JK Tyre & Industries expects economic revival and growth going ahead after an unprecedented FY21, but rising commodity prices and the potential turbulence of the pandemic remain causes of concern, according to company Chairman & Managing Director Raghupati Singhania.
In his address to shareholders in the company's annual report for 2020-21, Singhania described the last fiscal as "unprecedented and perhaps the most challenging of our lives".
"Perhaps it was the first time in the history of JK Tyre that all operations had to be completely suspended, as also those of our stakeholders, including vendors or channel partners," he said in the report.
The company responded to the adverse situation with the philosophy of 'survive, revive and thrive' and travelled on the path of transformation with well-strategised plans, including the creation of virtual offices that enabled resumption and ramping up of operations smoothly as soon as the economy started reopening, he added.
On the outlook, Singhania said, "In the coming times, we expect economic revival and growth. Rising commodity prices and the potential turbulence of the pandemic though remain a cause of concern." The company said that last year, the raw material availability scenario moved from a large excess to limited availability as demand picked up post reopening of economies across the globe, especially after the hope for vaccine availability has risen up.
"Sudden increase in demand led to shortages of key raw materials across the globe. Some of the raw material production facilities closure also led to this situation. Limited raw material availability along with increasing freight cost has led to the increase in input costs," it noted.
However, JK Tyre said it is optimistic about prospects "on account of increased consumer confidence, preference for personal mobility modes as well as a national and international economic recovery projected for FY 2021-22 after the pandemic has been subdued".
The company further said it intends to capitalise on the unfolding reality through the launch of new products, wider distribution footprint, superior dealer wallet share and increased throughput.
