Mumbai, June 23: JK Tyre has acquired a 100 per cent stake in Mexican Tyre company Tornel along with its subsidiaries for Rs 270 crore.

The acquisition was made through a special purpose vehicle, financed by a combination of equity and debt.

The acquisition will raise JK Tyre’s capacity to 940 tonnes per day from 650 tonnes per day at present. This will make JK Tyre the largest four-wheeler tyre company in India.

“This is our first international acquisition and there are multi-facet synergies between JK Tyre and Tornel. Economies of scale, technological expertise and wider understanding of different markets will propel the company to higher levels of growth. We take pride in our operational practices at JK Tyre and are confident of implementing them in Mexico,” said R.P. Singhania, vice- chairman and managing director of JK Tyre.

“Imminent forays into newer markets will not only drive our growth but also provide us sustainable competitive advantage,” Singhania added.

The strategic location of Mexico offers Tornel free access to the Nafta trade block and the emerging economies of central and south America, where JK Tyre has been exporting tyres in large volumes.

Tornel has 241 distributors and 282 sales outlets across Mexico, which is expected to strengthen JK Tyre’s market positioning in these regions.

The Mexican company employs 2,000 people in its three plants located at Azcapotzalco, Tultitlan and Hidalgo. JK Tyre plans to enhance and improve the operations of Tornel by providing technological and managerial inputs.

JK Tyre’s exports stood at Rs 500 crore last year. Tornel’s turnover stood at $202 million last year, which along with JK Tyre’s $800 million, would catapult the latter among the leading tyre companies in India.