Financial Daily from THE HINDU group of publications
Wednesday, May 12, 2004
Financial Daily from THE HINDU group of publications Wednesday, May 12, 2004 |
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Corporate
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Announcements JK Ind likely to hike tyre prices K.R.Srivats
New Delhi , May 11 J.K. INDUSTRIES (JKI), manufacturer of J.K. Tyres, is likely to take a call on going in for another round of price increase in its products in ``early June or sometime during that month'', according to Mr Ajay Kapila, Marketing Director, JKI. Speaking to Business Line, Mr Kapila said another round of price increase was ``inevitable'', given that natural rubber prices have been strengthening in the recent past. Faced with a drop in profit margins in the quarter ended December 2003 due to strengthening of raw material prices, JKI in January effected a 3 per cent increase in the prices of its commercial truck and bus tyres. It had also increased the prices of its passenger car tyres in the first week of January. "Next time we decide to increase, it will only be across the entire range. Given a chance, I would have increased the prices yesterday,'' Mr Kapila said. On the impact of a leading player's strategic decision to hold price increase to gain market share, Mr Kapila said, ``Any gain of market share through such a strategy would be difficult to sustain in the long term. The initial advantage will be lost in the long run.''
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