Could JK Tyre & Industries be the next Indian tiremaker to broaden its geographic footprint? Speaking with The Economic Times, company Chairman and Managing Director Dr. Raghupati Singhania said that following the integration of Mexican tire maker Tornel into the company, JK Tyres has “encountered some interesting propositions for possible opportunities of acquisition to catapult into a global entity.”
Singhania told the financial daily that JK Tyre is considering both potential acquisitions and new plants outside of India. He said while no plans have been finalized at this stage, the company is “actively considering a greenfield manufacturing base in many emerging markets of Southeast Asia that have posted some strong growth in recent years.”
Explaining JK Tyre’s interest in this particular region, the chairman and managing director commented, “Even as there is vast potential in the domestic tire market with India being the world’s manufacturing hub for compact cars, we have turned our eyes toward Southeast Asia for some fast-track expansion.”
Another factor possibly motivating the tiremaker is the question mark hanging above India’s ongoing competitiveness. In a statement released to coincide with last month’s annual general meeting, Dr. Singhania said, “It is a matter of concern that India’s competitiveness, both in the global and domestic markets, is being adversely impacted due to ‘high cost’ structure arising from a host of factors with this cost disadvantage, along with recent free trade agreements that India has entered into with various countries, the Indian manufacturing industry is losing its edge.” (Tyre & Accessories)
