Birla Tyres Ltd, which was recently carved out of the multi-product company Kesoram Ltd, is in talks with multiple prospective partners both within the country and overseas for strategic collaboration, including technical knowhow acquisition to manufacture off-site a range of tyre products in the off-road and other specialty segments such as material handling.
Addressing shareholders at the company’s virtual annual general meeting on Tuesday, Birla Tyres chairperson Manjushree Khaitan, said, the company would focus on leveraging its past legacy to pitchfork the brand across tyre segments, including off-road and other specialty categories.
Off-road tyres are vehicle tyres that use deep tread to provide more traction on unpaved surfaces such as loose dirt, mud, sand, or gravel.
The company also plans to raise around Rs 200 crore that will have the twin component of new equity and debt. Discussions with prospective strategic partners and funding agencies were in advanced stages and would be put in place in the next three-to-six months, said P Radhakrishnan, director, Birla Tyres.
The company’s facilities in Odisha are also being revamped to maximise capacity utilisation through an innovative mix of existing and new product lines to cater to a wider audience from high value truck tyres to the four-wheeler and two-wheeler segments.
Earlier in the day, Kesoram Industries executives told shareholders’ that the company is almost cash neutral for FY’20 despite the onset of pandemic and consequent lockdowns. “Our subsidiary, Cygnet Industries has entered into an agreement with Japanese firm Futamura Chemicals Co Ltd, this will give a global reach for its transparent paper products.
Futamura is a global leader in the manufacture and distribution of cellulose films. Its unique product offerings allows to serve a wide range of markets running the spectrum from food to medical, to industrial applications.
Source: Economic Times