JK Tyre Aiming to Increase Turnover by More than 50%

It is hoped that JK Tyre and Industry’s Rs 11 billion (£135 million) capital expenditure and capacity increase from 9 million to 12 million units will help towards the company achieving a turnover of Rs 50 billion (£610 million) within three years, claims chief financial officer A K Kinra. Mumbai based publication DNA has reported Kinra as stating “We are aiming to grow by 20 per cent annually over the next 3-4 years. We hope to be a Rs 5,000 crore (£610 million) company by 2010.” Currently JK Tyre has an annual turnover of Rs 30 billion (£366 million).

Kinra added that the current slowdown in India’s car industry was not of concern to JK Tyre as OE contracts only make up about 10 per cent of the tyremaker’s business, with the rest coming from the replacement and export markets. “The slowdown has only a marginal impact on us. In the aftermarket space, we see a robust demand,” he said.