Jindal Power, Ceat, Private Equity Funds And Others Compete To Acquire Birla Tyres: Report
Birla Tyres has reportedly received expressions of interest (Eols) from various companies like Ceat, India Resurgent Fund, Jindal Power, Dalmia Bharat Refractories and MCPI, sources have told The Economic Times. The tyre manufacturer, a division under Kesoram Industries, was admitted for debt resolution by India's bankruptcy court in 2022.
In May last year, the National Company Law Tribunal admitted the company under the corporate insolvency resolution process (CIRP) after a petition submitted by chemicals maker SRF. The tyre maker had defaulted on dues worth Rs 15 crore, leading to a petition from SRF’s end.
Apart from the applicants mentioned above, Jindal Poly Films, Himadri Speciality Chemicals, Marine Exports, KLJ Specialities, Bommidala Enterprises, United Biotech, KR Pulp and Paper, Orissa Metaliks, Shyam Sel and Power, and a consortium led by DD Steel and Power also reportedly submitted their EoIs. Pratim Bayal, resolution professional for Birla Tyres, has asked the Eol applicants to provide their resolution plans before the end of this month.
In addition to this, other strategic investors include Dickey Alternative Investments Trust, which acts through its fund manager Dickey Asset Management; RKG Fund-I, a trust operated by Prudent ARC; a consortium led by Stephens Financial Services and Edelweiss Alternative Asset Advisors.
As a subsidiary of Kesoram Industries Ltd, Birla Tyres was first founded in 1991. Pirelli, a renowned Italian tyre manufacturer, initially collaborated with Birla Tyres in the development and production of its tyres. It was later declared as a separate entity, after it was separated from its parent firm, Kesoram Industries, in 2019.
Among its creditors, the highest claim was made by Axis Bank for Rs 555.6 crore, followed by Asset Reconstruction Company of India at Rs 196 crore and State Bank of India at Rs 120 crore. Some of the others lenders include DBS Bank, HDFC Bank, ICICI Bank, IndusInd Bank and Yes Bank.
