Mumbai: Faced with increasing input costs and an intense pressure on margins, JK Tyre is planning to review prices next month.
"The spurt in prices of inputs such as rubber, carbon black and other raw materials had put severe pressure on the operating and profitability margins of the company and the company''s net profit margins have dipped below one per cent, while operating margins stand at around seven per cent against the double-digit figures around two-three years back," JK Tyre''s president Arun K Bajoria said.
He said the company would absorb the cost pressures by itself to the maximum and pass on the least to the consumers. J K Tyre had raised prices by 2.2 per cent in April when it also hinted at a further increase in the coming months. JK Tyre had recently announced the launch of `formula tyres'' for racing cars in the Indian market. The first set of the JK formula tyres have been fitted to the three different types of formula cars built by B Vijayakumar, managing director of L G Balakrishna & Bros, with the engines supplied by Maruti Udyog, General Motors and Hyundai Motors. The three formula machines are called Formula-LGB-Swift, Formula-Rolon-Chevrolet and Formula-LGB-Hyundai.
JK Tyre pioneered radial technology in India and was the first to manufacture steel belted radial tyres in 1977. The company has access to state-of-the-art technology with support from its technology collaborators, Continental AG of Germany, the fourth largest tyre manufacturer in the world.
JK Tyre is the world''s 18th largest tyre manufacturer. With a wide product range, world-class technology and ever-increasing business alliances, JK Tyre is expanding its global presence. It is also the largest exporter of tyres from India, exporting to 60 countries across six continents. JK Tyre enjoys premium brand status in highly competitive markets, including the US.