In a major acquisition, JK Tyre is to buy out Kesoram Industries’ Haridwar tyre manufacturing plant for Rs 2,200 crore. The acquisition will provide JK Tyre, which is a leader in the truck and bus radials market, an entry into the fast-growing two- and three-wheeler tyre market. Accordingly, JK Tyre estimates the transaction to be strategic, revenue accretive and synergistic with its existing tyre business. The Haridwar plant currently manufactures a range of tyres, tubes and flaps. The deal is likely to be completed by the end of this year.
A statement from JK Tyre said: “The acquisition is proposed to be funded, by combination of debt and internal accruals raised by JK Tyre and other JK Group entities.”
Dr Raghupati Singhania, chairman of JK Tyre, said: “The transaction is a reflection of the inherent strength of the company in undertaking acquisitions with turnaround potential. This was recently evidenced by a similar success story in JK Tyre’s acquisition of Tornel, Mexico.”
JK Tyre, the flagship company of the JK Group, ranks among the top three automotive tyre manufacturers in India with a presence in truck, bus, passenger cars and other vehicles, having nine manufacturing plants all over the world, global dealer and distribution network and three brands (JK Tyre, Vikrant, Tornel).
In India, its nationwide network comprises of 143 selling locations, 4,000 dealers and over 120 retail outlets branded 'JK Tyre Steel Wheels' which are equipped with state-of-the-art wheel servicing equipment. It has also established 17 Truck Radial Tyre Care centres, which operate along all major national highways on 365 day, 24x7 basis. JK Tyre has established over 18 truck radial total solution showrooms branded ‘Truck Wheels’.