JK Tyre and Industries

The global financial crisis and consequent slowdown significantly
 affected the Indian economy - a great challenge indeed for the
 business.
 
 The domestic tyre industry had to cut Production in face of lower
 demand for tyres, both in OEM as well as Replacement markets. The
 government provided external stimulus including 6% excise duty cut for
 vehicles and tyres, which somewhat helped regenerate demand. Positive
 signs are visible in the Indian economy, and the tyre industry which
 grew by 4% in terms of production tonnage in the year 08-09, is
 showing indications of revival in demand.
 
 Your Company continued to maintain its leadership in the Indian tyre
 industry. Enrichment of product mix, expanding of our distribution
 network and closer networking with our channel partners helped us
 achieve
 
 higher sales with improved market shares, despite slowdown in the
 domestic as well as global markets.
 
 This year, we expanded beyond national boundaries as also completed
 major expansion projects in India.  We made our very first
 International acquisition by taking over 100% equity shares and
 management of Tornel. With enhanced capacity of our truck/ bus radial
 plant from 3.67 lac to 8.00 lac tyres per annum at an estimated cost of
 Rs. 315 crores and Tornel becoming an integral part of JK Tyre, our
 leadership position in four wheeler tyre segment is further
 strengthened.
 
 To further strengthen its position in the OTR segment, the Company has
 undertaken an expansion of manufacturing capacity for Ultra-Large OTR
 tyres in a new state-of-the-art facility at Mysore. This project will
 increase our tonnage capacity of OTR tyres Py almost 100%, and is
 expected to be completed Py March 2010.
 
 JK Tyre is committed to discovering new avenues of growth. Our advanced
 R&D support, continued pursuit of newer technologies and innovative
 marketing initiatives would enable the Company to face the growing
 global and domestic competition.
 
 I look forward to an exciting year ahead and your continued support in
 our endeavours.  Best wishes,
 
 Raghupati Singhania
 Vice Chairman & Managing Director