JK Tyre completes merger of Cavendish Industries Ltd
JK Tyre & Industries Ltd., one of India’s leading tyre manufacturers, announced the successful 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 Ltd. 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 utilisation of 95%. Furthermore, the capacity at Cavendish, Laksar was also expanded as a result of which it contributed significantly 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.
