JK Tyre completes acquisition of Canvendish Industries
Tyres company JK Tyre & Industries on Monday said it has completed the acquisition of Cavendish Industries Ltd (CIL), which houses three tyre business undertakings of Birla Tyres at a value of Rs. 2,200 crore.
The plants are located at Laksar (Haridwar), which manufactures a range if tyres, tubes and flaps. With this acquisition, JK Tyre becomes a 12-tyre plants company with nine plants in India and three in Mexico, it said.
The acquisition has been funded by a combination of internal accruals of Rs. 700 crore and Rs. 1,400 crore of debt, it said.
"With the completion of the acquisition of Cavendish Industries, JK Tyre further consolidates its leadership position in the tyre market, more so in the truck and bus radial segment. JK Tyre is well positioned for sustainable growth in the years ahead and will continue to meet the changing needs of its customers," Raghupati Singhania, Chairman and Managing Director, JK Tyre, said.
Post the acquisition, JK Tyre will have additional capacity of truck and bus radials, an important and high growth segment, where it is already the market leader, the company added.
With this acquisition, JK Tyre also enters the fast growing two- and three-wheeler tyres market.