Birla Tyres to Remain Part of Kesoram

In the face of rumours that Birla Tyres is to be demerged from its parent company, Basant Kumar Birla has stated that both the tyre business and its sister cement business will remain part of Kesoram Industries after he cedes control of the company to a new generation. The 87 year old B K Birla Group of Companies patriarch confirmed that, when he retires in about three years’ time, his grandson Kumar Mangalam Birla will be handed the entire business of BK Birla group aside from a small part portioned out to other family members.

“I have not yet decided that how to divide Kesoram,” said Basant Kumar Birla. “But one thing is for sure that the cement business will remain with the company. Even the tyre business too will remain with Kesoram …Only a small portion of Kesoram could be demerged but that is still to be worked out.”

The tyre and cement divisions together constitute more than 80 per cent of Kesoram’s turnover. The cement business turns over Rs 11,560 million (£141.0 million) and the tyre business is Rs 11,120 (£135.7 million). Kesoram director S K Parik said the two divisions are embarking on a Rs 12,000 (£146.4 million) capacity expansion programme.