New Delhi: JK Industries Ltd (JKIL), a leader in the Indian tyre industry and the manufacturer of well-known JK Tyre and Vikrant Brands, has posted a record turnover of Rs 2,077 crore for the year ended 30 September 2003.
Its operating profit for the year is Rs 197 crore. After providing for financial charges and depreciation, the profit before tax for the year is Rs 39 crore. The net profit for the year after normal and deferred tax is Rs 22.09 crore. The board has recommended the payment of an equity dividend of 20 per cent on the enhanced capital resulting from merger of Vikrant Tyres with the company.
JKIL achieved these results in the wake of a very substantial increase in the cost of natural rubber. During the year the prices of natural rubber rose by 30 per cent. JK Tyre has partly met this cost increase through productivity gains and operational efficiencies.
All the four tyre plants of the company operated at full capacity utilisation consistently. JK Tyre achieved a production of 5.2 million tyres, registering a growth of 13 per cent over the corresponding 12-month period. In the passenger tyre segment, the company has achieved a significant growth of 19.5 per cent against the industry growth of 9.2 per cent.
The company has recently completed expansion of its passenger radial tyre capacity. Further expansion has been taken up, which will fructify in 2004 in order to cater to the ever-increasing demand for JK Tyre in both the OEM and replacement market.
This is remarkable for the company. It is significant that India''s leading automobile manufacturers have chosen JK Tyre as their preferred business partner. JK Tyre''s OEM business has recorded remarkable growth of 27.2 per cent.
JK Tyre exports were Rs 325 crore for the year. JK Tyre is the largest exporter from India accounting 30 per cent of the total tyre exports. It exports to over 60 countries in all the six continents including the US, Latin America, Africa, the Middle East, Southeast Asia and Australia. It has launched its products in China and is also outsourcing tyres from China for international markets.
JK Tyre is the foremost manufacturer of four-wheeler tyres and the largest bus and truck tyre manufacturer. JK Tyre pioneered radial tyre technology way back in 1977 and is the leader of radials in India. It is the only Indian manufacturer producing the entire range of truck, bus, LCV, MUV, jeep, car and truck radials.
It has taken up the challenge of leading the radial revolution successfully in the commercial vehicle segment as well. JK Tyre is the first and the only manufacturer of truck radials in India. It has a state-of-the-art truck radial plant in Mysore with a capacity of about 2.40 lakh tyres every year that is poised for further expansion.
The buoyancy in the Indian economy and the automobile industry in particular along with the big strides being made in the implementation of golden quadrilateral, and north-south and east-west corridor highway development projects offer tremendous opportunities for rapid growth of automobile business and the tyre industry. The company is fully geared to capture these opportunities.
With further expansion of the capacities under way, the shareholders should look to a much brighter future for the company in the near term, says a company press release.