JK Tyre & Industries Ltd has successfully completed the merger of its subsidiary, Cavendish Industries Ltd, marking a significant milestone in the company's strategic consolidation efforts. The merger, announced on December 23, 2025, represents the company's third major turnaround following successful transformations of Vikrant Tyres and JK Tornel Mexico.

Acquisition and Transformation Journey

Cavendish Industries was originally acquired by JK Tyre in 2016 from Kesoram Industries Ltd. At the time of acquisition, the subsidiary was operating at barely 30% of its manufacturing capacity, primarily focused on truck/bus radial, truck/bus bias, and 2/3-wheeler tyres production.

Remarkable Operational Turnaround

Post-acquisition, JK Tyre provided comprehensive managerial, financial, and technical support that led to a swift and effective turnaround. Through systematic streamlining of manufacturing processes, the company achieved a remarkable capacity utilization of 95%. The capacity at Cavendish's Laksar facility was also expanded, contributing sizably to the overall tyre operations of the company.

Strategic Value Creation

The merger is expected to unlock substantial value through multiple strategic initiatives. The integration creates enhanced operational synergies and economies of scale, positioning the company for stronger market presence. Key benefits include:

• Stronger and bigger diversified product portfolio
• Enhanced reach across combined distribution network
• Optimized manufacturing processes
• Improved cost structure and operational efficiency

Long-term Growth Strategy

This merger reinforces JK Tyre's long-term strategy of sustainable growth through a balanced mix of organic and inorganic initiatives. The successful integration of Cavendish marks the company's third major turnaround, following the transformations of Vikrant Tyres (1997-98) and JK Tornel Mexico (2008), besides two other Greenfield plants.

The successful completion demonstrates JK Tyre & Industries' proven capability in executing complex integrations and creating value through strategic consolidation in the tyre manufacturing sector.

JK Tyre & Industries has received a substantial acquisition disclosure from HDFC Mutual Fund, indicating an increase in the fund house's aggregate shareholding to 5.02% of the company's paid-up equity share capital. The disclosure was made in compliance with Regulation 29(1) of SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011.

Transaction Details

The acquisition took place on December 11, when HDFC Mutual Fund schemes purchased 2,57,305 additional shares through open market transactions. This brought their total shareholding from 1,35,11,303 shares (4.93%) to 1,37,68,608 shares (5.02%).

HDFC Mutual Fund Schemes Involved

The disclosure covers multiple HDFC Mutual Fund schemes that collectively hold shares in JK Tyre & Industries:

• HDFC Business Cycle Fund
• HDFC Multi Cap Fund
• HDFC NIFTY 500 MULTICAP 50:25:25 INDEX FUND
• HDFC Hybrid Equity Fund
• HDFC NIFTY SMALLCAP 250 ETF
• HDFC NIFTY SMALLCAP 250 INDEX FUND
• HDFC Small Cap Fund
• HDFC Transportation and Logistics Fund

Company Share Capital Structure

JK Tyre & Industries' equity share capital remains unchanged following this transaction. The company's paid-up equity share capital stands at ₹54.80 crores, comprising 2,74,02,027 equity shares of ₹2 each.

Regulatory Compliance

The disclosure was filed by HDFC Asset Management Company Limited, acting as investment managers for HDFC Mutual Fund. The acquisition crossed the 5% threshold, triggering mandatory disclosure requirements under SEBI regulations. HDFC Mutual Fund is not part of the promoter or promoter group of JK Tyre & Industries.

This transaction represents a strategic investment by HDFC Mutual Fund schemes in the tyre manufacturing sector, with JK Tyre & Industries being a prominent player in the Indian automotive tyre market.