The founders:

Businesses:

The Principal business of the JK Organization includes Tyre, Paper, Cement, Drugs &
Pharmaceuticals, Agri Genetics, Dairy and Food Products, Audio Magnetic Tapes,
Sugar, Cosmetics, Woolen Textiles, Steel, Engineering Files, International Trading,
Hybrid Seeds, Industrial Rubber Products, Material Handling System etc.

Jk Tyre and Industries is a mega corporate entity that is emblematic of excellence,

diversification and pioneering new technologies. A part of JK Organization which
ranks among the top private groups private groups in India, Jk Tyre and Industries is
committed to self reliance and follows an ethic that views customer satisfaction as an
index of achievement.

Over the years, the company has expanded and diversified its business portfolio. It
has developed into a multi product, multi-location corporate entity comprising of
following business divisions
About JK Tyre & Industries Ltd:
JK Tyre & Industries Ltd. has been ranked as No. 1 in JD Power Customer Satisfaction
Index in 2009 and is the first and only Tyre Company to be awarded ‘Superbrand’. It is
the flagship Company of JK Organisation known for manufacturing leading tyre brands
- JK Tyre, Vikrant and Tornel. JK Tyre is India's leading four-wheeler tyre manufacturer
and the 22nd largest tyre manufacturer in the world. As the pioneers of radial technology
in India, the company has taken forward this revolution in the Truck/ Bus radial segment.
Over the years, JK Tyre & Industries has achieved innumerable feats including the top
honours such as "The Brand Equity Award", "Rajiv Gandhi National Quality Award",
"CII - Exim Bank Award" and several other awards. With a distribution network of over
4000 dealers and over 120 stocking points, the Company has left a mark across every
Indian road treading into every nook and corner of the country

J.K. Tyres & Industries, a part of the J.K. organization, has been the leading automobile tire manufacturer in
India since 1977. With over 8.7 million tires sold per annum, understandably, the company operates in a
huge distribution network with a large number of SKUs (stock-keeping units).

Highlights
The system creates transportation orders from plants to the SKUs and from the SKUs to the depots.

J.K. Tyres has raked in savings of Rs 6.86 crore over a period of one year, post implementation.

A lack of co-ordination between heterogeneous systems across head offices, its 4 plants and sales offices
was causing information delays and discrepancies in sales and operation planning, demand visibility,
forecast, collaboration and inventory management.

"We needed to make the business agile by making the right information available to the right person at the
right time," says S. S. Sharma, chief GM-IT, J.K. Tyres & Industries. To optimize its supply chain function
and bring in operational efficiency, the company deployed 16 conventional and new dimension ERP
modules. These modules translated into a statistical demand forecasting system that gave rise to an
accurate production plan.

Today, finished goods, created on the basis of the production plan, from all the plants are sent to the SKUs.

Based on the demand, stock is transferred from SKUs to the respective depots. The system creates
transportation orders from plants to the SKUs and from the SKUs to the depots.

But Sharma had to combat a few hurdles. The project encompassed complex planning processes that
included change management and standardization of processes across plants. "The principle focus was to
align supply chain objectives with business objectives," says Sharma.
JK Tyre to Set-Up Green Field Plant in Karnataka
Announcement / Corporate January 11, 2010, 18:46 IST

Company to invest Rs 800 crores in the new plant and R&D facility to cater demand and drive growth.

JK Tyre & Industries Ltd., industry leader and manufacturer of well known brands JK TYRE, VIKRANT and
TORNEL, had announced undertaking substantial expansion of its operations in one of the southern states.
They had shortlisted Tamil Nadu and Karnataka for this purpose. In this connection Mr. Arun Bajoria,
President JK Tyre met with a team of senior officials of Govt of Karnataka lead by Mr. V.P. Baligar, principle
secretary (Industries) yesterday in Delhi. It is understood that Govt. of Karnataka has assured special
incentives to the company for their forthcoming investments.

As part of company’s growth strategy of expanding its capacity and strengthening R&D, JK Tyre will invest in
the state to manufacture truck, bus and car radials to cater to both domestic and international markets.

Announcing the expansion plans, Mr. Arun Bajoria, President, JK Tyre & Industries Limited, said” There is
an increase in demand for commercial vehicles as well as for passenger cars in the country. We had
announced last year to undertake substantial expansion of our tyre operation, therefore our new plant in
Karnataka is part of our long term growth strategy.

“Our all new green field plant will by far be a state of the art tyre plant in the country. It will also provide
substantial employment to the youths of the state,” he further added

JK Tyre has recently completed expansion of Rs. 315 crores to increase its capacity of Truck and Bus
Radial tyres from 4 Lac to 8 Lac tyres per annum and is further planning to invest Rs. 1200 crores in the
next 3 to 4 years to fulfill the demand for quality tyres in the country.

NEW DELHI: JK Tyre today said it will invest Rs 1,200 crore in the next three-four
years for capacity addition which includes setting up a new plant
in Karnataka with an investment of Rs 800 crore.

"JK Tyre has recently completed a Rs 315-crore expansion project to increase truck and
bus radial tyre capacity from four lakh to eight lakh tyres per annum and is also planning
to invest Rs 1,200 crore in the next three to four years to fulfill the demand for quality
tyres," a statement quoting JK Tyre & Industries president Arun Bajoria said today.

As part of company's growth strategy, JK Tyre will invest in Karnataka to manufacture

truck, bus and car radials to cater to both domestic and international markets and has
earmarked an investment of Rs 800 crore for that, it added.

"We had announced last year to undertake substantial expansion of our tyre operations,
therefore our new plant in Karnataka is part of our long-term growth strategy," Bajoria
said in the statement.
Stakeholder Views

"A complete project that cut costs and improved the work-life balance of my co-workers." S.S. Sharma.Chief
GM-IT, J.K. Tyres & Industries

J.K. Tyres has raked in savings of Rs 6.86 crore over a period of one year, post implementation. According
to Sharma, "Beside monetary gains, the social life of people has improved. They are now able to finish their
jobs much faster and their work-life balance has improved significantly."

The business now interacts with its suppliers through the ERP Portal. Various modules for purchase order,
schedule lines and suppliers have been created together with the roll out of raw materials for efficient
functioning of the supply chain.

JK Tyres chooses `360-degree' ad strategy -- Shifts account from

Interact Vision to O&M

Ratna Bhushan

NEW DELHI, May 22

FOR a product that continues to be a reluctant and low-involvement purchase, how
much does aggressive communication really impact its marketer's bottomlines? A lot,
it would appear.

JK Tyres, the flagship division of JK Industries Ltd, is opting for an all-new ``360
degree communication strategy'' based on the objective of achieving `customer
delight'.

The new advertising strategy comes in the wake of the company terminating its
association with its ad agency of five years, Interact Vision, and signing up Ogilvy &
Mather (O&M) instead.

Though the advertising created by O&M is yet to break, officials at JK Tyres have
said the switchover will result in a `marked change' in the overall advertising
strategy. An increasingly competitive market, the need to heighten the brand's
presence and personality and stay ahead in the race were among the reasons the
officials named that necessitated the shift.

``Customer satisfaction tracking studies revealed that certain areas of the

communication needed improvement,'' Mr. Kunal Banerji, General Manager
(Advertising), JK Industries Ltd told Business Line.

``The exact strategy is still developing, but it will reflect the benefits of the brand
bang-on,'' Mr. Sudhir Sahni, Vice President, Client Services, O&M, said. The key
aspects that the communication will seek to highlight will be JK being leaders in tec
hnology and the rigourous tyre testing that it undertakes.

The advertising will be consumer benefit-centric and will not involve celebrity
endorsements. The ads will also talk of the brand's association with motor sports and
go-karting.

``These are salient features that our target consumers are largely unaware of. We
want to give people proof statements of these facts. We want the feel good factor to
come through to the consumer through more powerful communication,'' Mr. Banerji
said.

The advertising will begin rolling out in the first week of June across a cross-section
of media with the objective of creating reasonable impact.

While the advertising spends will be roughly in the same region as last year, an
internal restructuring of the budget is on the cards, the officials revealed.

``There will be no great splurge in terms of ad spends. Instead, we are looking at

qualitative utilisation of the funds,'' Mr. Banerji said.

Along with below-the-line spends, JK Tyres has set aside a budget of Rs. 30 crores
for advertising.

The `customer delight' proposition will also take forward JK Tyre's concept of
exclusive `Steel Wheels' retail outlets and its dial-a-tyre service. The number of
Steel Wheels, for example, will be upped from the current 75 to 130 by March 2001.
Finally, potential tie-ups with corporates are being worked out, and these will not
necessarily be linked to purchase.

On the product front, the company is mulling the options of expanding its range
within the next four months. ``We want to radialise the jeep segment and introduce
several new patterns, but the timing will depend on our state of preparedness,'' Mr.
Neeraj Bhatia, Deputy General Manager (Marketing), JK Industries, said.

A segmentation study, which began about four months back, is being undertaken
wherein the tyres are being bracketed as premium, economy and value-for-money.

The overall tyre industry is estimated at Rs. 9,000 crores. Of this, 74 per cent is
accounted for by truck and bus tyres. In this segment, JK (along with Vikrant) has a
22 per cent share.

That the fresh communication strategy will boost brand share is an obvious fallout,
Mr. Banerji said, though he did not divulge exact targets JK Tyres is aiming for.

Our Strategy
We have the following strategies to develop our business and continue to grow
further:

Consolidate leadership position in commercial vehicle tyre segment

We are one of leading players in the commercial vehicle tyre segment in India,
which includes truck,
buses and light commercial vehicles tyres. As per the report published by ATMA,
our production
constitutes approximately 22% and 18% in the truck and bus segment and light
commercial vehicles
respectively of the Indian tyre market domestically in the period between April
2007 to March 2008.
Our brand name is well recognized and associated with quality and reliability. We
intend to
consolidate our leadership position and build on our brand equity in the
commercial vehicles tyre
segment by continuing to manufacture and supply high-quality tyres, maintain
and build on our
distribution network, improvise existing products and introduce new products to
meet the
requirements of our customers.

Capitalize on our first mover advantage in the radial tyre market and
expand our market share in
radial tyres
We pioneered radial technology in India. We were the first tyre manufacturers in
India to produce
radials for the entire range of vehicles i.e. trucks, buses, light commercial
vehicles, passenger cars,
jeeps and tractors. Radial tyres are gaining market share in the Indian tyre
market, comprising 97% of
the passenger car tyre market and 6% of the truck tyre market during 2008.
We are seeking to capitalize on our first mover advantage and become a leading
manufacturer of
passenger car radial tyres in India. Our portfolio of passenger car radials includes
a comprehensive
range of “S”, “T”, “H” and “V” rated tyres. We have already produced “Z” rated
radial tyres for
motor sports which are ultra-high performance tyres and intend to commercially
introduce ‘Z’ rated
passenger car radial tyres in Indian market in 2008.
We are one of the leading manufacturers of truck and bus radials in India at
present. We envisage an
increase in the demand for truck and bus radials in India in the coming years on
account of economic
growth and development of highways and road infrastructure in the country. We
plan to increase
production of truck and bus radials on a large scale and are scaling up our
manufacturing activity by
enhancing capacity in our existing plant at the Mysore Plant II.

Strategic sourcing of raw material and focus on strategic partnerships

with key suppliers
In Fiscal 2007 and for the six month period ended March 31, 2008, raw material
costs constituted
approximately 69.02% and 62.67% respectively of our net sales.
6
The major raw materials required for tyre manufacture include natural and
synthetic rubber, nylon
fabric, steel tyre cord, rubber chemicals and carbon black. We have implemented
a strategy of using
our purchasing power as a leading tyre manufacturer to source raw materials at
competitive prices
from domestic and global sources. We believe that importing raw materials from
countries like
Indonesia, China and Korea helps to ensure competitive pricing and better
availability of raw
materials. Thus, we invest our resources into identifying, creating and
maintaining relationships with
various domestic and international vendors. We plan to focus on creating
strategic partnerships with
our key suppliers to source more cost efficient raw materials. We conduct regular
meetings with our
major suppliers, give them constant feedback and assist them in their quality
management systems.
Moreover, we have developed an internal knowledge bank that stores a database
on raw materials,
including cost models, sources, global supply and demand patterns, price
analyses and forecasting.
We will continue to monitor the prices of raw materials, develop strategies to
minimize the cost, and
optimize the quality of our sourced raw materials and to continue developing our
internal knowledge
bank.

Increase our exports in bias commercial and special application tyres

For the period April 2007 – March 2008, our exports have constituted over 25% of
our bias truck tyre
production. We are currently exporting our products to over 75 countries. Our
key export regional
directions are the Central and South America, Africa, the Middle East, South and
South East Asia,
Australia and Europe. Over the past 20 years, we have won numerous export
awards including the
National Export Award from the Ministry of Commerce, Highest and Top Export
awards from
CAPEXIL, Highest Export Award to Latin American countries from the Indian Trade
Promotion
Organisation, Niryat Shree Award from the Federation of Indian Export
Organizations. We intend to
continue focus on export of bias truck and light commercial vehicle tyres.
Additionally, we have
diversified into special application tyres or specialty tyres (including tyres used in
skid steers and fork
lifts in ports, warehouses and factories) and commenced exports. We intend to
scale up the
manufacture of special application tyres to a capacity of 0.01 crore tyres per
annum at Mysore. This
niche tyre segment would be used primarily to boost our exports with a focus on
the Central and
South America, Europe and Australia.

Focus on the consumer replacement market

We have been continuously offering and innovating new products in the market
to meet the changing
demands of our customers in the replacement market. For instance, in the last
one year, we have
introduced about 18 new tyres for sale in the replacement market across
different product categories
to enhance our presence in the consumer replacement market. Furthermore, we
have introduced
various customer relationship programmes with our existing customers to
promote our tyres and have
also launched programmes to create brand awareness about our products
including setting up tyre care
camps such as cool wheels (for service of passenger car tyres), customer
interaction programmes,
customer contact programmes, dealer meets, joint promotion campaigns and
service camps with
major OEMs. We also offer various after sales services. We intend to focus on
building close working
relationships with our customers and dealers through these services and plan to
offer more services
and products to enhance our presence in the replacement market. We are also in
the process of
offering additional services to our customers through fleet management by
providing a package of
value added products and services. We intend to sell and offer various value
added services through
the internet by promoting e-business on our website. Additionally, we also intend
to upgrade and
increase the number of tyre care centres and steel wheel outlets.

Strengthen our presence in the OEM segment

We plan to increase our presence in the OEM segment by developing new OEM
customers through
product development, technology and cost competitiveness.

7
Continuous focus on cost control and operating efficiencies
improvement
We endeavor to produce tyres in a manner that is cost efficient and are
constantly driven toward
improving operating efficiencies, especially in light of the recent sharp increases
in raw material
prices and energy costs. We have implemented a cost control system that
includes the continuous
monitoring and managing of the cost of various products and inputs, such as
reducing product
weights, construction changes, technical improvements, improvement in
manufacturing efficiencies
such as reduced wastages, power and fuel consumption, improving man power
productivity, control
of overheads and reducing in interest costs in terms of usage and rates.
Additionally, we are in process
of introducing methods to reduce power and fuel cost and are investing in energy
saving projects to
optimize the production process in a cost efficient manner like upgradation of
boilers, use of cheaper
sources of fuel, replacement of old compressors with energy efficient
compressors. We plan to
continue to focus on cost control and improving operating efficiencies.

Emphasis on research and development and technology

We have plans to enhance our research and development activities by
incorporating various new
evaluation equipments and new software to be able to meet the ever growing
challenges in the product
areas. Additionally, we have planned to further induct and develop scientists and
engineers in our
research and development centres, i.e. HASETRI and the R.P. Singhania Centre of
Excellence.
Our product development centre with a strong pool of product development
engineers, which has been
re-located from Kankroli plant to Faridabad, caters to development of new
products by using the latest
techniques adopted from our collaborator, Continental A.G. and HASETRI. We
plan to further
strengthen this pool of engineers by supplementing additional manpower and
requisite equipment to
be able to compete with our competitors.
Our overall strategy is to develop a technological edge considering the growth
expected in the
automobile sector in India. The objective of our strategy is to introduce and
incorporate new
technologies into our products, production process and services.

Build on strength of distribution network

We intend to retain and further strengthen existing relationships with our dealers
by dealer friendly
trade policies and offering them better business propositions in order to increase
our share of total
business. We plan to continue to invest in the business and product training of
our dealers in order to
maximize efficiency and promote high standards of our distribution network. We
also intend to
identify and utilize new and developing channels of distribution in the existing
markets as well as the
new markets. We intend to increase the number of area offices to further
enhance our extensive
distribution network.