New Delhi: JK Tyre & Industries Ltd on Tuesday announced the successful completion of the merger of Cavendish Industries Ltd, its subsidiary acquired in 2016 from Kesoram Industries, with the parent company.
Cavendish had a manufacturing portfolio spanning truck and bus radial tyres, truck and bus bias tyres, and two- and three-wheeler tyres. At the time of acquisition, the unit was operating at around 30% capacity utilisation. JK Tyre said sustained managerial, financial and technical interventions helped turn around operations, with capacity utilisation rising to about 95%.
The company also expanded capacity at Cavendish’s Laksar plant, which now contributes significantly to JK Tyre’s overall manufacturing operations. The merger is expected to generate value through improved operational synergies, economies of scale, a broader product mix and a stronger distribution network.
JK Tyre said the consolidation aligns with its long-term strategy of pursuing sustainable growth through a mix of organic expansion and inorganic opportunities. The Cavendish integration marks the company’s third major turnaround, following the restructuring of Vikrant Tyres in the late 1990s and JK Tornel in Mexico in 2008, along with the commissioning of two greenfield plants.
The company expects the merger to streamline operations and further strengthen its competitive position in the domestic and export tyre markets.