JK, Apollo set for tyre war

NEW DELHI, June 15: The acquisition of Vikrant Tyres by J K Industries is set to trigger a no-holds barred war between JK Tyre and Apollo T...

NEW DELHI, June 15: The acquisition of Vikrant Tyres by J K Industries is set to trigger a no-holds barred war between JK Tyre and Apollo Tyre for supremacy in the much sought after truck and bus tyre segment.

JK Tyre is within a striking range of Apollo in terms of market share in this segment following takeover of Vikrant Tyres. Apollo Tyres had a market share of 20 per cent in volume sales in 1996-97 including the three per cent share of Premier Tyres which it took over, according to figures compiled by Automotive Tyre Manufacturers Association ATMA.

JK Tyre was way behind with 14 per cent market share but with Vikrant8217;s market share of six per cent also coming under its fold, JK comes at par with Apollo.

Industry sources said that JK was planning to launch a major marketing thrust in the truck and bus tyre segment to overtake Apollo and MRF. JK is confident of achieving its objective since it had highest growth rate in this tyre segment in 1996-97. JK Tyre8217;s production grew by 46 per cent during the year against MRF8217;s 10 per cent and Apollo8217;s six per cent growth. The total industry output grew by five per cent in the truck and bus tyre segment.

If the trend witnessed in the market share cornered by the leading players continues in 1997-98, the Madras-based MRF Tyres could be pushed into the third place though as an individual company it was the numero uno with a 18 per cent share in 1996-97.

Interestingly, market shares of the top seven tyre companies, except JK Tyre, remained unchanged between 1995-96 and 1996-97. MRF led the pack with 18 per cent market share followed by Apollo with 17 per cent in both the years. J K Tyre was third with 14 per cent in 1996-97 against 10 per cent in the previous year. Ceat maintained its fourth position with 13 per cent share in both the years while Modi Rubber slipped from 14 per cent to 13 per cent. Birla Tyre had a eight per cent market share in 1995-96 as well as 1996-97 while and Vikrant dipped to six per cent from a seven market share.

International tyre giant was a distant eighth with merely five per cent of the market in this segment.

Story continues below this ad

Apollo8217;s position as the largest tyre exporter has also come under threat after Vikrant8217;s takeover by JK Industries. Apollo, with exports of Rs 149.22 crore, cornered 21 per cent of the total exports by the tyre industry. JK Industries was in the third position with exports of Rs 113.06 crore but if Vikrant8217;s exports of Rs 61.97 crore are also taken into account, JK8217;s total exports would be over Rs 175 crore which is over Rs 25 crore more than Apollo8217;s exports.