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Board of Directors 4
Financial Analysis 14
Chairman & Managing Directors Overview 18
Directors Report 42
Management Discussion & Analysis 63
Corporate Governance Report 69
Corporate Social Responsibility 78
Sustainability Report 80
- Standalone Accounts 88
- Consolidated Accounts 119
At JK Tyre, our objective has been to build an enduring company.
Enduring across market cycles, diverse geographies, product segments and operating benchmarks.
Seldom was this enduring commitment more visibly showcased than in our 2015-16 performance.
The company encountered extensive challenges.
And yet reported the highest profits in its existence.
In 2015-16, the external environment transformed with unpredictable speed.
JK Tyre transformed even faster.
2 | JK Tyre
JK Tyre. Our commitment to
endure is derived from positive, productive
and perpetual transformation
Competition from global and domestic brands increased.
JK Tyre accelerated cost rationalization to enhance competitiveness.
Energy costs and water accessibility became challenging.
JK Tyre moderated its carbon footprint.
The consumer became increasingly demanding.
JK Tyre virtually doubled new product launches.
Product dumping from China increased in India.
JK Tyre increased its tyre manufacturing capacity across select categories.
External changes across markets and segments
Internal transformation at JK Tyre
Annual Report 2015-16 | 3
1 3 4
Board of Directors
ARUN K. BAJ0RIADirector & President International Operations
1 2 3
BHARAT HARI SINGHANIAManaging Director
ADMINISTRATIVE OFFICE3, Bahadur Shah Zafar Marg,New Delhi 110 002
REGISTERED OFFICEJaykaygram,PO Tyre Factory,Kankroli 313 342(Rajasthan)
AUDITORSLodha & Co.Chartered Accountants
4 | JK Tyre
ANSHUMAN SINGHANIAWhole-time Director
4 5 6 7
ARVIND SINGH MEWARDirector
DR. RAGHUPATI SINGHANIAChairman & Managing Director
DR. WOLFGANG HOLZBACHDirector
VICE PRESIDENT (LEGAL) & COMPANY SECRETARYPawan Kumar Rustagi
Annual Report 2015-16 | 5
Our commitment to endure resulted in outperformance across 2015-16.We reported the highest volumes in any single year. We retained our national leadership in the truck and bus radial (TBR) segment.We created a stronger Company
6 | JK Tyre
%, estimated growth (by volume) of Indias tyre sector, 2015-16
%, radialisation (volume) of Indias Truck/Bus segment, 2015-16
%, estimated growth (volume) of Indias passenger car radial segment, 2015-16
%, JK Tyres growth (by volume), 2015-16
%, radialisation of JK Tyres Truck/Bus segment, 2015-16
%, growth (volume) of JK Tyres passenger car radial segment, 2015-16
Annual Report 2015-16 | 7
At JK Tyre, our commitment to build an enduring company was sustained.Through world-class practices, products, technologies and benchmarks.
8 | JK Tyre
Water One of the lowest
consumers of water per tonne of tyre
manufactured in the world
Product First company in India with
OE fitment of tubeless passenger radials. First in India to launch high performance H, V and
Z-rated passenger radial tyres
Pioneering First Indian company
to launch an eco- friendly green tyre
Technology First in the world to install the On level Tyre Test Machine,
generating real-time data in tyre testing
Energy One of the lowest
consumers of energy per tonne of tyre
manufactured in the world
Standards First company in Asia to receive ISO 50001
certification for Energy Management, and second
such company in the world
Branding First company in India to have taken over an FIA-accredited racing series the Formula
Productivity One of the
highest per person productivity
benchmarks in Indias tyre industry
OE relationships First tyre vendor selected
by Suzuki Motor Corporation to work on its Swift model from the drawing board onwards
Knowledge First company in India to
commission an independent research and development centre HASETRI (Hari Shankar Singhania
Elastomer & Tyre Research Institute), a one-of-its-kind state-
of-the-art R&D centre in the Asia Pacific region.
Quality The company strives
to maintain highest standards
of product quality and customer
services: compliance with Global
Quality Standards. Quality is a
creed in the Company.
Annual Report 2015-16 | 9
JK Tyre is one of Indias leading tyre brands and among the 25 largest tyre companies in the world.Background The company is a part of the century-old JK Organisation, one of Indias leading private sector conglomerates with a multi-product, multi-location and multi-business operations.
Presence The companys manufacturing operations comprise 12 modern
plants strategically located across the country Mysuru, Banmore, Kankroli , Chennai and Haridwar.
The company has 141 JK Tyre selling points pan-India which service the growing needs of more than 4000 dealers.
Besides, the company markets products through 23 JK Tyre Truck Wheels (fully equipped tyre service centre) and 150+ JK Tyre Steel Wheels (exclusive passenger car tyre retail).
India 86% Mexico 14%
OEM 33% Replacement 57% Export 10%
Commercial 74% Passenger line 21% Others 5%
10 | JK Tyre
BrandsThe Companys tyres are marketed under the brands of JK Tyre, Vikrant and Tornel.
Our missionBe a customer-obsessed company where the customer comes first 24x7
Be Indias number one tyre brand
Be the most profitable tyre company in India
Sustain a motivated and committed team for performance excellence
Be widely respected for green practices
Deliver enhanced value to all stakeholders
Widen global presence through acquisitions/joint ventures/strategic partnerships
New products launched
Annual Report 2015-16 | 11
Ranked No. 1 in Customer Satisfaction by JD Power Asia Pacific Study 2015
Awarded Brand of the Year 2015 by World Branding Forum, London
JK Tyre recognised by
national and international
Market statusJK Tyre is Indias leading tyre company present in all tyre segments. The Company enjoys the highest market share in truck / bus radials in India; it is amongst the largest players in Indias truck bias and passenger car segments as well.
Key institutional partnersJK Tyre is a preferred supplier to all leading automotive Original Equipment Manufacturers like Maruti Suzuki, Tata Motors, Honda, Hyundai, Ashok Leyland, Mahindra & Mahindra, Volvo Eicher, General Motors, Volkswagen, Fiat, Nissan, TAFE, BEML and Caterpillar India, among others.
PerformancePerformance by geography (standalone) JK Tyre grew its domestic business 9% by volume following extensive marketing, distribution and branding initiatives.
JK Tyre achieved exports of H 581 crores.
Performance on consolidated basis Revenues were H 7654 crores in 2015-16
EBIDTA grew 22.2% to H 1158 crores.
Profit after tax grew 40.7% to H 464 crores.
EPS grew from H 15.68 to H 20.45 (on the face value of H 2 per share)
Strategic acquisition JK TornelJK Tyre acquired a tyre company (three manufacturing plants) in Mexico in 2008, an opportunity to enhance capacity at a low cost and establish its international manufacturing footprint. Within just eight years, the plant moderated employees by 10 per cent and more than doubled turnover. JK Tornel has widened the companys global footprint through its free access to NAFTA and trade blocks, contributing attractively to revenues and bottomline.
JK Tornel has a capacity of 8.3 million tyres per annum with three plants in Mexico (Azcapotzalco, Tultitlan and Hidalgo.
JK Tornel enjoys strategic tie-ups with leading OEMs including Chrysler, Volkswagen, Nissan (car/light truck radial) and John Deere (Farm).
Credit ratingThe companys credit rating has been progressively upgraded by leading credit rating agencies.
Long-term facilities: CARE AA- (earlier CARE A+)
Short-term facilities: CARE A1+ (earlier CARE A1)
JK Tyre -TATA Motors Best Supplier of the Year - at TATA Motors vendors conference 2015 in Pune
National Award for Excellence in Talent Management 2015
National Energy Conservation Award 2015 - CTP
5th Annual Greentech CSR Award - 2015
Data Quest Business Technology Award 2015
Express Security Strategist Awards 2015
Awards and appreciation
Annual Report 2015-16 | 13
This is how we outperformed in a challenging 2015-16
Even as the financial year under review proved challenging for Indias tyre sector, JK Tyre reported superior financials. This sectoral outperformance was achieved through tight cost controls, improved product quality, superior service, stringent terms