Now Reading: JK Tyre eyes acquisitions again after successful turnarounds
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JK Tyre eyes acquisitions again after successful turnarounds
JK Tyre & Industries Ltd is ready to go acquisition hunting again, buoyed by its track record of turning around three struggling tyre businesses over the past three decades. The Raghupati Singhania-led…
JK Tyre & Industries Ltd is ready to go acquisition hunting again, buoyed by its track record of turning around three struggling tyre businesses over the past three decades. The Raghupati Singhania-led company is also planning ₹6,000 crore of organic expansion over the next three years to add capacity in truck, bus and passenger vehicle segments.
Managing director Anshuman Singhania told Livemint that while the company remains focused on its organic growth plan using land it already owns, it is "always 24×7 scanning the horizon" for acquisition opportunities. The last major deal came a decade ago when it bought BK Birla group's tyre business under Cavendish Industries for ₹2,195 crore, which was merged with JK Tyre in 2024.
The company wants to grow in premium segments, electric vehicle tyres and increase its export share to 15%. Net profit rose 52% to ₹776 crore in FY26 on 11% higher revenue of ₹16,327 crore, though shares have fallen 28% this year partly due to the West Asia war's impact on earnings.
Indian Opinion Analysis
The ₹6,000 crore capex signals JK Tyre is betting heavily on the domestic vehicle boom, where passenger vehicle sales hit 4.6 million units and commercial vehicles 1.1 million units in FY26. Tyre makers have already invested ₹27,000 crore in capacity over the last three to four years, and with utilisation near peak, a well-priced acquisition of an under-utilised asset can shorten time-to-market. The 28% share price fall this year, largely from the West Asia war's impact on net profit, adds pressure to show that the turnaround formula works again. Watch for potential targets in the off-highway or export-facing segments, where peers are also expanding.
Source: livemint.com
This story was synthesised by AI from the source linked above.
