TRANSFORMING Building a smart company Annual Report 2020-21 Forward-looking statement In this Annual Report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward looking statements will be realised, although we believe we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise Contents 2 Board of Directors 34 10 ways JK Tyre is transforming 72 Our R& D journey its business to enhance 4 Our management team 74 Brand JK Tyre shareholder value Part one: JK Tyre. Personality and 78 2- & 3-wheeler business Part three: JK Tyre. The catalysts of performance our transformation journey 82 Exports 7 Corporate snapshot 40 ESG – Central to our existence 85 JK Tyre and road safety 11 JK Tyre’s manufacturing 44 Transforming to emerge 88 Motorsport presence financially leaner 92 Human Resource 12 Our battle against COVID-19 48 Transforming to sell more 94 Corporate Social Responsibility 14 Our consolidated report card premium tyre 101 Board’s Report 18 From the Desk of the Chairman & 52 Personality Managing Director 107 Annexures 58 Manufacturing: Transforming to 22 From the Managing Director’s sweat our manufacturing capacity 140 Sustainability & Business desk more profitably Responsibility Report Part two: JK Tyre. The agenda of 61 JK Tyre’s low carbon 152 Auditor’s Report on Standalone transformation commitment Financial Statements 160 Standalone Financial Statements 28 How JK Tyre is transforming 66 Technology Driven to address the convergence of 71 The Raghupati Singhania Centre 192 Consolidated Financial trends and realities Of Excellence: Global R&D and Statements 30 Technology leadership at JK Tyre Technology Centre TRANSFORMING At JK Tyre, we are transforming across every area of our personality. We are emerging more as a technology company that manufactures tyres as opposed to a tyre company that uses technology as one of its inputs. We are accelerating our digital transformation into an agile market-driven Company. The bottomline: We are building a leaner, smarter and more responsive JK Tyre. Board of Directors Dr. Raghupati Singhania Bharat Hari Singhania Vimal Bhandari Chairman & Managing Director Director Managing Director Bakul Jain Anshuman Singhania Meera Shankar Director Managing Director Director ADMINISTRATIVE OFFICE REGISTERED OFFICE AUDITORS 3, Bahadur Shah Zafar Marg, Jaykaygram, PO – Tyre Factory, S S Kothari Mehta & Company New Delhi – 110 002 Kankroli – 313 342, Rajasthan Chartered Accountants 2 | JK Tyre & Industries Limited Corporate Overview | Statutory Reports | Financial Statements Kalpataru Tripathy Arvind Singh Mewar Sunanda Singhania Director Director Director Shreekant Somany Dr. Wolfgang Holzbach Arun K. Bajoria Director Director Director & President – International Operations VICE PRESIDENT (LEGAL) CIN: L67120RJ1951PLC045966 Website: www.jktyre.com & COMPANY SECRETARY Pawan Kumar Rustagi Annual Report 2020-21 | 3 Our management team VK Misra Dr. R Mukhopadhyay A.K Kinra Anil Makkar Srinivasu Allaphan Technical Director Director- R&D Financial Advisor Manufacturing Director Director- Sales and Marketing 4 | JK Tyre & Industries Limited Corporate Overview | Statutory Reports | Financial Statements Sanjeev Aggarwal Bharat Aggarwal Sanjiv Saxena Ashish Pandey Pravin Chaudhari Chief Financial Officer Head- International Senior VP – Corporate Vice-President, Executive Director Trade Accounts Materials -JK Tornel Mexico Annual Report 2020-21 | 5 Part one JK Tyre. Personality and performance 6 | JK Tyre & Industries Limited Corporate Overview | Statutory Reports | Financial Statements Corporate snapshot JK Tyre entered the tyre manufacturing sector more than 45 years ago. Initiatives: Constantly worked on evolving market needs. Launched innovative products. Created new categories. Widened choice. Enhanced the customer’s price- value proposition. Immediate results: Deepened competitiveness. Strengthened returns. Enhanced market share. Long-term outcomes: Transformed across economic cycles. Responded to trade patterns. Rode technology changes. Kept a pulse on changing consumer preferences. The Company continues to transform with passion, conviction and speed – to build on its position as one of India’s most trusted tyre brands. Annual Report 2020-21 | 7 Vision: To be amongst the most trusted companies with a global tyre brand Mission Be a Customer Most profitable No. 1 tyre brand in Lead with premium Obsessed tyre company in India and amongst products through Company – India – deliver leading tyre brands technological edge Customer First enhanced value to globally 24x7 all stakeholders Enhance global Be a socially Be a learning presence through responsible & innovative acquisition/ corporate citizen organisation with a jv/ strategic motivated team partnerships Core values Excellence comes not from mere Integrity words or procedures. It comes from including intellectual Commitment to an urge to strive and deliver the Caring for people best. A mindset that says, when it is honesty, openness, excellence good enough, improve it. It is a way fairness and of thinking that comes only from a trust power within. Group pedigree location operations with a footprint that promote knowledge-driven Headquartered in India, the in more than 100 countries across six innovation. JK Organisation is an eminent continents. The JK Group products manufacturing Group that enjoys enjoy significant market shares in their Leadership a heritage of more than 125 years. respective segments of presence on JK Tyre is one of India’s leading tyre Employing more than 40,000 the back of trusted brands, cutting- manufacturers and is among 25 largest employees, the Group has multi- edge technologies and futuristic tyre manufacturers in the world. The business, multi-product and multi- Research & Development institutions Company is respected as one of the 8 | JK Tyre & Industries Limited Corporate Overview | Statutory Reports | Financial Statements world’s ‘greenest’ tyre companies, Seventies. Across the subsequent Distribution reflected in its declining low carbon decades, the Company has helped The Company markets products pan- footprint, low raw water consumption, grow India’s radial market through India through a network of 6000+ declining green-house gas emissions cutting-edge technologies, innovation channel partners, including 500+ and moderated power consumption and consistent new product dedicated brand shops known as per unit of production. introduction. Steel Wheels, Xpress Wheels and Truck Wheels, providing complete Products JK Tyre… solutions to customers. JK Tyre’s fleet The Company is engaged in the Offers tyres across the entire range management team provides complete manufacture and marketing of of Two-wheeler, Passenger and tyre solutions to 1000+ large fleet automotive tyres, tubes and flaps. The Commercial vehicles as well as Off the operators. Company’s tyre products comprise highway and speciality tyres Truck/Bus Radial & Bias, Passenger car Is a preferred brand in India’s Truck Bus Environment-friendly radials, 2/3-wheeler tyres, LCV & SCV Radial (TBR) segment. All of JK Tyre’s plants are ISO Bias & Radial, Off-Highway Tyres (OTR 140001-certified for environment and Farm) as well as speciality tyres Was the first in India to market more responsibility. Over the years, the for Racing, Military/Defence, Industrial than 20 million TBR tyres Company undertook several ‘green’ and Farm applications. Comprises a nationwide distribution initiatives to moderate its carbon network footprint. JK Tyre is now certified for Competitive advantage Zero Waste to Landfill and Single Use JK Tyre’s manufacturing operations Established a state-of-the-art Plastic Free. comprise 12 state-of-the-art centralised Global R&D and manufacturing facilities. The Company Technology Centre at Mysuru named Enduring partnerships as Raghupati Singhania Centre of manufactures products out of nine The Company has established Excellence. modern plants in India (three plants in enduring relationships with major Mysuru, three plants in Laksar and one Was the first in India to launch automotive Original Equipment plant each in Banmore, Kankroli and Manufacturers. Chennai) and three plants in Mexico Smart Tyres – an aggregate production capacity of First and only tyre manufacturer in Credit rating ~32 million tyres per annum . India to be recognised as a Superbrand The Company’s credit rating for long- in 2021 for the eighth consecutive Pioneer term facilities was upgraded to A time. (Outlook – Stable), and for short-term JK Tyre pioneered the launch of facilities was