JK Tyre and Industries Ltd on 18 April 2016 announced that it had completed the acquisition of tyre, tube and flap maker Cavendish Industries, a unit of Kesoram Industries Ltd, for 2195 crore rupees. Kesoram Industries is a B.K. Birla Group company.
JK Tyre will fund the deal through a mix of internal accruals and debt raised by JK Group associates, such as Bengal & Assam Co. Ltd (the holding company) and Valiant Pacific LLC, a trading firm.
JK Tyre will hold a 64 per cent stake in Cavendish, while the rest will be held by Bengal & Assam and Valiant.
The deal will add a capacity to produce 10 million tyres a year. The agreement will also enable JK’s entry into the fast-growing two-wheeler and three-wheeler tyre market, and will also boost its capacity to produce truck and bus radials.
After the acquisition, JK’s total manufacturing capacity in India will increase to 26 million units a year. It will reach annual revenue of 10000 crore rupees in the domestic market.
About JK Tyre
• JK Tyre & Industries Ltd is an automotive tyre, tubes and flaps manufacturing company based in Delhi, India.
• The name JK is derived from the initials of Kamlapatji and his father Seth Juggilal .
• The company is the market leader in truck/bus radial tire in India and is the only tyre manufacturer offering the entire range of 4 wheeler radials for trucks, buses and cars.
• JK Tyre acquired Mexican tyre major Tornel in 2008.
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Who: JK Tyres