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August 2012
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meet the increasing demand for its reputed tyres in the
discerning global tyre markets, the company has en-
tered into sourcing arrangements with tyre companies
in China, Vietnam and Sri Lanka for various products,
including truck radial tyres and bias truck / bus and
LCV tyres.
JK Tyre products, marketed under the ‘JK Tyre’
and ‘Vikrant’ brands, compete with the best interna-
tional players. Its bias range of products commands
a premium price and image across major bias global
markets and conform to international quality certifi-
cations such as TS 16949, ‘DOT’ (USA), ‘E’ mark
(Europe), ‘INMETRO’ (Brazil), ‘GCC’ (Middle East
Gulf), ‘SONCAP’ (Nigeria), ‘ITS’ (Kenya), ‘SNI’
(Indonesia), etc.
Jump in operating profit, PBT
JK Tyre has reported a gross sales turnover of Rs.
1,588 crores for the first quarter ended July 30, 2012.
It has reported a surge in its operating profit for the
quarter at Rs. 129 crores. Profit before tax was Rs. 36
crores (Rs. 3 crores).
Stabilization of input prices to some extent helped
achieve better results. Also, the company made en-
try into new OEMs and enhanced the production of
fast growing TBR and PCR lines. “We are optimistic
about clocking good volumes on the back of strong
demand for our tyres across segments and capacity ex-
pansions,” he added.
The new green Chennai plant went on stream early
this year. The plant with a capacity of 25 lakh car ra-
dials and four lakh truck/bus radial tyres per annum
will strengthen JK Tyre’s radial leadership. The com-
ing quarter will have the benefit of production from
this new facility, which will cater to both domestic and
export markets.
w
tyres
“The quarter has seen a significant growth compared
to last year. There has been considerable improve-
ment in profitability due to various steps such as en-
hancing our focus on higher realization market seg-
ments and launching many new products apart from
several cost compression measures.”
– Dr. Raghupati Singhania
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MOTORINDIA
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August 2012