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MRF in talks to buy Kesoram Industries’ tyre unit: Report

20 Jan 2015 Evaluate

Madras Rubber Factory (MRF) is reportedly in advance discussion with BK Birla flagship Kesoram Industries to buy its main tyre unit out of the two of Birla Tyres. The deal will consolidate MRF’s manufacturing presence in the north Indian market. It will also help the MRF to expand its commercial vehicles tyre segment.

Kesoram has a debt burden of Rs 4425 crore at the end of the September 2014 quarter as per its balance sheet. The company would be able to deleverage its debt after selling its unit in Laksar, Uttrakhand.

MRF is India’s No.1 tyre manufacturing company with a turnover of Rs 14,000 crore. Currently, the company exports tyres to over 80 countries including America, Europe, Middle East, Japan, and the Pacific region. The overseas market contributes to 10-12% of the company's turnover at present.

 

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