Kesoram Industries, which functions under the flagship of the renowned BK Birla Group of companies in India has announced that it will be restructuring its tire business in order to invest heavily in the passenger car tire business. The company will be selling one unit and investing about GBP 30 million within the next six months in a factory for the production of passenger car radials, according to a report in the Business Standard.
Part of the BK Birla company, Kesoram intends to carry out the investment within the next six months in addition to the Rs 500 crore already spent for the move into car radials.
According to the chief financial officer of Kesoram Industries, Tridib Kumar Das, the company has plans to invest Rs 3 billion or the equivalent of GBP 29.3 million in a facility to produce passenger car radial tires. He added that the company hopes to launch passenger car radials on the retail scene by May 2016.
Part of the funds used for this purpose were obtained through the sale of the company’s Birla Tyres factory in Laksar-Haridwar to JK Tyre & Industries in a Rs 22 billion (GBP 214.6 million).deal. The sale was part of the company’s strategy to restructure its tire business as it was felt that Kesoram was not taking full advantage of its existing capabilities in the tire segment. He said the loss of production capacity at Laksar-Haridwar will be offset by the increase in tire production at the company’s plant in Balasore (Odisha state).
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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