JK Tyre & Industries has completed the Rs 2,195 crore acquisition of Cavendish Industries, a Kesoram Industries unit, enhancing its position in the domestic market, especially the truck and bus radial segment.
“With the completion of the acquisition of Cavendish Industries we have further strengthened our position in the truck and bus radial segment. It has also given us entry into two and three wheeler vertical,” JK Tyre & Industries Chairman and MD Raghupati Singhania told reporters here.
The acquisition is in line with strategic vision of JK Tyre to become one of the leading tyre companies of the world having a well rounded portfolio of product offerings, he added.
The acquisition brings an additional capacity of 100 lakh tyres to the JK Tyre, he added.
Cavendish Industries operates three tyre plants located at Laksar (Haridwar). The company manufactures a range if tyres tubes and flaps at this location.
Singhania said the acquisition has been funded by a combination of internal accruals and debt.
“Of the total enterprise value if 2,195 crore, Rs 700 crore is the equity and rest Rs 1,495 crore is the debt,” he added.
With the acquisition, the tyre maker now has 12 plants, including three abroad, with a total production capacity of 347 lakh tyres per annum.