At the time of the acquisition, Cavendish was operating at approximately 30% of its capacity. After the takeover. By systematically streamlining production processes, the company’s capacity utilization rate increased to 95% after the takeover. Capacity at Cavendish, Laksar was also expanded, contributing significantly to the company’s overall tire business.
“The merger is expected to unlock substantial value through enhanced operational synergies, economies of scale, a stronger and more diversified product portfolio and greater reach through a combined distribution network,” JK Tire & Industries said in a statement.
The statement added: “This merger strengthens JK Tire’s long-term strategy of sustainable growth through a balanced mix of organic and inorganic initiatives.”
The integration of Cavendish marks the company’s third major turnaround following the transformations of Vikrant tires (1997-98) and JK Tornel Mexico (2008), in addition to two other Greenfield plants.
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