JK Tyre expects demand momentum to continue for the tyre industry in the medium to long term, with the automobile industry set to grow amid a positive economic environment, according to a top company official. In an interaction with PTI, JK Tyre & Industries MD Anshuman Singhania expressed hope that the tyre maker would also continue to witness momentum in its top line and profitability.
For the third quarter ended December 2023, the company reported a three-fold increase in its consolidated net profit to Rs 227 crore. Its revenue from operations rose to Rs 3,688 crore for the October-December period against Rs 3,613 crore in the year-ago period.
"We are very optimistic in terms of the medium to long-term demand, which is coming in. We are seeing that private sector capex cycles have really started to kick in," Singhania said. There is an increase in disposable incomes, which is leading to positive buying sentiments, he added.
"So, in all, we see that the economy is going to be in good shape in the coming years. With that, the auto sector should also perform well. And so should our industry," Singhania stated. Elaborating further, he said that the company is expanding its production capacity to cater to the enhanced demand.
"The capacity expansion project, which we announced last year, is wrapping up… we have also announced further expansion, which we will be completing in two years' time by the end of FY 26," Singhania said. "So, this will definitely keep the momentum going for our top line and profitability," he added.
When asked if the industry is taking steps to collaborate with farmers to reduce rubber imports, Singhania said that four companies are working with rubber growers in the Northeast. The companies aim to grow two lakh hectares in the Northeast with an outlay of Rs 1,100 crore, he added.
The initiative is going to benefit around 2.5 lakh farmers, Singhania said. Addressing the Bharat Mobility Global Expo 2024, Prime Minister Narendra Modi asked the tyre industry to reduce import dependence on rubber with the cooperation of farmers.
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