Kesoram asked to clarify Birla tyre plant “revival” news
The BSE has requested a clarification from India’s Kesoram Industries Ltd regarding a news article that states the company is reviving a project to manufacture passenger car tyres at its Basalore Birla Tyres plant.
Mumbai-based publication dna published that in light of deleveraging following the September 2015 sale of Kesoram’s Cavendish Industries Ltd subsidiary & Haridwar tyre factory to JK Tyre & Industries, which netted the company Rs 22 billion (£218.9 million), the company plans to refocus on its “Balasore car tyre project” in Odisha. According to the newspaper, the production is expected to start at the plant early in the next fiscal year beginning on 1 April 2016. The newspaper also added that work on the project had begun in 2009 but was shelved due to a slowdown within India?s automotive market & as a result of a court case.
The factory in Balasore was set up in collaboration with Pirelli in 1991 & currently holds the capacity to produce cross-ply commercial vehicle tyres. The company is currently working towards launching a premium truck tyre brand, Platina, which will be produced in the plant.