The acquisition of tyre, tube and flap manufacturer Cavendish Industries Ltd. has been approved by the Board of Directors at JK Tyre & Industries. The Indian tyre maker is acquiring 100 per cent equity in Cavendish from Kesoram Industries Ltd. for just under Rs 22 billion (£214.6 million). According to JK Tyre, it and other JK Group companies will fund the acquisition by a combination of debt and internal accruals, and JK Tyre’s financial exposure is expected to be some Rs 4.5 billion (£43.9 million). The deal is expected to close in December 2015.
The latest quarter figures for JK Tyre & Industries were released along with a challenge for India’s government to impose tariffs upon tyres imported from China. Company chairman and managing director Dr Raghupati Singhania stated on 4 August that the “menace” posed by the “dumping of Chinese tyres” continues “unabated”. He added that “urgent steps are required to impose [an] anti-dumping duty to ensure a level playing field in the marketplace.”
Indian manufacturer JK Tyre denies it is negotiating the acquisition of Birla Tyres with current owner Kesoram Industries. Responding to an article published by Indian financial daily The Economic Times earlier today, the tyre maker told BSE Ltd (the Bombay Stock Exchange) that “there is no transaction between JK Tyre & Industries Ltd. and Kesoram Industries Ltd.”
JK Tyre & Industries Ltd has appointed Vivek Kamra as its president – India. The news follows Arun K Bajoria’s promotion to the role of ‘director and president – international operations’. Bringing with him 20 years’ experience, Bajoria will be leading JK Tyre’s international operations including JK Tornel, Mexico and special “strategic assignments”.
JK Tyre & Industries has named Vivek Kamra its president – India. Kamra’s appointment to the role follows Arun K Bajoria’s promotion to the position of director and president – international operations.
While JK Tyre & Industries was unable to maintain turnover in the previous financial year, profits at India’s third-largest tyre maker rose significantly. The company reports that turnover decreased 3.6 per cent to Rs 73.3 billion (£743.9 million) during the 2014/15 financial year, which ran from 1 April 2014 to 31 March this year. Operating profit rose 11.7 per cent to Rs 7.7 billion (£78.1 million) while net profit jumped 26.7 per cent to Rs 3.2 billion (£32.5 million).
Indian tyre manufacturer JK Tyre has reported consolidated net profits of $14.8 million for its third quarter of 2014, which ended 31 December 31, 2014. The quarterly profit report represents an increase of more 56 per cent compared with the same period last year. JK Tyre’s turnover in the period amounted to $322 million. Raghupati […]
JK Tyre & Industries has raised its short and long term debt ratings from A1 to A1+ and A to A+ respectively. Arun K Bajoria, president of JK Tyre, told The Times of India that the improved credit ratings were “testimony to JK Tyre’s strong fundamentals.”
Regional government ministers in India met with tyre makers on 18 December to discuss rubber prices. Chief minister of the state of Kerala, Oomen Chandy has chaired a meeting which proposed a minimum guaranteed price for rubber growers – a price of around Rs 125 to 130 (£1.25 to £1.30) per kilogramme was suggested. In recent times the price paid to Indian rubber growers has dipped as low as Rs 90 per kilogramme, a price considered unsustainable.
JK Tyre has been chosen as a Superbrand for the year 2013-14 and ranked amongst the top ten per cent of all brands, across categories in India. This is the third year in a row that Superbrands India has chosen JK Tyre as a Superbrand, and so far it is the only Indian tyre brand to be chosen as a Superbrand. This year, the company improved its overall net score from 6.8 to 7.6 out of 10.
India’s JK Tyre & Industries Ltd has reported consolidated net profit of Rs 755.9 million (£7.8 million) for the three months to 30 September 2014, the second quarter of the company’s current financial year. This result represents a year-on-year increase of 18.1 per cent. The company achieved a consolidated turnover of Rs 18.7 billion (£193.5 million), up 3.6 per cent from the second quarter of the previous financial year.
JK Tyre & Industries reports a 29 per cent year-on-year increase in net profit for its 2013-14 financial year. During the 12-month period between 1 April 2013 and 31 March 2014, the Indian tyre maker achieved turnover of Rs 82.8 billion (£833.7 million), nine per cent higher than in the prior financial year. Operating profit was up 41 per cent to Rs 8.9 billion (£89.6 million) while pre-tax profit grew 42 per cent to Rs 3.5 billion (£34.9 million). The 29 per cent expansion in the company’s bottom line brought net profit to Rs 2.6 billion (£26.5 million). The company has announced a 50 per cent equity share dividend.
The prices of shares in Indian tyre manufacturers have fallen back after rallying last week prior to the Easter weekend. According to local news sources, the shares of tyre companies plunged by up to 8 per cent each. The fact that one of the largest domestic tyre makers, MRF, reported a decline in net profit for the quarter ended March 2014 was said to have been the main precipitating factor.
The share prices of India’s leading tyre companies surged in value on Good Friday prior to the Easter weekend. Overall shares of Indian tyre companies shot up by up to 17 per cent, accompanied by heavy volumes reportedly due to “expectations of higher revenue growth during the current fiscal”, according to local news sources. Apollo Tyres, Ceat, Goodyear India, JK Tyre Industries, Balkrishna Industries and TVS Srichakra all rose by between 4 and 17 per cent each on the Bombay Stock Exchange (BSE) during Friday’s trading.
India’s automotive sector has slowed of late and this has impacted on the original equipment tyre business. One manufacturer says it is responding to this by investing more strongly in the replacement business.