JK Tyre & Industries Ltd. (JK Tyre) and JK Asia Pacific (S) Pte Ltd., 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 located at Laksar (Haridwar) manufacture a range of tyres, tubes and flaps.
With this acquisition, JK Tyre has now 12 tyre plants – nine plants in India and three in Mexico.
The acquisition at an enterprise value of Rs. 2,200 crores, CIL will be a subsidiary of JK Tyre with majority shareholdings through direct holdings and the balance through its subsidiaries and JK Group companies.
The acquisition, funded by a combination of internal accruals and debt, is in line with the strategic vision of JK Tyre of becoming one of the top tyre companies of the world having a well-rounded portfolio of product offerings, both for domestic and international markets.
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 two- and three-wheeler tyre market.
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 the truck & bus radial segment. With its strong R&D facilities, and strategically located 12 manufacturing plants in India and abroad, JK Tyre is well positioned for a sustainable growth in the years ahead and to continue to meet the changing needs of its customers.”