JK Tyre Completes Acquisition of Laksar (Haridwar) Tyre unit of Kesoram Industries Ltd
GREATER NOIDA LOKESH GOSWAMI
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 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 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.
JK Group, is one of the leading conglomerates 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 Tyres’ 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. It has 12 manufacturing plants in India and Mexico, global dealers and distribution network and strong brands i.e., ‘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.
……
About JK Tyre & Industries Limited:
Part of the JK Organisation, JK Tyre & Industries Ltd is a leading tyre manufacturer in India and amongst the top 25 manufacturers in the world with a wide range of products catering to diverse business segments in the four wheeler automobile industry.
JK Tyre has global presence in 100 countries across six continents with six plants in India and three in Mexico. Currently, the capacity across 9 plants exceeds 20 million tyres per annum. JK Tyre pioneered radial technology in India way back in 1977 and today is the leader in Truck Bus Radial segment. With over three decades of technological innovation, JK Tyre offers tyres for the entire range – Truck/Bus, LCV, Passenger Cars, MUV and Tractors. The company is the manufacturer of India’s largest OTR Tyre weighing 3.7 tons and 12 feet high.
JK Tyre is a preferred supplier to the automotive Original Equipment Manufacturers and is a partner to some of the biggest names including Maruti Suzuki, Tata Motors, Honda, Ashok Leyland, Mahindra & Mahindra, Volvo Eicher, General Motors, Volkswagen, Fiat, Nissan, TAFE, BEML and Caterpillar India. JK Tyre has been ranked no.1 for the third time in the J.D. Power Asia Pacific’s study on Customer Satisfaction.
In India, its nationwide network comprises of 143 selling locations, 4,000 dealers and over 120 retail outlets branded ‘JK Tyre Steel Wheels’, which are equipped with state-of-the-art wheel servicing equipment. It has also established 17 Truck Radial Tyre Care centres, which operate along all major National Highways on 365 day, 24×7 basis. JK Tyre has established over 20 truck radial total solution showrooms branded “Truck Wheels”. It was the first to introduce unique concepts like “Dial-a-Tyre” and is the only tyre company to launch a 24×7 on-road tyre assistance initiative called “Fix-a-Tyre”.
JK Tyre actively promotes various disciplines of motorsports in India and has invested enormous resources towards building its infrastructure. The Racing and Karting programmes are the breeding ground for the country’s young motorsport talent and JK Tyre prodigies like Karun Chandhok, Armaan Ebrahim and Aditya Patel have done India proud in the global arena.
