Kesoram looking for partner for its tyre business
Kolkata : Kesoram Industries Ltd, which will continue to focus on commercial vehicle bias tyres, is looking at inducting a strategic partner for its tyre business, an official said on Friday.
"We are looking for a partner for the tyre business, particularly for the passenger car radial tyre business, which will require technology," its Director and CFO Tridib Kr. Das said on the sidelines of the 99th Annual General Meeting of the company.
The company has hired an investment banker to search for a "strategic partner" and it remains open for all options, Das said, adding that the company does not want to exit from the tyre business.
He also indicated that the company may require to separate its tyre business in order to induct the partner.
"We will focus on bias segment and this segment on commercial vehicles is still 50 per cent of the total tyre market. However, this segment is going down while radial is increasing," he said.
Speaking on its cement business, he said the volume "dropped by 4 per cent" last year.
The company's 45-50 per cent cement production goes to Maharashtra but the prices in that market remained subdued due to low demand, he said.
Responding to shareholder queries on the buy-back of spun pipe and the heavy chemicals businesses from Camden Industries Ltd, Das said that the B. K. Birla group had transferred its sick businesses of heavy chemicals and spun pipes to Camden Industries for a valuation of around Rs 400 crore and got back both the divisions at Rs 422 crore.
Das also said that the company's legal expenses have gone up as it has been looking at realigning and rearranging its businesses.