JK Tyre Archives - Page 11 of 13

JK Tyre BOD Recommends 27% Dividend

Shareholders in JK Tyre & Industries look assured of a healthy return on their investment after the company’s board of directors recommended a dividend of 27 per cent on equity shares for the year 2006-07. Company net profits for the quarter ending December 31, 2007 were Rs 217.4 million (£2.8 million), an impressive increase of 166 per cent on results for the same quarter a year earlier. Net sales were Rs 7,228.8 million (£92.4 million, an increase of 9.9 per cent.

30th January 2008/by Tyrepress Editors

Conti to Invest up to 4 Billion Euros Worldwide

Product News

Continental is considering spending as much as 4 billion euros on the acquisition of other companies. This news was given to the German magazine Auto Motor und Sport by company CEO Manfred Wennemer, who said that the company could “finance acquisitions of 3 to 4 billion euro through borrowing without problems.”

According to Wennemer, Conti is considering 30 to 40 candidate companies worldwide for takeover, and the company is looking at expanding its tyre business in the growing Asia region in particular. “In tyres, we are searching in Asia, mainly in China, for takeover targets.” Also specifically named as a focus was India. “As far as our tyre business is concerned, we want to enter the Indian market. It’s the last blank on the world map of our tyres business,” he said.

14th January 2008/by Tyrepress Editors

Conti to Invest up to 4 Billion Euros Worldwide

Product News

Continental is considering spending as much as 4 billion euros on the acquisition of other companies. This news was given to the German magazine Auto Motor und Sport by company CEO Manfred Wennemer, who said that the company could “finance acquisitions of 3 to 4 billion euro through borrowing without problems.”

According to Wennemer, Conti is considering 30 to 40 candidate companies worldwide for takeover, and the company is looking at expanding its tyre business in the growing Asia region in particular. “In tyres, we are searching in Asia, mainly in China, for takeover targets.” Also specifically named as a focus was India. “As far as our tyre business is concerned, we want to enter the Indian market. It’s the last blank on the world map of our tyres business,” he said.

14th January 2008/by Tyrepress Editors

MRF, JK Tyre OE Partners for World’s Cheapest Car

Product News

The Ninth Auto Expo in New Delhi was selected as the venue for the January 10 launch of the world’s cheapest car, India’s Tata Nano. In its most basic form the Nano will retail for Rs 100,000 plus taxes. That’s around £1,300, less than one-third of the cost of the cheapest model sold in the UK. What buyers get for their rupees is a fairly spartan vehicle – the entry level Nano features no radio, air conditioning, power steering or any related luxuries, and comes fitted with a single windscreen wiper and a driver’s side only door mirror. But despite the lack of frills, the car is a genuine four-seater, and its two cylinder 623cc engine is said to deliver 33 hp and 5 litres/100km fuel economy. Furthermore, Tata reports that the Nano exceeds current safety and environmental standards.

11th January 2008/by Tyrepress Editors

Indian Manufacturers Expanding TBR, OTR Production

News

JK Tyre, India’s first TBR manufacturer, has responded to moves from other manufacturers to join this sector by boosting capacity at its facility in Mysore, southwest India, from 370,000 to 500,000 tyres per year, a target that will be met in 2009. Competition in this market sector is heating up in India: Apollo has already established a pilot TBR facility and during the coming quarter will consider the viability of further expansion. Ceat, who currently sources its TBR tyres from Pirelli factories and from manufacturers in China, have in recent months sought international technical assistance for the establishment of a domestic greenfield factory. According to the Hindu Business Line newspaper proposals for this project may be finalised in the next quarter. The paper adds that MRF has also announced plans to set up a TBR capacity.

7th January 2008/by Tyrepress Editors

Apollo to Expand OTR Production Six-Fold

Product News

News that Apollo Tyres was considering some form of joint venture with Indian mining vehicle manufacturer Bharat Earth Movers Ltd (BEML) and its most significant customer, Coal India, was first disclosed in early April 2007. Eight months later India’s Economic Times reports that the tyremaker has entered into a tripartite agreement with these two companies for the supply of OTR tyres.

10th December 2007/by Tyrepress Editors

JK Tyre to Expand China Outsourcing

Product News

JK Tyres has become the latest Indian manufacturer to talk of boosting its outsourcing of production to Chinese manufacturers. An article printed in the Hindu Business Line reports that the company, who already has five or six Chinese partners producing tyres under the JK brand name, intends to increase its outsourcing activity there by around 10 per cent.

This measure is being taken in order to increase JK Tyre’s sales in Chinese and other overseas markets. “We are looking at strategic partners in South East Asia or China to serve the local market in those countries as well as overseas markets. Though the China business is miniscule currently, we are looking to expand it,” quoted the Hindu Business Line of JK Tyre vice chairman and managing director Raghupati Singhania.

29th November 2007/by Tyrepress Editors

IIRC 2007 Discusses Raw Material Crunch

Premium, Product News

The 2007 India International Rubber Conference & Expo focused on the raw material crunch facing tyres and attracted more than 600 delegates, including 75 overseas delegates. At the exhibition that ran in parallel, 90 stalls were installed by different organizations related to rubber and allied industry. JK Tyre also exhibited racing and rally cars for the viewers along with vintage cars. There conference featured seven plenary sessions in all, 12 technical sessions and two workshops on ‘Importance of Testing and Standardization of Chemical.’ In total 83 papers were presented at the conference.

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20th November 2007/by Tyrepress Editors

Net Profit Trebles for JK Tyre

Product News

The financial quarter between July and September has proven to be a healthy one for JK Tyre & Industries, who on October 23 reported that its quarterly net profit had more than trebled from a year earlier, the result of lower raw material prices and better realisations. Net profit rose from Rs 69.8 million (£863,800) to 243.9 million (£3.02 million) in spite of sales decreasing 2.8 per cent to Rs 6.9 billion (£85.4 million) since a year ago.

On top of the growth in net profit, the manufacturer forecast sales growth in the area of 20 per cent for the year ending September 2008. “We are hopeful that in the coming year new product development and tinkering with [our] market mix will continue, which will help us drive volumes and higher profit margin,” managing director Raghupati Singhania informed media. Sales of truck tyres, a product that reportedly generate four fifths of JK Tyre’s revenue, were down during the quarter, however they are anticipated to increase again in the October to December quarter, which corresponds with India’s festival season, traditionally a time for making purchases.

24th October 2007/by Tyrepress Editors

Apollo in OE Talks with Skoda & Hyundai

Product News

Apollo Tyres, whose chairman Onkar S Kanwar recently voiced the company’s ambition of doubling turnover to US$2 billion within the next three years, is reportedly in OE supply talks with both Skoda and Hyundai. Specific details of these negotiations have not as yet been made public. And while the Indian tyre major has not at this stage been selected as an OE supplier for the Tata 1 lakh (£1,250) car – JK Tyre and MRF Tyres will initially fulfill this role – it is not ruling out the possibility of coming on board at a later date.

“When Tata Motors was initially finalising the vendor base, we did speak with them,” Apollo Tyres’ chief, India Operations Satish Sharma commented to India’s Economic Times newspaper. “However we plan to follow a different model. We would initially supply tyres in the after-sales market for the Tata Rs 1 lakh car and once the volumes pick up, we might become their OE partners.”

17th October 2007/by Tyrepress Editors

Cheap Chinese Imports Worry Indian Tyremakers

News

(Akron/Tire Review – India Business Standard) With the Indian tyre market being flooded with cheaper Chinese bus and truck tyres, the domestic tyre industry is up in arms about the under-invoicing of these imports and their inferior quality.

25th September 2007/by Tyrepress Editors

Pre-Tax Profit Skyrockets at JK Tyre

Product News

The un-audited financial results released by JK Tyre & Industries Ltd for the quarter ending June 30, 2007 – the third quarter of India’s financial year – reveal good news for shareholders and paint a picture of a company in a strong position.

Revenues of Rs 8,178 billion (£100 million) were recorded for the quarter and the company reported EBIDTA of Rs 725.3 million (£8.8 million), up from the Rs 444.9 million (£5.4 million) achieved last year. Pre-tax profit rose to Rs 312.3 million (£3.8 million), a huge jump from a year ago when profits before tax stood at Rs 56.1 million (£683,700). The earnings per share for the quarter stands at Rs 6.56 (£0.08).

31st July 2007/by Tyrepress Editors

Indian Tyremakers to Spend £670 million

Product News

According to India’s Economic Times, tyre companies in the subcontinent plant to invest around £670 million in their operations over the next two or three years. The financial daily reports that this sizable sum will be spent by a number of players including MRF, JK Tyre, Apollo, BKT, Ceat, Birla and Bridgestone. Birla alone is reportedly spending £120 million, while Ceat is said to be making investments worth £97 million and JK Tyre £45 million.

Such a large investment is expected to increase industry turnover from its current £2.3 billion up to £3.9 billion, and much of the increase may come from the production of TBR tyres. While radialisation in the passenger car sector has reached over 95 per cent in India, TBR market penetration remains a paltry 2 to 3 per cent.

30th July 2007/by Tyrepress Editors

JK Tyre Aiming to Increase Turnover by More than 50%

Product News

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.

13th July 2007/by Tyrepress Editors

JK Tyre Sheds Further Light on Expansion Plans

Product News

JK Tyre has released additional details of the company’s expansion plans, and it appears far more money than previously reported will be invested in increasing production capacity. The Indian tyremaker plans to inject Rs 11 billion (£135 million) into capacity expansion during the next three years. According to India’s Economic Times, JK Tyre finance director A K Kinra has stated that both capacity for OTR tyres and for radials will be expanded in order to meet with increased demand – passenger radial capacity will be increased from its current 4.5 million units to 7 million units, and TBR capacity will be boosted from 400,000 to 1 million units per annum – and the planned expansion projects will be funded through a combination of loans and internal accruals.

Kinra added that growth in these three sectors will form the basis of JK Tyre’s future expansion, and he expects the company to achieve a revenue of Rs 50 billion (£615 million) within a three-year window. The previous financial year saw the company achieve revenues of £365 million.

9th July 2007/by Tyrepress Editors

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