Jk Industries Weighs Vikrant Tyres Merger

JK Industries, the Gaur Hari Singhania flagship, is weighing a possible merger of subsidiary Vikrant Tyres with itself as part of a restructuring.

The board of Vikrant Tyres is to meet on October 7 to consider the possible amalgamation, it informed the Bombay Stock Exchange.

The Rs 524 crore Vikrant Tyres has already taken initiatives to synergise activities of Vikrant and JK Tyre, the tyres division of the flagship, in sales, distribution, procurement and supply chain management, resulting in considerable benefits.

JK Industries, which has a 52.3 per cent stake in Vikrant, had reported a turnover of Rs 1,342.77 crore for fiscal 2001.

The merger could see the emergence of a tyre major with a combined turnover of close Rs 2,000 crore by the end of the current fiscal.

Along with Vikrant Tyres, the JK group commands the number two slot in the domestic tyre market.

The merger is expected to help the JK group in marketing the products as the plants are located in different parts of the country.

Vikrant