The debt of Kesoram Industries Ltd would be split between the legal entities of cement and tyres businesses, to be formed post the demerger, a company official said on Friday.
CFO P Radhakrishnan said the overall debt of Kesoram Industries -- a B K Birla group company -- is pegged at Rs 3,000 crore, which would be split in the ratio of 2:1.
A debt of Rs 2,000 crore would accrue to the cement entity, and Rs 1,000 crore to the tyres company, after the demerger, the process for which will start from August 6.
"The demerger will help to focus on both the businesses and create more value for the shareholders," he said at the company's centenary AGM here.
Regarding the tyres business, the CFO said there would be a shift from the commercial segment to passenger radial tyres, adding that the proposed new entity would be on the look-out for partners.
"A number of players were looking for ready capacity in the passenger car tyres segment in India. There could also be strategic outsourcing from Kesoram's tyres company," Radhakrishnan said.
About the cement vertical, he said efforts will be made to increase the geographical spread across the country.
The company has already invested Rs 775 crore in the tyres business, he added.
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