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.

The amalgamation scheme between JK Tyre & Industries Limited and Cavendish Industries Limited has been successfully completed, with the National Company Law Tribunal (NCLT) sanctioned merger becoming effective on December 22, 2025. The company has confirmed that the certified copy of the NCLT order has been filed with the Registrar of Companies, Jaipur, making the scheme operative from the appointed date of April 1, 2025.

Merger Implementation Details

Following the NCLT approval on November 20, 2025, JK Tyre & Industries' Board had approved December 22, 2025, as the effective date for the amalgamation scheme. With the completion of regulatory formalities, Cavendish Industries Limited, a subsidiary of JK Tyre & Industries, now stands amalgamated and dissolved without being wound up.

Enhanced Share Capital Structure

As a result of the amalgamation, the authorized share capital of Cavendish Industries has been combined with JK Tyre & Industries, resulting in a significant increase in the company's authorized share capital. The capital clause of JK Tyre's Memorandum of Association has been automatically altered without any further act or instrument.

Strategic Benefits and Synergies

The completed amalgamation is expected to deliver multiple strategic advantages:

• Operational Efficiency: Economies of scale and operational synergies across manufacturing operations
• Cost Optimization: Reduction in administrative overheads and interest costs
• Enhanced Capabilities: Expanded product offerings in automotive tyres, tubes, and flaps
• Market Strengthening: Improved distribution network and customer satisfaction
• Resource Pooling: Combined resources for accelerated growth initiatives

Financial Foundation

The merger creates a stronger financial entity, with the combined operations building upon substantial standalone net worth figures as of March 31, 2025.

Regulatory Compliance and Next Steps

The company has fulfilled all regulatory requirements, including filing the certified copy of the NCLT order with the Registrar of Companies within the stipulated timeframe. The merger also ensures compliance with Income Tax and GST laws, along with payment of necessary stamp duty and preservation of transferor company records.

With shareholders of Cavendish Industries set to receive 92 equity shares of JK Tyre & Industries for every 100 shares held, based on the record date of December 24, 2025, the integration process moves into its final phase. The successful completion of this amalgamation positions JK Tyre & Industries for enhanced competitiveness in the automotive tyre manufacturing sector.