship of B K Birla Group of companies, has decided to spin off the tyre division into a separate company altogether — Birla Tyres.

“It will be much easier for us to get a private equity or a strategic partner once the tyre vertical is turned into a separate company that will focus on tyres,” said P Radhakrishnan, chief financial officer at Kesoram.

The 7.5-million-tonne cement business of the company will remain with Kesoram after the demerger.

According to the official, the nature