Kesoram Industries, a B K Birla Group company, today said that it has closed a facility of group company Birla Tyres at Balasore in Orissa to avoid the inventory pile up and debtors due to the shutdown of operations by auto majors such as Tata Motors, Ashok Leyland, Mahindra and Mahindra.
The unit will be closed from December 17 to December 31, 2008, the company said in a statement to the Bombay Stock Exchange.
The unit was specifically catering to original equipment manufacturers (OEMs) such as Tata Motors and M&M.
"'The matter will be further reviewed and if the above situation does not improve, it may become essential to further continue cut in the said production facility accordingly," the company said.
The company's stock ended higher at Rs 157.65, nearly 4 per cent up than previous close.
