Contents Board of Directors.............................................................................................................. 02 Undeterred at JK Tyre means… .....................................................................................................05 Corporate snapshot ......................................................................................................... 06 Milestones .............................................................................................................................. 11 Chairman’s overview ....................................................................................................... 12 Our Indian business ......................................................................................................... 16 Our global business ......................................................................................................... 20 A culture of marketing excellence .......................................................................... 24 How we enhanced our brand recall ...................................................................... 28 Strengthening our knowledge capital ................................................................. 31 Our culture of manufacturing excellence .......................................................... 32 A culture of financial outperformance ................................................................. 38 Designing the next generation product in a quarter of the time ........................................................................................................... 40 JK Tyre. The corporate citizen ..................................................................................... 46 Awards and accolades .................................................................................................... 54 Board’s Report .................................................................................................................... 56 Annexures .............................................................................................................................. 61 Sustainability & Business Responsibility Report ............................................. 95 Auditor’s Report on Standalone Financial Statements ............................106 Standalone Financial Statements ..........................................................................112 Auditor’s Report on Consolidated Financial Statements ........................144 Consolidated Financial Statements......................................................................150 Cover concept JK Tyre achieved the milestone of I10,000 crores turnover on the back of an all-round increase in market presence, undeterred by the headwinds of a market slowdown and poor credit availability. Dr. Raghupati Singhania, Chairman and Managing Director, being conferred the highest civilian honour of Mexico Her Excellency Ms. Melba Pría, Ambassador of Mexico to India, conferred on Dr. Singhania ‘The Order of the Aztec Eagle’, the highest Mexican order given by that country to foreign nationals. This honour was in recognition of Dr. Singhania’s exemplary leadership, his noteworthy services to A prestigious humanity and efforts to strengthen bilateral honour ties between India and Mexico. Board of Directors DR. RAGHUPATI SINGHANIA BHARAT HARI SINGHANIA Chairman & Managing Director Managing Director VIMAL BHANDARI BAKUL JAIN Director Director ANSHUMAN SINGHANIA DR. WOLFGANG HOLZBACH Whole-time Director Director 2 | JK Tyre & Industries Limited Corporate Overview | Statutory Reports | Financial Statements ADMINISTRATIVE OFFICE 3, Bahadur Shah Zafar Marg, New Delhi – 110 002 REGISTERED OFFICE Jaykaygram, PO – Tyre Factory, Kankroli – 313 342, Rajasthan AUDITORS KALPATARU TRIPATHY ARVIND SINGH MEWAR S. S. Kothari Mehta & Co. Director Director Chartered Accountants VICE PRESIDENT (LEGAL) & COMPANY SECRETARY Pawan Kumar Rustagi CIN: L67120RJ1951PLC045966 Website: www.jktyre.com SUNANDA SINGHANIA SHREEKANT SOMANY Director Director ARUN K. BAJORIA Director & President – International Operations Annual Report 2018-19 | 3 4 | JK Tyre & Industries Limited Corporate Overview | Statutory Reports | Financial Statements Seeing an Staring into the face of opportunity where a slowdown and saying most people see ‘This is a great market challenges to succeed in’ Undeterred Being singularly Where the passion focused on ‘Can at JK Tyre is ‘Can we create we achieve the markets?’ even best standards in as most focus on the world?’ means… market share. Seeing in a mature Possessing the chutzpah tyre sector the to strengthen average opportunity to create realisations in a a ‘connected’ product weakening market Annual Report 2018-19 | 5 Undeterred. Means pretending not to hear when they say ‘Impossible!’ Energy Water Productivity They said, ‘You will at best be They laughed when we said we They said, ‘You will be able able to moderate energy use would halve water consumption to make only a marginal marginally.’ in an arid region like Kankroli. improvement in people productivity.’ We reported one of the lowest levels We are recognised today as a global of energy consumption per tonne of benchmark for the lowest water We delivered one of the highest per tyre manufactured in the world use per kg of tyre manufactured person productivity benchmarks in anywhere India’s tyre industry Technology Standards Pioneering They said, ‘What is the new They asked, ‘Who are you They said, ‘The concept of an eco- technology standard that you will benchmarking operations with?’ friendly ‘green’ tyre is too futuristic deliver?’ for you to attempt.’ We emerged as the benchmark We emerged as the first global tyre when we became the first tyre We emerge as the pioneer in the company to install the ‘On level Tyre company in Asia to receive ISO manufacture of ‘green’ tyres in India Test Machine, generating real-time 50001 certification for Energy and the first Indian tyre company data in tyre testing Management (second globally) with a verified carbon footprint (as per ISO-14064) 6 | JK Tyre & Industries Limited Corporate Overview | Statutory Reports | Financial Statements Knowledge Product Intelligent They said, ‘But the technology to They asked, ‘Pray, what is a radial They asked, incredulously, ‘An manufacture is closely guarded.’ tyre useful for in India?’ ‘intelligent’ tyre? Are you sure?’ We became the first Indian We evangelised the radial We transformed from the design of tyre company to commission movement and emerged the conventional tyres to ones whose an independent research and catalyst of India’s radial revolution temperature and pressure can be development centre, one of its kind checked in real time from a remote in the Asia-Pacific location Fleet Management Renewable Solutions energy They enquired, ‘Why will anyone They asked, ‘How much of a want to rent a tyre?’ difference can renewable energy We graduated from the make?’ conventional sale of tyres to Fleet We migrated from complete grid Management Solutions dependence and expect to derive half our energy needs from captive renewable energy this year Annual Report 2018-19 | 7 JK Tyre & Industries Ltd. The Company is more than just a tyre company. A metaphor for courage in the face of challenges. Core values Research & Development institutes in manufacturing facilities. The Company Excellence comes not from mere words various fields to promote technological has nine modern plants in India (three or procedures. It comes from an urge to advancements and innovation. plants in Mysore, three plants in Haridwar strive and deliver the best. A mindset that and one plant each in Banmore, Kankroli says, when it is good enough, improve Products and Chennai) and three plants in Mexico it. It is a way of thinking that comes only JK Tyre is engaged in the manufacture – with an overall production capacity of from a power within. and marketing of automotive tyres, tubes ~32 million tyres per annum. Caring for people and flaps. The Company’s tyre products comprise Truck/Bus Radial, Truck/Bus Thought leader Integrity including intellectual honesty, Bias, Passenger car radials, 2/3 wheeler The Company pioneered the radial openness, fairness and trust tyres, OTR, Racing, Military/ Defence, technology in India in the Seventies and Commitment to excellence LCV Radial, LCV/SCV Bias, Industrial and has since helped grow the radial market Speciality and Farm. through technological innovation and new product introduction. The Company Group pedigree is the market leader in the Truck/ Bus Headquartered in India, the J.K. Leadership Radial (TBR) segment, in addition to Organisation is a multi-national group JK Tyre & Industries Ltd. is one of India’s offering tyres for the entire range of with a heritage of more than 125 years. leading tyre manufacturers and also passenger and commercial vehicles. The The Group’s footprint is spread across among the top 25 tyre manufacturers Company was the only tyre manufacturer six continents with manufacturing in the world. The Company produces in India to be included in the list of operations in India and Mexico. All one of the widest range of tyre products Superbrands in 2019 for the seventh time the products of the JK Group enjoy a catering to multiple segments, delivering in a row. The Company has established significant market presence in their a one-stop solution. state-of-the-art global R&D Centre – respective segments. The Company has Raghupati Singhania Centre of Excellence been able to strengthen