By Our Bureau

Copyright thehindubusinessline

As dealers are clearing out past inventories, JK Tyre & Industries, one of the country’s largest tyre manufacturers, is building up inventory to cater into the sudden demand expected after September 22. Amid the 50 per cent tariff imposed by the US government, the company has diverted its exports from India to the US to other markets, its Managing Director Anshuman Singhania said.

For the festive season spurt in the sale of vehicles, the company is making sure the products are available to customers (original equipment manufacturers), and also to end customers (for replacement). The company is eyeing foraying into new markets such as Africa and LATAM, he told newspersons, at the company’s plant at Sriperumbudur, near Chennai.

“The demand for tyres this year is looking good due to good monsoon. The GST 2.0 is a welcome move, and should boost cash in the hands for consumers. This festive season is looking to be good,” he said.

There is a lot of excitement in the market for new launches of various types of vehicles – ranging from two- wheelers to commercial vehicles. In the commercial vehicle segment, which was predicted in the beginning of the year at a low single-digit or flat, could see a mid single digit 2 per cent to 5 per cent growth,” he said. “We are very confident that we should also have a double-digit growth for this financial year,” he added.

The company supplies tyres to OEMs such as Hyundai, Kia, Maruti, Mahindra and Ashok Leyland.

“We had a double-digit growth last year and we foresee that this year also we will continue with the same spirit,” he said. In FY25, the company reported a consolidated net profit of ₹516 crore on revenue of ₹14,772 crore.

On exports, Singhania said the company has a good footprint in South East Asia, West Asia and there is a huge opportunity in Europe. “As we develop our products, by the end of the financial year and beginning of next year, we will be pushing out products in a big way to European countries,” he said.

Exports form 12-15 per cent of the total revenue of the company . Nearly 3 per cent was going to America but has been diverted to other countries due to the tariff issue, he said. “We will export tyres to the US from our plant at Mexico. Every industry from India has to think and realign. We don’t know what strategy we would be panning going forward. As far as we are concerned, we have secured our risk in terms of diverting to other markets,” he added.

With regard to tariffs, Singhania said, “We are hopeful of a solution, with the ongoing dialogues between the Indian government and the US.”

As per Singhania, with 11 plants, including two in Mexico, the company’s annual manufacturing capacity is 35 million tyres. The Chennai plant, in which the company invested ₹2,600 crore, has a capacity to manufacture 350 tonnes per day for truck bus radials (TBR) and passenger car radial (PCR). Nearly 20 per cent of the company’s consolidated turnover comes from the Chennai plant, he said.

The Chennai plant is operating at around 90 per cent capacity utilisation. There is a scope to increase the capacity to around 600 tonnes a day, and the company will look at expansion in future, he said without giving a timeframe.

On investments, Singhania said that the company spends ₹150-200 crore every year across all the plants.

Published on September 18, 2025