JK Tyres acquired Cavendish Industries for Rs 2,200 crore rupees
Posted on:20 Apr 2016 17:33:34
20 April 2016 Current Affairs GK: JK Tyre and Industries Ltd on 18 April 2016 announced that it had completed the acquisition of tyre, tube and flap maker Cavendish Industries, a unit of Kesoram Industries Ltd, for 2195 crore rupees. Kesoram Industries is a B.K. Birla Group company.JK Tyre will fund the deal through a mix of internal accruals and debt raised by JK Group associates, such as Bengal & Assam Co. Ltd (the holding company) and Valiant Pacific LLC, a trading firm.JK Tyre will hold a 64 per cent stake in Cavendish, while the rest will be held by Bengal & Assam and Valiant.The deal will add a capacity to produce 10 million tyres a year. The agreement will also enable JK’s entry into the fast-growing two-wheeler and three-wheeler tyre market, and will also boost its capacity to produce truck and bus radials.After the acquisition, JK’s total manufacturing capacity in India will increase to 26 million units a year. It will reach annual revenue of 10000 crore rupees in the domestic market.
JK Tyre : JK Tyre & Industries Ltd is an automotive tyre, tubes and flaps manufacturing company based in Delhi, India.The name JK is derived from the initials of Kamlapatji and his father Seth Juggilal .The company is the market leader in truck/bus radial tire in India and is the only tyre manufacturer offering the entire range of 4 wheeler radials for trucks, buses and cars.JK Tyre acquired Mexican tyre major Tornel in 2008.
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