JK completes Kesoram’s Laksar (Haridwar) tyre unit
JK Tyre has completed acquisition of the Haridwar-based Cavendish Industries Ltd. (CIL), which houses 3 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 becomes 12 tyre plants company with 9 tyre plants in India and 3 in Mexico.
The acquisition is at an Enterprise Value of INR 2200 Crores. CIL will be subsidiary of JK Tyre with majority shareholdings through direct holdings and the balance through its subsidiaries & JK Group companies.
The company has acquired 64% equity shares of Rs. 10 each (fully paid) of Cavendish. Cavendish has thus become a subsidiary of the company. The remaining equity shares of Cavendish have been acquired by Associates/ Group Companies of the company, said JK Tyre.
The acquisition has been funded by a combination of internal accruals and debt. This acquisition is in line with strategic vision of JK Tyre becoming one of the top tyre companies of the world having a well-rounded portfolio of product offerings, both for domestic as well as for 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 2/3 wheeler tyre market. The acquisition is, therefore, strategic, revenue accretive and synergistic with the existing tyre business of JK Tyre.
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.