JK Tyre and lndustries said on Thursday its board of directors has approved plan to increase in its subsidiary Cavendish Industries.

JK Tyre already holds 69 per cent of equity shares in Cavendish Industries while its subsidiary JK Tornel SA De CV Mexico holds 16 per cent. Thus the combined holding of JK Tyre along with its subsidiary is 85 per cent. To mobilize long-term finance for corporate purposes and meet requirements of funds for expansion of the tyre plant at Laksar near Haridwar, JK Tyre is making a preferential issue of equity shares up to an aggregate amount of Rs. 75 crore.

"This will also strengthen the company's financial base as mobilization of funds is by way of equity", it said in a statement. The acquisition of equity shares at a cost of Rs. 75 crore is expected to be complete within 15 days.

"With this transaction, the shareholding will go up from 85 per cent to 86.41 per cent".

Cavendish Industries is a manufacturer of automotive tyres, tubes and flaps which is also the prime business of JK Tyre. Its turnover in 2018-19 totalled Rs. 2,316 crore, up from Rs. 1,670 crore in the previous fiscal year.

JK Tyre and Industries is a leading tyre manufacturer in India and among top 25 manufacturers in the world.