JK Tyres to target 20% market share
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At the time when automobile market is going through its highest swing and auto manufacturers have geared up, the process has led to a coercing effect where the tyre manufacturers are running on their full capacity to match up to the demand. As per a few reports, famous tyre manufacturer JK Tyres Industries Ltd. is sketching a plan to expand its Mysore based manufacturing unit. Moreover the company is also reported to be working towards a new manufacturing unit near Chennai which will come in operation by within the running year.
With the expansion of existing plant and establishment of a new plant, company is aiming a prominent target of 20% share in Indian tyre market. As per the statements made by A.S. Mehta who is the Marketing Director in JK Tyre & Industries through the existing and soon to establish plant the company will be able to bring a gross outlay of 950 crore units through which the company will be able to grab a better market share leading to better business deals with car manufacturers. He also claimed that the expansion project undertaken for its Mysore plant, the company will be able to push the annual production to 10 lakh tyres from earlier 9 lakh units and it will be completed by May or June whereas the 4 lakh unit producing capacity Chennai plant will come in operation by year end.
The company's plan to grab 20% share is not just limited to the manufacturing capacity but also to expand the retail branches. Addressing the issue, Mr. Mehta commented that JK Tyres is planning to establish 10 stores in India which will be accomplished by March. Further the web will be increased by 20 more stores by 2012. these specialised outlets will help the users maintain their vehicle tyres in a better way. The truckers will be main beneficiaries of these outlets as they will be facilitated with service support and one stop sales. The company went through sluggish sales in the end of last year but better sales are expected with start.
At present the company is enjoying a total of 18 to 19 per cent market share and is aiming 20 above share in this year. A total turnover of Rs.6,000 crore is aimed for the next fiscal.
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