Company Overview

• Established in 1977,JK Tyre is ranked top 24th company in the world for Revenue
manufacturing automotive tyres Indian Tyre Industry
• Pioneer of radial technology in India and No. 1 in Truck/Bus Radial (TBR) 10%
manufacturer. Tractors

• 12 manufacturing plants having total capacity of ~32 million tyres per annum. 2/3 Wheelers
16%

• Globally among the top five in lowest energy consumption(9.81 Gj/Ton) Passenger cars
50%
• Acquired Cavendish Industries Limited (CIL) in 2016. Expanded TBR segment by
LCV 17%
₹ 275 crore in 2018-19
• Net profit of ₹16 crore for Q1 FY20, down 75 per cent from ₹64 crore in the Truck and Bus 7%

corresponding period last year.

• However, revenue from operations grew 6 per cent YoY to ₹2,575 crore (₹2,439 INDUSTRY OVERVIEW
crore).
• Indian Tyre industry generates over
Truck and Bus Radial (TBR) Light commercial vehicles incl SUV Rs.63000 crores in turnover ($9 bn).
(Bias and radial) • Commercial tyre segment accounts for
Others JK Tyre
Others JK Tyre 66.67% of the total tyre market.
• The country’s automobile industry
[PERC [PERCE
reported a decline in growth i.e. 6.5% in
ENTA NTAGE] 2018-19 compared to 14.9% in 2017-18.
GE] MARKET SHARE • Radialisation is the key driver for growth
64%
70%
 INDIAN TYRE INDUSTRY OUTLOOK FY20

Tyre demand is estimated to grow at a slower pace of 3-5%,which is due to the decline in MHCV sales subsequent to the change in axle
norms. This also muted the customer sentiments in Cars and UVs and 2Ws.

Exports are set to grow at a pace of 3-5% on increasing acceptability of Indian tyres, whereas imports are set to declined by 1-3% owing to
the anti-dumping duty.

Growth Strategy Going

Forward
• Increase Global Business
Share
- Enhancing geographical
reach in Europe, Australia
and South Africa with wide
product range.
- Technologically advanced
and eco-friendly tyres in line
with market requirements.
- Dedicated domain experts
for 2W tyres to handle
export markets
• Strengthen Market Position • Derive benefit from CIL • New Product Development
across Segments acquisition through Focus on R&D
- Focus on increasing - Low cost acquisition in - Launching eco range of
volumes across all product comparison to new products for cars and buses
segment in replacement greenfield project (E-vehicle) fitted with ultra
and export segment. (Chennai). low rolling resistance Tyres
- Expanding distribution - Strategic entry to 2/3 in domestic and export
channel through exclusive wheelers segment marketspace.
brand shops across PAN - Substantial enhanced - Smart Tyre Technology
India to gain market share. capacity across all
product segments.
JK Paper Ltd.
• Largest wood based paper manufacturer in India

• Market leader –Copier paper segment with 50% revenue and 23% market share

• Top two in coated paper and packing board segment with 16% and 11% market share respectively

• More than 100% operating capacity utilization due to supply constraint.(108.7%)

• Lots of products in B2C segment, thus have some prising power.

• The company is continuously striving to achieve operational efficiency resulting increasing the gross
efficiency margin from 39% in 2014 to 56% in 2019.with CAGR of 6.21%

• Due to market maturity and industry competitiveness ,company made efforts to reduce material cost by
substituting imported wood pulp through its farm program
JK Paper Ltd.
• The company has brought down its power and fuel cost via use of renewable sources ,about 65% energy
requirement at Odisha plant is met via renewable energy.

• Despite being in a commoditized sector, it spends consistently in R&D about a sum of ₹4 Cr per annum.
That goes:
1. Towards improving product quality
2. Towards higher pulp yield
3. Towards reducing the maturing age of eucalyptus

• Company has announced latest expansion plan of 2100 Cr in sept 2019,as soon as new capacity comes up
there will be oversupply leading to lower capacity utilization. Company expects the demand scenario to
persist for another 3-5 years with a growth rate of 6-7%.
JK (Umang) Dairies
• Umang Dairies Limited offer the following products : - SKIMMED MILK POWDER (SMP) - WHOLE MILK POWDER (WMP) -
DAIRY CREAMERS - DAIRY WHITENERS - TEA & COFFEE PREMIXES (Especially Developed for Vending Machines) - PURE
GHEE (CLARIFIED BUTTER) - FRESH CREAM – Butter

• Market capitalization of UDL is ₹ 77 crores.

• The dairy plant has a capacity to process over 11.5 lac litres of milk per day.

• UDL has a wide service network of 800 distributors and1.5 lac retailers

• Food Safety and Quality remained a Focus Area for UDL. It is one of the first dairy processing companies in India to have
received ISO 9002 certification.

• fully developed R&D centre constantly works for improving systems of milk collection, processing and product
upgradation.

• The Revenue from Operations was Rs 22,577 Lakhs during the year as compared to Rs 24,576 Lakhs in the previous year
JK (Umang) Dairies
• The company has delivered a poor growth of 0.75% over past five years.

• UDL is continuing to invest behind retail distribution expansion and up-gradation of distribution infrastructure.

• 2018-19 was a challenging year as several small players entered the industry due to surplus availability and
low price of SMP.

• In the coming year UDL will continue its efforts to build both its consumer and institutional segments for its
products including SMP and Ghee. The company has renewed its efforts on New Product Development.

• Expansion and Modernization Plan UDL continues to modernise its plant for better efficiency

• The dairy market in India reached a value of INR 9,16,800 Crores in 2018.

• As per research agencies, dairy sector to grow at 15% CAGR till 2020. Interestingly, the per capita milk
consumption in India is increasing at 3% CAGR as compared to 1% globally.
JK Lakshmi Cement
• JK Lakshmi Cement (JKLC) was set up in 1982– in a village in District Sirohi, Rajasthan under the JK
Organization
• Products : Platinum Heavy duty cement, JKLC Sixer Cement, JK Lakshmi Cement, JK Lakshmi Pro+ Cement, JK
Lakshmi Gypsum Plaster, JK Lakshmi Ready Mix Concrete, JK Smartblox Autoclaved Aerated Concrete
• In 1999, as part of its plan to concentrate on the cement division, JK Corp had earlier decided to set up one
million tonne unit in Karnataka and another 1.5 million tonne unit in Madhya Pradesh.
• In 2015 chosen among 100 most trusted brands.
• Major Competitors : Ambuja Cement, Ultratech Cement, ACC, Shree Cement, The India Cement Ltd., Dalmia
Bharat Group, Ramco Cement
• Y-O-Y Sales has increased for the last five years, along with their production and cement capacity.
• They have 12 production plants spread across Northern India.
• They have a strong network of about 7000+ cement dealers spread in the various states which has helped
them to serve our customers far and wide, in different regions of India.
JK Lakshmi Cement
• With 509 million tonnes per year (mtpa) of cement production capacity as of 2018, India is the second
largest cement producer in the world and accounts for over 8 per cent of the global installed capacity, as of
2018. Cement production is reached to 337.32 million tonnes in 2018-19 and stood at 216.8 million tonnes
between April-November 2019.
Demand
Housing sector acts as the principal growth driver for cement. However, industrial and infrastructure sectors
have also emerged as demand drivers.
Barriers to entry
• High capital costs and long gestation periods. Access to limestone reserves (key input) also acts as a
significant entry barrier.
• India's exports of cement, clinker and asbestos cement increased at CAGR of 10.5% between FY12-FY20
(April-July 2019) to reach US$ 177.9 million.
• FDI inflow in industry related to manufacturing of Cement & Gypsum products reached US$ 5.3 billion
between April 2000 and June 2019.
Potential
India has a lot of potential for development in the infrastructure and construction sector and the cement sector
is expected to largely benefit from it. Some of the recent major initiatives such as development of 98 smart
cities are expected to provide a major boost to the sector.