JK Tyre & Industries Ltd.
(JK Tyre) and JK Asia Pacific (S) Pte Limited, a wholly owned subsidiary of JK
Tyre, have announced completion of acquisition of Cavendish Industries Ltd.
(CIL), which houses three tyre business undertakings of Birla Tyres. The plants are located at Laksar (Haridwar)
which manufacture a range of tyres, tubes and flaps. With this acquisition, JK Tyre now has 12
tyre plants with nine tyre plants in India and three in Mexico.
The acquisition cost stood at
Rs 2,200 crore. CIL will be subsidiary of JK Tyre with majority shareholdings
through direct holdings and the balance through its subsidiaries & JK Group
companies. The acquisition has been
funded by a combination of internal accruals and debt.
With the acquisition of CIL,
JK Tyre will have additional capacity of truck & bus radials, an important
and high growth segment, where it is already the market leader. It will also provide JK Tyre entry into the
fast growing 2/3 wheeler tyre market.
The acquisition is, therefore, strategic, revenue accretive and
synergistic with the existing tyre business of JK Tyre, the company claimed.
Commenting on the acquisition,
Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre said,
“with the completion of acquisition of Cavendish Industries Ltd., JK Tyre further consolidates its leadership
position in the tyre market, more so in Truck & Bus Radial segment. With its strong Research & Development
facilities, strategically located 12 manufacturing plants in India and abroad,
JK Tyre is well positioned for a sustainable growth in the years ahead and
continue to meet changing needs of its Customers.
JK Group is a leading
conglomerate in India with business interests in Automotive Tyres, Cement,
Paper, V-Belts, Oil Seals, Power Transmission Systems, Auto-components, Hybrid
Seeds, Defence electronic systems & software development, and other
businesses. The flagship company of the
JK Group in the tyre business, JK Tyre & Industries Ltd. is amongst the top
three automotive tyre manufacturers in India with presence in the entire range
of tyres i.e., Truck & Bus, Passenger Cars, Jeeps, LCVs, SCVs, SUVs, Farm
and OTRs. JK’s brands include ‘JK Tyre’,
‘Vikrant’, and ‘Tornel’. JK Tyre is
amongst the largest players in tyres in India, and has presence in over 100
countries across the globe.
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