I have over a decade in journalism with a career spanning across television, newspapers and magazines. I take a keen interest in politics, current affairs, cinema, and digital news. At Forbes India, I concentrate on economy, policy and government. I have a B.A. in English (Honours) from St. Xavier's College, Kolkata and have PG Diploma in Broadcast Journalism from Asian College of Journalism, Chennai. I have worked across the mediums of television, magazines and newspapers, and worked at NDTV, NewsX, India Today and The Week. When not working, which isn't often, you'll find me travelling, reading or playing with dogs. My epitaph would probably say, "journalist, idealist, dreamer".
J K Tyre and Industries Ltd has announced that it has completed the acquisition of Cavendish Industries Ltd in a deal worth Rs 2,195 crore. Cavendish Industries operates three tyre plants located in Laksar (Haridwar) producing tyres, flaps and tubes, and was a unit of Kolkata-based Kesoram Industries Ltd (part of the B K Birla group). With this acquisition, J K Tyre hopes to increase its sales to Rs 10,000 crore in the current fiscal. The tyre manufacturer has clocked sales of approximately Rs7,800 crore in 2015-16. “As far as domestic sales (not consolidated) are concerned, we hope to emerge as the second largest player in the country. We hope to turnaround the Haridwar unit that we acquired in a year,” said Raghupati Singhania, chairman and managing director, J K Tyre. The tyre-maker funded the buyout through a mix of equity and debt. Of the total enterprise value of Rs 2,195 crore, Rs 700 crore was equity and rest Rs 1,495 crore was debt, Singhania added.
Singhania added that while J K Tyre has invested Rs 450 crore in the acquisition (balance by other group companies), it has not inherited any debt or legacy issues from Cavendish. Calling it an asset sale, Singhania said that there would be proper accounting with complete transparency, and operations would resume within 15 days. With Cavendish within its fold, JK Tyres currently has 12 plants, including 9 in India and 3 in Mexico with an annual production capacity of 347 lakh tyres. “With the completion of the acquisition of Cavendish Industries we have further strengthened ourposition in the truck and bus radial segment. It has also given us entry into two and three wheeler vertical,” said Singhania.