JK Tyre & Industries Ltd. has achieved a major milestone by placing more than a million truck/bus radial tyres on the Indian roads. A pioneer in radial technology in India, it achieved a production level of a million tyres in 2005. Since then, the company has seen a spurt in domestic demand, which is growing at the rate of 60 per cent over the last three years.
JK Tyre took over Vikrant Tyres Ltd. in July 1997, upgraded all the truck/bus radial tyre building machinery and processes with an investment of around Rs. 250 crores. Commercial production with the collaboration of Continental AG started from July 1999 in a brand new air-conditioned plant.
Today the company is the market leader in the segment. This is despite the presence of global tyre manufacturers as well as all major Indian companies. It is currently the only firm in the country to have an exclusive plant for production of truck/bus radial tyres.
To meet the increased demand, JK has charted out ambitious expansion plans. It will expand capacity to around five lakh tyres by the middle of 2008 against the current 3.7 lakh tyres. Radialisation which was around two per cent during the last decade is taking off. The current radialisation is around six per cent, up from three per cent last year. It is expected to touch around 20 per cent in the next three years.
JK Tyre cuts prices
JK Tyre & Industries Ltd. has decided to pass on the entire Budget duty relief to consumers by reducing tyre prices. This is consequent to reduction in Cenvat duty on tyres/tubes/flaps in the Budget for 2008-09.
This reduction is applicable for the entire range of its products covering truck, LCV, car radial and bias as well as farm tyres.
To maintain the growth momentum of the economy and demand acceleration it is considered that any reduction in taxes deserves to be passed on to the consumers so that the true objective is fulfilled.
