The company, which currently has around five or six Chinese partners who manufacture tyres under the JK brand name, would look to enhance its sales in the Chinese and overseas markets.

“We are looking at strategic partners in South East Asia or China to serve the local market in those countries as well as overseas markets. Though the China business is miniscule currently, we are looking to expand it,” said Raghupati Singhania, JK Tyre vice chairman and managing director.

At present, China accounts for 15% of the company’s global business and by the end of the current year it targets to increase it to 25%.

The Indian tire industry is already under the onslaught of cheap Chinese tires that are priced at about 25%-30% lower, making it difficult for the domestic industry to compete.

With the cost advantage and infrastructure that the countries in this region offer, the company is looking at expanding its capacity overseas so as to boost its export competitiveness, said Singhania.

Last year, the company outsourced business worth Rs 66 crore. Of its Rs 2,609 crore net sales, export sales contributed Rs 500 crore in the financial year ended September 2007.

Meanwhile, for the domestic market in the pipeline is an expansion plan of Rs 320 crore in the truck radial segment.

Another Rs 160 crore will be used to enhance capacity at its Mysore plant by the end of next year, added Singhania. (Tire Review)