JK Tyre completes merger of Cavendish Industries with itself

New Delhi, Dec 24 (PTI) JK Tyre & Industries on Wednesday said it has completed the merger of Cavendish Industries with itself.

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, the tyre maker said in a statement.

The merger reinforces JK Tyre's long-term strategy of sustainable growth through a balanced mix of organic and inorganic initiatives, it added.

The successful integration of Cavendish marks the company's third major turnaround following the transformations of Vikrant Tyres and JK Tornel Mexico (2008), besides two other greenfield plants.

JK Tyre acquired Cavendish in 2016 from Kesoram Industries Ltd.

The company primarily had manufacturing capacity of truck/ bus radial, truck/bus bias and 2/3-wheeler tyres, and at the time of the acquisition, it was operating at barely 30 per cent 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 per cent," JK Tyre said in a statement.

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.

JK Tyre shares were trading 0.63 per cent down at Rs 507.20 apiece on BSE. PTI MSS HVA