JK Tyre brings recently acquired Cavendish Industries in profit
Amir Shaikh / 17 Apr 2017
JK Tyre plans to double its turnover to Rs 20,000 crore in midterm, and will continue to explore opportunities, both through the organic as well as inorganic route to grow its business.
A year ago, JK Tyre & Industries acquired Cavendish Industries from Kesoram Industries for an amount of Rs 2,195 crore in FY2016. This acquisition gave the company access to 1.2 million units of truck radials, 0.63 million units of two-wheeler and three-wheeler tyres and capacity for bias tyres. JK Tyre & Industries has managed to turn this unit around, and have posted profit before tax (PBT) for operations in the fourth quarter of recently concluded financial year 2017 amid rising raw material prices.
To bring in revival of acquired unit, JK Tyre reduced the workforce by a third to contain production of bias tyres. Further, it has brought down its conversion costs by 40 per cent between the first and fourth quarter and also it reduced wastage at bias unit by 60 per cent.
Moreover, JK Tyre plans to double its turnover to Rs 20,000 crore in midterm, and will continue to explore opportunities, both through the organic as well as inorganic route to grow its business.
Besides, the company is also aiming to double its market share in the 2W segment to 20 per cent by introduction of new size of tyres.
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