JK Tyre to buy Haridwar unit of Kesoram’s Industries

JK Tyre has signed a binding agreement with Kesoram Industries to acquire its Haridwar unit.
This agreement seeks to buy 100% equity in Kesoram Industries tyre unit in Uttarakhand in a decal value of 2,200 crore rupees. It should be noted that Kesoram sells its tyre under the Birla Tyres brand.
The acquisition move will help JK Tyre to enter in to the two and three wheeler market besides strengthening its position as top market leader in the trucks and bus business in India. It will also add around 5 million to its present production capacity of 30 million.
Kesoram Industries on its part will use the majority of the acquisition funds to pare its long-term debt which is estimated at 3,800 crore rupees.

Month: Current Affairs - September, 2015