Business Daily from THE HINDU group of publications
Wednesday, Nov 28, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Nov 28, 2007 ePaper | Mobile/PDA Version |
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Corporate
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Overseas Investments JK Tyre plans expansion in China Priyanka Vyas New Delhi, Nov 27 JK Tyre & Industries Ltd is looking to increase its outsourcing activity to China by about 10 per cent. The company, which currently has around five-six Chinese partners who manufacture tyres under the JK brand name, would look to enhance its sales in the Chinese and overseas markets. “We are looking at strategic partners in South East Asia or China to serve the local market in those countries as well as overseas markets. Though the China business is miniscule currently, we are looking to expand it,” said Mr Raghupati Singhania, Vice- Chairman & Managing Director, JK Tyre. At present, China accounts for 15 per cent of the company’s global business and by the end of the current year it targets to increase it to 25 per cent. The Indian tyre industry is already under the onslaught of cheap Chinese tyres that are priced at about 25-30 per cent lower, making it difficult for the domestic industry to compete. With the cost advantage and infrastructure that the countries in this region offer, the company is looking at expanding its capacity overseas so as to boost its export competitiveness, said Mr Singhania. Last year, the company outsourced business worth Rs 66 crore. Of its Rs 2,609 crore net sales, export sales contributed Rs 500 crore in the financial year ended September 2007. Meanwhile, for the domestic market in the pipeline is an expansion plan of Rs 320 crore in the truck radial segment. Another Rs 160 crore will be used to enhance capacity at its Mysore plant by the end of next year, added Mr Singhania. More Stories on : Overseas Investments | Tyres
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