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JK Tyre completes Rs 2,200 crore acquisition of Kesoram's tyre unit

Delhi-based tyre maker JK Tyre is eyeing annual revenues of Rs 10,000 crore in the current financial year following the completion of the Rs 2,200 acquisition which also gives it an entry into the two wheeler tyre segment. The company had revenue of Rs 7,800 crore last year.
 
“As far as domestic sales are concerned, we hope to emerge as the second largest player in the country. We hope to turn around the Haridwar unit that we acquired in a year," said Raghupati Singhania, chairman and managing director.
 
The acquisition is being funded through a mix of equity and debt. The company has brought an equity of Rs 700 crore from internal accruals and a debt of Rs 1,495 crore is being raised. The debt is being entirely raised by other companies in the group such as JK Lakshmi Cement and JK Paper and no debt is being raised on the book of JK Tyres. JK Tyres already has a debt of about Rs 2,000 crore, which was raised to fund past expansions.