JK Tyre & Industries Ltd Management Discussions

Annexure E to the Boards Report

Economic & Business Environment

India the fifth largest economy in the world sustained its growth, with GDP rising at 8%. Consistently better GST collections and a double digit growth in direct taxes, are indicative of high and well spread income levels and all round progress.

The agricultural sector did not perform as well, on account of an irregular monsoon due to the El Nino effect. This affected rural demand which has an impact on the overall economic growth.

Overall the country is well positioned to be one of the fastest growing economies in the world with a positive outlook in the years ahead.

Across the globe however steady and smooth economic growth was impeded owing to continuous geopolitical uncertainties and impacted by climate change related events.

Emerging macro trends indicate, decline in hyper globalisation, increasing impact of Artificial Intelligence and a focus on energy transition without affecting economic progress.

India is well placed to take on these key challenges. The Union Government has been building infrastructure at a fast pace. The overall public sector capital outlay has tripled over the last decade. In FY 24 alone, capex on Road & Highways touched Rs. 3 lakhs crores by both the Government & Private Sector.

This augurs well for the Tyre Industry in the long run.

The production linked incentive (PLI) schemes which focus on building capacities, substituting imports and boosting exports, job creation, received an overwhelming response from the industry. This has been supported by healthy domestic consumption.

With a focus on sustainability the Government has set a target to be net zero by 2070 and reduce carbon intensity by 50% by 2030. Persistent efforts are on to encourage use of renewable energy right up to the household level for which policies have been put in place.

India is thus poised for higher sustainable growth and in its endeavour to become a developed nation by 2047, is all set to realize the potential of a US$ 26 Trillion Economy.

Automotive Industry

The Indian Automotive industry achieved a healthy growth during the year. It was led by personal mobility vehicles with passenger car sales crossing 4.2 million nos. in the domestic market. Two wheelers registered double digit growth but were yet to touch the pre covid levels.

The Commercial vehicle segment overall grew marginally. The shift towards higher tonnage trucks with higher payload capacity affected the sales numbers. The LCV/SCV segment in fact degrew primarily in the CNG segment. Low demand from the agricultural sector affected tractor sales which degrew by 10%. The shift to EVs continued with passenger vehicle sales in the segment, almost doubling during the year. The Government continued to encourage usage of mixed fuels.

Vehicle Exports from India remained muted with sizeable drop in commercial vehicles and marginal growth in the passenger segment. The overall outlook for the industry remains positive for the year ahead.

The Tyre Industry

Road infrastructure is rapidly expanding, featuring expressways with concrete surfaces. Alongside this growth, vehicle speeds are increasing, prompting a heightened focus on tyre safety. The industry continued to work closely with all stakeholders to reduce GHG emissions, as well as particulate emissions, and meet the emerging regulatory requirements. It is also working on the evolving needs for EV vehicles.

Raw material prices remained stable in the early part of the year but showed an upward trend during the later part. The domestic NR availability is inadequate and Industry is making efforts to enlarge plantation in the North Eastern States to encourage enhanced domestic production.

The domestic tyre market other than farm tyres recorded single digit growth across categories. The mining construction and manufacturing sectors recorded good growth which positively impacted tyre demand while poor agricultural activity affected the demand for farm tyres.

International business environment was challenging owing to poor market conditions as also geopolitical situation affecting demand aggravated by supply chain disruptions. Overall the industry is likely to witness steady single digit growth in the ensuing year. With its technological capabilities the Indian tyre industry has the potential to take a greater share in the global market.

JK Tyre - An Overview

The journey of exceleration continued at JK Tyre. The best topline ever and highest bottom line, with strong fundamentals, high operational efficiencies have set a base for further growth. Product Innovation, range premiumisation, aggressive brand building, strong market presence and customer engagement were the highlights of the year. Many new prestigious fleets availed of the products and services of JK Tyre fleet management and mobility program, which made rapid strides during the year. Digitalisation was a major enabler across all functions.

Bharat Mobility Global Expo

In an endeavour to showcase Indias capabilities in the automotive space the Government brought together all automotive stakeholders on a common platform - the Bharat Mobility Global Expo. JK Tyre exhibited a state-of-the-art display showcasing the entire range of future ready high performance products across categories. It is matter of pride that the Honourable Prime Minister of India Shri Narendra Modi visited JK Tyre pavilion and was apprised of all technological advancements made by the Company.

Brand JK Tyre

"Mobility for the future" was the core thought of the brand initiatives for the year. A differentiated approach to marketing was key to actively promoting a wide range of mobility solutions offered by JK Tyre for the customers of tomorrow. There was a thrust on strategic presence across media, including print, radio, and TV, for a greater mind share of the customers as well as stronger connect through various events and ground activations.

Ranger - our premium range of tyres for SUVs - was at the centre of an aggressive marketing campaign with tactical presence in key Above The Line platforms. Another major campaign was centered around "Puncture Guard"- a revolutionary puncture protection technology for Car Tyres; high impact media assets were tapped to drive visibility among the key demographies across the country using regional languages. Further, product innovation was incorporated in the commercial category, with offerings designed to support the ambitions of the customers amidst changing usage patterns and rising fuel costs.

"Out Of Home" advertising particularly was leveraged to create a differentiated brand imagery and awareness of our key SKUs. Customer connect was further enhanced through customer interaction programmes, both through virtual and on-ground initiatives.

Digital Marketing

Digital continued to be a strong pillar for JK Tyres brand building initiatives, and central to our visibility and engagement strategy. The digital campaigns were based on rich media innovation and promoted to a highly curated audience, thus improving our visibility across key target groups. New age marketing initiatives also assisted in drawing awareness to the product benefits.

Popular influencers were leveraged to drive communication and promotions for the campaigns on social media.

Commercial - Truck, LCV & SCV

Truck

JK Tyre continued its endeavour to drive premiumisation in Truck & Bus Radial and Truck & Bus Bias categories. Next Generation Premium SKUs, particularly the XF series, XM series & the XD series tyres gained further traction over the year with support from strategic outdoor initiatives in focus markets.

Jet ML HD - for mining application, the latest technological powerhouse from JK Tyre - was launched and extensively promoted across media to drive awareness & increase sales.

We undertook a drive to educate transporter community with the concept of "Application to Fit" under initiative "Jaisa Vyapaar Vaisa Tyre" campaign. We were able to touch base with more than 5,000 transporters and educated them on our premium products specific to their needs. The Company was able to onboard a large number of Small Fleet owners to its digital platform. JK Assure, a product assurance programme that was launched last year, continued to gain much appreciation from the customers and was also instrumental in driving customer engagement in focus markets.

Light & Small Commercial

LCV & SCV categories continued their strong performance into the current year, driven by demand of premium and application-based SKUs. Steel King was crowned as the first JK Tyre product to achieve 1 crore units in sales, leading to a multimedia campaign across ATL & Digital channels. We have revamped the SCV bias portfolio with the introduction of HD (Heavy Duty) series across the range. LCV Bias Range saw the launch of the new dual-bead Jet Xtra XLM, further strengthening the products positioning in the market for extra load and mileage. SCV digital connect programs were carried out for end users in focus markets, along with exclusive customer offers. On the customer front, we adopted major LCV union/stands in key markets to drive awareness & increase brand presence for better acceptability.

Passenger Vehicles

Car Radial

With a wide range of advanced products, the focus has been on highlighting our innovative offering and technological prowess. The flagship offering of Smart Tyre, Puncture Guard & Ranger Series, were promoted all year round through digital and ATL-lead marketing campaigns. These premium offerings were promoted through strategic tie-up with select metros, along with promotion on leading News Channels, GECs and through Radio in leading cities. Levitas Ultra, the premium offering for luxury cars, witnessed tactical partnerships for targeted promotions, including an innovative integration with the 4th edition of Times Womens Drive.

JK Tyre enhanced the customers engagement with the Ranger Series through pulsating events that brought the joy of motorsports to the masses. The brand organised Ranger Odyssey, a Time Speed Distance (TSD) rally, family navigation event, designed to celebrate the love for drives and ignite the spirit of adventure in participants who are Wild at Heart. The brand also tied up with the much beloved Mahindra Adventures which was a great hit among participants. A key intervention for Ranger Series was the brand association with Mission Impossible 7, which was widely leveraged across all platforms. Partnerships with radio platforms for their marquee initiatives also saw high digital engagement for the brand.

Digital marketing was heavily leveraged for the category, with integration of key SKUs on leading tyre aggregator platforms like CarDekho, Tyreplex and Tyremarket. This segmented approach for reach and saliency helps drive awareness and build brand imagery by being present across all customer touchpoints.

Two/Three-Wheeler

With the objective of improving its product offerings and establish a strong presence in two and three wheeler segment, JK Tyre introduced Blaze RYDR, H rated pattern enabling speed up to 210 kmph. Another new launch is Blaze RYDR AT, designed for Royal Enfield off road adventure bikes.

JK Tyre partnered with xBHP to organise xBhpMeetupUnited powered by JK Tyre, a series of meetups held in four major Indian cities - Hyderabad, Kolkata, Ahmedabad, and Delhi. The event brought together key premium biking clubs and riding enthusiasts to share experiences and promote safety. The xBhpMeetupUnited campaign highlighted our premium tyre segment, the "Blaze RYDR," showcasing its superior performance and reliability.

As part of its strategic initiatives, JK Tyre collaborated with Nav Bharat Times to host the All Women Bike Rally powered by JK Tyre. This event garnered significant participation, with approximately 2800 women riding 2-wheelers. The rally was flagged off by an Union Minister in Delhi, celebrating the spirit of womanhood. This impactful initiative received recognition coming from the highest offices. In another strategic initiative, JK Tyre collaborated with Bollywood Hungama to host OTT India Fest 2023, powered by JK Tyre Blaze RYDR. This event aimed to engage with the young OTT audience, who are the primary customers of our 2 Wheeler range of tyres. The event received extensive promotion on social media platforms, reaching approximately 15 million viewers across various social media channels.

JK Tyre with its superior 2-3 Wheeler products, added more valued brands like Piaggio and Revolt as its OEM partners in FY 2024. We also have a presence in the economy and executive range of bikes and scooters for Hero, TVS and Bajaj.

With our E-Blaze tyres, with low rolling resistance and high load capacity, we are becoming a part of Indias journey towards E- mobility drive.

Farm

JK Tyre has always been at the forefront of technological advancements. To support & promote the same, we aggressively tapped into the on ground opportunities; by actively participating in key agri expos around the country that drew in large crowds with the help of engaging customer initiatives. Our work under "Kisan Mitra" continued successfully this year. We executed on ground influencer campaigns in villages, called Sarpanch Samaroh featuring the respective sarpanch and influential leaders help spread the word about JK Tyres unique offerings.

JK Tyre capitalised on the increasing prominence of digitalisation in the Agri sector. Collaborations with leading tractor aggregator platforms to promote the premium range of products has strengthened the brand reach & visibility.

Off The Road

Our domestic Off-the-Road (OTR) tyre business has demonstrated robust growth over the past fiscal year. In order to augment JK Tyres presence in the OTR segment, we have broadened our retail network in this category. JK Tyre actively engaged in targeted trade exhibitions, including Excon in Bangalore and IMME in Kolkata, where several new tyre variants were launched. Notable launches include products for Rigid Dump Truck, Underground Mining, Mining, Wheel Loader, Crane, Reach Stacker and Solid Tyre for Forklift.

These introductions have fortified JK Tyres product range, ensuring a competitive edge in this specialised market. Our latest OTR tyre offerings leverage advanced technology to deliver enhanced mileage and superior traction, even in challenging conditions.

Presence was enhanced in the Nepal market by the establishment of the first dedicated exclusive showroom for OTR tyres - branded as Mining & Construction Pavilion in Kathmandu. Participation in the esteemed 39th Annual Mines Safety Fortnight Celebration in

Raigarh (Chhattisgarh) ensured a strong customer out reach in a target market. With a strategic focus on infrastructure development and a deep understanding of the evolving needs of the domestic mining, infrastructure, and manufacturing sectors, we are well-positioned for continued growth and success in the Off-The- Road tyre business in the coming years.

Retread Business

JK Tyre is well on its way to complete 15 successful years of the innovation in the Retread business which grew well in FY 24.

Keeping in view of the JK Tyres Customer centric approach & commitment to deliver best in class, JK Treads launched 10 new patterns over the year to cater to diversified requirement of its customer base. The JK Retread Centre (JKRC) Network is nearly 80 strong, with many more aligned in the year ahead, staying true to JK Tyres vision of servicing every corner of the country. JKRCs are equipped with ultra-modern retreading machinery and diligently follow the highly curated and tested SoPs for quality and quick delivery of the retreaded tyres. With a focus on being future- ready, JK Treads has also launched solutions for EV-friendly tyres. The changing dynamics of safety, performance & environment has empowered JK Treads ambition to be a champion in driving sustainable performance.

Fleet & Mobility Management

The customer centric Fleet programme has been running successfully for more than 10 years. Leading fleets logistics and transport industry are enrolled in this program. With our service engineers based throughout the country we jointly work with them in many innovation and automation projects and reduce their operational costs. We have added over 200 large fleets and the business is recording double digit growth. Fleets can avail cashless services on the highway from our truck wheels network and pit stops which are located every 100 KMs. This has been highly applauded by our customers with whom high level of engagement was maintained through meets and conferences.

The spirit of Innovation continues at JK Tyre with the establishment of Mobility Solutions a unique Company operated concept where customers avail the Pay per kilometre facility. 30 hubs have been established which operate around the clock to provide services to the 14000 trucks enrolled under this program. The tech enabled solutions where all tyres are fitted with sensors with IOT help in providing enabled real time information on tyres on various parameters such as inflation pressure temperature and motion for deriving superior tyre performance as well as tracking through GPS.

The footprint of the mobility programme has expanded to diverse applications like buses, trucks, express logistics, port movement, mining, coal and steel.

The 360 degree solutions backed by futuristic technology and a dedicated team with unique skill set are facilitating rapid business growth which is all set to expand to more cities.

Service - A Brand Differentiator

Digital Transformation of our customer complaint management has been a great success making us an Industry benchmark in delivering First Visit Resolution in Indian tyre customer service offerings. To make the system even more transparent warranty Registration was introduced which ensured the benefits of JK Tyre warranty entitlements going to the right owner of the product.

Implementing Total Quality Management (TQM) approach in customer service has boosted Customer Satisfaction, streamlined operations, and empowered employees. This fosters continuous improvement, strengthens competitive advantage, and enhances both reputation and customer retention, ultimately driving increased revenue and long-term success.

"JK Assure" - a warranty policy was extended as part of our customer centricity initiative which was well received in the market. It is an ongoing endeavour @ JK Tyre which ensures exceptional customer service and delivers a superior Customer Experience by continuosly leveraging digital and AI/ML technologies.

Sales Training & Capability Building

Our commitment to bolstering the expertise and proficiency of our front-line personnel and channel partners remains unwavering. Through continuous and systematic efforts, we have endeavoured to empower them with enhanced customer handling abilities, reinforcing our dedication to delivering exceptional customer service. The onboarding process for new partners was conducted with meticulous attention, ensuring a seamless integration into our network. Furthermore, the introduction of new products and policies was complemented by comprehensive training initiatives tailored for both our channel partners and team members. The digital knowledge learning platform "jktraintoexcel" has been further upgraded and is a 24x7 enabler for the field team to constantly enhance their knowledge as well as provide valuable support to our channel partners & customers.

Channel Support & Engagement

JK Tyre continued its efforts to enlarge its channel network both quantitatively and qualitatively. JK Tyre has a strong footprint of 6000+ partners including dealers and distributors. Further, the Brand shop network grew exponentially with an addition of more than 100 outlets covering different formats- Steel Wheels, Xpress Wheels and Truck Wheels. There are currently more than 750 brand shops providing superior customer experience and quality service to customers. Periodic meets and conferences ensured a high level of engagement with channel partners.

Motorsport

The four decade old legacy of promoting motorsport in the country was sustained during the year spanning across all formats such as rallying, racing, drifting, and autocross with the foot print spanning across geographies. The flagship programme JK Tyre National Racing Championship (JKNRC) which completed 26 successful years and has groomed some of the countrys most accomplished motorsport talent, further evolved over the year both in terms of technology and participation. Today it proudly showcases a national grid, with participants hailing from regions spanning from Jammu to Manipur, and from Thrissur to Guwahati.

The strong association of the brand was well leveraged for high level of customer engagement in events like JK Tyre Valley Run Drag Race in Amby Valley, JK Tyre Drift Championship at Buddh International Circuit, Greater Noida, JK Tyre Orange Festival of Speed, JK Tyre presents Clash of Titans-one of the biggest autocross events held in Mysuru, JK Tyre Vagamon off-roading in Kerala.

Women empowerment took a step forward with various initiatives highlighting the possibility of motorsport as a career option.

Our participation in international events continued. Arjuna Awardee and our very own Gaurav Gill participated in the World Rally Championship in Greece and two of our rally drivers Suhem Kabeer & Jahaan Gill participated in Asia Pacific Rally Championship in Indonesia where they made their podium presence and made us all proud as the Indian national anthem was played.

The year under review had a stellar finish with the demo show of Indian Racing Festival which was conducted with the support of the J& K Tourism Department at the scenic Dal Lake Srinagar, often referred to as the paradise on earth. From thrilling speedruns of Formula 4 and Wolf Cars, to the drifting maneuvers, adrenaline pumping stunt shows on four-wheels and two-wheels to the dare-devilry shown by 10 year-olds in their Rotax karts caught the attention of all. The event received the attention at the highest echelons of the Government of India and was lauded in the social media by none less than the Honourable Prime Minister of India, Home Minister & Minister of Youth Affairs and Sports.

International Business

It was indeed a challenging year for exports, on account of high Channel inventories, inflationary pressures, supply side disruptions and volatile Geopolitical situation. At JK Tyre we were able to navigate these challenges and increase our exports in most of the categories. Overall JK Tyre exports performed better than the Indian industry with growing presence in the South American & Middle East markets. We have strengthened our sales and distribution network, leveraged logistic efficiencies and widened our geographical presence to make our exports more resilient and more so enabling us to withstand the competition from low cost tyre exports from China & South East Asia. The above measures coupled with an enriched and diversified product mix will positively help our international business in the years ahead.

Manufacturing Excellence

Within JK Tyre, "Manufacturing Excellence" embodies an ongoing endeavour to refine operations, minimise waste, enhance production profitability, and secure a competitive advantage through innovations in quality and safety. For decades, excellence has been ingrained in our ethos, guiding our thinking, innovation, operations, and business conduct. Since our inception, we have remained steadfast proponents of sustainable practices, underscoring our commitment to transparency.

In addition to setting targets aimed at achieving operational excellence, we prioritise delivering consistent, high-quality products to our customers. This ethos permeates our organisational culture, manifesting in grassroots initiatives aimed at improving & upgrading manufacturing processes across all our facilities. Our endeavours in this regard have garnered recognition from various esteemed institutions, including:

• The "CII Water Management Excellence Award-2023"

• The "Silver Award" in the CII National Competition on Digitalisation, Robotics & Automation (DRA)

• The "Greentech Environment Award 2023" in the category of "Environment Excellence"

• The "Green Manufacturing (Large Scale) Award" from Manufacturing Today

• The "National Energy Award for Excellence in Energy Management 2023" by CII

• The Award for "Most Sustainable & Innovative Manufacturing Practices" by the World Manufacturing Congress.

Over the years, JK Tyre has remained committed to energy conservation, waste reduction, and water conservation. This has evolved into a formidable initiative aimed at establishing our Company as a paragon of environmental responsibility, characterised by sustainable energy practices. We are steadfast in our pursuit of our Energy-Reduce Recycle Reuse goal, aspiring to be Indias premier Green & Clean tyre Company. Encouragingly, our efforts have yielded tangible results. Notably, our specific water consumption is a benchmark in the global tyre industry, a testament to our unwavering commitment to sustainability.

As we continually raise the bar for ourselves, productivity and consistency remain paramount challenges for our team. Yet, with our steadfast dedication to excellence and sustainability, we are confident in our ability to overcome these challenges and continue our journey towards manufacturing excellence.

Financial Performance

Rs in Crores (10 Million)

	Year Ended		Year Ended
Particulars	31st March 2024	31st March 2023	31st March 2024	31st March 2023
	Standalone		Consolidated
Sales	10,211	9,538	14,870	14,520
Other Operating Income	102	80	132	125
Revenue from Operations	10,313	9,618	15,002	14,645
Operating Profit (EBITDA excluding Other Income)	1,361	775	2,078	1,297
Other Income	36	32	44	37
Less: Finance Cost	242	258	447	454
Less: Depreciation and Amortisation Expense	252	243	437	407
Profit before Share of Profit/ (Loss) in Associates, Exceptional Items & Tax	903	306	1,238	473
Add/(less): Exceptional Items	(21)	(36)	(27)	(62)
Profit before Tax	882	270	1,211	411
Less: Provision for Tax	291	86	400	146
Profit after Tax	591	184	811	265
Add/(less): Share of Profit/(Loss) of Associates			(5)	(2)
Profit for the year	591	184	806	263

With a sustained drive on enhancing all round efficiencies and the focus on premiumisation JK Tyre was able to deliver robust financial results during the year. The successful QIP issue demonstrated Investor confidence in the Company, apart from deleveraging the Balance Sheet.

JK Tornel

Despite adverse market conditions, aggressive marketing and sales efforts like customer visits from countries like Peru, Brazil, Columbia, etc, marketing tie ups, channel partner engagement with the Top Management and range enhancement ensured single digit turn over growth during the year.

The Mexican Economy witnessed a somewhat buoyancy during the year. High FDI inflows, and slow down in Inflation resulted in the Mexican Peso recording a major appreciation to the extent of 17% against the US Dollar. This affected exports of bias tyres to other LAT AM nations. The inflow of low cost Chinese tyres increased significantly impacting sales of premium brands like JK Tyre.

JK Tornel maintained its leadership position in PCR replacement market in Mexico. This is expected to strengthen further with introduction of many new sizes under the "America" Brand. Range augmentation is a significant step towards increasing our presence in the USA.

During the year, JK Tornel received "5 Star Certification and Recognition" from British Safety Council. Employee engagement programs like "Health and Safety Weeks" long service awards, celebration of Womans Day Sports activities, Festival celebrations etc. were well received.

Cavendish Industries Ltd.

High operational efficiency and growth in profitability were the main achievements of the year under review. Substantial benefits were realised from various cost saving projects. TBRs sales increased during the year. Over 50 new products were released in various sizes and patterns in Truck /Bus Radial and Bias, Light commercial vehicle, Motorcycle, Scooter and 3 wheeler tubeless categories.

The green ethos inculcated at CIL Plants post our acquisition, 2017-18 onwards, was evident with significant drop in energy consumption, decline in GHG emission and lower water usage.

CIL received Golden Peacock Award for Energy Efficiency. Quality of our products were recognised both nationally and internationally.

• Best Improvement of the Day award by OE partner TML Ltd.

• Gold Award by China Association of Quality at International Quality Circle Competition ( ICCQC ) in China.

• Special Award in Advance QC Tools at CII Regional Finals.

Safety, Quality and Environment conservation were recognised through plant level celebrations with employees along with their families. CIL community engagement and flood relief efforts were well received by all stakeholders.

R&D and Technology

The latest technological development in the automobile industry, stringent legislative & regulatory standards and end users requirement are the prime driving factors for tyre industry. Electrification of drive train in EV vehicle technology is a game changer and highly demanding with respect to tyre performance requirement viz. reduced rolling resistance, improved wear resistance, low tyre noise, higher load carrying capacity, connected tyre, etc. Achieving compliance to various legislations & regulations are of paramount importance for us. Further, our team is strongly committed to sustainability & Circularity through its 7R strategy - Reduce, Reuse, Repair, Redesign, Recycle, Renew and Recover. At JK Tyre, R&D team is working incessantly in meeting these complex and challenging requirements in the following areas:

1. Advance high performance materials (rubber, fillers, nanomaterials, process aids, reinforcement materials).

2. Sustainable materials (recycled, renewable, bio-sourced & bio-attributed).

3. Digital & Predictive Technology (AI/ML, Multiscale simulation - Molecular to System level, Virtual Proving Ground).

4. Advanced Product and Vehicle Level Testing (Indoor & Outdoor).

5. Regulatory Testing (ECE R117, AIS 142, Star Labelling, REACH/ ROHS, etc.).

Raw Material

Normal availability of raw material and stable prices were witnessed. This provided a conducive operating environment for business.

However, towards the end of FY 24, due to various geopolitical disturbances some hardening of raw material prices started. which is likely to continue in the initial part of FY 25 as well.

Our efforts to diversify raw material supply sources have been paramount in mitigating risks associated with price fluctuations and supply chain disruptions. Various measures to optimise cost and realign logistics to minimise the impact of rising raw material costs and supply chain disruptions are continuing. Growth of natural rubber cultivation in non-traditional areas is being supported to increase availability as also as an import substitution measure.

The materials team is closely coordinating with R&D and Technical Teams to capitalise on emerging opportunities while prioritizing sustainability and creating long-term value for our stakeholders.

Human Resource - Management & Development

One of the missions of JK Tyre is to be a learning organisation with an engaged team. We have structured and customised training and development programs for all levels comprising of mentoring coaching and MDPs. Many platforms were created to ensure a high level of employee engagement across all our locations including for their family members. The first ever Chairmans cup for Quality Control Circle was organised for workmen.

All our capability building efforts are aligned to build "Future Ready Organisation" by focussing on functional and behavioural competencies. Based on periodic feedback and surveys, employee friendly policies have been put in place to ensure greater employee satisfaction.

No wonder JK Tyre continues to be certified as a Great place to Work fourth time in a row, and has made a mark by being in the Top 50 Large companies with a culture of Innovation for all.

Corporate Social Responsibility

JK Tyre has maintained an unwavering commitment to fostering the surrounding environment, with a dual focus on generating wealth for shareholders and cultivating sustainable societal value. At the heart of this dedication lies the empowerment of communities, acknowledged as vital to their holistic development. Accordingly, the Company has embarked on numerous projects aimed at empowering individuals through skill development, education, livelihood enhancement, improved agriculture, livestock development, health, water conservation, and more.

As a manufacturing-oriented Company, we place particular emphasis on addressing the needs of the underprivileged and marginalised, especially women, the elderly, and children residing in the vicinity of our manufacturing plants. It is a source of pride for us to observe that the impact of our diverse CSR initiatives, have positively influenced the lives of more than 1.1 lakhs individuals during the reported year.

The commendable efforts of JK Tyre in tackling societal challenges were duly recognised at the Indian Chamber of Commerce Social Impact Awards 2024. Specifically, our water conservation initiatives received well-deserved acclaim. This recognition underscores our steadfast commitment to effecting meaningful change and highlights the importance of collaborative action in addressing pressing social issues.

Risks and Concerns

In the competitive landscape of the tyre industry, JK Tyre continues to navigate through a myriad of risks and concerns that have the potential to affect our business operations and financial performance. Despite these challenges, we remain committed to prudent risk management practices, including cost management initiatives, strategic diversification efforts, and ongoing investments in research and development to mitigate risks and capitalise on emerging opportunities in the market. While JK Tyre remains optimistic about the long-term growth prospects of the business, we recognise the importance of vigilant risk management.

The Company has established a practice of proactively identifying risk under various domain of financial, operational, sectoral, ESG, IT & cyber security. Subsequent to assessing, a mitigation plan is prepared and monitored continuously.

Risk management is being driven with strong well-established structure in place with internal risk management committee and Board level risk committee.

Key Business Risks

Uncertain Global Economic Scenario:

The present geopolitical landscape presents certain risks for the tyre industry, given its deep integration with the global economy, impacting both the sourcing of raw materials and access to export markets. Emerging from this turbulent global economic environment are numerous challenges affecting businesses worldwide. These encompass disruptions in supply chains and fluctuations in demand, which have the potential to impede the ongoing recovery efforts of economies worldwide following the pandemic.

In order to address turbulent global economic risks, JK Tyre continually expands its customer base and diversifies its supply chains, fostering agility and innovation in the process. Strengthening relationships with both customers and suppliers is of paramount importance. Through meticulous risk assessments, JK Tyre is preparing for potential downturns while also positioning itself to seize opportunities. Cultivating a resilient organisational culture and maintaining adaptability are essential for effectively navigating uncertain economic landscapes.

Regulatory Changes:

In the intricate landscape of regulatory requirements, JK Tyre remains steadfast in its commitment to safety standards, environmental considerations, and product quality benchmarks.

For the Indian market, The Ministry of Environment, Forest and Climate Change had issued a notification regarding "End of life tyre (ELT) management ". The ELT regulation governs the disposal & recycling, of end-of-life tyres in an environment friendly manner. Tyre Industry is to procure EPR (Extended producer responsibility) certificate from approved recyclers which is not yet available in adequate quantity. The Company is working towards mitigating the impact of the same.

Cyber Security:

In todays digital age, robust cyber security measures are imperative for safeguarding sensitive data and maintaining operational integrity. At JK Tyre, we prioritise comprehensive risk management strategies to mitigate cyber threats effectively. This entails regular assessments of potential vulnerabilities, implementation of robust security protocols, and ongoing monitoring of network activities. By fostering a culture of cyber awareness and investing in cutting- edge technologies, we strive to stay ahead of evolving cyber risks. Our proactive approach not only protects our digital assets but also ensures the trust and confidence of our stakeholders in an increasingly interconnected world.

JK Tyre assures unwavering dedication to excellence and proactive risk mitigation measures, underscoring our commitment to maintaining a secure and prosperous future for the Company.

Internal Control Systems

The Company has since its inception, laid down a system of internal control, which is commensurate with the size and nature of the business. Adequate and effective checks have been put in place to ensure that the financial data is accurate and reliable. The internal

control systems also ensure that the assets and the interest of the Company are well protected.

The internal audit was carried out throughout the year based on a systematic plan covering all functions and aspects of the business. The internal audit reports were reviewed by the senior management and were placed before the Audit Committee of the Board of Directors along with the actions taken. The Audit Committee undertook a detailed review of the audit observations and actions in order to ensure that the internal audit system was functioning effectively. The recommended actions by the audit team were monitored and improvements were implemented that were regularly reviewed by the senior management.

The IT framework of the Company is based on a robust ERP system, ensuring seamless connectivity of plants, sales offices and head office, and facilitating faster and more reliable processing of transactions as well as generating reports for rapid decisionmaking. The Company also has strong control and management reporting systems, which helped ensure the business results are achieved and continuous improvement projects are undertaken.

Cautionary Statement

The Management Discussion and Analysis report contains forward-looking statements, which may be identified by the use of words in that direction, or connoting the same. All statements that addresses expectations or projections about the future including but not limited to statements about your Companys strategy for growth, product development, market position, expenditure and financial results are forward-looking statements.

Your Companys actual results, performance or achievements could thus, differ materially from those projected in such forwardlooking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent development, information or events.