JK Tyre & Industries on Tuesday announced the completion of the merger of Cavendish Industries Ltd. (Cavendish), its subsidiary, with JK Tyre & Industries Ltd.
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 about 30% of its capacity. Post acquisition, Through systematic streamlining of manufacturing processes, the company’s capacity utilization increased to 95%, post acquisition. 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, J K Tyre & Industries said in a statement.
The statement added, “This merger reinforces JK Tyre’s long-term strategy of sustainable growth through a balanced mix of organic and inorganic initiatives.”
The 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.
