JK Tyre has diverted exports to US from India to other markets: MD Anshuman Singhania

JK Tyre  & Industries Ltd. has diverted its exports from India to the U.S. to other markets, amid the 50% tariff imposed by the U.S. government, its managing director Anshuman Singhania said.

“America becomes an area, where I think from India every industry has to think and realign. We don’t know what strategy would be panning out going forward. As far as JK Tyre is concerned we have secured our risk in terms of diverting to other markets,” he said at a media interaction at the company’s plant near Chennai on Thursday.

“We have diverted our exports to Latin America, Brazil and other countries in which we are already serving”, Mr.  Singhania said.

“The company is serving the US markets through its Mexico plant. There is postponement of tariffs on tyre exports from Mexico to the US by about 90 days as of now. We are also taking advantage of the United States-Mexico-Canada Agreement where there is nil duty,” he said.

“Overall exports account for 12-15% of our total revenue. We have a footprint in the Middle East. We have a long way to go in Europe. So we feel that growth for us is going to be quite good as we develop our products. By the end of the financial year beginning next year we will be pushing our products in a big way to these European Countries,” Mr. Singhania said.

“Exports would garner mid to high single digit growth. With the ongoing dialogues between the Indian government and the US we are hopeful of a solution,” he added.

Mr. Singhania said the domestic demand would also be good with the automotive industry expected to grow 8-9%, driven by monsoon, pick up in rural demand and GST rate cuts. 

He said the company has invested  ₹2,600 crore in its Chennai plant, which was inaugurated in 2012.  

The Chennai plant currently has a capacity of 350 tonnes per day for truck bus radial and passenger car radial and accounts for 20% of the company’s turnover.

“The current capacity utilization at Chennai plant is 90% and the capacity can go up to 600 tonnes per day. We will take a call in the future on the expansion,” Mr. Singhania said.