Kesoram Industries has delayed plans to set up a new tyre manufacturing project, which would allow the company to enter into the car tyres market in the country.

The BK Birla group firm delayed the plans comes mainly due to a slowdown in the automobile industry. The company had planned to begin production at the 80 tonne per day car radial tyre project at Balasore, Odisha within this fiscal.

"The project is not on backburner but I would say is in a limbo. It is something we have to reassess on an ongoing basis," said Arvind Singh, chief executive officer of Kesoram's Birla Tyres division. He was speaking on the sidelines of the annual general meeting of the company.

The decision to postpone the plan comes due to the slow growth in the automobile industry. The market conditions have forced some of the automakers to halt production in order not to have excess inventory of vehicles.

Mr. Singh said that the company is looking at implementing the product from a market prospective and from the point of view of our ability to fund the project in a realistic manner. The company has planned to invest Rs. 350-400 crore for the project.