Dear Stakeholders,
It gives me immense pleasure to address you after another year of
growth across our businesses. This year has been pivotal in our journey as we embraced a
new vision to shape our path forward. Our vision is to become a green and trusted mobility
partner, a commitment that reflects our intention to combine growth with sustainability.
FY 2022-23, proved to be a remarkable period of expansion and
achievements for JK Tyre, rightfully characterised as a year of ‘Exceleration'.
I am proud to share that we have surpassed the _14,000 crore mark, achieving the
highest-ever revenue in our Company's history.
A New Vision
We at JK Tyre are continuously evolving and adapting to the rapidly
changing world. In order to re-emphasise our green ethos and conduct of business
sustainably, we have carefully deliberated and developed our new vision: "Be a Green
& Trusted Mobility Partner". This vision recognises that we do not only
manufacture and sell tyres but also contribute to society in terms of mobility, safety,
health and happiness. The mission associated with this vision has been detailed in other
sections of this report.
Celebrating 25 Years of Vikrant Plant
In 1997, we acquired the Vikrant Tyre plant in Mysuru and transformed
it into a state-of-the-art facility. I am immensely proud to announce that JK Tyre is
celebrating 25 years of its acquisition. Vikrant stands as a testament to our growth story
and has played a crucial role in creating shared value for the larger communities in
Mysuru.
A Milestone Year
We look back with great satisfaction at a year characterised by highly
successful operations. JK Tyre successfully navigated through the challenges of high input
costs in the tyre industry during the first half of the year. Our proactive approach and
timely strategic business interventions played a crucial role in maintaining our
profitable growth trajectory. Notably, our revenue grew by 22%, culminating in the
highest-ever consolidated turnover of _14681 crore. Prudent financial management and a
strong focus on enhancing operating efficiencies at JK Tyre and its subsidiaries resulted
in robust outcomes, with a 32% rise in net profit.
The International Finance Corporation (IFC), a prominent member of the
World Bank Group and the largest global development institution, has reposed confidence in
your Company by making
K14,681 Cr
Turnover achieved by JK Tyre
25 years
Of acquisition of Vikrant Tyre significant investments in JK Tyre,
which will aid our growth efforts.
Vikrant Silver Jubilee
I am also delighted to share that this year we completed 25 years of
acquisition of Vikrant Tyre, Mysuru by JK Tyre, which has been transformed into a
state-of-the-art facility backed by world class research, innovation and technology. Even
more satisfying is that we have been able to enrich the lives economically and socially,
of not only our employees but communities in the vicinity of our plant and the city of
Mysuru at large.
Our Green Journey – a Shared Responsibility for the Future
India, like other major economies, faces two significant challenges:
the need to create a sustainable growth-oriented economy and the need to maintain
competitiveness in the global market. At JK Tyre, we have demonstrated our strong
commitment to ensuring Environment, Social, and Governance (ESG) considerations in our
business practices, driving our non-financial performance.
JK Tyre has adopted a comprehensive ‘Cradle-to-grave'
approach to address sustainability challenges. Our Research and Development (R&D)
efforts prioritise sustainability, aiming to minimise our impact on the environment. We
have set ourselves a target to reduce carbon emission intensity to 50% by 2030,
JK Tyre has adopted a comprehensive ‘Cradle-to-grave'
approach to address sustainability challenges. Our Research and Development (R&D)
efforts prioritise sustainability, aiming to minimise our impact on the environment.
reflecting our commitment to combat climate change.
It is heartening that our ESG efforts have garnered recognition, with
JK Tyre being rated as the best among our peers in the tyre industry by CareEdge. As a
green manufacturer, we continue to be amongst the best in areas of energy, water
consumption and usage of green power. You will be glad to know that we have incorporated
an ESG Data Book in this report which is a best-in-class practice and an Industry first in
India.
Performing Subsidiaries –JK Tornel & Cavendish Industries
JK Tornel, Mexico's performance was at an all-time high and
yielded satisfying results. It recorded its highest-ever sales of 6,546 Million
Pesos in FY 2022-23 which is a growth of 13.11% over the previous year,
despite challenging markets in USA and Latam. JK Tornel continued to enjoy the highest
Market Share in Passenger Car Radials in Mexico. It also provided value-added services to
farm OEM clients in the USA. The acquisition of Cavendish has resulted in immense
synergistic benefits for JK Tyre. During the year, production was at its all-time high
across product categories. There was all-round progress and Cavendish achieved a record
turnover of _3869 crores, an increase of 29% over last year.
Customer Centricity
Whether it is R&D, technology, marketing outreach, or any
endeavour, at the core of our efforts are our customers, both internal and external. Today
we are proud to serve our diverse customers across segments, categories and geographies
with a rich portfolio of products and services which are continually evolving as per their
needs.
Corporate Social Responsibility
Your Company has consistently prioritised and strengthened its
commitment to socially significant projects in the fields of health, education, adult
literacy, livelihood enhancement, environment conservation, rural development, and
renewable energy, among others benefitting the lives of communities in the vicinity of our
plants and other locations.
Poised for ‘Excelerated' Growth
As we enter the new financial year, equipped with a refined product
mix, strengthened market presence, a keen eye on operational excellence, and accelerated
digitalisation efforts, I am confident that these strategic measures will empower us to
unlock fresh avenues of opportunity and pave the way for an ‘Excelerated' growth
in the years ahead.
I wish you and your families good health and prosperity.
With best wishes,
JAI HIND
Dr. Raghupati Singhania
Chairman and Managing Director