JK Tyre & Industries Ltd is one of the leading automotive tyre manufacturers in India. The company mainly develops, manufactures, markets and distributes automotive tyres, tubes, flaps and retreads. I
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t markets tyres for sale to vehicle manufacturers for fitment as original equipment and for sale in replacement markets. The company has manufacturing plants located in India and Mexico with worldwide distribution.
The flagship company of JK Organisation, JK Tyre & lndustries Ltd is amongst the top 25 manufacturers in the world. Pioneers of radial technology, the Company produced the first radial tyre in 1977 and is currently the market leader in Truck Bus Radial segment. The Company provides end-to-end solutions across segments of passenger vehicles, commercial vehicles, farming, Off-the-Road and two & three-wheelers.
A global force, JK Tye is present in 105 countries with over 180 Global distibutors. The Company has 12 globally benchmarked 'sustainable' manufacturing facilities - 9 in India and 3 in Mexico - that collectively produce around 35 million tyres annually. The Company also has a strong network of over 4000 dealers and over 550 dedicated Brand shops called as Steel Wheels and Xpress Wheels.
JK Tyre & Industries Ltd was incorporated in the year February 14, 1951as a private limited under the name JK Industries Pvt., Ltd. Until March 31, 1970, the company was engaged in the managing agency business. Thereafter the company decided to undertake manufacturing activities and obtained a letter of intent in February 1972 for the manufacture of automobile tyres and tubes. The company name was changed into JK Industries Ltd., with effect from May 24, 1974 consequent upon conversion of the company into a public limited company.
In the year 1974, the company entered into a technical collaboration with General Tire International Co, USA, a subsidiary of General Tire & Rubber Co, USA for technical services and sales agreement for the supply of technical know how engineering and documentation for operational facilities. In the year 1989, the company introduced several new patterns and sizes of tyres including a semi-lug Nylon Truck tyre.
In the year 1991, the company set up Banmore Tyre Plant with a capacity of 5.7 lakh tyres per annum. They launched radial tyres for tractors. In the year 1992, the company's international division expanded their activities by opening their office in Moscow. In addition, they set up a Research and Development center at HASETRI. In the year 1993, they introduced new radial tyres namely, Brute and Ultima and in the next year, they launched 'Jet Track-39' to meet the need of the heavy load market.
In June 1997, the company acquired 51% stake in Vikrant Tyres Ltd from Karnataka Government. They launched India's first H-Rated tyre. During the year 1998-99, as per the Scheme of Arrangement between the company and JK Drugs & Pharmaceuticals Ltd, the pharmaceutical undertaking of the company was transferred to and vested in JK Drugs & Pharmaceuticals Ltd with effect from appointed date July 1, 1996.
During the year 2002-03, as per the Scheme of Arrangement and Amalgamation between the company, JK Agri, J K Sugar and Vikrant Tyres Ltd, the agri-genetics undertaking of the company was transferred to JK Agri, the sugar undertaking was transferred to J K Sugar and Vikrant Tyre Ltd was amalgamated with the company. During the year 2004-05, the expansion of capacity of Truck/ Bus Radials by 50% was completed. In addition, the expansion of the passenger radial capacity was completed.
In December 2006, as per the Scheme of Arrangement and De-merger between the company and Netflier Technologies Ltd (name since changed to Netflier Finco Ltd), the business of holding and dealing in investments and some other assets and properties of the company and liabilities and obligations thereof stood transferred to and vested in Netflier Finco Ltd. In addition, Hansdeep Investment Ltd, Hidrive Finance Ltd, Panchanan Investment Ltd and Radial Finance Ltd ceased to be the subsidiaries of the company.
During the year 2006-07, the company introduced a new tyre, offering high mileage 'Jet One' and launched new Semi-Lug and Rib pattern Truck Radial tyres. They also diversified into Special Application Tyres and commenced their exports. In order to capture the brand 'JK Tyre' and their value in the name of the company, they changed their name to J K Tyre & Industries Ltd with effect from April 2, 2007. The company entered into an arrangement with BEML for supply of OTR tyres on a long-term basis.
In June 2008, the company acquired the controlling interest in Empresas Tornel, S A de C V (Tornel), a company incorporated under the laws of Mexico, by acquiring 100% of their equity capital for a consideration of USD 28.75 million. Tornel has three tyre manufacturing plants in Mexico with a combined capacity of 6.6 million tyres per annum
During the year 2008-09, the company doubled the capacity of Truck/Bus Radial plant to 8.00 lakh tyres from 3.67 lakh tyres per annum at an estimated project cost of Rs 315 crore. This has further strengthened JK Tyre's commanding position in the fast growing Truck/Bus segment.
The company has undertaken a project for substantial expansion of their OTR tyre capacity at a capital outlay of Rs 120 crore, which is expected to be completed by 2010.
In order to infuse additional liquidity in the company's stock and attract small investors to invest, each equity share of a face value of Rs. 10 (fully paid-up) was sub-divided into five equity shares of a face value of Rs. 2 each (fully paid-up). For the purpose, 19th December 2014 was fixed as the record date. Consequently, 4,10,59,346 equity shares of Rs. 10 each as on the record date, were sub-divided into 20,52,96,730 equity shares of Rs. 2 each.
As per the terms of 43,03,350 warrants issued to the promoter group on a preferential basis, the holders of warrants exercised the option of converting the said warrants into equity shares by paying the balance 75% of the total consideration of the issue value, amounting to Rs. 37.11 crores. Accordingly, 43,03,350 warrants were converted into 2,15,16,750 equity shares of Rs. 2 each on 8th January 2015.
The Company expanded its Truck/Bus and Passenger Line Radial capacities at its All-Radial Chennai plant. This C 1,430 crores project was completed in phases during the year 2016. The benefits of this expanded capacity will start accruing during the current year and strengthen the Company's leadership in this fast-growing segment.
During the year 2017, the Company completed the acquisition of its subsidiary, Cavendish Industries Ltd. (CIL). Consequent to this acquisition, the Company strengthened its leadership in the Truck/Bus Radials and entered the growing 2/3 Wheeler Tyre segment, participating in the entire range of product portfolio in the automotive tyre market. This substantial capacity acquisition makes the Company future-ready to capture growth in the Country's automotive sector.
During FY 2017-18, the Company launched Jet Xtra-XLM designed to cater to both load and mileage needs in the bias segment, Jet Steel JDE with extra mileage and load capability in the radial segment and Jet Way-JUM a superior product for universal application in buses and select application in trucks in the truck radial tubeless segment. The Company further engaged with its fleet customers from across the country by organizing Regional Fleet Meets and showcasing the state-of-the-art Chennai tyre plant.
During FY 2017-18, the Company launched special premium 'White lettered' tyres in Ranger SUV tyres, which delighted customers. JK Tyre further introduced a new flagship product 'BLAZE RYDR' for high-end, high-speed motorcycles. New and innovative patterns launched in scooter tyre range were highly appreciated by customers.
In FY 2018, JKTyre in partnership with Suzuki launched the exciting Suzuki Gixxer Cup, a two-wheeler racing platform, which also marked its entry into the two-wheeler tyre business.
In FY 2018, the Company introduced a new flagship product' BLAZE RYDR' for high-end, high-speed motorcycles.
With a view to augment the net worth of the Company as also long term equity finance, the Company made Preferential Issue of 1,94,17,400 equity shares of Rs 2/- each to the constituents of the Promoter Group, at a price of Rs 103/- per equity share based on a price prescribed under relevant SEBI Regulations, aggregating to Rs 200 Crore. The equity allotment was completed on 29 March 2019.
As on 31 March 2019,the company has 15 subsidiaries and 4 associate companies.
During the year, the company bagged National Water Awards for Excellence in Water Management 2018 by CII. The company also received Gold Medal in the National Awards for Manufacturing Competitiveness (NAMC) and Special Award for Strategic Improvement Initiatives. The company Certified as 'Great Place to Work' by Great Place of Work Institute for the year 2019.
During the FY2020, as per the Scheme of Arrangement sanctioned by the Hon'ble Benches of National Company Law Tribunal, Kolkata and Chennai vide their respective Orders dated 5th November, 2018 and 3rd May, 2019, which became effective on 24th May, 2019; BMF Investments Ltd. and Florence Investech Ltd. were merged into Bengal & Assam Company Ltd. (BACL). As a result, JK Tyre & Industries Ltd. has become a subsidiary of BACL effective 24th May 2019.
During the FY2020,Treel Mobility Solutions Pvt. Ltd. has become an associate of the Company. The Company has one material unlisted subsidiary incorporated in India, namely- Cavendish Industries Ltd.(CIL). The Company consolidated its shareholding in Cavendish Industries Limited, a subsidiary, by further acquiring 76,70,000 Equity Shares of Rs 10 each, thereby raising its shareholding to 86.41% together with another subsidiary.
As on 31 March 2020,the company has 15 subsidiaries and 5 associate companies.
JK Tyre is recognized as One of India's 30 Best Workplaces in Manufacturing 2020 - Certified by Great Place to Work. The company was awarded Vedanta Hindustan Zinc CSR Award 2020 by Udaipur Chamber of Commerce and Industry.
COVID-19 pandemic has caused serious disruptions on the global economic and business environment. Government of lndia declared lockdown on March 24, 2020 which has impacled the business activities of the Company. Consequent to this, upon restrictions being eased, the production resumed at all plants in stages considering necessary statutory approvals and pre-cautions.
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