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Our Bureau

New Delhi , April 3

JK Tyres, a unit of JK Industries, on Monday announced a 2 per cent increase in the price of its tyres. The company expects to increase its prices again in May or June, which would raise tyre prices by 5 to 6 per cent. In January, too, the company had raised prices by 2 per cent.

"This gradual price increase is necessitated due to escalation of raw material costs. Prices of natural rubber, carbon black and other key raw materials have been steadily increasing. In the past two years, operating profit margins have been steadily dropping from 13 per cent to 8 per cent and we have not been able to pass on the cost increase to the market. The cost to price lag still stands at around 6 per cent. Hence, we see this as a correction in costs," said Mr Kalyan K. Paul, Director, Marketing, JK Tyres.

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JK Tyres hikes prices by 2 pc

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