JK Tyre & Industries Ltd Management Discussions

Economic & Business Environment

The resilient Indian economy continued to outperform the overall Global Economy. Robust rural consumption driven by strong agricultural performance and the services sector were key growth drivers. The real Gross Domestic Growth for FY 2024-25 is estimated to be over 6%. Private consumption as a share of GDP is the highest ever since FY 2002-03.

The above average monsoon was a boost to agricultural activity. However, this affected growth in sectors like mining and construction. The moderation in manufacturing was further tempered owing to challenges from slowing global demand and supply chain disruptions as well as restrictive trade and industrial policies from major trading nations. However, India‘s growing role in the global supply chain in high value added items such as electronics was a positive indicator.

On account of conduct of the general elections, the unprecedented expansion of capital expenditure on infrastructure of the last four years remained subdued especially in H1 but picked up in the latter half of the year leading to a positive outlook for FY 2025-26. As Indias economy continues to expand, climate change and related disruptions will remain a major concern area. The journey to transitioning to green non fossil fuels, and renewable energy is ongoing. Indias total renewable energy installed capacity grew by 15% and is currently at a level of 47% of the total installed capacity. Leveraging an AI augmented economy and reskilling of the work force will remain focus areas.

Domestic fundamentals remain robust with a strong external account, calibrated fiscal consolidation and steady private consumption ably supported by stable inflation & fiscal health. Tax revenue both direct and indirect remained buoyant. The fiscal stimuli in the budget and cut in income tax rates are likely to encourage higher consumer spends. A normal monsoon, as currently forecasted for 2025, is expected to support broader economic activity, especially in rural and semi-urban regions, which would be a tailwind for overall demand. The overall outlook for FY 2025-26 remains positive.

Automotive Industry

The Indian automobile industry, is the fourth-largest in the world with India being the third-largest market in terms of sales. The sector is key contributor to Indias GDP and exports as well as employment generation. It is also a major demand driver for the tyre industry.

The Auto Industry registered an overall growth of 7% in domestic sales, while exports rose by 19%. Commercial Vehicles, however experienced a muted growth in the second half. This was more pronounced in MHCVs goods carrier, where sales dropped by about 4% Y-o-Y, though a positive trend was seen in the end of last quarter of FY 2024-25. The requirement of freight movement was met adequately with fleets migrating towards higher GVW vehicles. The_ expanding highways and expressway network is playing a crucial role in reducing logistics costs, enhancing regional connectivity which is also driving sales of buses for inter-city travels. Exports of Commercial Vehicles posted a good growth of 23% during the year.

Passenger Vehicles (PV) category posted its highest ever sales of 4.3 million units, with a growth of 2% over the previous year. Utility Vehicles (UVs) continued to drive growth, contributing 65% of total PV sales compared to about 60% in FY 2023-24. Passenger Vehicles also _saw their highest ever exports of 0.77 million units registering a growth of 14.6%. Growth in exports have been driven by demand of global models being manufactured in India for markets of Latin America, Africa and other developed markets.

Sales of Two-Wheelers rebounded with sales of 19.6 million units registering a good growth of 9.1% driven by improved rural demand and resurgence in consumer confidence. It is noteworthy that share of EVs in overall Two-Wheelers have crossed 6% in FY 2024-25.

Three-Wheelers posted its highest ever sales of 7.4 Lakhs units in FY 2024-25 of 7.4 Lakhs Units registering a growth of 6.7%, surpassing the previous peak of FY 2018-19.

Policy interventions of Government of India coupled with EV launches by several manufacturers has provided the necessary momentum for the adoption of electric vehicles in the country. Robust demand from the agricultural sector enabled the Tractor Sales record their highest ever sales in CY 2024 and the growth trend is expected to be sustained.

The outlook for FY 2025-26 is promising with significant higher growth potential in the coming years with support from macro economic conditions and various policies. This augurs well for the tyre industry.

The Tyre Industry

The tyre industry witnessed a tempered single digit growth in a _uid operating environment with sectoral variations. The lower derived demand was on account of lower infrastructure spends and a slow down in manufacturing though rural off-take was much higher. The price stability in input costs seen in the beginning of the year was disrupted by substantial increases during the latter half of the year.

Since over 60% of the tyre cost is raw material any increase directly impacts the bottom line as well as affects consumer sentiment. In exports, OHT contributes to the highest percentage (in_ terms of value) followed by TBR & PCR International regulatory requirements are becoming increasingly stringent. However, the Indian Tyre Industry is technologically well positioned to comply with the same.

JK Tyre – An Overview

The focus for JK Tyre for FY 2024-25 has been in driving premiumisation, innovation and advancing sustainable solutions. By prioritising the development of eco-friendly technologies and energy-e_cient products, JK Tyre reinforced its commitment to environmental responsibility. While the domestic after-market and the exports witnessed single digit growth, the overall business growth was affected by the drop in OEM demand primarily in MHCV goods carrier segment.

Key milestones over the year included enhancing the portfolio of cutting-edge products designed to reduce carbon footprints and improve fuel efficiency, such as JUM XM, Jet Rib XLM, JDL XM, E-Blaze, Ranger HPe contributing to a greener future for the mobility sector. The Companys strong focus on range premiumisation further reflected its dedication to providing high-performance, sustainable solutions for a variety of customer needs.

Digitalisation played a pivotal role, enabling seamless operations and smarter, more efficient processes across all functions. The Company also deepened its engagement with customers, strengthening relationships through its various programmes, while ensuring that sustainability and innovation remained at the core of every initiative.

Brand JK Tyre

FY 2024-25 marked a defining chapter for JK Tyre, as the brand elevated its positioning through bold and innovative campaigns, and a renewed focus on customer-centricity. With a seamless blend of tradition and modernity, JK Tyre engaged a wide spectrum of consumers via award-winning omnichannel strategies, high-impact activations, and industry-first TV campaign innovations and integrations, cementing its reputation as a pioneer in the tyre industry.

The year was kickstarted with a landmark campaign "Jab Hindustan Mile Hindustan Se", a celebration of Indias connectivity through JK Tyres expansive product range. Deeply resonating with audiences across regions and demographics, the campaign instilled national pride while showcasing product strength and reach. Ampli_ed by tactical partnerships on leading entertainment and news channels, along with cutting-edge digital interventions, the campaign became a benchmark in automotive branding and garnered widespread industry acclaim.

JK Tyre celebrated automotive excellence in style with 20 years of the Indian Car of the Year Award, and 18 years of the Indian Motorcycle of the Year Award. The brands presence at Bharat Mobility Global Expo 2025 showcased the evolution of JK Tyre featuring an interactive engagement zone and futuristic product displays that brought the spirit of innovation to life.

Digital transformation at JK Tyre also gained momentum, with Google My Business seeing a surge in engagement, empowering channel partners and enhancing consumer touchpoints.

True to its customer-first ethos, JK Tyre rolled out Customer Interaction Programmes across the entire country, fostering meaningful connections and gathering insights. These on-ground experiences allowed thousands to engage directly with JK Tyres leading-edge products, reinforcing trust and loyalty.

Driven by innovation, authenticity, and a clear vision, JK Tyre continues to lead with purpose, inspiring pride and performance across Indias roads.

Motorsport

It was an action-packed and exhilarating year for motorsport at JK_Tyre, marked by pioneering events, strategic partnerships, and a commitment to advancing the culture of motorsport across India. One of the years biggest milestones was JK Tyres partnership with Racing Promotions Private Limited (RPPL) to host the Indian_ Racing Festival. RPPL which hosts the Indian Racing League, is a franchise-based model featuring international Formula Wolf Cars and FIA Formula 4 cars.

The season, spanning five rounds, featured Indias first-ever night race on Chennais Street circuit where Sports Minister of Tamil Nadu graced the weekend as the Chief Guest, and was attended by the industry leaders, celebrities and socialites. The involvement of celebrities as franchise owners including John Abraham, Arjun Kapoor, Naga Chaitanya, Sourav Ganguly added an extra layer of excitement, elevating the events stature and appeal among motorsport enthusiasts.

As part of the partnership, JK Tyre developed and manufactured international-spec, homologated racing tyres for Formula Wolf & Formula 4 cars in a record five months. The LEVITAS XTREME race tyres underwent rigorous testing in wet and dry conditions at Coimbatores COASST circuit, with Indias first Formula 1 driver, Narain Karthikeyan, putting them to the test.

The Indian Racing Festival, featuring the Indian Racing League, Formula 4 India, and the 27^th JK Tyre National Racing Championship which comprises the national championship category of Formula LGB 4 and Royal Enfield Continental GT Cup, came alive at Chennais Madras International Circuit which also marked our return to Chennai racetrack after over a decade. It was a proud moment for JK Tyre, with the entire grid—Formula cars and race bikes—equipped with its tyres. The Levitas Xtreme tyres delivered exceptional performance, with top racers finishing just seconds apart.

At JK Tyre, we are proud of creating a culture of motorsport in the North- East by blending adventure with music. Our associations with renowned festivals such as the Hornbill Festival in Nagaland and the Orange Music Festival in Dambuk, Arunachal Pradesh, have created an immersive experience for motorsport and music lovers alike. Extending this concept further, we also partnered with events like the Riders Music Festival in Gurugram, Generation Speed in Aamby Valley, the Underground event in Pune, and Drift & Drag Racing at the Valley Run in Aamby Valley. Alongside performances by renowned music artists, these events featured high-adrenaline stunt and drift shows, as well as showcases of Formula 4 cars, Wolf cars, and superbikes by our dynamic motorsport team.

Further strengthening our footprint in off-roading, we powered the high-octane JK Tyre-Orange 4x4 Fury in Dambuk, Arunachal Pradesh, where some of the best off-roaders from across the country tackled the challenging terrain in an intense battle of skill and endurance.

In our continued efforts to engage with diverse audiences, we organised and participated in key events such as the JK Tyre-Times Womens Drive from Delhi to Chandigarh, encouraging and empowering women in motorsport.

Additionally, the Vintage & Classic Car Event in Mumbai saw an overwhelming response with a footfall of over a lakh in just two days. The event not only celebrated the legacy of classic and vintage cars but also marked the 120-year celebration of Rolls-Royce. We at JK Tyre took this opportunity to showcase our premium Levitas range alongside some of the finest supercars and classic automobiles.

Internationally, JK Tyres presence was felt strongly through the participation of Gaurav Gill in the WRC Rally, New Zealand with his New Zealand-based co-driver Jared Hudson. Gill delivered a commendable performance in the Rally of Otago. On the domestic front, he asserted his dominance by winning three rounds of the FMSCI-Indian National Rally Championship 2024. The crowning glory was that another JK Tyre Prot?g? Kush Maini has entered the portals of F1, the pinnacle of motorsport as a test and reserve driver.

With an unwavering commitment to the sport and its enthusiasts, JK Tyre remains at the forefront of motorsport excellence as we look back with pride our unparalleled achievements.

TREEL

JK Tyre has always pioneered best in class technology in India and has brought to the market ‘TREEL connected Tyre Pressure Monitoring systems which fitted along tyres have provided a holistic solution - ‘SMART TYRE. This meets a critical need of customers by enhancing tyre safety & reduced vehicular emissions by monitoring air pressure in tyres.

TREEL Mobility Solutions has made a significant impact in the market by actively showcasing its cutting-edge products at key industry events for various categories, driving strong industry interest. Brand awareness campaigns were elevated with retail branding at over 2000 stores; digital assets furthered the communication strategy for TREEL.

TREELs commitment to Product Innovation led to the development of the Digital NSD Gauge and DIY Truck kits for single-vehicle owners. Additionally, partnerships with notable OEM partners have solidi_ed TREELs presence across multiple sectors.

With award-winning technology, including three design patents, TREEL continues to lead the smart tyre revolution, ensuring higher safety, performance, and operational efficiency across industries.

Personal Mobility

Car Radial

In FY 2024-25, JK Tyre made significant advancements in its Passenger Car Radial (PCR) segment, strengthening its market presence through innovative product launches and customer-focused marketing. The _ Company expanded its portfolio to address key challenges in the industry, while addressing premiumisation. The popular Puncture Guard range witnessed size extensions, enhancing protection and convenience for everyday drivers. The power-packed Ranger series strengthened its presence in the SUV segment, enhancing the brands footprint in higher-inch tyre categories.

The brands focus on innovation was further ampli_ed through targeted campaigns promoting Smart Tyre, Puncture Guard, and Levitas Ultra, each product designed to offer superior safety, comfort, and performance. Leveraging an integrated marketing approach, JK Tyre successfully engaged millions of consumers through digital platforms, creating strong awareness across diverse customer segments—from daily commuters to premium car enthusiasts.

Strategic OEM partnerships played a critical role in this growth, with key approvals from leading premium car & SUV brands, thus reafirming JK Tyres position as a trusted partner for high-performance tyres.

Tailored marketing interventions with OEMs, enhanced visibility and consumer trust, while opening avenues for sustained engagement and customer delight.

With a continued focus on product innovation, sustainability, and consumer engagement, JK Tyre is redefining performance standards in the passenger car tyre segment.

Two/Three-Wheeler

JK Tyre made significant strides in its marketing initiatives for the two-wheeler category, underscoring its commitment to innovation and customer engagement. A key highlight was the launch of exciting new products for the growing EV scooter market. These new products reflect the Companys strategic focus on diversifying its portfolio to meet the evolving needs of modern mobility. The Company also made its mark in motorsports with the extension of the Blaze RYDR portfolio, patterns specially developed for the JK_National Racing Championship (JKNRC), further strengthening its presence in the performance tyre segment.

To further solidify its market presence, the Company hosted a Zonal Distribution Conclave for its 2/3W distributors, fostering stronger relationships and expanding its reach.

In terms of community engagement, JK Tyre remained deeply connected with its customer base through the JK Blaze RYDR Meet _Ups. Partnering with leading brands, the Company organised Meet Up United 2024, bringing together RYDRs from across the country for an unforgettable experience. This initiative reflects JK_Tyres dedication to being a truly customer-centric brand.

Commercial – Truck/Bus and LCV/SCV

Truck & Bus

In FY 2024-25, JK Tyre made significant strides in the commercial vehicle sector through impactful marketing initiatives aimed at expanding brand visibility and driving customer engagement. The Company launched four innovative tyre products, enhancing its tubeless radial and bias range with innovative launches, including the JUM _XM and Jet Rib XLM, designed to offer improved efficiency and durability for long-haul and regional applications.

To promote these products, JK Tyre executed targeted digital campaigns, focusing on in-market audience, garnering reach in millions and enhancing visibility across demographics. In addition to digital efforts, the brand also leveraged Out-of-Home (OOH) interventions and on-ground activations to amplify its presence across key markets. These activations engaged customers directly, building stronger connections and reinforcing the brands commitment to delivering high-quality and reliable solutions for commercial vehicles.

Through a blend of digital engagement, OOH initiatives, and strategic activations, JK Tyre consolidated its position as a preferred partner in the commercial tyre sector, driving both product awareness and customer loyalty across its expanding portfolio.

Light & Small Commercial

In FY 2024-25, JK Tyre made significant strides in the LCV (Light Commercial Vehicle) and SCV (Small Commercial Vehicle) segments with the introduction of several innovative products and targeted marketing initiatives. Size extensions in Steel King+ & Steel King for LCV radial applications marked key milestones in expanding the Companys footprint in the industry, catering to a wider set of audience. JK Tyre introduced EV tyres for key small commercial vehicle brands, reinforcing its commitment to sustainable mobility. Associations with LCV/SCV Union Stands were piloted across key markets. These stands, serving as a platform for direct customer engagement, helped strengthen relationships with drivers and fleet owners. By creating welcoming and accessible environments, JK Tyre not only enhanced visibility but also fostered positive sentiment, ultimately solidifying its position and expanding its market share in the highly competitive commercial vehicle segment.

Farm

JK Tyre continued to strengthen its presence in the farm tyre segment by enhancing its range for diverse applications such as "Flotation". Premium products were also developed for Tractor front & Trailer applications to cater to domestic market.

Deeper connections with the agricultural community were forged through Customer Interaction Programmes (CIPs) and active participation in major agricultural expos, the brand engaged directly with thousands of farmers, offering them hands-on_ experience with JK Tyres latest high-performance, durable farm tyre solutions. These interactions not only reinforced trust but also provided valuable insights into the evolving needs of Indias farming sector. At the grassroots level, JK Tyres flagship outreach programme, ‘Kisan Mitra, made a significant impact by fostering long-term relationships with rural customers. Additionally, the innovative ‘Sarpanch Samaroh initiative brought together local village influencers and sarpanches to amplify awareness and trust in the brand within rural communities. JK_ Tyre ramped up digital visibility through targeted campaigns and strategic partnerships with tractor aggregator platforms, helping expand its reach in emerging markets. Interactive digital promotions complemented the on-ground efforts, positioning JK_Tyre as a reliable and innovative partner for farmers across India. By blending innovation, rural engagement, and digital outreach, JK Tyre continues to deliver products and experiences that meet the demands of modern Indian Agriculture.

O_-the-Road Tyres

The Company showcased its commitment to innovation and performance in the O_-the-Road segment. JK Tyre strengthened its product portfolio in the mining and construction industries, catering to a wider range of heavy-duty trucks. These tyres are engineered for superior durability and performance in challenging terrains. Additionally, JK Tyre introduced its smart tyre technology, TREEL, to the OTR portfolio, enhancing tyre solutions for cement, mining & port applications. The Company reinforced its leadership in the mining sector by launching advanced OTR tyre solutions. JK_Tyre also enhanced customer connect for the category through participation at key expos and customer engagement programmes in strategic markets.

Retread

Over the past 15 years, JK Treads has emerged as a leader in the retreading segment, offering end-to-end, eco-friendly solutions that reduce cost per kilometre for transporters. With over 85_ JK_ Retread centres, these state-of-the-art facilities follow JK_Tyres strict repair and retread protocols, ensuring tyres perform like new. The launch of Indias first solar-powered Retread Centre in Aurangabad reflects the brands commitment to sustainability. JK Tyre also introduced new products aligned with evolving market needs, and expanded its network significantly, catering to a larger customer base more efficiently.

Channel Development

This year, the Company achieved remarkable milestones in retail expansion, inaugurating over 125 new brand shops, including Steel Wheels, Xpress Wheels, Farm Wheels, and Truck Wheels. A major accomplishment was that we crossed the 100 Truck Wheels mark during the year.

Tactical digital interventions were made to improve customer engagement and retention, along with impactful workshops for increased efficiency among partners with high potential to grow. These initiatives underscore the Companys unwavering commitment to growth, innovation, and delivering excellence in every facet of its business operations.

Mobility Solutions

In the dynamic world of mobility, JK Tyre is redefining traditional models through disruptive technologies and a forward-thinking vision. FY 2024-25 marked a significant milestone in the Companys journey, with its network expanding to over 50 hubs and a large fleet strength. With consistent growth, JK Tyre continues to chart a strong upward trajectory, fueled by innovation and operational excellence.

The Companys solutions now cater to diverse sectors, including urban public transport with electric buses, vehicle carriers, cement and steel trailers, and express logistics, serving key logistics hubs across India. Central to this success is JK Tyres cutting-edge technology infrastructure, powered by real-time IoT integrations and smart tyre technology. The fleet is equipped with sensors that monitor tyre pressure, temperature, and dynamic motion, enabling intelligent fleet management and optimal operational uptime. JK Tyres expansive network of Authorised Service Centers and Pit Stops, along with 24/7 highway support, ensures efficient, cashless tyre services, improving fleet uptime and transparency. The Companys central command centers act as the digital core of its operations, enabling predictive maintenance, route optimisation, safety compliance, and real-time alerts across sectors such as steel, mining, ports, and urban logistics. With a dedicated team of specialists, JK Tyre is poised to lead Indias next phase of connected mobility.

Service - A Brand Di_erentiator

JK Tyre continues to provide industry benchmark service levels by leveraging digital and AI/ML technologies in our customer complaint management system. With registration, the benefits of JK Tyre warranty entitlements reach the actual end user of the product. The Ongoing ‘JK Assure – a customer-friendly warranty policy as a part of our customer-centric efforts had a positive impact on the market. Customer education efforts, both pre-and post-service, were undertaken for all market and customer segments.

Channel Engagement

A high level of channel engagement was maintained by conducting periodic Regional & National dealer meets. This enabled interaction at all levels and was a great facilitator, further strengthening business ties.

Road Safety

JK Tyre has always advocated for road safety with focus on Tyre Safety. We successfully hosted the 9^th JK Tyre-Constitution Club of India Car Rally for Parliamentarians, underscoring our commitment to promoting responsible driving practices.

In addition, JK Tyre partnered Delhi Tra_c Police during the National Road Safety Month. The extensive efforts were well recognised by the Government.

Sales Training & Capability Building

JK Tyre continues to periodically upskill the sales team across all product verticals as well as fleet and mobility teams, and Channel partners in a structured manner through various programmes in-person, virtually as also E-learning. Some of the focus areas are Product & Technical Knowledge, Customer Handling & Complaint Resolution, Digital Tools and Applications etc. For sales capability building and retail excellence, visits were organised to manufacturing facilities as well as to RPSCOE, the Global Technology & Innovation Centre in Mysuru. This enabled a high level of engagement as well as demonstration of high technological capability in order to ensure a superior end user experience.

International Business

With nearly 200 distributors, JK Tyre is present in over 100 countries. GeoPolitical disruptions affected the overall business scenario. A slowdown was seen in North America and Europe. This was aggravated by the volatility caused by prospects of a trade war. Despite these challenges, JK Tyre was able to maintain its exports in FY 2024-25. To continue its growth journey, product range, marketing, sales & service efforts are being further augmented.

R&D and Technology

The state-of-the-art Global Technology & Innovation Centre, of JK Tyre in Mysuru is engaged in leading-edge technology development for next generation tyre with special emphasis in the area of stronger & lighter materials, rubber compounds, digital twins and testing. As an outcome of this effort, our R&D team has developed quite a few advanced solutions which are deployed in high end products.

Our R&D team is actively working on its sustainability goal in close collaboration with its valued partners (raw material suppliers, OEMs, equipment manufacturers, universities / institutes etc.). Apart from this, our team is committed to ensuring compliance with all regulatory requirements pertaining to safety and environment.

EV Tyres

In a short span of time, the mobility landscape of the country is transforming with increasing EV adoption and change of power trains from Inter combustion Engine to battery Electric Vehicles. It is a testimony of our technological capability that we have partnered OEMs in developing tyres for their vehicle models. JK_Tyre is a leading supplier of EV Tyres for Truck/Buses in radials, both in tube type and tubeless. JK Tyre enjoys a 60% market share in _ this_ evolving vehicle segment. We are also a leading manufacturer of EV Tyres for 2Ws as well as passenger segment and are set to meet the increasing demand in this segment.

Manufacturing Excellence

At JK Tyre, "Manufacturing Excellence" represents a relentless pursuit of operational refinement, efficiency, and innovation. It is a core philosophy that drives continuous improvement, waste reduction, quality enhancement, and commitment to safety—ensuring that we maintain a competitive edge in a dynamic market. Excellence is not just a goal but an intrinsic part of our culture, guiding our processes, decisions, and sustainability efforts since inception.

Our focus extends beyond operational benchmarks to delivering consistent, high-quality products to our customers. This commitment is deeply embedded in our organisational DNA and is reflected through grassroots-level initiatives that enhance manufacturing performance across all facilities.

Our achievements in this domain have been widely recognised, earning us prestigious accolades such as:

• SEEM National Energy Management Award 2023 (Platinum Category)

• Health & Safety Award (Large Scale) by The Economic Times

• National Energy Award for Excellence in Energy Management 2024 by CII

• ESG Award by SKOCH

These honors reafirm our dedication to sustainable and responsible manufacturing. Our long-standing commitment to energy conservation, waste reduction, and water efficiency is now a comprehensive, enterprise-wide initiative to position JK_ Tyre as a benchmark for green and clean manufacturing. Under our "Reduce, Recycle, Reuse" energy strategy, we aim to be Indias most environmentally responsible tyre manufacturer.

One standout achievement is our globally benchmarked, lowest specific water consumption—reflecting the success of our sustainability-driven processes.

While challenges in productivity and consistency are ever-present, our unwavering pursuit of excellence and sustainability continuesfito empower us to innovate, adapt, and lead.

Digitalisation is increasingly being adopted in our manufacturing processes. AI_ has been suitably leveraged to enhance productivity_ and cost optimisation for condition based maintenance. Cloud based Equipment dashboards are enabling smoother operations.

As we move forward, we remain focused on enhancing our manufacturing capabilities while setting new standards in operational and environmental performance.

Raw Material

A strategic approach to material procurement enabled JK Tyre to overcome the volatility in the raw material market more so in the second half of the year which saw Natural Rubber (NR) prices increasing by up to 30%. Some of the interventions such as supply chain diversification, Sustainability-Driven Supply Chain Optimisation covering various aspects such as packaging and loading pattern optimisation, adoption of multimodal transport, and near-sourcing have reduced our environmental impact while improving efficiency. JK_Tyre has made major progress in aligning with global sustainability standards through the implementation of ISO 20400 which is a major milestone. Our revised policies, structured _supplier grievance_mechanisms, and dedicated efforts in supplier development have reinforced our commitment to responsible and ethical sourcing.

HumanResource-Management&Development

At JK Tyre, we are committed to hiring the best talent in the market and creating an environment where individuals can thrive, grow, and contribute meaningfully.

We take a holistic approach to employee engagement. Numerous initiatives and platforms have been launched across all our locations to foster a sense of belonging and community. Regular employee feedback, gathered through surveys, helps us shape progressive and employee-friendly policies that enhance satisfaction and overall well-being.

A strong emphasis is placed on learning and development. We undertake structured and customised training programmes across all levels of the organisation—including mentoring, coaching, and Management Development Programmes (MDPs)—designed to strengthen both functional expertise and behavioural competencies. All our capability-building efforts are strategically aligned to build a Future-Ready Organisation.

We continue to cultivate a culture of excellence. Initiatives such as the Chairmans Cup for Quality Control Circle and the Champions Trophy for the Best QIP Project are examples of how we recognise and celebrate employee contributions and innovation on the shop floor and beyond.

Diversity and Inclusion are also core to our agenda. We are actively working to enhance and retain gender diversity across the organisation, creating an inclusive culture that values every voice.

Corporate Social Responsibility

At JK Tyre, social responsibility is not merely a mandate—it is a deeply held commitment, grounded in empathy, purposeful action, and a vision for lasting impact. We believe that the true strength of an organisation lies in its ability to uplift lives and build resilient, self-reliant communities.

In the reporting year, our CSR interventions positively impacted over 1.2 Lakhs individuals, across diverse focus areas such as livelihood enhancement, skill development, education, healthcare, water conservation, and environmental sustainability. These initiatives are tailored to address the needs of underprivileged and marginalised sections of society, especially women, children, and the elderly residing in proximity to our manufacturing units.

As a key player in Indias mobility sector, JK Tyre also extends its responsibility to the nations commercial drivers—individuals who keep the economy moving. Acknowledging their vital role, we have undertaken focused initiatives to support their health, safety, and well-being. Through regular health check-ups, vision camps, road safety training, and awareness campaigns, we aim to enhance not only their quality of life but also contribute to safer roads and a more secure transport ecosystem.

Our sustained and impactful approach was recognised with the Mahatma Award 2024 for CSR Excellence & Social Impact-a prestigious acknowledgement that reafirms our role as a catalyst for positive change.

Looking ahead, JK Tyre remains unwavering in its mission to empower people, strengthen communities, and build a more equitable, sustainable, and inclusive future-for India, and for generations to come.

JK Tornel

Business conditions were challenging for JK Tornel. However, many strategic measures such as range enhancement, product premiumisation, channel expansion and brand building efforts enabled positive outcomes. Internally cost optimisation, quality drives and enhanced level of employee engagement through training, resulted in higher productivity. Team JK Tornel received the "Sword of Honour" from British Safety Council at London. Recognising Tornel?s commitment to quality throughout the years, the Mexican Institute of Standardisation and Certification awarded the ISO 9001 certification.

Cavendish Industries Ltd.

During the year, the highest ever TBR production in terms of tonnage was recorded. E_orts are ongoing to enhance operating efficiencies which will positively impact results in the year ahead. The higher input costs could be partially passed on account of an unfavourable market scenario. Notwithstanding the same phase 1 of the TBR expansion reached its full capacity and phase II has commenced. A significant milestone this year has been commissioning of a 6-megawatt solar power generating plant at our LTP facility, along with the completion of a 132 KVA transmission line, which will provide a more sustainable energy supply to our operations.

Cavendish Industries Ltd. (CIL) has aligned their CSR initiatives with ISO 26000 – the International Standard for Social Responsibility, reinforcing our dedication to ethical, transparent, and sustainable business operations.

Digital & IT

At JK Tyre, we are embracing digital transformation and Artificial Intelligence as core drivers of our growth strategy, with a bold vision to build future-ready, intelligent enterprises. In manufacturing, our smart factory initiatives are leveraging AI and IoT to enable predictive maintenance, automated quality control, and real-time performance optimisation-resulting in improved efficiency, reduced downtime, and superior product consistency. In Marketing and Sales, AI-driven insights are empowering us to personalise as well as enhance customer engagement and overall experience. Our supply chain is becoming more agile through AI-powered inventory management and logistics optimisation, while in HR, AI is enhancing talent acquisition and employee engagement through data-driven insights. These initiatives are not just about automation - they are about transformation. By embedding intelligence across every function, we are creating a culture of innovation and agility that will enable us to stay ahead of industry trends, anticipate market needs, and deliver unmatched value to our stakeholders. We have also put in place comprehensive risk management strategies to mitigate cyber threats effectively in an increasingly interconnected world. As pioneers in the Indian tyre industry, our commitment to digital leadership will continue to set us apart as we shape the mobility ecosystem of tomorrow.

Financial Performance for FY 2024-25

	Year Ended		Year Ended
Particulars	31st March 2025	31st March 2024	31st March 2025	31st March 2024
	Standalone		Consolidated
Sales	10,063	10,211	14,543	14,870
Other Operating Income	113	102	150	132
Revenue from Operations	10,176	10,313	14,693	15,002
Operating Profit (EBITDA excluding Other Income)	1,007	1,361	1,599	2,078
Other Income	68	36	79	44
Less: Finance Cost	267	242	476	447
Less: Depreciation and Amortisation Expense	268	252	457	437
Profit before Share of Profit/(Loss) in Associates,	540	903	745	1,238
Exceptional Items & Tax
Add/(Less): Exceptional Items	(11)	(21)	(32)	(27)
Profit before Tax	529	882	713	1,211
Less: Provision for Tax	144	291	198	400
Profit after Tax	385	591	515	811
Add/(Less): Share of Profit/(Loss) in Associates	-	-	(6)	(5)
Profit for the Year	385	591	509	806

JK Tyre sustained its turnover even though the market conditions were not conducive both in the domestic and international markets. This was an outcome of sustained marketing efforts riding on strong technological backing, product innovation and focus on operational efficiency along with premiumisation.

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 domains 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, and recycling, of end-of-life tyres in an environment friendly manner. Tyre Industry is to procure EPR (Extended producer responsibility) certificate from approved recyclers. The Company is fully compliantfito this.

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 among plants, sales offices, and the head office. This facilitates faster and more reliable transaction processing, as well as generates reports for informed decision-making. The Company also has robust control and management reporting systems, which help ensure that 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 forward-looking 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.