JK Tyre shift gears into two wheeler tyre category too

JK Tyre & Industries Ltd is planning to enter two-wheeler segment via the trading route. The New Delhi-based company is in the process of working on signing up with vendors and exploring both local and international vendors.

“We are planning to outsource and sell two-wheeler tyres for the time being. We are working on signing up with vendors and we are exploring both local and international vendors,” says Raghupati Singhania, CMD, JK Tyre. The brand, which currently makes tyres for four-wheelers, buses and trucks, will have tyre giants like MRF, Ceat and TVS as it competitors in the two-wheeler segment.

The company has posted over two fold rise in its consolidated net profit at Rs 118 crore for the first quarter ended June 30, manufactures radial and bias tyres for truck, buses and passenger vehicles. It posted a net profit of Rs 55 crore during the same period of the previous fiscal. The company achieved a consolidated turnover of Rs 1952 crore. On a standalone basis, JK Tyre reported a turnover of Rs 1676 crore with an operating profit at Rs 260 crore, an increase of 56% over the corresponding quarter.

It has substantial investments to expand its capacities of both truck/bus radials and passenger line radials and also support expansion of product portfolio with addition of new range in different tyre categories in the near future.