|
|
Kesoram looking for partner for its tyre business
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 14 Jul, 2018
Kesoram Industries Ltd, which says it 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, which will require technology," its Director
and CFO Tridib Kumar 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 has kept
for all options open, Das said, adding that the company does not want to
exit from the tyre business.
He also indicated that the company could 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.
According to
him, the company is also working on deepening market penetration in the
light commercial vehicles, farm and OTR as well as two- and
three-wheeler segments, beyond commercial vehicle bias.
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,
adding that company's cement business was EBITDA-positive.
"Both
businesses are inherently EBITDA-positive and, indeed, the cement
business has never deviated from being EBITDA-positive over the years
despite the price pressures it has been subjected to. The functioning of
the tyre business is being restructured, including if so required,
through the induction of a strategic partner for thoroughly remodulating
the business's vision going forward," its latest annual report said.
According to the report, the promoter group brought in non-debt funds during 2017-18 to counter balance cash deficits.
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 firm 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.
However, these undertakings continue to be under suspension of work, the report said.
Das
also said that the company's legal expenses have gone up as it has been
looking at realigning and rearranging its businesses.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|