The Board of Directors of J K Industries Limited (JKI), a flagship company of H S Singhania Group, today announced the completion of the restructuring of its Businesses. As a result JKI, upon demerger of its non-tyre businesses and merger of Vikrant Tyres has emerged as a Tyre giant with Automobile Tyres as its sole business.

Non tyre business viz. Sugar and Agri seeds have been demerged into two separate entities namely J K Sugar Limited (JKSL) and J K Agri-genetics Limited (JKAGL) respectively.

Commenting on the restructuring initiatives, Mr Hari Shankar Singhania, Chairman, JKI said "This is a forward looking strategic step for the Company by creating strong business focussed entities, which will be able to leverage their core competencies in the competitive business environment both in the domestic as well as global markets. This reorganisation and creation of three business focussed entities opens up tremendous possibilities of strategic alliances and enhancement of technological prowess which would result in further strengthening market leadership in these important sectors of Indian Economy".

JKI's main business is Tyres sold under the well known brand "J K Tyre". Some time back the Company had made foray into Agri businesses by setting up facility for manufacture of Sugar and established research farms and facilities for production of Hybrid and High Yielding Seeds. These businesses will now have better focus on a stand alone basis.

JKI had acquired majority stake in Vikrant Tyres Ltd. (VTL) in 1997 and turned it around in a short period of one year. Merger of VTL with JKI is a logical step forward to achieve the benefits of scale, synergy, logistics and marketing, besides greater financial strength. The consolidated tyre entity will increase its global competitive strength thereby significantly contributing to better profitability and future growth, thus maximising shareholder value.

J.K. Tyre is the foremost manufacturer of four wheeler tyres and is the largest bus and truck tyre manufacturer. Mr Singhania added that JK Tyre pioneered radial technology in India way back in 1977 and is the leader in radials. It is the only Indian manufacturer producing the entire range of truck/bus, LCV, MUV, Jeep, Car and Tractor radials. It has taken upon the challenge of leading the radial revolution in commercial vehicle segments as well. JK Tyre is first and the only manufacturer of truck radials in India. It has a state-of-the-art Truck Radial plant in Mysore which is poised for further expansion of the capacity.

JK Tyre's expansion of bias truck tyres and passenger radials is nearing completion, which will raise its radial passenger capacity by 50%. This shall further strengthen its market share. JKI's turnover in a years time would be Rs.2,500 crores, which is expected to increase to Rs.5,000 crores by the year 2006.

JK Tyre is the largest exporter of tyres from India accounting for 30% of total tyre exports. It exports to over 60 countries in all the 6 continents including USA, Latin America, Africas, Middle East, South East Asia, Australia, etc. It has launched its products in China and is also out-sourcing tyres from China for international markets.

JK Sugar's current capacity of 4,300 TCD is poised for expansion to 5,000 TCD. Its co-generation capacity of 19 MW and export of power to UP Power Corporation adds great value to the business.

JK Agri-Genetics Ltd. is a leading producer of Hi-yielding Hybrid seeds under its brand name "JK Seeds". It produces seeds for a large variety of crops such as Bajra, Jowar, Cotton, Maize, Rice, Sun Flower, Tomato, etc. It is the largest in Bajra and leader in Jowar and Cotton. JK Seeds are sown by 8 lakh farmers in 15 states covering an area of 2 million acres under cultivation. It has a state-of-the-art Biotechnology Lab in Hyderabad and research farms to carry out its research activities.

Both these Agri businesses of Sugar and Hybrid Seeds have tremendous scope for growth, looking at India's fundamental strength in Agriculture.

The shareholders of JKI will reap benefits by creation of these 3 focussed entities. They will be receiving the share of J K Sugar and J K Agri-genetics as well in the same proportion as their existing holding in JKI.

The shareholders of VTL shall also be rewarded. For every holder of 100 shares of VTL, the shareholder will be receiving 45 shares of JKI i.e. in the proportion of 9 shares of JKI for every 20 shares held in VTL. This is a win win situation for the shareholders in every respect.