JK Tyre, the country’s third-largest in the segment by revenue, has completed acquisition of the Rs 2,200-croreHaridwar unit from Birla Tyres, to enter the two- and three-wheeler segment.
The acquisition expands the company’s tyre manufacturing capacity by 40 per cent, to 34.7 million tyres annually, across its nine domestic and three foreignplants. The Haridwar plant enjoyed some tax benefits from the Uttarakhand government and the company said it would enjoy the benefits for another three to four years. Keen to turn around the unit, JK will look at ways to bring down the number of employees, currently 5,000, to improve productivity. The acquisition will expand revenue by Rs 2,000 crore. In 2015-16, the company’s estimated total revenue was Rs 7,800 crore.