Tyre major JK Tyre and Industries Ltd will soon roll out tyres for two and three-wheelers while focussing on auto makers, export/replacement markets, said a senior official on Tuesday.
"We are planning to get into two- and three-wheeler tyre segments. We are doing some test marketing. Our plans will be firmed up on two or three months," president, international operations, Arun K. Bajoria told reporters on a conference call.
He declined to share additional details on outlay that would be needed; whether it is for a domestic or a foreign two-wheeler maker and the plant where from the two-wheeler tyres would be rolled out.
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According to Bajoria, the company has already invested around Rs.500 crore out of Rs.1,430 crore expansion project at its plant here and the balance would be spent by the end of this year.
JK Tyres will be expanding its truck/bus radial tyres capacity from 400,000 per annum to 120,000 per annum and the passenger car radial tyre capacity from 25,00,000 to 45,00,000 per annum.
Bajoria also said the company would be looking at three avenues for absorbing the higher production post expansion-higher demand from auto makers; increased focus on replacement market and newer export markets.
"The North American market is our new area of focus. We now export to over 100 countries," he said.
Queried whether the JK Tyre has passed on the benefit of fall in the materials, Bajoria said the company has reduced the tyre prices in the replacement market by four percent.
While the material costs have come down, cost of other inputs like fuel, power, manpower and others have gone up, he noted.
During the first quarter of the current fiscal, the company posted a turnover of Rs.1,676 crore and a net profit of Rs.104.86 crore.