NEW DELHI: JK Tyre Ltd – one of the largest tyre manufacturers in India – on Monday announced its foray into the US by setting up wholly-owned subsidiary Western Tyres Inc. The new entity will be based out of Houston, Texas, the company said in a statement.
The company has been planning to expand its operations in different markets to reduce its dependence on the domestic market.
According to the company, it has been exporting to the US for over two decades and has witnessed steady growth due to a network of local partners, acquisition of Mexican tyre manufacturer, Tornel, and enhancement of capacity at JK Tyre India.
“With the formation of the Western Tires Inc, the company now has its own marketing arm for the U.S. that will focus on sales, service and network expansion. To ensure a robust delivery model, the after-sales service will be backed by a team of technical experts from India and Mexico," according to the statement.
The US has been an important export market for JK Tyre and the fact that the company is now setting up operations there goes to show its significance in larger global expansion plans, said Raghupati Singhania, chairman and managing director, chairman and managing director, JK Tyre and Industries.
"Our products have been appreciated for superior quality, technological advancements and robustness across the world, and we have received a similar response from our customers in the United States. With our own sales and marketing channel, we are furthering our commitment towards the US market to provide an enhanced delivery and service experience to our customers," added Singhania.
To reduce reliance on domestic market where demand is volatile, many leading tyre manufacturers in India have been aggressively pursuing investment opportunities in Europe and US through acquisitions or by setting up subsidiaries.
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