JK Tyre Completes Merger of Cavendish to Strengthen Tyre Operations

JK Tyre & Industries has successfully completed the merger of Cavendish Industries (Cavendish), its subsidiary with JK Tyre & Industries.

Cavendish was acquired by JK Tyre in 2016 from Kesoram Industries. Cavendish primarily had manufacturing capacity of truck/ bus radial, truck/bus bias and 2/3-wheeler tyres. At the time of acquisition Cavendish was operating at barely 30% of its Capacity.

Post acquisition, JK Tyre provided comprehensive managerial, financial and technical support leading to a swift and effective turnaround. Through systematic streamlining of manufacturing processes, this resulted in Capacity utilization of 95%. Furthermore, the capacity at Cavendish, Laksar was also expanded as a result of which it contributed sizably to the overall tyre operations of the company.

The merger is expected to unlock substantial value through enhanced operational synergies, economies of scale, a stronger and bigger diversified product portfolio, and enhanced reach across a combined distribution network.

This merger reinforces JK Tyre’s long-term strategy of sustainable growth through a balanced mix of organic and inorganic initiatives. The successful integration of Cavendish marks the company’s third major turnaround following the transformations of Vikrant tyres (1997-98) and JK Tornel Mexico (2008), besides two other Greenfield plants.