JK Tyre To Cut Down 50 Percent Of Debt In Next Three Years
Published On 08-Jan-2020 00:38:18
Sighting the deprived demand in the commercial vehicle segment, JK Tyre has postponed its Rs 675-crore investment in the Cavendish Industries to next year.
India’s largest commercial vehicle (CV) tyre manufacturer, JK Tyre and Industries aims to trim debt by 50 per cent by 2023-24. This will be achieved by reducing costs, likely upsurge in the domestic replacement market and overseas business, a leading newspaper reported. A part of home-grown conglomerate – J.K. Organisation – the tyre maker fall prey to the stumbling slowdown in the Indian automobile segment due to which it altered its way and went on to concentrate on the replacement and export markets in order to move away from the potential risk.
Company CFO Sanjeev Aggarwal explained that its 5,000 Cr. debt will be cut down by more than half in the next three years owing to various cost-cutting initiatives and potential improvement in the capacity utilisation. In both the business domains – replacement and export – company sees double-digit growth. India’s leading tyre brand exports its products to as many as 100 countries worldwide and is now on the verge of entering into eastern and southern Europe and some more countries in the African continent, Mr. Aggarwal further added.
Sighting the deprived demand in the commercial vehicle segment, JK Tyre has postponed its Rs 675-crore investment in the Cavendish Industries to next year. The sum was intended for the increase in the capacity of the truck and bus radial (TBR) tyre manufacturing facility by half a million units. Cavendish Industries was taken over by JK Tyres in the year 2016.
Last month, under its earth moving equipment range JK Tyre and Industries introduced the new V-Compact R3 tyre. Launched at the ExCon Exhibition in Bangalore, the 23.1-26 V- Compact R3 is developed for soil compactor application. The new tyre with innovative non-directional tread design and wide tread buttons ensure superior and uniform pressure distribution during compaction.