JK Tyre acquires Mexican firm Tornel for Rs.2.7 bnJune 23rd, 2008 - 8:38 pm ICT by IANS
New Delhi, June 23 (IANS) JK Tyre and Industries Ltd has acquired 100 percent shares of Mexican tyre company Tornel along with its subsidiaries for Rs.2.7 billion ($63 million), the company announced Monday. The acquisition has been made through special purpose vehicle (SPV) route, which has been financed through a combination of equity and debt. The company’s board had approved the acquisition in its April 11, 2008 meeting.
“JK Tyre and Industries Ltd will substantially increase its global foot print with this acquisition,” the company said in a statement.
“Strategic location of Mexico offers Tornel free access to the NAFTA (North American Free Trade Agreement) trade block and emerging economies of central and southern America. Therefore, the acquisition has strengthened JK Tyre’s market positioning in these territories considerably,” the statement said.
Post Acquisition, collective capacity of JK Tyre has risen to 940 tonnes per day with Tornel’s production capacity of 290 tonnes and JK Tyre’s capacity of 650 tonnes at its four plants in India. This makes JK Tyre India’s largest four-wheeler tyre company.
JK Tyre’s vice-chairman and managing director R.P. Singhania said: “This acquisition has further strengthened our leadership in India. JK Tyre already exports tyres to 75 countries across six continents. Our export turnover last year was Rs.5 billion.”
- Daimler India's Bharat Benz trucks to roll on JK Tyres - Feb 06, 2012
- JK Tyre actively looking for rubber plantation overseas - Jul 30, 2012
- JK Tyre enters Tamil Nadu with Rs.1500 crore plant - Aug 04, 2010
- JK Tyre doubles production capacity at Mysore - Oct 30, 2009
- JK Group to invest Rs.1,300 crore in power sector foray - Apr 19, 2011
- Michelin to roll out radial truck tyres in 2012 - Jul 06, 2011
- TVS group acquires Britain-based firm - Mar 27, 2012
- Vedanta against bauxite export - Sep 03, 2012
- Shree Vijay setting up aqua feed plant in Andhra - Feb 22, 2012
- Pakistan pushes trade diplomacy, talks on MFN Wednesday - Sep 27, 2011
- Toshiba to start production of turbine generators in July - Jan 22, 2011
- Explore opportunities in Latin America: Scindia - Apr 29, 2010
- Uflex assigns $250 mn for growth, eyes $2-bn revenue by 2015 - Sep 06, 2012
- India asks Qatar for additional 3 mn tonnes of gas - Apr 23, 2012
- CII signs deal for Israeli technology - Jun 01, 2011
Tags: emerging economies, export turnover, foot print, four wheeler, free trade agreement, industries ltd, jk tyre, market positioning, nafta, north american free trade agreement, rs 2, s board, s market, singhania, six continents, special purpose vehicle, spv, strategic location, tornel, tyre