JK Tyre on Wednesday (November 09) announced a 24 per cent rise in its operating profit for the second quarter of the financial year 2016-17 on higher sales of two and three-wheeler tyres.
The company said it maintained market leadership in the truck and bus radial tyre category and overtook many established players in the two and three wheeler tyre category in just 4-5 months of operations.
Arun Bajoria, director and president for international operations, said: "We are already knocking the other big three in the two and three wheeler tyre category and in the coming quarters we are confident of achieving market leadership in the category."
JK Tyre, the largest truck and bus radial tyre maker in the country, acquired Cavendish Industries Ltd in April.
The Uttrakhand-based plant, operating at 50 per cent capacity at precent, is ramping up its production on the back of good monsoon and is expected to touch 90 per cent capacity use in Q3.
Dr Raghupati Singhania, CMD of JK Tyres, said, "2/3-wheeler tyres have been well received in the market. With the larger volumes available in the coming period, we hope to further strengthen our market position in the high growth area."
On the international market, Bajoria said the Americas, specially Latin American countries, are showing signs of a comeback.
"We expect demand for our tyres to go up in Brazil, Argentina, Mexico and the US," he said.
JK Tyre has three manufacturing facilities in Mexico and nine in India. Its total manufacturing capacity is 350 lakhs tyres per year.
BW Reporters
The author is Senior Correspondent with BW Businessworld
