New Delhi, India |April 18, 2016: 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.