JK Group buys Kesoram Haridwar unit, shares jump by 14 percent

The recent acquisition of the Kesoram Haridwar unit by the JK Group will add on to the expansion in the truck and bus radials segment.

Soon after the acquisition, shares of Kesoram Industries jumped 14 percent intraday as JK Group will acquire the BK Birla flagship firm's tyre manufacturing plant at Haridwar for Rs. 2,200 crore.

JK Tyre and JK Asia Pacific Singapore, a wholly owned subsidiary of the JK Group, has signed a binding term sheet with Kesoram Industries Ltd. They will acquire the 100 percent equity in Cavendish Industries, which manufactures a range of tyres, tubes and flaps.

The company said that the deal would strengthen the balance sheet of the company and it also remained committed to tyre business. For JK Tyre, the acquisition will provide further impetus towards ready expansion in the truck and bus radials segment.

JK Group is one of the leading conglomerates in India. Their business interests are likely in automotive tyres, cement, paper, auto-components and other businesses. The group's flagship firm, JK Tyre is among the top three automotive tyre manufacturers in India.