 "JK Tyre buys Kesoram's Haridwar tyre plant for Rs 2,200 cr")
JK Tyre has acquired the Haridwar factory of BK Birla’s Kesoram Industries for Rs 2,200 crore. JK Tyre & Industries Ltd and JK Asia Pacific Singapore Pte Ltd, a wholly owned subsidiary of JK Tyre, has signed an agreement with Kesoram Industries Ltd to acquire Cavendish Industries Ltd, which owns the Haridwar tyre manufacturing facility that makes a range of tyres, tubes and flaps.
The acquisition will provide JK Tyre with further impetus towards expansion in the truck and bus radials segment where it is a market leader as well as entry into the fast growing 2/3 wheeler tyre.
Dr Raghupati Singhania, chairman, JK Tyre, said, “The transcation is a reflection of the inherent strength of the company in undertaking acquisitions with turnaround potential and successfully delivering results to all the stakeholders in the business. This was recently evidenced by a similar success story in JK Tyre’s acquisition of Tornel, Mexico.”
Following the acquisition, JK Tyre’s capacity will increase about 22 per cent to 24.4 million tyres a year. Currently, JK Tyre owns six plants in India and three in Mexico, through the Tornel acquisition (carried out in 2008 for Rs 270 crore). In 1997, JK Tyre acquired Vikrant Tyres from the Karnataka state government.
The acquisition will provide JK Tyre with further impetus towards expansion in the truck and bus radials segment where it is a market leader as well as entry into the fast growing 2/3 wheeler tyre.
Dr Raghupati Singhania, chairman, JK Tyre, said, “The transcation is a reflection of the inherent strength of the company in undertaking acquisitions with turnaround potential and successfully delivering results to all the stakeholders in the business. This was recently evidenced by a similar success story in JK Tyre’s acquisition of Tornel, Mexico.”
Following the acquisition, JK Tyre’s capacity will increase about 22 per cent to 24.4 million tyres a year. Currently, JK Tyre owns six plants in India and three in Mexico, through the Tornel acquisition (carried out in 2008 for Rs 270 crore). In 1997, JK Tyre acquired Vikrant Tyres from the Karnataka state government.