JK Tyre and JK Asia Pacific Singapore Pte Ltd, a wholly owned subsidiary of JK Tyre, have signed a binding term sheet with Kesoram Industries Ltd (KIL) to acquire 100 per cent equity in Cavendish Industries Ltd (CIL). CIL houses a tyre business undertaking located at Haridwar (Laksar) which manufactures a range of tyres, tubes and flaps. JK Group has agreed for this acquisition at an enterprise value not exceeding Rs 2,200 crore, subject to conditions, wherein JK Tyre will hold the largest shareholding block and shall have substantial management control of CIL with an option to place up to 55 per cent with its associates/group companies.

The acquisition will provide JK Tyre with further impetus towards ready expansion in the truck and bus radials segment as well as entry into the fast growing two and three-wheeler tyre market.