Kesoram Industries puts Birla Tyre on the block; appoints BofA-ML for sale process_Kesoram Industries puts Birla Tyre on the block; appoints BofA-ML for sale process

Kesoram Industries puts Birla Tyre on the block; appoints BofA-ML for sale process

May 29, 2024

It’s Eastern time.

Mumbai: A major restructuring exercise has begun at BK Birla Kesoram’s Kesoram Industries, which will pave the way for Kumarrr Mangalam Birla’s acquisition of the creative agency. Sources close to the matter said that Kesoram Industries has decided to exit the tire business and entrust the sales process to Bofa-ML.

The deal is still at an early stage and experts say the price of Birla replacement tires could be close to Rs 1, 500 crore higher than the current market capitalization of parent company Kesoram Industries. Sources said that Kesoram Industries is carrying a huge debt of more than Rs 4, 50,000 crore and the sale of Birla Tire will help reduce the debt burden of the company.

An expert said, “The tire sector has been attracting investor interest and now is the best time for Birla to sell its tire manufacturing assets.”

BK Birla operates four business units-tires, cement, rayon and heavy chemicals. The tire business accounts for about 60% of total sales, but the company’s high operating costs have hurt performance. Birla Tire has manufacturing plants at Balasore in Orissa and Laxal near Hariwar in Uttaranchal.

According to sources close to the Birla Group, the Kesoram Industries restructuring marks the final takeover of the company by KM under the provisions of the will of BK, Birla Birla. KM Birla Pilani Investments has 24.9% stake in Kesoram slightly below the IPO trigger limit.

A Kesoram Industries spokesperson said: “Kesoram Industries Limited must categorically state that it is not aware of any developments shown in the news stream, which makes the news stream full of Aditya Birla Group speculations.” Answering questions from ET NOW.

Recommended Suppliers

TDDCHEM SINGAPORE PTE.LTD（cnauto）

Retailer

CN Supplier

1 YRS

Main Products:

Titanium dioxide, pigments, fillers, alcohols

Established:

2024-09-13

Company Size:

10000

Contact Supplier

Geely Jiyue 01 Max

LEADING IDEAL L9

Shandong Tuduoduo Digital Technology Co., Ltd

Retailer

CN Supplier

1 YRS

Main Products:

Titanium dioxide, pigments, fillers, alcohols

Established:

2024-08-09

Company Size:

10000

Contact Supplier

Wheel excavator

chengdutuduoduo

Retailer

CN Supplier

1 YRS

Main Products:

Whole vehicle, used car

Established:

2024-08-01

Company Size:

10000

Contact Supplier

Great Wall Artillery 2.0T

Peugeot 301 1.6L

Radar RD6 Pure electricity

Nissan Qijun 2.5L

TDD (QINGDAO ) CROSS-BORDER E-COMMERCE CO.,LTD.

Retailer

CN Supplier

2 YRS

Main Products:

Auto parts、Rubber tyre、Finished car

Established:

2023-01-01

Company Size:

10000

Hebei Jianglun electromechanical Co., LTD

Retailer

CN Supplier

14 YRS

Main Products:

Production of car starter, generator, air conditioning compressor, auto parts remanufacturing, sales of the company's products, import and export business.

Established:

2011-11-07

Company Size:

500

Contact Supplier

Automobile starter

Shandong Xingyun New energy Automobile Co., LTD

Retailer

CN Supplier

1 YRS

Main Products:

New energy vehicle sales; Auto parts research and development; Auto parts and accessories manufacturing; Off-highway recreational vehicles and spare parts manufacturing; Off-highway recreational vehicles and spare parts sales; Electric car manufacturing;

Established:

2024-03-20

Company Size:

500

Contact Supplier

Lucky three-box car x60

Beijing Tianhao Shengshi trading Co., LTD

Retailer

CN Supplier

10 YRS

Main Products:

12/5000 Lubricating oil, import and export agent