To up it’s position in the tyre sector, JK tyre will venture into two- and three-wheeler segments.
The company manufactures tyres for buses and trucks, among others.
“We are looking to enter twowheeler and threewheeler segments. We are currently test marketing the products. We plan to enter in a bigger way this area,” JK Tyre and Industries, President and Director Arun K Bajoria told reporters in a conference call.
The company is in the process of working out further details for the segments, he added. JK Tyre and Industries had posted a net profit of Rs 55 crore during the same period of the previous fiscal.
Net sales of the company, however, declined to Rs 1,759.91 crore in the first quarter compared with Rs 1,853.92 crore in the same period last year.
“Better product mix led to a increase in profitability. Our share of product mix ratio of radial and bias tyres has increased to 50:50. Earlier it used to be 65 % bias tyres and rest radial tyres,” Bajoria said.
When asked about the capex for the current fiscal, Bajoria said the company is in the process of investing Rs 1,430 crore at its Chennai plant.
“We have already invested around Rs 500 crore and the rest would be invested by the end of the financial year,” he added.
The company is in the process of enhancing its truck and bus radial capacity to 12 lakh units per annum from four lakh units per year at the Chennai plant.