JK Tyre & Industries has received reaffirmation of its credit ratings from CARE Ratings Limited following the completion of its merger with subsidiary Cavendish Industries Limited. The development comes after the National Company Law Tribunal approved the merger through its order dated November 20, 2025, with the merger becoming effective December 22, 2025.

Merger Details and Impact

Following the tribunal's approval, Cavendish Industries Limited has ceased to exist as a separate entity effective December 22, 2025. All assets, liabilities, rights, and obligations of the subsidiary have been transferred to and vested in JK Tyre & Industries Ltd. The credit facilities previously availed by Cavendish Industries are now deemed to be availed by the parent company.

CARE Ratings has withdrawn the ratings previously assigned to Cavendish Industries' bank facilities following the merger completion. The rating agency confirmed that the merger has no impact on JK Tyre's credit profile, as their analytical approach for the company was already consolidated, including the subsidiary.

Credit Rating Reaffirmation

CARE Ratings has reaffirmed JK Tyre's credit ratings across all facilities and instruments. The company received confirmation of these ratings on January 13, 2026, at 11:19 AM.

Rating Rationale and Company Strengths

CARE Ratings highlighted several key factors supporting the rating reaffirmation. The assessment continues to derive strength from JK Tyre's long operational track record and significant market share supported by strong brand recognition across all vehicle categories. The company maintains a leadership position in the Truck and Bus Radial (TBR) segment.

The rating agency also emphasized the company's diversified portfolio across major original equipment manufacturers and the replacement market. This diversification is supported by a wide and robust distribution network, with exports reaching over 100 countries globally.

Corporate Governance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, relating to credit ratings. The announcement was signed by Company Secretary Kamal Kumar Manik and communicated to both BSE Ltd. and National Stock Exchange of India Ltd.

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.