Metro Tyres has suggested that it might consider going public in order to fund a possible acquisition of Falcon Tyres. The news follows the company’s recent admission that it was interested in purchasing Falcon Tyres.
JK Tyre is looking into the possibility of expanding its bias tyre production by making strategic share acquisitions in Latin America. “The demand for tyres, both in India and the international markets, is at a high. While we are expanding our production capacities in India, we also feel the need to source tyres from other markets to feed the growing demand,” said JK Tyre VC and MD Raghupati Singhania.
At the same time JK Industries’ Mysore plant rolled out its millionth truck radial, marking a milestone for the company. The one-millionth tyre was presented at a function at the former Vikrant Tyres Truck Radial Tyre Plant that was acquired by JK Industries in 1996. Speaking on the occasion, deputy chief minister Siddaramaiah said the government’s decision to divest its stake in Vikrant Tyres had been vindicated. He said the capacity of the plant had increased from 100 tonnes in 1996 to 213 tonnes a day at present.
JK Tyre has received the highest ranking in a customer satisfaction survey of tyres purchased in India. Moving up from third position in 2004, JK Tyre topped the 2005 JD Power list with a satisfaction score of 781 index points on a 1,000-point scale. The industry in general performed marginally better growing one percentage point year-on-year.
JK Tyres is planning to expand the production capacity of its Banmore, Gwalior facility in Madhya Pradesh. According to India’s Business Report, the company will invest 2 billion rupees (roughly £24.2 million) over the next three years in the expansion. The company has reportedly already invested 700 – 800 million rupees in the facility.
In addition to the expansion plans, the company also intends to set up another plant in the area. The announcements come despite a dip in Indian tyre industry profits due to increasing raw material costs.
Indian manufacturer JK Tyre was reportedly one of three large companies that forked out nearly £16 million in sponsorship in order to see the Jordan F1 team hire Narain Karthikeyan. In fact, “money was really not a consideration” when it comes to F1 sponsorship, the company told the AFP news agency.
Continental and JK Industries are in talks to explore how the two companies can strengthen their existing alliance. Among the options is that of Continental investing in a joint venture for the Indian market. Continental board member Hans-Joachim Nikolin is quoted in the Indian press as saying that the discussions are taking place “at levels up to the most senior in both companies.” He also adds that radialisation is increasing in the Indian tyre market and “the technological capabilities of Continental were now applicable to the Indian situation.”
In India, MRF has topped a JD Power study on OE tyre customer satisfaction for the third year running. More than 1,500 owners took part in the study, assessing tyres on 20 different attributes. Bridgestone, JK Tyre and Goodyear were behind MRF in the ratings. This year’s study was the first to deal solely with radials, as these account for nearly all tyres fitted to new passenger cars in India. The survey also revealed that more than 20 per cent of new-vehicle buyers choose the brand of tyres fitted on their new car.
Indian tyre manufacturer JK Tyre has said that it will invest 105 crore Rupees US$ 22.45 million) over the next three years to increase capacity at its radial truck tyre plant in Mysore and to increase the number of service and tyre care centres. $16 million would go towards increasing annual capacity from 240,000 tyres to 350,000 units while the remainder would be spent on increasing the number of tyre care centres to 100 and adding five more service centres.
India’s largest four wheeler tyre manufacturer celebrates its silver jubilee. J. K. Tyre is a division of J. K. Industries, which is itself a flagship company of the J. K. organisation; one of the largest industrial groups in India. As well as tyres, the group’s manufacturing activities include paper, cement, textiles, hybrid seeds, cosmetics, power transmission – the list is as varied as it is extensive. J. K. Tyre was established in 1977 and has established itself as India’s number one manufacturer of tyres for four wheel vehicles under the JK Tyre and Vikrant brands. In this sector, J. K. Tyre claims a domestic market share of 20.8%. In the truck and bus tyre market, which accounts for around 80% of the Indian tyre market by value, J. K. Tyre claims a market-leading 25.8% share.In 1997, J. K. Industries took a major strategic decision to acquire Vikrant Tyres Ltd., an ailing tyre manufacturer. With the input of J. K. Tyre’s expertise, systems, marketing and work practices, Vikrant achieved a remarkable turnaround, returning to profit after only ten months. Today, J. K. Tyre has four Indian production facilities, with a capacity of 5.5 million tyres. This growth is set to continue, with production over the next two or three years rising to some eight million tyres. The company also boasts India’s first, and only, all-steel truck and bus radial plant. Being a pioneer of radial technology involved J. K. Tyres in a great deal of hard work and effort to spread the word about the benefits of radials, but this has been rewarded as the J. K. Tyre brand is strongly associated with radial tyres. The company’s marketing strategy was focused on offering high performance radials with service being the brand differentiator.One aspect of this was the establishment of a chain of retail outlets, offering a one-stop sales and service centre. Going under the name “Steel Wheels”, there are more than 100 such outlets in India and J. K. Tyre claims that they have revolutionised tyre retailing in India – offering services such as wheel balancing and alignment and advice on tyre care by well-trained technical staff. Another marketing initiative is the “Dial-a-Tyre” service, which allows customers to have tyres delivered and fitted in the comfort of their own homes. This is the latest in a line of innovations, which includes India’s first T-rated tyre, the first H-rated tyre and the country’s first Dual Contact tyre, the “Aquasonic”. The company manufactures a range of tyres to suit all four-wheel applications, from cars to trucks and buses, agricultural vehicles and tractors, plus there is also a range of tyres for animal-drawn vehicles. Both radial and bias ply tyres are produced.