JK Tyre & Industries Limited (JK Tyre) has received resounding approval from both its unsecured creditors and equity shareholders for the proposed amalgamation with Cavendish Industries Limited. The voting, conducted through remote e-voting and physical meetings on September 3, 2025, saw overwhelming support for the scheme of amalgamation.

Unsecured Creditors' Approval

The unsecured creditors of JK Tyre demonstrated unanimous support for the resolution. A total of 271 creditors, representing outstanding dues of Rs. 1,382.98 crore, voted in favor of the amalgamation scheme. This unanimous approval underscores the creditors' confidence in the proposed merger and its potential benefits for the company.

Equity Shareholders' Endorsement

The equity shareholders also showed strong support for the amalgamation. Out of the total votes cast:

• 99.99% of the votes were in favor of the resolution
• 20,39,14,483 shares voted for the amalgamation
• Only 2,411 shares voted against the proposal

The voting saw participation from various categories of shareholders:

Significance of the Approval

The overwhelming support from both unsecured creditors and equity shareholders is a crucial step forward in JK Tyre's strategic move to amalgamate with Cavendish Industries Limited. This merger is expected to streamline operations, enhance synergies, and potentially improve the company's market position in the tyre industry.

Regulatory Compliance and Next Steps

The voting process was conducted in compliance with the directions of the National Company Law Tribunal (NCLT), Jaipur Bench, under the supervision of Justice Vijender Jain, the appointed Chairperson for the meetings. The company will now proceed with seeking final approval from the NCLT and other regulatory authorities to complete the amalgamation process.

JK Tyre's management expressed satisfaction with the outcome, viewing it as a strong vote of confidence in the company's strategic direction. The amalgamation, once completed, is expected to create value for all stakeholders and strengthen JK Tyre's position in the competitive tyre market.

As the company moves forward with the amalgamation process, investors and industry observers will be keenly watching for the potential impacts on JK Tyre's market presence, operational efficiencies, and financial performance in the coming quarters.

JK Tyre & Industries Limited , one of India's leading tyre manufacturers, has reported a robust performance for the first quarter, with significant growth in its domestic operations and improved margins.

Strong Domestic Performance

The company achieved its best-ever domestic performance, with India operations revenue reaching Rs. 3,475.00 crores, marking a 9% year-on-year growth. JK Tyre's domestic sales surged by 11% compared to the same period last year, driven equally by replacement and OE (Original Equipment) segments.

Key Highlights

• Consolidated revenues stood at Rs. 3,891.00 crores, up 6% year-on-year.
• EBITDA improved to Rs. 424.00 crores, with margins expanding to 10.9% from 10.2% in the previous quarter.
• Profit after tax was recorded at Rs. 155.00 crores.
• The company reduced its net debt by Rs. 219.00 crores to Rs. 3,862.00 crores.

Segment-wise Performance

• Truck and Bus Radial (TBR) volumes grew by 7% year-on-year in both replacement and OE markets.
• Passenger radial category witnessed a significant 32% volume growth in the replacement market.
• Farm category volumes showed strong growth, with replacement and OE markets achieving 26% and 69% growth, respectively.
• Two and three-wheeler category volumes registered a robust 53% growth in the OEM segment.

Export Performance

Despite ongoing uncertainties related to U.S. tariffs and geopolitical challenges, JK Tyre's exports remained resilient. Notably, passenger car tyre exports witnessed strong traction on both year-on-year and quarter-on-quarter basis.

Capacity Utilization and Expansion

The company maintained a capacity utilization of nearly 80% on a consolidated basis, with radial capacities operating at over 85%. JK Tyre is progressing with its expansion plans, involving a capex of Rs. 1,400.00 crores, which are on schedule. The capex outlay for the full year stands at Rs. 900.00-1,000.00 crores.

Mexican Operations (JK Tornel)

JK Tornel, the company's Mexican subsidiary, reported revenues of Rs. 505.00 crores, up 12% over the previous quarter. The management expects margin recovery as tariff concerns ease in the U.S. market.

Outlook

Anshuman Singhania, Managing Director of JK Tyre & Industries Limited, expressed confidence in achieving double-digit growth for the full year, supported by festive season demand and the government's infrastructure push. The company expects the Indian tyre industry to achieve 7% to 8% growth, driven by strong domestic replacement demand.

JK Tyre continues to focus on premiumization, with plans to increase the share of 16-inch and above tyres in the passenger car radial segment from the current 26% to around 40% in the coming quarters.

With a strong start and ongoing expansion plans, JK Tyre & Industries Limited appears well-positioned to capitalize on the growing demand in the Indian tyre market.