JK Tyre & Industries Limited

Top 500 Ranking

Income

141

Net Profit

241

Net Worth

303

Background

Raghupati Singhania
Vice Chairperson and MD
Vice Chairperson and MD Speak
Challenges, Opportunities and
Growth drivers for the Tyre
Industry
The ` 30,000 crore Tyre Industry plays
a vital role in the economic activity of
India. Industry has registered a healthy
growth in volumes, however, margins
were under strain. The prices of
essential inputs have gone up sharply in
the last one year, with Natural Rubber
prices increasing by over 100% and
other petro-based raw materials by
40%. The demand for automotive tyres
both commercial as well as passenger is
expected to have a significant growth
in India, driven by growing automobile
industry.
Global auto giants have set up
manufacturing base in India, and those
who were so far absent, are doing so
rapidly. India is slated to become a small
car hub in not too distant a future.
Impetus to the growth of infrastructure
with high priority given to the road
and highway building will create new
opportunities for the automotive tyre
industry.
The tyre industry has undertaken huge
investments, of the order of nearly
` 20,000 crores, some of which have
already become operational and the
others are expected within a year or so.
The Industry is thus well poised to cater
to the growing demand for tyres.
I am confident that tyre industry is fully
geared to meet the challenges posed
by the new economic order and will
emerge a clear winner, and race ahead
in its endeavors.

JK Tyre & Industries Ltd (JK Tyre), the flagship company of the JK Organisation,
was originally incorporated as JK Industries Pvt Ltd on Feb 14, 1951. In 1974,
consequent to conversion into a public entity, it was renamed as JK Industries
Ltd. The company commenced operations in 1977 when it set up its first tyre
plant with an installed capacity of 500,000 tyres p.a. in Kankroli, Rajasthan.
Keeping pace with the growth in the market and the demand for its products,
JK Tyre established a new state-of-the-art passenger radial manufacturing
facility at Banmore near Gwalior. Later in 1997, the company made a strategic
move of acquiring Vikrant Tyres Ltd, a Government of Karnataka undertaking.
In 2008, JK Tyre acquired 100% shares of a well known tyre company TORNEL
in Mexico. Currently the company has eights plant five in India and three
in Mexico. JK Tyre brought Radial technology into the country by introducing
Passenger Car Radials way back in 1977 and Truck/Bus Radial tyres in 1999.
Business Profile
JK Tyre is one of the leading four wheeler tyre manufacturers in India with
a wide range of products catering to diverse business segments in the four
wheeler automobile industry. The company manufactures & markets its products
primarily under its flagship brand JK Tyre. Its other brand portfolio also includes
Vikrant and Tornel. The company operates five modern plants located across the
states of Rajasthan, Madhya Pradesh, and Karnataka with an annual installed
capacity of 9.8 mn tyres. Additionally, it also operates three manufacturing
facilities in Mexico with a combined capacity of 6.6 mn tyres p.a.
Business Segments
Riding on more than three decades of technological innovation JK Tyre offers
a wide range of four wheeler tyres for virtually every application HCVs, LCVs,
passenger vehicles, tractors and off-the-road segments. The company is an
OEM partner to major automotive manufacturers including Maruti Suzuki, Tata
Motors, Ashok Leyland, Mahindra & Mahindra, Eicher, Force Motors, General
Motors, Volkswagen, Fiat, TAFE, Swaraj Mazda, John Deere, AMW etc. JK Tyre
is also one of the leading suppliers to defense and various State Transport
Undertakings. JK Tyre offers premium products like Jet Xtra, Jet R Miles, Jet One
& Jet Track 39 Xtra in the Truck/LCV bias segment, which accounts for 70% of
its revenue. In the rapidly growing SCV segment, the companys products have
gained wide acceptance. JK Tyre has pioneered the radial revolution in the truck
& bus segment. It has a premium product offering 10.00.20 Jet Steel JDH, which
is an industry benchmark. It has also recently introduced a Lug tyre 10.00.20
JDL for long haul applications. As part of its customer service initiative, the
company has established the first Truck Wheels centre at Vijaywada.
JK Tyre is a pioneer of radial technology in India. Many of todays new
generation cars like Chevrolet Cruze, Beat, Volkawagen Polo, Vento, Maruti
Swift, Dzire, SX4, A star, Ritz, M & M Scorpio, Xylo M Series, Fiat Punto, Grande,
Tata Nano, etc ride on JK Tyre Tubeless Radials. In 2010, JK Tyre established a
new plant for OTR tyres at Mysore, Karnataka. It has launched Indias largest
OTR tyre VEM 045 40.00-57 60 PR E4 T/L weighing 3.7 tonnes and 12 feet
high.
Chairperson
Hari Shankar Singhania
Vice Chairperson and MD
Raghupati Singhania

Directors
Arvind Singh Mewar, B Jain, OP Khaitan,
AU Katra, K Tripathy, V Singhania,
SC Sethi, AK Bajoria

Managing Director
Bharat Hari Singhania
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INDIAS TOP 500 COMPANIES

Advertorial

Faridabad Tech Centre

International Presence

D&B D-U-N-S No 91-861-5662

JK Tyre also markets its tyres in the overseas market and is one of Indias
leading tyre exporters with a global footprint in over 80 countries across six
continents. With the objective of increasing its presence in the NAFTA trade bloc
and emerging economies of Central and South America, the company enhanced
its global foot print in 2008 with the acquisition of Tornel, a Mexican tyre major.
In addition to Mexico, to meet the increasing demand in the growing global
tyre markets, the company has also entered 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.

Business Operation
Manufacturing & Marketing of Tyres,
Tubes & Flaps
Financial Snapshot
Total Income (` mn)

36,961.3

EBITDA (` mn)

4,241.9

Net Profit (` mn)

1,634.7

Net Worth (` mn)

6,856.1

Distribution Network

EBITDA Margin (%)

JK Tyre has a wide distribution network of over 140 stocking points

providing seamless distribution across the country. These sales offices service
4,000 dealers including a franchise network of over 125 outlets branded as JK
Tyre Steel Wheels. These retail outlets are equipped with sophisticated wheel
servicing equipments and providing value added services like computerised
wheel alignment and balancing, automated tyre changing, air care, tyre care.

NPM (%)

4.42

Dividend Payout (%)

8.79

11.48

15,971.6

EV (` mn)
BV per Share (`)

166.98

Return Ratios

New Developments / Initiatives

Greenfield Project in Chennai
The Greenfield project at Chennai is in advanced stage of completion
and an additional capacity of 2.5 mn passenger radial tyres and 0.4 mn
truck/bus radials p. a. will be established.
Capacity Expansion
During the year, the capacity of the companys plant at Mysore, Karnataka
was more than doubled from 0.4 mn to 1 mn tyres p.a. A capacity of 12
mtr. tonnes per day for ultra large OTR tyres was also set up at Mysore.
New Testing Facility
The worlds first ON-LEVEL flat surface tyre testing machine has been
established at the JK Tyre Tech. Centre, Faridabad. The machine is capable
of doing a realistic flat road surface tyre testing at computer-controlled
speed, load, pressure, steer angle, and camber angle while capturing tire
performance data for instant analysis. This will help in optimising the
product design for superior handling performance.
Advertorial

INDIAS TOP 500 COMPANIES

ROCE (%)

26.49

RONW (%)

23.84
6.07

ROA (%)
Leverage Ratios
Debt-to-Equity (times)

1.24

Interest cover (times)

3.65

(As on Mar 31, 2010)**

Registered Office
7, Council House Street
Kolkata 700001
WB
Website
www.jktyre.com

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