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JK Tyre & Industries mulling rubber plantation foray

25 May 2011 Evaluate

JK Tyre & Industries is planning to purchase rubber plantations in order to protect itself against rising rubber prices. Among various solutions, the company may buy its plantation or could even acquire existing plantation in India or abroad since the rubber plantations normally take seven years to grow. Though the company has set aside money for this development, however, the amount to be invested remained undisclosed.

Further, the company is also researching on chemical substitutes to reduce the dependence on natural rubber. All this comes in the light of the company’s dropping margin since its bottomline took a hit because of the raw material prices, which increased 43 per cent in FY11 as compared to the 17 percent rise in its tyre prices. However, the tyre maker plans to raise tyre prices by 4-6% from 1 June.

JK Tyre posted a 71.5 per cent drop in consolidated net profit to Rs 62.55 crore  for the year ended on March 31,2011 as compared to Rs 219.74 crore for the year ended March 31,2010, even as consolidated net sales went up 30 per cent to Rs 5,945 crore for the year against Rs 4,571 crore in the previous year.

JK Tyre & Industries is the flagship company under the umbrella of JK Organisation. JK Tyre is the pioneer for Steel Radial technology in India. Over the years, the company has expanded and diversified its business portfolio. It has developed into a multi product, multi-location corporate entity. The company produces and sells tyres and tubes under the brand name 'JK Tyre' for Truck, Buses, Passenger Cars, Jeeps, Light Commercial Vehicles, Multi Utility Vehicles and Tractors.

JK Tyres & Inds. Share Price

428.30 8.35 (1.99%)
17-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
MRF 139772.66
Apollo Tyres 445.30
CEAT 3713.55
Balkrishna Inds. 2329.80
JK Tyres & Inds. 428.30
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