How do you assess the performance of JK Tyre in the past one decade in a generic sense, vis-à-vis market trends and challenges? JK Tyre & Industries is the flagship company of JK Organisation and is amongst the top 25 tyre manufacturers in the world. We provide end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, off-road and two & three-wheelers. From initiating its journey by producing the first radial tyre in 1977 to becoming the market leader in the truck-bus-radial segment, the company has globally benchmarked 12 ‘sustainable’ manufacturing facilities – nine in India and three in Mexico. We commenced manufacturing two- and three-wheeler tyres in India, after the acquisition of Cavendish Industries in 2016. This made us a full range tyre company, catering to the growing two- and three-wheeler tyre industry of India. We have been committed to offering world-class products and services to our customers and consistently expanding our product portfolio not only to catering to the various segments of markets but also to achieve higher customer satisfaction. Taking its commitment towards innovation to the next level, JK Tyre launched India’s first ever ‘Smart Tyre’ technology, which incorporate AI based Tyre Pressure Monitoring Systems (TPMS) through TREEL sensors. With a distribution network of 6,000-plus dealers and 650- plus brand shops in India, we have an extensive foothold in the domestic as well as export markets. Taking ahead our customer-first approach, we are also associated with various e-commerce platforms with the sole purpose of serving our customers through seamless connectivity. Since 2010, you made two significant acquisitions – one in South America and the other one within the country. Have they started performing as per your expectations? How challenging has it been to integrate and align them with your long-term plans? We acquired Cavendish Industries in 2016, at a value of Rs2,170 crore, which has proved to be a strategically important turnaround story. Since then, we have witnessed an upward graph and contribution in the overall growth of the company. The acquisition also enabled the company to enter into the fast growing two- and three-wheeler segment, a segment in which the company was not present earlier. It also saved three years of setting up a similar greenfield facility and enabled quicker penetration into the two- and three-wheeler segment. CIL has been on an operational turnaround since its acquisition in 2016, and it has reported a revenue growth of 16 per cent to Rs2,571 crore for 2020-21. The cash profit for the year was Rs225 crore, posting a significant jump of 150 per cent. We expect Cavendish to continue a sustained improvement in sales and profitability in the coming period as well. Similarly, JK Tyre acquired Tornel in 2008 which currently operates as a subsidiary, with distinct distribution channels across the regions of North and Latin America. The acquisition boosted our Mexico’s distribution centres, retail stores, warehouses and local sales offices. JK Tornel, Mexico, has an excellent stronghold in the domestic market. Leveraging its brand equity, the company became the number one supplier to mass merchandisers, such as Walmart. In addition, it has significantly improved its position in LATAM markets. During the year, the company also enhanced its presence in the advanced markets of the US. Both the subsidiaries have been performing exceptionally well and we look forward to consolidating our leadership position in the tyre market.
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Raghupati Singhania: committed to innovation
