J K Tyre has acquired Mexican tyre company, Tornel for Rs 270 crore to become India's fourth largest four-wheeler tyre company. JK Tyres' turnover will now exceed USD 1 billion. The company will fund the acquisition through a mix of internal accruals and debt. This buyout is expected to be completed by the end of May, subject to regulatory approvals. The acquisition makes a strategic fit for JK Tyres as it is already the largest exporter, exporting almost 48% to the North and South American Markets. Mexico-based Tornel offers free access to the NAFTA trade block and Central and Southern America. Therefore, together both the companies would considerably strengthen the market positioning in these territories.   more »

Breaking from the tradition, the $5 billion TVS Group has, for the first time, let a private equity investor Goldman Sachs invest nearly Rs. 100 crore and pick up an undisclosed minority stake in the Rs. 338-crore turnover TVS Logistics Services Ltd., setting the stage for an eventual IPO (initial public offer). TVS Logistics is hoping to use the money, reach and contact of Goldman Sachs to further speed up its growth. The company has set itself a turnover target of Rs. 1,000 crore to be hit by 2010. Addressing a press conference here on Friday, Suresh Krishna, Chairman, TVS Logistics, said the private equity (PE) option was forced by “market reality”. Answering a volley of questions, he said the PE money did not come through stake sale. It came via issue of additional shares at a premium, he added. The equity capital of the company stood at Rs. 12 crore prior to the induction of the PE fund. “We will go in for an IPO at an appropriate time. We will wait for the right time,” he added. R. Dinesh, Operating Director, however, said it (IPO) would not be in the next 18 months.   more »