JKTyreSustainability2016 17 PDF

towards
green
mobility
SUSTAINABILITY
REPORT 2016-17
Contents
06
Chairman’s
11
About
message JK Tyre
20
Strategic
24
Customers
30
Technology
Business Plan & R&D
21
Mission, Values
36
Governance
38Our
& Ethics people
47
Stakeholder
49
Materiality
50
Economic Value
Engagement Matters Generation
53 Our
65Health
67
Our
Environment & Safety Community
72
Assurance
73
Industry
74GRI
Statement Memberships & Index
Associations
About the report
JK Tyre & Industries Limited hereby presents its
Sustainability Report for FY 2016-17 and thereby taking
its first step towards realising its goal of Green Mobility.
Sustainable Growth and Development has been a part
of JK Tyre’s inclusive growth agenda and this report is
a reflection of its commitment towards accountability
and transparency to its stakeholders. This report is also
in accordance with the GRI Standards - Core Option. It
presents information about the four tyre manufacturing
plants across the country – Mysore in Karnataka,
Banmore in Madhya Pradesh, Kankroli in Rajasthan and
Chennai in Tamil Nadu, unless otherwise mentioned
specifically (the reporting boundary). The report
covers Financial and ESG information for the period 1st
April 2016 to 31st March 2017 and contains data and
information for the identified Material Topics for these
said locations only.
The Sustainability Report (FY 2016-17) report has been
externally assured by BSI (British Standards Institution)
an independent third party that has no financial
interest in the operations of JK Tyre other than for the
assessment and assurance of this report. The selection
of the external assurance provider has been carried out
in line with JK Tyre’s established procurement practices
for services that are based on combination technical
and commercial criteria. The assurance statement
thus issued has been included in the report. JK Tyre is
committed to producing its Sustainability Report atleast
on a biannual basis.
There are entities which are part of the consolidated
financial statements of the JK Tyre but not covered in
this report. For details please refer to our annual report.
For any suggestions and feedback:
sustainabilityinfo@jkmail.com
JK Tyre
accomplishments
Knowledge
First Indian tyre company to
commission an independent
research and development
centre – HASETRI (Hari Shankar
Singhania Elastomer & Tyre
Research Institute), a one-of-
its-kind state-of-the-art R&D
centre recognised under SIRO
by DSIR, Government of India.
Pioneering
Soles to souls initiative First Indian Tyre Company
Every day the number of vehicles to manufacture and market
hitting India’s roads is rising “Radial Tyre” in India
exponentially, which means more tyres First Indian Tyre Company
and more importantly more scrap tyres to launch an eco- friendly
and a fact that is sordidly neglected. ‘green’ tyre.
80% of these castaway tyres leave
incurable scars on the environment.
In the wake of global warming and
depleting ozone layer the matter
calls for immediate attention with the
obvious answer being recycling.
But at JK Tyre we wish to go a step

ahead. We want recycling to appeal
to every citizen of the country. The Technology
idea is to convert what is unwanted First tyre company in India
to become the most desired. Scrap to install the ‘On level Tyre Test
tyres till now abandoned could Machine - generating real-
become the objects of design. So we time data in tyre testing
teamed up with the Footwear Design First tyre company in India to
& Development Institute of India. Fifty install anechoic chamber for
promising students were selected to noise measurement
participate in the SOLES with SOULS
work shop. Months of hard work later
recycling got a new persona and new
spokespersons. The future designers
of the country would pledge to use
recycled products for their designs.
And this has become a REALITY.
02 I JK Tyre & Industries Ltd.

Product
First company in India with
OE fitment of tubeless
passenger radials. First
in India to launch high
performance H, V and
Z-rated passenger radial
tyres.
Key Institutional JK Tyre’s soles with soul

Partners initiative helped recycle
JK Tyre is a preferred supplier old tyres by partnering
to leading automotive Original with Footwear Design &
Equipment Manufacturers like Development Institute
Maruti Suzuki, Tata Motors, Honda,
(FDDI) to create footwear &
Hyundai, Ashok Leyland, Mahindra
& Mahindra, Volvo Eicher, General accessories from scrap and
Motors, Volkswagen, Fiat, Nissan, old tyres with unconventional
Bharat Benz TAFE, Case New Holland, and environment friendly
John Deere, BEML and Caterpillar methods.
India, among others.
Contribution to
environment
Successfully achieved
“REACH” Compliance &
“SMARTWAY” certification for
export to USA & Europe.
Sustainability Report 2016-17 I 03

Highlights
Renewable Energy Source

Contributed around
21%
of Total Power Consumed
in FY 2016-17
2.83
Ltr/Kg is now the world
benchmark in Tyre
Companies.

16%
Savings in Energy
Consumption per Tonne of
Finished Good over Base
Year (2013-14)
Energy Savings of
311453
GJ over Base Year (2013-14)
27%
reduction in GHG Emission
(Scope-1&2) in reporting
year as compared to Base
Year (2013-14)

From the desk of the CMD
I have great pleasure

in presenting to you
Sustainability Report
for FY 2016-17. At JK
Tyre, sustainability has
been at the core of our
thinking, innovation,
operations, and
business practices
for many decades. In
continuation to our
efforts in adherence
to the principle of
transparency we have
now prepared this
report complying
to Global Reporting
Initiative (GRI
Standards).
Dr. Raghupati Singhania presenting the Indian Car of the Year award 2017 to the senior management of Maruti Suzuki India Ltd.
We have followed the principles of through better crop & milk production.
encompassing growth and development The unemployed youths have been
of all stakeholders. This philosophy trained in area specific & need based
and commitment to contribute to trades like Tailoring, Beauty & Wellness,
the Triple Bottom Line in terms of Mobile Repairing, Motor winding, etc.
building economic, environmental and and so they have secured meaningful
social capital governs JK Tyre’s spirit of jobs and become entrepreneurs.
innovation and sustainable growth.
The water conservation activities such
In JK Tyre, CSR initiatives extended as field bunding, trenching, farm pond
well beyond compliance and created deepening/ de-silting, etc. have been
benchmark practices for other- implemented to harvest rain water and
companies to follow. We believe strongly enhance water availability for agriculture
that developing right partnerships is key and other purposes for neighbouring
to success of development projects. We communities.
partnered with Government institutions,
We addressed the reproductive
Corporates & NGOs for scaling up CSR
and child healthcare issues in remote
Projects, their effective implementation,
tribal areas of Rajasthan. The initiative
We partnered with and creating sustainable impact.
has significantly moderated maternal
Government’s We collaborated with Government’s and infant mortality rate in the project
ambitious Swachh ambitious Swachh Bharat Mission areas and has benefited large number
Bharat Mission and helped in construction of over of pregnant women and newly born
and helped in 1100 toilets in rural areas in FY17 and children.
construction of encouraged their proper usage as well.
JK Tyre is also actively engaged in
over 1100 toilets in In rural areas, we implemented prevention of HIV/AIDS with the help of
rural areas in FY17 livelihood enhancement initiatives Government, Corporates and local NGOs
and encouraged such as agriculture improvement and and has reached to more than 2.5 Lakhs
their proper usage livestock development programs to people predominantly from trucker/
as well. assist farmers in enhancing their income transporter fraternity till now.

Dr. Raghupati Singhania presenting the Indian Motorcycle of the Year award 2017 to the senior management TVS motors
JK Tyre is committed towards goal of Monitoring carbon footprint is part

being Green and Clean Company with of our commitment to the society for
sustainable use of energy. Our initiatives better & safer environment of our future
towards conserving water and energy generation.
are one of the best as per industry
Unequivocally, water is one of the
standards. We are very pleased to record
most important natural resource
that JK Tyre in FY-2016-17 achieved a
needed equally by industry and
total energy benchmark level of 10.33
communities. We, at JK Tyre, have taken
GJ/Tonne of production and ranks
conscious decision to reduce our water
among top five best companies in the
consumption. Our Kankroli Plant has a
sector worldwide.
specific Water Consumption of 1.7 Litre/
We have also made considerable Kg, one of the lowest among all Tyre
efforts to reduce our dependence over Plants across the world.
conventional thermal energy sources.
JK Tyre is committed to sustainable Our initiatives towards
As part of our commitment to utilise
Growth while meeting its Economic, conserving water and
Natural resources, we have invested in
Environmental and Social obligations to energy are one of the
Solar & Wind Energy. We have set up
ensure betterment of all its stakeholders best as per industry
Solar Rooftop Plant in Chennai and in
including Customers, Employees, standards. We are very
Vikrant. We are also purchasing Wind
Investors, Government and Society at pleased to record that
Power for our plants. In FY17, we met
large. We endeavour to make earth more JK Tyre in FY-2016-17
21% of our power requirement through
liveable and our quest continues to
Renewable energy. achieved a total energy
strengthen our sustainability practices
benchmark level of
JK Tyre is the 1st Indian Tyre Company and remain accountable to all our
10.33 GJ/Tonne of
to get CFV certificate as per IS standard stakeholders.
production and ranks
and continues to focus on reducing GHG
among top five best
emission resulting in over 27% reduction Dr. Raghupati Singhania companies in the sector
in emission over base year (2013-14). Chairman and Managing Director
worldwide.

About JK organisation
The major business of JK organisation include Tyre, Paper, Cement, Agri-Genetics,

Dairy & Food Products, Cosmetics, Woollen Textiles, Engineering Files, Hybrid Seeds,
Industrial Rubber Products, Material Handling System etc. with total group turnover
of $ US 4 Billion Dollars.
‘Commitment is the best means of growth’
Since 1889
Lala Lakshmipat Singhania

1910-1976
Key Architect of JK Organisation & Founder of the Company
“We as businessmen are anxious to contribute to the best of our

capacity and knowledge for the evolution of a progressive society”

JK Tyre & Industries Ltd
JK Tyre is a flagship company under the for earth moving and construction
umbrella of JK Organisation. JK Tyre is one equipment, racing cars and defence.
of the India’s leading tyre company present
The Company has a wide geographic
in all tyre segments. The Company enjoys
footprint across the country through its
the highest market share in truck / bus
141 selling points, which provides sales
radials in India; it is amongst the largest
and service to customers and channel
players in India’s truck bias and passenger
partners. The Company also markets
car segments as well.
products through 30 JK Tyre Truck Wheels
Dr. Raghupati Singhania is Chairman & (fully equipped tyre service centre), 230+
Managing Director and is ably supported JK Tyre Steel Wheels (exclusive passenger
by Board of directors of JK Tyre. car tyre retail) and 11+ JK Tyre Xpress
The Company’s manufacturing operations Wheels for small towns & semi urban
comprise 9 modern plants strategically markets.
located across the country – Mysore, The Company’s tyres are marketed under
Banmore, Kankroli, Chennai and Laksar the brands of JK Tyre, Vikrant, Challenger
(Haridwar) and 3 modern plants in and Tornel. JK Tyre is Technically self-Reliant
Mexico. & Exports to 105 countries across globe.
JK Tyre pioneered radial technology in JK Tyre is a preferred supplier to leading The Company’s tyres
India way back in 1977 (first to make radials automotive Original Equipment are marketed under
for the entire range of Truck/Bus, LCV, Pass Manufacturers like Maruti Suzuki, Tata the brands of JK Tyre,
Car, MUV and Tractors) introducing the Motors, Honda, Hyundai, Ashok Leyland, Vikrant, Challenger
radialisation trend in India.. The Company Mahindra & Mahindra, Volvo Eicher,
possesses a comprehensive product
and Tornel. JK Tyre is
General Motors, Volkswagen, Fiat, Nissan, Technically self-Reliant
portfolio from the smallest tyres for two- Bharat Benz, TAFE, New Holland, John
wheeler to the largest tyres for earth- & Exports to 105
Deere, BEML and Caterpillar India, among
movers. The product range comprises countries across globe.
others.
tyres for truck/bus bias & radial, passenger
cars, SUVs, light commercial vehicles and JK Tyre & Industries Limited is a public
small commercial vehicles (both bias & limited company and its Equity Shares are
radials), farm (including radials), industrial listed at BSE Ltd. and the National Stock
and speciality vehicle, off-the-road tyres Exchange of India Ltd.

JK Tyre - The growth journey
1977
First Tyre plant
1999
in Kankroli,
Rajasthan
Started All Steel

Truck radial
manufacturing
in Mysuru
1991
Set up second
1997
Acquired Vikrant
tyre plant at
Tyres Ltd.
Banmore, MP
in Mysuru
JK Tyre has maintained a strong

track record of organic and
inorganic growth over time

2013 &
2008 2014
Major brownfield
Acquired Tornel
expansion in
plant in Mexico
Chennai; completed
in 2015-16
2010
New OTR Plant
in Mysuru
2012
New plant
in Chennai
2016
Acquired
Cavendish
Industries Ltd. (CIL)

JK Tyre - Global footprint
USA
Mexico (3)
Dubai
Colombia

Own plants (12)
Outsourcing (1)
Marketing hub (8)
Presence in 105 countries

across globe
2016-17 USD mn H Cr
Moscow From India 97 631
Global 145 935
The Company’s tyres are marketed under the

brands of JK Tyre, Vikrant, Challenger and Tornel.
China
India (9)
Thailand
Indonesia

Awards and appreciation
Lakshmipat Singhania - IIM, Lucknow National Leadership Award
Dr. Raghupati Singhania, During the year 2016-17, the Company received several coveted
Chairman & Managing Director awards for excellence in various following areas
was conferred, amongst others
FICCI Corporate
Industry CII National HR Social Responsibility
Leadership Award Excellence Award, 2016 Award 2015-16
by Indo-American for significant achievement appreciation plaque in
Chamber of Commerce. in HR excellence. recognition of commendable
work done as a socially
responsible company.
Listed in the list of – Chennai Tyre Plant was Chennai Tyre Plant
100 Top CEOs conferred Platinum received “Excellent
of the Country by Business Category Award, 2016 Energy Efficient Unit”
Today Magazine. by Indian Green Building Award from CII during
Council (IGBC). their 15th Energy Efficient
Summit, 2016.

Brand Recognition
JK Tyre has been selected It has also once again

‘Superbrand 2016-17’ been recognised as
by Super Brand Council of India. JK Tyre Most Trusted Brand 2017
continues to be the First and Only Tyre by Reader’s Digest
Superbrand in India having been selected
six times consecutively since 2004.
JK Tornel Awarded with
“Superbrand”, One amongst “Outstanding Quality

2015 500 Most Important Performance”
Companies certification in 2014 & 2015
in Mexico for year 2015, as one of the top Original
2016 and 2017 by Equipment Suppliers by Fiat
Expansion Magazine Chrysler Automobiles.

Management
commitment
JK Tyre has always been conscious of its commitment

towards services to customers, environment, communities,
other stakeholders at large and best in class technology
coupled with state of the art manufacturing. There have
been always sincere efforts towards maximising shareholders
value through providing best quality products & services
thereafter.

Left to right
DR. RAGHUPATI SINGHANIA

Chairman & Managing Director
BHARAT HARI SINGHANIA

Managing Director
KALPATARU TRIPATHY
Director
ARVIND SINGH MEWAR

Director
VIMAL BHANDARI
Director
BAKUL JAIN
Director
SUNANDA SINGHANIA
Director
SHREEKANT SOMANY
Director
ANSHUMAN SINGHANIA
Whole-time Director
DR. WOLFGANG HOLZBACH

Director
ARUN K. BAJORIA
Director & President – International
Operations
Manufacturing Excellence - Institutionalise Quality Culture

India
System Certification
Mysuru Kankroli Banmore Chennai
ISO 9001:2008 / TS 16949: 2009 QMS (Quality Mgt)
ISO 14001: 2004 EMS (Env Mgt)
OHSAS 18001:2007 (Occupational Health & Safety)
ISO 50001:2011 EnMS (Energy Management System)
SA 8000 : 2008 Social Accountability
Information Security Management System
ISO 27001:2013
NABL Accreditation ISO/IEC 17025:2005
TPM Certification (Excellence) JIPM, Japan (2010) -
CII Sohrabji Godrej Green Business Centre – GreenCo
Rating (first tyre company in India)
TPM Certification (Consistency) JIPM, Japan (2015) - - -
TPM implementation at our Plants not only helped in improving business results but also brought drastic change in organisation
culture. There is greater participation of employees as they are encouraged to suggest innovative ways of project implementation.

Strategic business plan
The Company prepares Strategic for a longer period to establish the and competitor’s moves and actions
Business Plan defining Key Strategic correlation between the influencing and any significant change in them is
Objectives for next 5 years. The Strategic factors and the key results. The areas of captured and incorporated in Strategic
Business Plan (SBP) is formulated strong correlation are separately focused Business Plan (SBP) every six months. The
through a systematic process of and examined in details to establish Company then zeroes down on major
analysing the external environment the extent of connectivity between deliverables required to meet these
(historical trends, the current position their behaviour and the performance objectives. The deliverables are further
and the likely future scenario), outcomes. broken down into Company Level
competitive scenario, customer Projects (CLPs) and Functional Level
These parameters and trends are
preferences, Technology Requirement Projects (FLPs) in order to ensure smooth
continuously monitored in the backdrop
and Human Capital. The historical trends implementation.
of the current environmental scenario
are tracked for the immediate past and
Strategic Plan is essential for the Company for following reasons.
It helps the Assists the Company Helps the Company Allows timely
Company align in zeroing down on respond to changes allocation of
all functions on major issues across in Market or Resource and
Major Goals and functions, which customer needs Capital for Strategic
Objectives. hinder Company’s swiftly. Projects.
Performance

Mission,
Values &
Ethics
Our vision
To be amongst
the most admired
companies in India
Committed to
Excellence
Core values
Commitment to excellence
and customer satisfaction
Maximising long term
shareholders value
Socially valued enterprise and
Caring for people and
environment Our mission
Be a customer-obsessed company –
where the customer comes first 24x7
Be India’s number one tyre brand
Be the most profitable tyre company in
India
Sustain a motivated and committed
team for performance excellence
Be widely respected for ‘green’ practices
Deliver enhanced value to all
stakeholders
Widen global presence through
acquisition/joint ventures/strategic
partnerships

Risk management at JK Tyre
Risk is an integral and unavoidable Risk management is a key activity for all is applied to effectively anticipate and
component of business. In today’s companies. It is a continuous, forward- mitigate the risks that have critical
challenging and competitive looking process that is an important part impact on the business.
environment, mitigating risks is of business and technical management
We, at JK Tyre have adopted a
imperative. Common risks include: processes. Risk management should
comprehensive Risk Management
regulations, competition, business risk, address issues that could endanger
framework based on guidelines of
technology obsolescence, investments, achievement of critical objectives. A
ISO 31000:2009 and tailored it to our
and retention of talent. continuous risk management approach
organisation needs.
MONITOR AND REVIEW
Establishing Risk Risk Risk Risk

the context Identification Analysis Evaluation Treatment
RISK ASSESSMENT
COMMUNICATION AND CONSULTATION
Based on ISO 31000:2009

For managing risks more efficiently, the Company has identified key risks that can have a critical impact on the Company’s
performance. In nutshell, the Company has identified the following risks:
Economic risks
A weakened global economic relatively stable and makes every effort The threat of Chinese import is defused
environment or an increase in to enhance sales there. It also expands its to an extent by developing products
geopolitical tensions could impact product range in various segments and to compete with Chinese tyres as well
the Company’s export revenues. deploys new/additional sales and service as pursuing governmental agencies to
To counteract these pressures, the teams. impose anti-dumping and safeguard
Company identifies markets which are duties.
Raw material shortage risks

The Company ensures raw material from continuously exploring new periods apart from substituting materials
availability by entering into long-term and alternative sources. It also keeps which are in short supply.
tie-ups with major suppliers apart additional stocks for usage during lean
Operational risks
Operational risks like equipment preventive maintenance exercises. The companies to guarantee uninterrupted
obsolescence, power and water Company has also made significant supply. To meet its water needs, the
shortages can impact production. investment in equipment modernisation. Company identifies alternative sources.
To mitigate these risks, the Company In addition to rainwater harvesting,
In order to overcome any power
continuously monitors equipment several measures are undertaken to
shortages, the Company has installed
obsolescence and upgrades equipment further reduce water consumption levels.
power backups and made arrangements
from time to time and undertakes
with various power generation
Market risks
The Company makes continuous efforts emphasis on demand creation, customer connectivity with its dealer network.
towards expanding its network, forge retention/growth and brand-building. It has also launched an e-commerce
tie-ups and launch new products. The Company actively tracks demand platform to push sales.
Furthermore, the Company lays a keen on a real-time basis through automated
Technology risks
The Company introduces new timely capacity expansions. Furthermore, met by integrating management control
technology and continuously develops it continuously upgrades its facilities, into the daily operations, by ensuring
the competitiveness of its existing hones skills of its employees and bolsters compliance with legal requirements
offering based on future customer needs its infrastructure. There is also extensive and by safeguarding the integrity of
and market requirements. Technology usage of available knowledge through the Company’s financial reporting and
risk is mitigated by leveraging international experts/networks. Risk its related disclosures. It makes the
innovation to enhance speed-to-market, management forms an integral part of management responsible for identifying
continuously evaluating energy usage the business planning and review cycle critical business risks and implementing
and shopfloor productivity parameters, at your Company. The Company’s risk fit-for-purpose risk responses.
benchmarking products with those and control policy is designed to provide
of the best in the world and initiating reasonable assurance that objectives are

Customers
Customer Interaction Program
At JK Tyre, the first mission emanating

from the Company’s vision and group core
values is: To be a Customer Obsessed
Company – Customer first 24x7
The Triangle of Customer First
Our Philosophy
JK Tyre lives by its philosophy of customer
first 24x7. It has always been ahead of the
curve by anticipating customer needs and
exceeding their expectations. Its products Customer
& services enjoy the trust of customers Value
whether be it OEMs, institutional buyers,
defence, channel partners or end users.
The primary focus is to make available
world class products manufactured in
the state of the art facilities as per well-
established international processes and
quality standards. For every category of
customer, JK Tyre has made available
unique customised propositions. JK Tyre
Customer Customer
Engagement Service
has the last mile philosophy by being
accessible to customers wherever and
whenever they want.

JK Tyre conducting Defence User Training
Customer Value
JK Tyre has made available wide product and value conscious customers. JK Tyre Cradle-to-grave solutions – A
portfolio for various market segments also entered the 2/3 wheeler segment differentiated value Proposition
and categories. The journey started with for the first time and innovated the The pioneers of radials continued to
pioneering radials in 1977 as a future segment by introducing the products address customer needs by offering a
customer requirement much ahead of its with unique hybrid technology. comprehensive array of services with
times. JK Tyre was then first to introduce a complete package from new tyres
Similarly, for the tractor rear segment,
radials for the entire range, whether be to retreads to its customers. Thus,
agri gold tubeless radial range was
it truck, bus, light truck, jeep, car and JK Tyre has created a differentiated
established which met customer
farm. It then went on to introduce high value proposition for its customers by
needs of durability, comfort, puncture
performance tyres, high performance car integration of retreading solutions, truck
resistance and haulage and agricultural
radials, tubeless radials and eco-friendly wheels as well as fleet management.
applications. The high performance
tyres way back in 2001. JK Tyre then
tubeless radial range was enhanced by The Retreading process enables us
brought value to the commercial tyre
the UX Royale in passenger and Ranger to follow the principles of Reuse and
segment in 1997 by driving the second
in XUV applications. The tubeless range Recycle; wherein the durability of tyres
radial revolution in the country.
was enhanced in light commercial is enhanced by 50% by retreading
Radial Tyres have helped sustaining vehicle and small commercial vehicle the casing of tyres especially in the
the environment as vehicle fuel category also. In the industrial tyre commercial segment. We manufacture
consumption is reduced on account segment, the product portfolio was and market pre-cured tread rubber
of lower rolling resistance. The increase widened with products for cranes and which enables a customer to avail of
in use of silica also reduces usage of forklifts for port applications. multiple retreads.
carbon.
There is a strong emphasis on tubeless
To meet customer needs JK Tyre radials as they further enhance vehicle
launched an industry first multi- fuel efficiency, comfort and safety as well
product, multi-brand, multi-tier product eliminate the need for manufacturing
strategy in Truck Bus (radial & bias) and tubes.
2/3 wheeler. The multi-tier product
addressed the need of both premium

In post-sales service,
regular workshops are
held for Institutional
buyers like State
Transport Undertakings
and Defence on
preventive tyre care
and maintenance
practices. Keeping in
line with the last mile
connect campaigns are
conducted on highways
for customer education.
Visit of Dr. Raghupati Singhania at JK Retread Centre Delhi
Customer Service
JK Tyre enjoys excellent relations with its are OE franchise works managers, tyre Tyre mounting and demounting
customers and believes in giving best in fitters and fleet managers. Accordingly,
Special training program is conducted
class services to the last mile. Keeping such programs are conducted for
for tyre fitters who are located in
this in mind dedicated campaigns are all stake holders. Another important
transport cluster areas. The above
conducted at OEM dealerships across influencer in the rural market are tractor
education enables conservation and
categories. Guidance on tyre care mechanics who provide immense
optimal utilisation of scarce resources.
practices is given and these enhances guidance to tractor tyre users. JK Tyre has
Post sales service can be availed at
confidence of customers and end users put in place a “Tractor Ustaad Program”.
141 offices pan India by our dedicated
and enable them to derive superior
In post-sales service, regular workshops service team. We have a customer
value.
are held for Institutional buyers like State helpline branded as “Hello JK Tyre”
With the tyre being only point of contact Transport Undertakings and Defence on running on all seven days. It is a toll
with the road on vehicle it is imperative preventive tyre care and maintenance free number for product complaint
to create awareness on tyre care and practices. Keeping in line with the last registration, warranty registration and
maintenance practices. At JK Tyre equal mile connect campaigns are conducted general customer enquiries.
emphasis is placed on pre and after sales on highways for customer education.
To enhance the skills of the team
service to enable customer to avail the
Some elementary and basic principles handling, customers dedicated
benefits of enhanced tyre life, reduced
which are shared with all end users are: commercial vehicle training is provided
fuel consumption, vehicle safety and
Maintaining recommended air to the service and fleet management
ride comfort. Pre sales service comprises
pressures team in partnership with a leading
of proactive structured communication
Wheel servicing (alignment and commercial vehicle manufacturer.
to all categories of customers and end
users. The role of influencer who are balancing) Structured programs known as “Back To
referral points for the customer at large Tyre rotation School” are conducted at educational
is extremely important. Such influencers Timely removal of tyres institutions with emphasis on tyre safety.

This is a part of our
partnership with
leading automotive
manufacturers from
the drawing board
to the last mile.
These outlets are
an extended arm of
the Company and
personnel of Steel
Wheels have been
provided customised
training on handling
warranty claims.
JK Tyre Steel Wheel outlet
Customer Engagement
JK Tyre has created comprehensive award winning ‘Soles with Souls’ an tyre changing. These services are now
and easily accessible sales and service environment friendly initiative where increasingly sought after as they save
platforms across all geographies and in partnership with FDDI reused tyres cost for truck owners.
has always been ahead of its time. and tubes converted into footwear and
Steel Wheels & Xpress Wheels
From a historic perspective, JK Tyre has fashion accessories and show cased in
Spread across the length and breadth of
launched many initiatives: an especially created event.
the country, Steel Wheels as a concept
Establishment of Tyre Care Centres Taking it forward, JK Tyre has sustained was developed way back in 1977 to
for truck radial tyres providing repair its customer first initiatives. To service facilitate customers switching over to
facilities along the Golden Quadrilateral the market, JK Tyre has established radials. These are branded franchises
across the country to facilitate truckers a wide distribution network and for passenger tyres in metro and urban
when knowledge and infrastructure extended the reach through over 4000 markets and provide cutting edge
end user level was minimal or non- dealers pan India. Various retail sale and wheel care services. Gradually the
existent at the onset of the 2nd radial service platforms have been created network is being expanded to reach
revolution unleashed by JK Tyre which enables customers to avail JK semi urban markets. This is a part of our
Tyre’s wide range of products and partnership with leading automotive
Establishment of Air Care Stations
services. manufacturers from the drawing
at petrol pumps in partnership with
board to the last mile. These outlets
Indian Oil to facilitate correct air care Truck Wheels
are an extended arm of the Company
for customers especially car and two JK Tyre has established leadership
and personnel of Steel Wheels have
wheelers customers in developing JK Tyre Truck Wheels
been provided customised training
throughout the country. These
Dial – a-Tyre and Fix- a- Tyre service on handling warranty claims. This has
provide complete tyre solutions. They
In a matter of thought leadership and enabled superior customer experience.
are equipped with modern wheel
recognising the future problem of reuse servicing equipment which provide In another industry first, our unique
of tyres and tubes, JK Tyre unveiled the alignment, balancing and automated Fleet Management program covering

Recognising the
important role
of the channel
and giving them
partner status
various programs
are ongoing like
the Ace Club, Radial
Badshah for fleets
and Radial Stars.
Truck wheels
over 1200 fleets continues to provide The Customer Interaction program of the information. Apart from above
guidance on comprehensive tyre is an interactive platform with truck biennial vendors conference is organised
care practices to give greater value to customers. At JK Tyre customer where the top management interacts
customers. The program offers 360⁰ feedback is highly valued and with suppliers on the needs of business
tyre care solutions to the fleets, which customised interactive platform known and future trends and expectations.
includes right tyre selection, technical as “Customer Interaction Program” has Formal information on supplier is also
consultancy, data management, been created. At this platform end users gathered through techno-commercial
training support and much more. It especially truck customers are guided database, attending industrial fairs and
is one of a kind service bouquet that on correct product application and seminars and visits to collaborator.
helps customers and ensures the tyre basics. Feedback on usage and
JK Tyre carries out centralised purchase
optimum cost per kilometre (CPKM). customer experiences is also captured
at our Head Office for all our tyre
There are dedicated personnel are here.
manufacturing units including Tornel,
stationed at major fleet and periodically Recognising the important role of the Mexico. Orders are placed on quarterly/
conduct programs like Heal the Wheel, channel and giving them partner status half yearly/yearly basis as required.
Driver Training Program etc. The team various programs are ongoing like the Delivery schedule are given separately
closely interacts with the personnel at Ace Club, Radial Badshah for fleets and from each plant depending on the
all levels in the fleet. Services can be Radial Stars. This Valuable customer monthly requirement.
availed throughout the country. The feedback is captured through these
Fleet Management program continues For supply of automotive tubes and
platforms.
to enables operation efficiency to their flaps JK Tyre has developed exclusive &
dedicated outsourced manufacturing
business. Partners/ Suppliers
units We provide assistance to them on
Information on the suppliers is gathered
JK Tyre has extended its sales and their system development as well as
through structured meetings held half
service network by partnering oil technology inputs to achieve best - in -
yearly with major raw material suppliers
marketing companies. class quality
who form 85 to 90% of our total
The Directorate General of Quality purchase value. In these joint meetings, While suppliers are spread across Asia,
Assurance (DGQA) vehicles is an prices, quality improvements, technical Europe & America, most of the raw
important wing of the defence purchase capabilities, areas of improvements as materials are sourced directly from the
organisation. Special training program well as external benchmarking form the manufacturers. These constitute 60% of
has been conducted for their personal agenda. Also unstructured interactions the materials from domestic suppliers
tyre manufacturing and tyre care. with other suppliers help in collection while the rest are imported.

Supply chain management
In today’s ultra-competitive age, an regional warehouses, just in time delivery management and fulfilment process
integrated and agile supply chain plays a and beat cycle for last mile deliveries. being two of the many examples.
crucial role in enhancing the Company’s Team collaboration and cross functional Integrated mould management system
viability and performance. JK Tyre has approach lead to smooth operations. was introduced across nine plants,
transformed its supply chain over the enhancing mould utilisation. The
JK Tyre strengthened its Supply Chain to
last year with numerous improvements Company could reduce export port
address the growing needs of internal
to align with its mission of being a stock significantly. The Company used
or external customers. To improve the
customer obsessed company. the best warehouse practices and know-
customer experience, the Company
how, successfully converted some of its
The IT-enabled supply chain improved introduced a third party to interact with
warehouses into model warehouses.
visibility across the chain, reduced dealers on its behalf.
redundancy and increased efficiency. An integrated and more efficient
The Company IT enabled the entire
supply chain helped in increasing
JK Tyre designed logistics, distribution supply chain and the result was
product availability for all segments
channels and transportation keeping in increased visibility and better planning,
and surpassing the global supply chain
mind the optimum use of energy and extensive use of SAP in OE just-in-
standards, while there was substantial
natural resources, managed through time warehouses and export order
cost saving during the year.
Motor sports
JK Tyre continued to make its presence Company’s tyres were deployed in all felt in various other formats across
felt in the Indian markets by aggressively kinds of terrain, ranging from tarmac to India: Drag Racing in Bengaluru, off-
and smartly promoting motor sports dirt road and from forests to mountains. roading events in Arunachal Pradesh
like Tata T1 Prima Truck Racing and Chandigarh, the Parliamentarians
While well-established JK Tyre FMSCI
Championship (with Tata Motors), rally in Delhi and the women’s rally in
National Racing Championship was held
helping showcase Jet Racing (first truck Mumbai, among others. The Company
for the 19th year in succession, JK Tyre
racing tyre in India) and tyre capacity is particularly proud of the JK Himalayan
FMSCI National Karting Championship
to sustain 160 km/hr speed with Drive 5 this year which saw it go into two
completed its13th year. At the same
demanding braking requirements. The other countries: Bhutan and Nepal.
time, JK Motorsport made its presence

Technology & R&D
To compete with global giants and and major international raw material material usage, waste and scrap
match their product performance, JK suppliers. reduction including water and energy
Tyre in-house R&D centre is keenly A team of competent, qualified and conservation.
pursuing technology sustenance trained scientists, engineers and
through self-reliance. The Company
Key new product
technologists are adopting the latest developments
is also engaging global experts in global technologies and best practices 131 new products launched for the
this field to support R&D endeavour. to improve productivity and quality of domestic and international markets (OE
The R&D team is working in the field processes, products and services. and replacement)
of advanced materials, alternate
In addition, our in-house R&D team is Foray into 2/3 wheeler segment
materials, nano technology, process
continuously supporting the Satellite marked by the launch of 28 new
and product simulation, predictive
Product Development Centre in Mexico products for the Indian market.
technology, advanced tyre mechanics,
to service customers in the Americas Received OEM approvals for seven new
vehicle dynamics (including tyre
(OEM and after-markets). tyres.
characterisation) and other relevant
areas in association with Hari Shankar The Company derived benefits as a New innovative products developed
Singhania Elastomer and Tyre Research result of these efforts in the areas of and launched (Challenger brand) to
Institute (HASETRI), RPS Centre of new product development, green counter the onslaught of low-priced
Excellence for Tyre & Vehicle Mechanics technology, product performance Chinese products.
(RPS CoE) at IIT-Madras; Rubber improvement, cost optimisation, New TBR product line Vikrant” launched
Technology Centre, IIT Kharagpur, improved product reliability, optimised in the TBR segment.
PCR and TBR products for export
markets were tested and approved
for ECE – Reg 117, meeting rolling
resistance, wet grip and noise limits
specified by European regulations.
R&D and Technology: All

Solutions under One Roof
The Company also commissioned a
centralised Global R&D centre in Mysore
to strengthen synergies between the
various technology and R&D groups.
Goal-oriented teams collaborated to
drive projects in each technology area.
The Company commissioned task forces
in each area around focused goals. The
technology and R&D teams continue to
engage in extensive customer contact
programs in the domestic and global
markets to understand customer needs
better.
The state of the art facility houses the

following:
Product Development Centre
HASETRI (R&D centre)
Test Centre for all our Benchmarking
studies/analysis
Chemical, Physical and analytical labs
Reinforcement lab
Anechoic chamber etc.

‘Raghupati Singhania Centre of Excellence’, Mysuru, Karnataka

paints. At JK Tyre we have taken a
conscious decision to reduce the solvent
Material consumption through lube and paint
Research Compound to the level of zero. Now JK Tyre is using
Computational
& Process
Mechanics lube and paints which is 100% aqua
Development
(Simulation) based.
Vehicle Analytical Increased use of natural rubber and
Dynamics & & Chemical
Noise Vibration Characterisation their derivatives - this approach has the
Engineering
RESEARCH added advantage in that it indirectly
DOMAIN leads to increased plantation, job
Test Method creations and absorption of greenhouse
Tyre Testing & Development for
Characterisation ‘standards’ gases. Also, increased production in
radial commercial vehicle tyre by JK
Training Sponsored Tyre is a defined approach to increase
& Skill Research &
Development Calibration Technology the consumption of natural rubber,
(Mechanical & Development along with the use of modified natural
Thermal)
rubber in passenger vehicle tyre. This
has resulted in an impetus to increase
natural rubber use in tyre production
through intense research and
development activities.
Drastic reduction on carbon black

HASETRI - the Genesis usage thereby leading to conservation
of precious fossil fuel: Continuous
HASETRI is the very first of its kind in impacts on the environment on the one
R&D efforts at HASETRI have led to the
Asia (Estd. Oct. 1991), named after hand and yet maximise performance
development of compounds for bias
Padma Bhusan Late Shri Hari Shankar on safety, reliability, compliance and
and radial commercial vehicle tyre by
Singhania, President of JK Organisation durability on the other. This has required
replacing carbon black with silica. While
and former President of International not only a change in the thinking, but a
this achievement has not only led to
Chamber of Commerce. This centre is change in the culture of the organisation
a reduction if the carbon footprint, JK
also recognised by DSIR as SIRO, IITs and as well.
Tyre has gained reputation as the first
other leading universities in India for manufacturer of a GREEN TYRE way
At HASETRI, the mantra has always been
Ph.D. programmes and higher studies.
GREEN MOBILITY and towards this intent
The facility is also accredited as per GOAL OF HASETRI
the key focus areas from a sustainability
Accredited as per ISO / IEC 17025:2005.
perspective has always been: To foster To develop
With the ever increasing demand development technical
Reducing usage of petro-based
and evaluation manpower for
for fuel-efficient vehicles, vehicles products and increased use of natural of new the Rubber and
with better aesthetic properties and materials technology Allied Industries
increased focus on passenger safety, Use of more silica rather than carbon
the challenges and pressures faced by black
the automotive industry and the tyre
Use of bio-based additives Research
industry to demonstrate sustainable OBJECTIVES
operations is becoming insurmountable This sustainable approach has already
by the day. In a bid to show and resulted in the following achievements
demonstrate JK Tyre’s contribution and and ongoing projects that have been Consultancy Technology
mite towards this agenda of sustainable recognised and appreciated in the services HASETRI development
operations, the Company has adopted industry.
the GREEN MOBILITY approach in all Use of water based lubes and thereby
Training
its decisions and operations, that is reducing petro-based solvent in the & Skill
singularly aimed at resource& energy plant. It is common in rubber industry development
conservation and minimising the to use solvent based inner lube and

back in 2005, and also be recognised ratio nano fillers are used in the inner improve other performance parameters
as the first tyre industry in India to have liner compound to improve the air such as wet grip, dry grip and handling
launched full silica based tyre for an OE impermeability (by almost 30%) than characteristics. Some performance resins
in the year 2013. the regular inner liner. This higher level are also expected to improve on the cut
of impermeability not only improves the and chip resistance of the bigger tyres.
Research and development of
durability of the tyres but also improves
JK Tyre is continuously working in Tyre compounds for Battery Operated
the fuel efficiency of the tyres. Other
developing compounds for bias and vehicles: Battery operated electric
ongoing nano research is with nano clay,
radial commercial vehicle tyre by vehicles is the norm for a sustainable
carbon nano tube and grapheme.
replacing carbon black with silica. future. Reduction in rolling resistance
This is an approach towards reducing Use of Natural resins to improve from battery operated vehicle tyres
carbon footprint. Also JK Tyre through product performance: Petro based is much higher as compared to the
its focused research had launched first resins are widely used in tyre industry to tyres fitted with IC engines. Research is
Green Tyre way back in 2005. Also JK Tyre improve the tackiness of the compound ongoing on this front.
is the first tyre industry in India, who had which is one of the requirements Resource conservation: Increased
launched full silica tyre for OE in the year during tyre building operation. Our use of recycled materials and materials
2013. specific research work is in the field of sourced for renewable sources is another
Use of nano filler: Development work performance resins that are bio-based. focus area for research in a conscious
on the use of nano fillers is an ongoing These bio-based performance resins will bid to reduce consumption of virgin
activity at the R&D centre. High aspect not only maintain the tackiness, but also materials.
Unique facilities and services offered at HASETRI include the following:
NVH Machine with anechoic chamber

Anechoic Chambers are echo-free Shearography as a non-destructive
enclosures with a sound energy testing tool has found innumerable
absorption level of 99% to 100%, or a applications involving a wide range
reflected sound pressure level of 10% or of materials and in particular has had
less. The frequency at which the energy notable success in identifying de-
absorption drops below 99%, or the bonds and laminations in composite
pressure reflection exceeds 10%, is known material structures. Shearographic
as the low-frequency cut-off. Sound non-destructive testing reveals the
absorption is obtained by lining the walls, presence of flaws or defects as a
ceilings, and floor with wedges or other localised disturbance in the fringe
sound absorbing elements or Super Soft pattern depicting the gradient of surface
panels, depending on performance level displacements on the test piece.
required and cut-off desired.
Product Development Centre (PDC)

The Product Development Centre is Our products are all certified for Domestic
the “Centre of Excellence” of J K Tyre & as well as for Export markets like;
Industries Limited, set up primarily for ISI (for India),
the following activities: Product Design, ECE (for European Union countries),
Project Management, Bench Marking DOT (for Americas),
(Reverse Engineering), Simulation of
GSO (for Middle East countries),
Design and Testing, that encompasses
INMETRO (for Brazil),
tyre categories such as Passenger Car &
Light Truck Radial, Truck Bus Radial, Truck SABS (for South Africa),
Bus Bias, Light Truck Bias, Farm, Off The NOM (for Mexico),
Road and 2/3 wheelers. SNI (for Indonesia) etc.

HASETRI as an institution has not only pioneered and facilitated many
scientists and R&D Engineers complete their Ph.D. programmes, but also
enabled many patenting efforts and research papers be published as well.
Bio-diversity, sustainable use of resources decoupling natural resource use and different universities and institutions (IITs
and climate change are high priority environmental impacts from economic - 4, University of Calcutta - 3, Mohanlal
environmental issues at present. In growth. Sukhadia University, Udaipur – 4).
order to meet the challenges of these Different research projects carried out
As a part of self-development
environmental issues, R&D Centre at HASETRI were presented at different
programme, Scientists & Engineers are
(HASETRI) is focused on three objectives national and international seminars/
encouraged for carrying out research on
viz. work in harmony with nature, value conferences including publishing book
basic and applied sciences addressing
natural resources through resource chapters, research papers and patents.
current environmental issues related
optimisation and reduce greenhouse
to automobile and rubber industry in In line with the focus areas on
gas emissions. Towards this end, R&D
association with different academic Sustainability, Green Mobility & resource
Centre has undertaken research projects
institutions/universities of national conservation and the “4R” strategy,
based on “4R” strategy viz. “Reduce-
repute leading to Ph.D. So far, eleven highlights of the contribution by
Reuse-Recycle-Renewable” including
scientists were awarded Ph.D. from HASETRI could be enumerated as:

A. Relevant topics published B. Papers presented in National/
in books International Seminars/Conferences
Graphane Based Elastomer; functionalisation Green Mobility – Challenges and Opportunities for
Techniques, Morphology and Physical Properties Rubber, Automotive and Related Industry
Nanocomposites Green Mobility and Sustainability- Challenges and
Testing & Quality Assurance in Retreading Industry Opportunities for tyre industry
Reverse Engineering of Rubber Products, Concepts, Competitiveness in Rubber Industry through
Tools and Techniques Sustainable Development
Automotive Application of Rubber Clay Nano Future Perspective of Nano Technology – Clean
composites Energy and Resource Conservation
Recent Advances in Eco Friendly Elastomer Green Technology & Environmental Sustainability
Technology Green Technology for Rubber Industry
Sustainable Development in the Tyre Industry
C. Research publications D. Patents

A new silica-rich material from waste fly ash 1. A Green tyre lubricant composition and a process for
– Generation, characterisation and study of its the manufacture there of.
effectiveness as a filler for rubber compounds 2. An Apparatus for determining the steel cord rubber
Technical analysis of Euphorbia Caducifolia Haines adhesion property during dynamic conditions.
latex of South-East Asian Origin 3. Yeast Treated Corn Powder as a filler in tyre
Unique Multifunctional Behaviour of Ash from the Compound to reduce rolling resistance properties
Latex of Euphorbia Caducifolia Haines in Chlorobutyl 4. A Rubber Composition -Non Carcinogenic
Rubber (CIIR) Compound for a Truck Inner-Tube multifunctional processing aids to replace High PCA
application Aromatic Oil
Effect of fly ash as filler in rubber – A comprehensive 5. Latex Carbon Black Master batch to avoid pollution
study of the vulcanisate properties of styrene- in the rubber compound mixing area
butadiene rubber compounds
6. Regenerated carbon Black from scrapped tyre to
Improved Polymer-Filler interaction with an eco- prevent environmental pollution
friendly processing aid
7. Usage of Semi Reinforcing Natural Filler for rubber
An Overview of Rubber Recycling compound
Use of Tyre recycled Tyre Material in NR/BR Blend
Based Tyre Tread Compound: Part II (with Ground Patent granted for S.No. 1 to 4
Crumb rubber)
Effect of recycled dust stop lubricating oil in rubber
compounds
Effect of corn powder as filler in radial passenger tyre
tread compound
Regeneration of Carbon Black from waste automobile
tyre and its uses in carcass compound

Governance
Company’s Philosophy on Code of Governance
Corporate Governance is an integral and commitment to high standard of

part of the values, ethics and the best business ethics.
business practices followed by JK Tyre.
JK Tyre reaffirms its commitment to
The core values of JK Tyre are:
the highest standards of Corporate
Commitment to excellence and
Governance practices. Pursuant to the
customer satisfaction
SEBI (Listing Obligations and Disclosure
Maximising long term shareholders Requirements) Regulations, 2015 (Listing
JK Tyre reaffirms value
Regulations), a Management Discussion
its commitment Socially valued enterprise and and Analysis, Corporate Governance
to the highest Caring for people and environment Report and Auditor’s Certificate
standards of In short, the philosophy can be regarding compliance of conditions of
Corporate described as observing of business Corporate Governance are made a part
Governance practices with the ultimate aim of of the Annual Report of the Company for
practices. enhancing long-term shareholders value the financial year 2016-17.

Board of Directors and its committees
The Board of Directors of JK Tyre – one each in the months of May at JK Tyre:
consists of Eleven Directors as on 2016, August 2016, November 2016, Audit Committee
31st March 2017, of which four are December 2016 and February 2017. The Stakeholders Relationship Committee
Executive Directors and seven are Non- Board periodically reviews Compliance Nomination and Remuneration
Executive Directors (NED); out of seven Reports of all laws applicable to Committee
NED, six are independent Directors the Company and steps taken by
Corporate Social Responsibility
(IND). The composition of the Board the Company to rectify instances of
Committee
is in conformity with the applicable non-compliances, if any. The Board of
provisions of the Companies Act, 2013 Directors has also made formal annual The composition and the “Terms of
and the Listing Regulations. As required, evaluation of its own performance and Reference” of the above Committees
every Independent Director gives a that of its Committees and individual of Board are in conformity with the
declaration that he/she meets the Directors pursuant to the provisions applicable provisions of the Companies
criteria of independence. of the Companies Act, 2013 and the Act, 2013 and the Listing Regulations.
corporate governance requirements as For complete details of the Board
The management of the Company is
prescribed under the Listing Regulations. of Directors and Committees of the
vested in the Board, which exercises
powers for and on behalf of the Further, the following Committees of Board, please refer to the Corporate
Company. Five Board Meetings have Board have been constituted and are Governance Report given in the Annual
been held during the reporting period functioning as part of the Governance Report for the Financial Year 2016-17.
Code of conduct
JK Tyre has in place a Code of Corporate and contemporary practices of good Vigil Mechanism
Ethics and Conduct reiterating corporate governance, the Board JK Tyre has a Policy on Vigil Mechanism
its commitment to maintain the has laid down a Code of Conduct for the Directors and Employees of
highest standards in its interface with for all Board Members and Senior the Company to report their genuine
stakeholders and clearly laying down Management of the Company and the concerns or grievances relating to actual
the core values and corporate ethics to same is available on the website of the or suspected fraud, unethical behaviour,
be practiced by its entire management Company. All the Board Members and violation of the Company’s Code of
cadre. JK Tyre also has a Code of Conduct Senior Management Personnel affirms Conduct or Ethics Policy, and any other
for Management Cadre Staff (including compliance with the said Code every event which would adversely affect the
Executive Directors). In terms of the financial year. interests of the business of the Company.
provisions of the Listing Regulations
Prevention of sexual harassment of

women at workplace
JK Tyre is sensitive to women employees harassment and has set up Internal
at workplace. As required under the Complaints Committee (ICC) at its work
Sexual Harassment of Women at the places to redress the complaints of
Workplace (Prevention, Prohibition women employees. During the year, no
& Redressal) Act, 2013, the Company complaint has been filed with ICC with
has a formal policy to ensure safety allegation of Sexual Harassment.
of women and prevention of sexual The management of
the Company is vested
Conflict of Interest in the Board, which
exercises powers for
There are no materially significant related party transactions that may have potential and on behalf of the
conflict with the interests of the Company at large.
Company.

Our people
At JK Tyre, people represent the cornerstone of our multi-decade competitiveness.

Their passion, experience and knowledge have translated into our premier industry standing.
JK Tyre won CII
1.35 5.6 86% 36

Cumulative Industry Training Man days of employees with Years, Average age
National HR
Excellence Award
in the “Significant
Achievement in
Experience (lac) per person 3+ years within the of employees HR Excellence”
in 2016-17 Company category
At JK Tyre, the Human Resource decades. To this ferment we have added individual development, marked by
function represents the foundation room for entrepreneurial thinking and an ongoing culture of training and
of our respect, industry leadership initiative taking, making it possible for skills replenishment. The result is a
and global competitiveness. We our employees to extend beyond the willingness to adapt one’s role and
have accorded human resource usual. mind set to rapid changes in the
management the highest priority, external environment. A progressive
At JK Tyre, we employ over 8,000
evolving it from a business support culture of business partnership has, over
people across manufacturing
function into the core of the Company’s the years, translated into some of the
facilities and sales offices in India;
competitive strategy. We recruit young highest manufacturing and operating
the team enjoyed an average age of
and enthusiastic talent, blended with standards in the world, strengthening
36; over the years, the Company has
the rich experience derived across the the Company’s competitiveness.
demonstrated a commitment towards

Workplace and Diversity
JK Tyre is equal opportunity employer of JK Tyre which helps to promote the 8000” which further strengthens our
and practices diversity in race, ethical behaviour in the workplace. good practices related to employment
nationality, religion, gender, age, culture, SHAW policy (Prevention of Sexual conditions and work environment for
language, thoughts and physical Harassment at Workplace) for the safety people.
ability. We recognise and respect each of women is one such example adopted
Compensation levels are also
individual for their civil, economic and by our organisation. Ethical business
determined purely on the basis of
fundamental rights and fully comply rules and guidelines are applicable to
qualification, experience, skills sets and
with labour norms and prevailing employees’ for interaction with each
performance and no other parameter
fair practices. There is recognition of other, customers, suppliers, and other
freedom of association, employee’s external parties. Ethical codes cover JK Tyre encountered a challenging
participation in management and a wide range, including guidelines workplace environment during the
collective bargaining. These can be for accepting business courtesies, last few years. Increased competition
witnessed in all manufacturing units in a prohibited conflict of interest activities, translated into a premium in the need
unionised work environment. guidelines regarding confidential and to retain intellectual capital, enhance
proprietary information, appropriate use plant and people productivity, and
Creating an ethical work environment is
of company property and technology. adapt proactively to a rapidly changing
on the priority of the leadership team.
Inappropriate behaviour is subject to industry environment. JK Tyre continued
Beside, having “Code of conduct” for
counselling and appropriate disciplinary to invest in workplace environment with
Management cadre staff (MCS) and
action. the objective to sustain its respect as
“Standing orders” for workmen, various
one of the best places to work within the
anti-discrimination laws are made In addition, all our Plants are certified
sector.
mandatory compliance at all locations for “Social Accountability Standard-

Engaging Human Capital
JK Tyre consider Employees as its most We firmly believe that the High levels On employee engagement, JK Tyre
vital asset and HR plays role of a Business of employee engagement, passion for recorded highest score of 82 in a survey
partner in enabling business excellence excellence coupled with sharp skills have conducted by TNS (a global research
in today’s competitive environment empowered the Company to report agency). Some of our employee
through engagement and development sustained growth. engagement programs are:
of employees.
Cross Functional Collaboration

We follow certain practices to promote Projects to achieve business goals.
and encourage a culture of mutual
These CFT’s are engaged in
support and team spirit within the
”Breakthrough and High Impact
organisation through creating a culture
projects”, TPM Circles, Suggestion
of cross functional team’s collaboration
Scheme, Competitions (Slogan, posters,
and mutual respect. Cross functional
essays). CFT’s are suitably recognised
teams consisting of people from
and honoured at group level by the
different Functions work together as a
We firmly believe team to identify and implement various
honourable Directors/ Chairman and by
that the High Unit Head / HOD’s at unit level.
levels of employee
engagement, passion UDAAN: Celebrating Employee Innovation
for excellence coupled
An Organisation level annual Inter engaging young talent.
with sharp skills have
Business competition organises every Teams brainstorm and generate new
empowered the year with an objective to: innovative ideas on the given theme.
Company to report Unleash Creativity & Innovation, foster
sustained growth. cross functional team working for

Krishna – Arjuna: A unique example of Mentoring & Reverse Mentoring
A novel concept called “KRISHNA- respective Arjuna’s through the process required as identified by Krishnas. High
ARJUNA” is one of the unique examples of Individual Development. Krishna & Performers with necessary qualification
of employee engagement through Arjuna identify and engaged in “High and aptitude are transferred on Job
mentoring. The Identified High Impact Projects” to build their leadership Rotation thus developing them for
Performers are nick-named as Arjuna’s capabilities and add value in business future leadership roles to meet the
and their bosses as Krishna’s. goals. HR initiates the necessary training Organisational requirements.
to help Arjuna’s to develop the skills
Each of the Krishnas coaches / mentors
JK FEED (Forum for employee engagement and development)

JK Feed provides a platform for initiating participation and involvement
employee engagement programs such 2. Improve sense of ownership and
as Interactive sessions, celebrations, responsibility in people
sports & cultural events and CSR
3. Bring “We” work culture, and
programs at Chennai Tyre Plant. The
objective of the forum is to : 4. Contribute to the development of
local society
1. Enhance effective employee
Family events Krishna & Arjuna

identify and engaged
At JK Tyre, we work together, we Annual Day Function
in “High Impact
celebrate together and we grow Annual Spots week
together. To add dynamism in the work
Projects” to build
Annual Picnics
environment, we celebrate all major their leadership
Radial Club and Manoranjan Kendra at
festivals and events together with Kankroli Plant
capabilities and add
employees and many a times with their
Diwali, Holi, Christmas etc. celebrations
value in business
families. Some of such events are – goals.
Involvement in Motor Sports event

People Development
At JK Tyre, we are proud to have aim at providing fresh knowledge and JK Tyre learning and development
instituted “A Culture of Learning”, a skill inputs to the employees, to ensure strategies aims to develop a workforce’s
culture that begins from the first day a development of their competencies, capabilities, skills and competencies
new recruit walks through the door. dynamism, motivation and effectiveness to create a sustainable, successful
in a systematic and planned way, organisation, and is an important part of
Over the years, we have instituted
thereby improving the productivity and our organisation’s overall business Vision,
continuous learning processes that
overall organisational effectiveness. Strategy and Goals.
Raghupati Singhania Centre of Excellence (RPSCoE)

(A state of art, research, product design and In-house Skill Development Centre)
Research & Development and technology Testing Centre, which fulfils the Nation’s
plays vital role in the Company’s pursuit of need for developing newer and better
growth by ensuring speedy development technologies for Elastomer and Tyres.
of new products to be always ahead
The primary goal of this institute is to
of competition in the global market.
foster development and evolution of
JK Tyre has established its World Class
new technologies for Rubber and Allied
Technology Centre “Raghupati Singhania
Industries for domestic and international
Centre of Excellence” at Mysuru. The
markets as also to develop technical
‘RPSCoE’ has two major wings i.e. HASETRI
manpower for Rubber & Allied industry
This Institute was (Hari Shankar Singhania Elastomer &
in Asia Pacific Region.
established in Tyre Research Institute) and Product
October 1991 as an Development Centre with advanced This Institute was established in October
independent Research facilities of design and technology 1991 as an independent Research
and Testing Laboratory, housed under one roof spread across and Testing Laboratory, to cater to the
to cater to the need 10,000 sq mts of built-in area. need of rubber and allied industries at
National and International level.
of rubber and allied Hari Shankar Singhania Elastomer & Tyre
industries at National Research Institute (HASETRI) is India’s first HASETRI is recognised under SIRO
and International level. and foremost independent Research and (Scientific and Industrial Research

Organisation) by the Department have started Webinars on large scale
of Scientific & Industrial Research and in a structured form especially for
(DSIR), Govt. of India. HASETRI is also Marketing and Sales professionals who
acknowledged by the Indian Institute of are spread across PAN India Locations.
Technology (IITs) and other universities
for registration leading to higher studies Four Pillars of Skill Building
for M. Tech and Ph.D. Programs
The Company has put in place
HASETRI is engaged in providing
meticulous learning and development
education and training for the people
programmes for employees at all
engaged in Rubber & Allied Industry
levels in -line with Business, Training
in India for students appearing for
& Development Strategy and JKO
DIRI/PGD-IRI examinations conducted
Competency Framework. These
by Rubber Technology Centre,
include On the job, competency-based
IIT Kharagpur. HASETRI regularly
functional and behavioural training
conducting Short Term courses and
interventions. The Company fosters
Workshops on Rubber Science &
a culture of ongoing coaching and
Technology. HASETRI is a Training
feedback for all employees. On-the-job There is also an
provider for Rubber Sector.
development is part of the way JK Tyre extensive focus on
Webinars works. These initiatives ensure a robust
upgrading Operative
Use of Technology to Collaborate succession planning and minimise the
staff skills through
and Share Knowledge has become ill-effects of talent attrition. There is
also an extensive focus on upgrading
various functional skills,
essential for organisations. Collaboration
Operative staff skills through various
safety and behaviour
drives creativity and innovation, and
functional skills, safety and behaviour based training
social media as well as conferencing
technologies can help bring people based training initiatives such as Fire initiatives such as Fire
together (or virtually together) more & behavioural based safety, Kaizen, & behavioural based
often for that collaboration. At JK Tyre 5S, preventive maintenance & series safety, Kaizen, 5S,
we understand need and benefits of of motivational programs. All these preventive maintenance
digitalisation for both organisation and programs have been summarised as & series of motivational
employees. In line with the same we below - programs.

R & D Tyre Testing
R&D and Product Development
ICE – Innovation and Design FMEA Rubbers and Polymers

Creativity Excellence
Sales Effectiveness
Managing Sales Channel Management Key Account

Performance and Value Selling Management
Operational Excellence
Manufacturing Project Navi Urja – Navi Disha

Excellence & TPM Drive Management
People Development
Management Stop Look

Behavioural Based
Development Go-enthusiasm
Interviewing Skills
Programme-B Schools

People Statistics
Employee Strength Employee Age Profile Employee tenure in JK Tyre
12%
1% 20%
26%
54%
20% 60%
20%
87%
Manufacturing < Less than 35 years JK Services less than 5 years
R&D and Product design Age between 35-45 years JK Services between 5-15 years
Head Office and Field Sales Age more than 45 years JK Services more than 15 years
Details about number of employees (excluding CIL & Tornel)

No of Employees Directly Employed
No of % of
Sl. No. Location Workmen Staff & Sub MCS Total Unionised Unionised
staff (including Workforce Workforce
Permanent Badli Trainees)
1 Location- 1 974 496 24 187 1681 974 57.9

2 Location- 2 968 294 64 320 1646 968 58.8
3 Location- 3 1272 646 24 614 2556 1272 49.8
4 Location- 4 1105 - - 315 1420 1105 77.8
5 Location- 5 - - - 79 79 - -
6 Location- 6 - - 30 976 1006 - -
7 Total 4319 1436 142 2491 8388 4319 51.5
New Employees hired during FY 2016-17

Location Location 1 Location 2 Location 3 Location 4
Head
Category Category Execu- Workmen Execu- Workmen Execu- Workmen Execu- Workmen
Count
tives tives tives tives
Age group < 30 yrs 2 0 32 0 20 14 18 293

30-50 yrs 2 30 0 0 12 4 7 0
Total
> 50 yrs 5 5 2 0 0 0 0 0
number
of new Total 9 35 34 0 32 18 25 293
employee
Gender Male 9 35 34 0 27 18 25 291
hires
Female 0 0 0 0 5 0 0 2
Total 9 35 34 0 32 18 25 293

Employee attrition rate during FY 2016-17
Location Location 1 Location 2 Location 3 Location 4
Head
Category Category Execu- Workmen Execu- Workmen Execu- Workmen Execu- Workmen
Count
tives tives tives tives
Age group < 30 yrs 7 0 15 0 9 0 13 255
30-50 yrs 4 0 5 4 9 1 17 0
> 50 yrs 0 0 3 5 0 0 0 0
Employee
Total 11 0 23 9 18 1 30 255
turnover
Gender Male 11 0 23 9 18 1 29 255
Female 0 0 0 0 5 0 1 0
Total 11 0 23 9 18 1 30 255
Training information
Average training Average training
Average training
Location Category hours per head Gender hours per head
hours per employee
(category) (gender)
Executive 42.72 Male 20.32
Location 1 20.35
Workers 16.16 Female 16
Location 2 17.4
Location 3 16.2
Workers 16 Female 16
Location 4 31

Stakeholder Engagement
JK Tyre has mapped its internal and order to aid in the overall engagement sustainability report preparation is
external stakeholders and has identified process. We periodically engage our done internally, and all concerned
- employees, customers, dealers/ internal and external stakeholders function heads are engaged with, for
suppliers, government and government on pre-defined schedules and on an their inputs and performance details
agencies, lenders, shareholders/ ongoing need basis. Key stakeholders specific to their roles. A summary of our
investors and society as its stakeholders. are those who have actual or potential approach to stakeholder engagement is
In addition, we continued our efforts significant impact on our business, presented below.
towards systems implementation in and in turn are impacted by us. Our
Investors/Shareholders Government agencies/ Society

AGMs & EGMs Regulators Awareness campaigns
Interaction through dedicated Periodic interactions CSR initiatives
email-id’s Participation in conferences, forums Feedback mechanism and
Corporate website and publications and meetings evaluation process through meetings
and stock exchange portals Compliance reports submission and
feedback
Employees Customers & dealers Suppliers and

Satisfaction survey Customer satisfaction surveys subcontractors
Performance management systems Dealers’ meet Supplier meetings
Interactions, trainings sessions and Visits and ‘One on One’ Feedback through plant visits
periodic communications engagements Feedback mechanism and
evaluation process
The Company has also identified the disadvantaged, vulnerable & marginalised stakeholders in and around its manufacturing
plants. The Company engages with these stakeholders through various programmes, projects and activities.

of customers and the complaints are
immediately attended to both from
the customers of original equipment
as well as the customers who have
purchased tyres in retail. The Technical
Service Department is equipped with
technically qualified personnel and
cutting-edge equipment. The customers
may approach the Company through
various mediums such as emails, toll free
numbers, website, channel partners and
Company’s nationwide offices, etc. The
% total consumer cases under process
as on 31st March 2017 was negligible (of
total complaints/claims processed).
The Company has been ranked No. 1 in

the JD Power India Customer Satisfaction
Index Study in the years 2005, 2009 and
2015.
Customer Feedback
The more non-traditional stakeholders
such as the NGOs, consumer groups,
The Company believes in Customer
special interest groups and activist
First. JK Tyre is customer focused and is
groups as relevant however need
committed to understand the present
focus. This being the first GRI-4.0
and changing needs of the customers
compliant Sustainability Report by JK
and fulfilling the same for achieving total
Tyre, involvement of only the internal
customer satisfaction. The Company
stakeholders has been primarily
has a strong mechanism to capture the
considered. JK Tyre interacted with
‘Voice of Customer’. On regular basis,
these stakeholders in regular meetings
Customer Experience Measurement
that were conducted to progress on
Surveys are undertaken, both amongst
this sustainability report at each of the
its channel partners and end users.
location. The first meeting was a brief
The insights get These 3rd party surveys, along with
about Sustainability and why JK Tyre has
integrated with information gathered during market
chosen to take steps in this direction at
the Strategic visits and customer interactions at
each of the locations. Subsequently, in
Business Plan of various fora, act as an unbiased source of
order to derive maximum information
the Company, consumer insights. Further, the Company
from these consultations focussed
has adopted a robust mechanism of
which is reviewed group discussions at each location
imbibing the consumer learnings within
on a regular basis was the key methodology adopted.
the system. The insights get integrated
for improving with the Strategic Business Plan of the
The GRI training was also conducted
it even further. for all the relevant stakeholders who
Company, which is reviewed on a regular
will contribute towards the report
Various awards and basis for improving it even further.
with the active involvement of the
accolades received Various awards and accolades received
leadership team. One of the major
by the Company, by the Company, is a testimony of
forums where the leadership meets to
is a testimony of customer centric approach adopted by
discuss on Occupational Health, Safety,
customer centric the Company.
Sustainability and Environment is the
approach adopted The Company has a well laid out Central SHE Committee that meets at
by the Company. redressal procedures for complaints each location periodically.

Materiality Matters
The Company has been one of the
foremost proponents of inclusive
growth and since inception it has
been undertaking projects for overall
development and welfare of the society.
The Company aims to contribute to
sustainable growth of the society
at large. As a means to this end, the
Company will continue responding to
society’s expectations and demands in
a holistic and decisive manner in the
fields of environment, conservation of
natural resources, health, education, rural
Defence User Training Program with OEM Partner
development, among others.
Materiality of information is the soul

of sustainability reporting. For us at JK
survey of employee’s representatives and Prioritisation of the topics identified
Tyre, the challenges posed by the three
management discussions. was then carried out by establishing
pillars of sustainability (viz., economic,
a materiality matrix as relevant for the
environmental and social) are of The process adopted was as follows:
stakeholders involved and the business
equal importance. Specifically, we are The preliminary identification of the
impacts for JK Tyre. The reporting
focusing on economic performance, material topics at the organisational
principles on Stakeholder Inclusiveness,
climate change and social responsibility. level was done keeping in mind the
Sustainability Context, Materiality,
These issues are addressed through negative as well as positive impacts
and Completeness were also ensured
various material topics identified by an that the these topics could create on
throughout the process. The topics thus
assessment process keeping in mind the value chain. Care was taken to
collected were further discussed with the
a sustainable approach, stakeholders’ ensure that they represent the range
Sustainability Committee and eventually
view and importance to business. of sustainability impacts as relevant for
finalised. The material topics identified
Since this is our first year of GRI 4.0 JK Tyre and identified teams at each of
and prioritised during the materiality
compliant reporting, the assessment the locations were also involved in the
assessment survey are listed below.
has been done internally through a process of identification and prioritisation.
Material topics identified as relevant for JK Tyre: (those highlighted in red are prioritised)
1 Biodiversity 11 Compliance MATERIALITY MATRIX
2 Energy 12 Health & Safety 4

5
3 Emissions 13 Materials S 14 3
T 20 2
4 Anti-corruption 14 Labour relations A 7 8 6
K 16 11
15 9
5 Economic performance 15 Employment E 18
10
H 12
6 Water 16 Procurement Practices O 17 13
L 19
7 Diversity & Equal Opportunity 17 Remuneration
D
E 1
8 Waste management 18 Grievance mechanisms
R
9 Local communities 19 Labour practices S
10 Transport 20 Training & education
LOW BUSINESS IMPACT HIGH

Economic value generation
The two-wheeler tyre launch at the Buddh International Circuit
At JK Tyre, we have The automotive sector had its own set

of regulatory challenges when it comes
reported resilient to migrating to BS-IV standards. This has
also resulted in increased costs for most
financials in the manufacturers. While the overall industry
face of growing sales grew by over 5% there were variances

across segments. The truck bus segment
competition, grew by over 2% and the light truck

segment grew by 8%. The deceleration in
an index of our small commercial vehicle slowed down to
1% In the passenger segment the trend
competitiveness of the last few years was maintained with
passenger cars growing at nearly 6% and
MUVs close to 30%.

The overall growth in domestic demand portfolio ensured increase in PCR sale JK Tyre emphasised continuous cost
for 4 wheeler tyres was 7%. While truck/ volume by 7.4% during the year. The reduction through material substitutions
bus bias (TBB) segment continued to network of retail outlets i.e. JK Tyre Steel and product weight rationalisation. The
decline slowly, the truck/bus radial Wheels which offer unique service Company addressed 21% of its energy
(TBR) segment recorded a growth of experience to customers was further requirement through non-conventional
8%. The TBR market for most part of expanded to230 across the country. sources. The Company moderated waste
the year reeled under the impact of To extend this experience to smaller and scrap generation thus saving costs
low-cost Chinese imports. Chinese towns and in suburban markets, a newly and has introduced new products like
tyres constituted close to 92% of the conceptualised chain of branded shops, Ranger Series, UX Royale and Blaze
total imports and accounted for a peak Xpress Wheels, was launched, with 11 that generated increased sales. The
market share of 38%. The overall level outlets established during the year. Company reported continuous business
of radialisation in truck/bus segment process improvement in supply chain
JK Tyre entered 2/3 wheeler fast-growing
reached 46%. The passenger tyre management; a strong distribution
segment by offering wide range of
segment grew steadily at 8%. In the network catalysed sales and effective
products catering to 80% of the market
light commercial segment, there was after sales service. The Company
needs. 15 SKUs were introduced
a substantial dip of 7% while the small reported significant improvements in
under the Challenger range for both
commercial tyre demand witnessed a power, steam and water consumption
motorcycles and scooters, and were
growth of 5%. In line with the upswing parameters that moderated costs.
received extremely well in the market.
in the agricultural sector, farm tyres
registered a growth of about 26%.
7,607
8,383
1,141
1,198
JK Tyre has reported a 5% increase in
its EBIDTA in the reporting period FY
Truck/Bus tyres is the single-largest
2016-17 – an outcome of painstaking
category by value. JK Tyre’s leadership in
team efforts in improving operational
the truck/bus radial category was once
efficiency. Our aggregate income has
again demonstrated with the roll-out of
also increased by 10% to C8383 crore in
the 10 millionth truck radial in Mysuru.
FY 2016-17 (Consolidated Figures).
Premium high performance TBRs such as
JDE, JUH-5 and JUC-3 continued to enjoy In a competitive environment marked
customer preference during the year. JK by sluggish global offtake on the one
Tyre further strengthened its presence in hand and cost increase on the other,
this segment by increasing its volumes there was a premium on the ability to
by 17%. be competitive across market cycles. At
The Company’s passenger range of tyres JK Tyre, we possess a credible Balance
FY16 FY17 FY16 FY17
led by high-performance UX Royale Sheet that makes it possible for the
Higher revenues EBIDTA
and UX-1 series for cars and Ranger Company to be viable across crests
series for SUVs enjoyed high customer and troughs, an index of its business +776 (D cr) +57 (D cr)
preference. This high quality product sustainability (Consolidated Figure)
Mentioned hereunder is a brief summary of the financial year ended 31st March, 2017
Year ended Year ended
Particulars 31st March, 2017 31st March, 2016 31st March, 2017 31st March, 2016
Standalone Consolidated
Turnover 6,667.17 6,532.55 8,383.28 7,606.98
Operating profits (PBIDT) 805.62 1,021.97 1,197.84 1,140.85
Finance costs 267.58 236.09 440.36 252.43
Profit before tax (PBT) 459.70 600.80 535.24 659.51
Tax expenses 127.57 176.31 155.42 202.72
Profit after tax (PAT) 332.13 424.49 381.06 467.31
The year witnessed an increase in input costs on account of an unprecedented surge in raw material prices (particularly natural
rubber and petro products). This has led to an increase in production costs which impacted operating margins. However, the
impact of this was partly abated by improvement in operational efficiencies.

%, estimated growth
(by volume) of
India’s tyre sector
7
2016-17
%, JK Tyre’s growth
(by volume)
8
2016-17
%, estimated growth
(by volume) of India’s truck
and bus radial segment
(without inports)
8
2016-17 The Company has since inception,
laid down a system of internal control
business. The internal audit reports are
reviewed by the senior management
which is commensurate with the size and are placed before the audit
%, growth (volume) and nature of the business. Adequate committee of the Board of Directors
in JK Tyre’s truck and and effective checks are in place to along with actions taken. The Audit
bus radial segment
17
ensure that financial date is accurate and Committee undertakes a detailed review
reliable. The internal control systems also of the audit observations and actions,
ensure that the assets and the interest of in order to ensure that the internal
the Company are well protected. audit system is effectively functioning.
2016-17 The recommended actions by audit
The internal audit is carried out through-
are monitored and improvements
out the year based on a systematic plan
are implemented which are regularly
covering all functions and aspects of the
reviewed by the senior management.
%, radialisation of
India’s Truck/Bus
segment
46
JK Tyre’s total capitalisation - in terms of debt and equity: (C crore)
Sl. Particulars As on 31.3.17

No. Standalone Consolidated
2016-17 (a) Equity (Net worth) 1673.95 2109.79
(b) Debt
Long term borrowings 1637.28 3570.32
%, radialisation of Short term borrowings 1494.54 1805.74
JK Tyre India’s Truck/ Payable in 1 year 243.03 278.59
Bus segment
55
Total Debt (b) 3374.85 5654.65
(C) CWIP 131.24 321.22
CAPITAL EMPLOYED (a+b-c) 4917.56 7443.22
2016-17 For all further details, please refer to our Annual report 2016-17 www.jktyre.com/
annualreports.aspx

JK Tyre public park
Our environment
JK Tyre aims to contribute to Conserving natural resources and
sustainable growth of the society at energy by optimising efficiency,
large. Towards this end, the Company minimising waste and supporting
will continue responding to society’s environment friendly processes.
needs and demands in a holistic Enhancing effectiveness of Safety,
and decisive manner in the fields Health & Environmental Management
of environment, conservation of system through Risk assessment and
natural resources, health, education, regularly reviewing its objectives and
rural development, among others. targets.
Sustainability is built into JK Tyre’s
Providing our employees, sub-
business processes through
contractors and transporters the
well-defined HEALTH, SAFETY &
appropriate work environment,
ENVIRONMENTAL (HSE) POLICY. The
facilities, information and training to Sustainability is
Company is committed to design, built into JK Tyre’s
work safely and involving them in HSE
manufacture and distribute its business processes
matters concerning them.
products in a manner that protects
Integrating Safety, Health and through well-defined
the environment; prevents injury
Environmental policy into our business HEALTH, SAFETY &
and ill health in all the activities
planning, decision making and ENVIRONMENTAL (HSE)
being carried out under our control.
The Company continually strives to performance review at appropriate POLICY. The Company
improve on Occupational Health, Safety levels. is committed to design,
and Environmental performance for The Company communicates this manufacture and
sustainable growth by: policy to all employees, persons distribute its products in
Complying with legal and other HSE working for and on its behalf and a manner that protects
requirements applicable to products, to make it available to all interested the environment;
processes and services. parties on request. prevents injury and ill
Taking measures in HSE management health in all the activities
system by being proactive, innovative being carried out under
and cost effective. our control.

Seeding for future generation
Mission Statement on Sustainable Growth
Being cognisant of the need of Increase the share of harvested

sustainable growth and dwindling rainwater in the overall annual use of
stock of natural capital, the Company water by 2-5% every year over next ten
is committed to the attainment of years.
the following Ten - Natural Capital
Incorporate life cycle assessment
Commandments.
criteria for evaluating new and
Reduce specific consumption of alternative technologies & products.
energy and water by 2-5% every year
Strive to adopt green purchase
over next ten years.
policy and incorporate latest clean
Reduce specific generation of waste technologies.
and reduce the quantum of waste going
Take lead in promoting and managing
to landfills by 2-5% every year over next
product stewardship program, by
ten years.
forging partnerships with businesses and
Increase use of renewable, including communities.
renewable energy by 2-5% every year in
Reduce depletion of natural capital,
place of non-renewable over next ten
which is directly attributable to
We also commit years. The Company already uses about
Company’s activities, products and
to demonstrate 21% of its total requirement of power,
services by 2-5% every year over next ten
attainment of these through renewable resources.
years. We also commit to demonstrate
commandments Reduce specific greenhouse gas attainment of these commandments
in our pursuit to emissions and other process emissions in our pursuit to certifications such as
certifications such as by 2-5% every year over next ten years TS16949, ISO 9001, ISO 14001, OHSAS
TS16949, ISO 9001, and explore opportunities through Clean 18001, SA-8000, ISO-50001, ISO-27001,
ISO 14001, OHSAS Development Mechanism (CDM) & other Green Buildings, Eco Labels Sustainability
18001, SA-8000, ISO- Carbon Exchange Programs. reporting and the like.
50001, ISO-27001, Increase use of recyclables and The Company has been committed for
Green Buildings, Eco enhance recyclables of resources years to energy conservation, waste
Labels Sustainability embedded in the product by 2-5% every reduction and water conservation. The
reporting and the like. year over next ten years. Company is proud to share that specific

All the data and information presented
on the material topics prioritised
by JK Tyre – energy, GHG emissions,
water and waste – pertain to the
four manufacturing locations in India
(Mysore, Chennai, Banmore and
Kankroli). JK Tyre has a defined plan
of action to handle all energy, GHG
emissions, water and waste related
aspects. The monitoring systems have
been installed at all relevant places in
all the four manufacturing locations
which help to measure the consumption
patterns and also enable analyse the
same for drawing future interventions.
The plans are reviewed by dedicated
management personnel at regular
Employee Training on Energy Conservation intervals to estimate the execution
status, improvement made & decide the
water consumption was at the global in FY16-17, which stands among five future course of action. Typically, these
sectoral benchmark. The Company best companies in the global sector. reviews are in the form of Management
reported a significant reduction in This also resulted in continuous drop in Reviews, in line with the ISO standards
energy consumption, achieving a new our carbon footprint year-on-year. The and relevant procedures established on
milestone in energy consumption of journey will continue with defined plants environment and energy (ISO 14001 and
the lowest GJ/Tonne of finished goods for ongoing improvement activities. ISO 50001 respectively).
Energy Energy Highlights

First tyre company in Asia to
India is still in the early stages of a Towards this end, JK Tyre achieved receive ISO 50001 certification for
major transformation, bringing new milestones in energy consumption.
Energy Management, and second
opportunities to its 1.3 billion people JK Tyre in FY-2016-17 achieved a total
such company in the world
and moving the country to centre stage energy benchmark level of 10.33 GJ/
One of the lowest consumers
in many areas of international affairs. Tonne of production which is almost
The energy sector is expanding quickly 16% less than as compared to Base Year
of energy per tonne of tyre
but is set to face further challenges as (2013-14) and stands in the line with manufactured in the world
India’s modernisation and its economic top five best companies in the sector The Company addressed 21%
growth gather pace, particularly given worldwide. The efficiency of energy of its energy requirement through
the policy priority to develop India’s utilisation in each manufacturing unit non-conventional sources
manufacturing base. is monitored at the corporate level Excellent Energy Efficient Unit
The tyre manufacturing industry is each quarter; necessary improvement Award for the Chennai tyre plant
typically classified as a large energy initiatives are taken. Since JK Tyre
from CII during the 15th Energy
consuming industry. Power drew is the first Indian tyre company to
Efficient Summit,
from the grid forms the main source have certified CFV as per IS standard,
2016 Rajasthan Energy
of energy in all the manufacturing the focus continues in minimising
locations. greenhouse gas emission (27% Conservation Award (RECA-2016)
reduction in emission over the last three Copper Excellence Award for
JK Tyre is committed to be a green and
years). Monitoring carbon footprint is a Energy Efficiency
clean Company marked by sustainable
part of our commitment to society to
resource use. The Company continued National Energy Conservation
create a better and safer environment
to emphasise energy conservation. Award-2016
for succeeding generations.

and almost 21% of power is now
sourced from renewable sources in the
reporting period as compared to 4%
in the FY 2015-16. In a forward-looking
initiative, JK Tyre invested in a renewable
source of energy to achieve its goal of
green and clean energy. The Company
installed solar rooftop capacity in its
plants, moderating energy costs. In
addition to he 500 KW rooftop solar
installations at the Vikrant Tyre plant,
Mysuru, the Company installed a 3 MW
solar rooftop capability in Chennai Tyre
plant to address captive requirements.
Solar and wind power account for 20%
of Company’s electricity consumption, a
level likely to increase.
We have initiated and achieved EnMS

(Energy Management system) ISO-50001
in all locations. Also the Company is
working to make 30% use of Renewable
Energy in Plants. The projects towards
Total Energy Consumption (GJ) - 2016-17 achieving this have started.
UOM Location-1 Location-2 Location-3.1 Location-3.2 Location-3.3 Location-4
Direct GJ 455580 259698 307387 394497 62017 476492
Indirect GJ 169455 118113 115292 174186 22673 295151 Energy Consumption in

Total GJ 625034 377812 422679 568683 84690 771643
2016-17
Type of Energy GJ
Electricity 894870
Total energy consumption for the Wind 45
Total energy Consumptions
16%
reporting year is 2850541 GJ as Solar (roof top) 9
compared to 3161995 GJ in Base Year Fuel
(2013-14). The major constitute of Coal 1900078
Savings in energy consumption energy is Coal- 67% & Power- 31% of HSD 13497
per tonne of finished good over total energy consumed in the reporting Furnace Oil 28868
base year (2013-14) year.
Energy savings of 311454 GJ To improve usage on thermal energy a
major initiative has been taken in one
of our plants to replace highly energy
100%
91%
87%
84%
12.3
11.2
10.9
10.3
inefficient hot water system with N2 as

cure media. This not only has resulted
in cost efficiency but also has improved
product consistency with reduced
GHG footprint. Efficient lighting system,
rationalisation of boiler capacity and
redistribution of thermal energy are
new initiatives to increase energy
efficiency.
JK Tyre’s journey towards 100%

Green Energy has been kick started
through the switching to renewable

2013-14 2014-15 2015-16 2016-17 2013-14 2014-15 2015-16 2016-17
Energy Consumption Index source from non-renewable sources Energy (GJ/Tonne of Finished Product)

Aerial View of Roof Top Solar PV
Green power initiatives
15.2 MW capacity wind mills supply power to JK Tyre Chennai 3 MW solar roof top plant has and supplied the power, which
Tyre Plant, located at Tirunelveli, Tamil Nadu. is the first largest rooftop solar project in Tamil Nadu.
Total generation of 3.28 crore units/annum is utilised which Total generation per year is 44 Lakhs units and substituted 5%
substitute 35.6% of grid power from total annual plant of grid power from total annual plant consumption.
consumption.
Another 3.2 MW (Phase II) is under progress which will
increase the solar power contribution to 10% of total plant
power consumption.

Road side plantation
Emissions
Global warming is such a huge agreement to combat climate change.
phenomenon that the world is According to Intergovernmental Panel
witnessing unusual and rapid on Climate Change (IPCC) and other
changes in climate. These changes are projections, climate change will slow
characterised by prolonged seasons, India’s economic growth, impact health
extreme changes in weather patterns, and development and make poverty
rise in ambient temperatures, and reduction more difficult, all the while
India is highly increasing floods and draughts. Green threatening food security. In line with
vulnerable to extreme House Gas (GHG) emissions are one of the Indian Government’s commitment
weather events and has the major causes of climate change. under the Paris Agreement which
much at stake in the includes reduction in emissions intensity
India is highly vulnerable to extreme
of its GDP, JK Tyre has been the 1st
success of any global weather events and has much at
Indian Tyre Company to have verified
agreement to combat stake in the success of any global
its carbon footprint as per international
climate change.
120%
100%
92%
83%
73%
100%
96%
82%
95%
100%
93%
79%
85%
100%
89%
90%
71%
100%
81%
87%
74%
100%
100%
90% 80%
80%
70% 60%
60%
40%
50%
40% 20%
30%
20% 0%
Location-1 Location-2 Location-3 Location-4
10% GHG Emission Index 2013-14 GHG Emission Index 2014-15
0% GHG Emission Index 2015-16 GHG Emission Index 2016-17
2013-14 2014-15 2015-16 2016-17
GHG Emission Intensity Index GHG Emission Intensity Index

De-siltation of community water tanks for efficient rain water harvesting
standards for the last four years. This facilitate the preparation of GHG reports gas consumption in chillers and air
has resulted in over 27% reduction which will remain Relevant, Complete, conditioning units of the Company.
in emission over base year (2013-14). Consistent, Transparent and Accurate. Energy efficiency projects and
Monitoring carbon footprint is part Ensuring availability of resources to plantation within the facility’s
of our commitment to the society for enhance GHG performance and build a organisational boundary may act as
better and safer environment of our suitable corporate culture. sinks. The relevant GHG’s for the four
future generation. locations are carbon dioxide, methane,
Aligning employee competencies to
nitrous oxide and HFC’s. Using the
The Company is committed to design, needs of this system.
operational control approach, JK
manufacture and distribute its products Creating a continual improvement Tyre accounts for all quantified GHG
and services in a manner that will be mind set in respect of GHG performance emissions and/or removals from all the
green and believe in quantification of within the organisation. operations over which it has control.
greenhouse gas emissions by value
In establishing the operational Source of the emission factors together
addition processes as a first step in
boundaries for JK Tyre, GHG emissions with the global warming potential
reducing these emissions in a systematic
emanate largely from fossil fuel (GWP) rates used, or a reference to the
manner by following means:
consumption in the facility’s boilers GWP source; Standards, methodologies,
Ensure conformance with ISO 14064- assumptions, and/or calculation tools
and processes; purchased electricity
1:2006 international standard. used have been clearly documented in
and steam consumption; diesel
Ensuring that this information would consumption in DG sets; refrigerant JK Tyre’s Annual Report 2016-17.
27%
(Figures in Eq Tonne of CO2)
GHG Emission 2013-14 2014-15 2015-16 2016-17

Scope 1 294540 286198 217246 206105 reduction in GHG Emission
Scope 2 178504 179685 209021 160958 (Scope-1&2) in reporting year as
Total Emission 473044 465883 426267 367064 compared to Base Year - 2013-14

Company has aimed to reduce its depend on non- renewable sources of JK Tyre has become the first Indian tyre
CO2 emission by 50% as compared energy, which is the major contributor company to get the Carbon Footprint
to the base year emissions (2013-14) to GHG emission. However, the share of Verified (as per ISO 14064) by the
by the year 2019-20. With its pointed renewable energy as an energy source third party agency, British Standards
focus & continuous efforts JK Tyre has has gone up significantly during the Institutions and has been doing so
managed to sustain at 1.35 Tonne of reporting period. annually for the last four years. JK Tyre
CO2e / Tonne of finished product. In the has also established a GHG policy.
Company takes pleasure to share that,
current scenario, most of the operations
Direct Emission Company has aimed to

(Scope 1) - CO2e reduce its CO2 emission by
50%
Tonne, 206105
44% Indirect Emission

56%
(Scope 2) - CO2e by 2019-20
Tonne, 160958
3.50
1.835
1.693
1.530
1.350
1.40
1.34
1.15
1.33
3.31
3.09
2.61
2.80
1.59
1.42
1.44
1.13
1.73
1.40
1.50
1.28
3.00
2.00
2.50
2.00
1.500
1.50
1.000 1.00
0.50
0.500 0.00
Location-1 Location-2 Location-3 Location-4
GHG Emission Index 2013-14 GHG Emission Index 2014-15
0.000 GHG Emission Index 2015-16 GHG Emission Index 2016-17
2013-14 2014-15 2015-16 2016-17
Emission Intensity-CO2e Tonne/ GHG Emission Intensity Index
Tonne of Tyre (JK Tyre)
“Company takes pleasure to share that, JK Tyre has become the first Indian tyre company to get the Carbon Footprint Verified
(as per ISO 14064) by the third party agency, British Standards Institutions and has been doing so annually for the last four
years. JK Tyre has also established a GHG policy”
Improvement projects identified broadly can be summarised as:
Energy efficiency Technical and process Fuel substitution Tree plantation

improvement projects, improvement projects, for example Plantation within the
for example: Hot water recovery Increase the factory premises
VFD drive on HW feed project turnaround ratio of the
Plantation outside the
pump boiler by introduction of
Process cold water factory premises as a
High GCV coal
Lighting transformer circulation in closed part of social corporate
installation loop system Use of briquette responsibility
To stop the ideal Flash steam and Use of alternative fuel Plantation through
running of main fan by condensate recovery to engagement of NGOs as
interlocking with the boiler de-aerator special projects
machine in 4 roll

As a part of Go Green initiative JK Tyre natural capital disclosure system through reducing emissions or identifying risks
participated in the CDP 2017 and is the which more than 6,000 companies and opportunities. JK Tyre & Industries
first Indian tyre Company to participate from more than 80 countries and 571 while providing a comprehensive
in CDP. JK Tyre has been rated a “C” cities report, manage and share vital disclosure on environmental issues
(Awareness) on a four point scale with “A” environmental information. should now address investigation of how
(Leadership) being the highest. climate change relates to the business
Interpretation of the SCORE:
is needed to allow further management
CDP (www.cdp.net/en) is a global not- A rating of “C” indicates that companies
actions to be taken.
for-profit organisation. It has pioneered at “Awareness” level have started to
and provided the world’s only global implement changes to business strategy,
Points appreciated in JK Tyre CDP Report Way Forward for JK Tyre

Scope 1 emissions are disclosed Actionable points to move from Grading C to Grading B over
Scope 2 emissions are disclosed the next two years that includes the following initiatives:
A climate change risk process has been implemented Science based target fixing; Engagement with value chain;
The highest responsibility for climate change lies with senior Internal price fixing for carbon and engagement with the
management Climate Disclosure Standards Board (CDSB) framework for
climate change
Comparison with Industry/ Sectoral Analysis

Total Average CDP Emission Governance & Risk & Opportunity
Particulars Score Management strategy
Global 500 average C B B C
Sector Average C C C C
Industry average C B B C
J K Tyre & Industry Average C C C- C

Renovation of water tank under Jal Swavlamban Abhiyan of Government of Rajasthan
Water
Water is often wasted and undervalued water scarce regions. We are committed JK Tyre is setting a new benchmark in
with forecasts pointing to a majority of to the conservation of fresh water, water consumption by achieving the
the world’s population living in areas treatment, recycling and reuse of water milestone of 2.83 Ltr/Kg 0f finished
of high water stress over the next two in all our locations. While surface water product, an outcome of systematic
decades. Water, like climate change, is as sourced from the nearby rivers or initiatives over the last five years.
set to be a key issue for the 21st century. supplied by the municipal corporations Pursuant to Swachh Bharat Initiatives,
It is through water that the impacts of forms the principal source, our the Mission is to be water positive in all
climate change are most likely to be felt, manufacturing locations ate Chennai plants by 2022.
with changing patterns of precipitation and Mysore also consume underground
and melting glaciers affecting the supply water. Water metering points have been
100%
89%
77%
64%
of this critical resource. At the same installed at key use points for effective
time population growth, urbanisation control in all the manufacturing units. 100%
and rising per capita consumption are 90%
In the reporting year, our total water
expected to result in rapidly increasing 80%
withdrawal in all our manufacturing
demand for water. 70%
locations was 521742 KL. Located in
60%
Businesses will be impacted positively semi-arid water scarce regions, water
and negatively, and will have a recycling and water conservation 50%
significant role to play in developing practices have been implemented in 40%

and implementing solutions to the various ways at all the manufacturing 30%
water challenge. At present, however, locations. We have adopted a “Zero 20%
awareness and understanding of discharge of wastewater” policy i.e. 100% 10%
water-related risks and opportunities utilisation of water at all our plants to 0%
is generally limited in the business and prevent contamination of groundwater 2013-14 2014-15 2015-16 2016-17
Water Consumption Index
investment communities. and reduce damage to the ecology,
while in some locations such as Kankroli
We take the stewardship of the
4.4
3.9
3.4
2.8
and Banmore, rainwater harvesting

environment seriously as we are aware
programmes are actively being pursued.
that our manufacturing locations are in
Water Intake from Sources in FY 2016-17

Water Resource Location-1 Location-2 Location-3 Location-4
Surface Water KL 5936 6608 214281 125310
Ground Water KL 0 0 70167 99440
Total Water Withdrawal KL 5936 6608 284448 224750
Volume Recycled / Reused KL 4393 828 155580 199265
Volume Recycled / Reused as a % 74.0 12.5 54.7 88.7
percentage of the total water reused 2013-14 2014-15 2015-16 2016-17
withdrawal reported above Water Consumption (KL/Tonne)

Deepening of community water tank for water conservation
Effluents & Waste

Our Environment and Sustainability policy the water to the effluent quality standards
emphasises on production of eco-friendly prescribed in the water consents. This treated
products with a focus on minimal waste water is used within the premises and/or
generation due to reusing and recycling used for gardening purposes. There have no
of waste. The Company has established a instances recorded of any non-compliance,
well-defined process to recycle and re-use either in the effluent parameters or in the
the entire process waste. In addition we quantities to be generated as prescribed in
also use to the tune of approximately 5% the water consents in any location.
of the recycled/regenerated material in the
Waste generated from tyre manufacturing
virgin product. Keeping above objective,
process is in solid and liquid form and is
Company has achieved process scrap/waste
classified as hazardous and non-hazardous.
below 1%. The disposition of waste of all
This segregation enables formulation of
types (including non-hazardous), generated
suitable strategies for their safe disposal, thus
or handled at plants, to various (approved)
preventing harm to the environment. The
customers, are done strictly as per directives
total solid waste generated in the reporting
of Central/State Pollution Control Boards and
period was 13356 metric tonne. During the
compliance reports are submitted to the
reporting year 612 Tonne of hazardous and
authorities.
12198 Tonne of non-hazardous waste is
All the manufacturing locations are equipped generated. In totality 4.8% of total waste is
with effluent treatment plants that treat hazardous where as 95.2% is non-hazardous.
Total amount of Hazardous waste generated & disposed in 2016-17 This treated water
Hazardous Wastes Unit Location-1 Location-2 Location-3 Location-4 is used within the
Used Oil / Waste oil MT 34.23 21.2 114.01 79.16 premises and/or
ETP Sludge KL 0 0 363.5 0 used for gardening
purposes. There
have no instances
recorded of any
Non-Hazardous Wastes Unit Location 1 Location 2 Location 3 Location 4 non-compliance,
a. Metal scrap Tonne 3.3 158.25 1200 189.09 either in the effluent
b. Plastics Tonne 22.28 68.84 0 0 parameters or in
c. Rubber Tonne 119.898 614.80 240 212.89 the quantities to
d. Paper Tonne 0 98.05 48 199.67 be generated as
e. Solid waste Tonne 212.05 7544.205 1200 64.06 prescribed in the
f. e-Wastes Tonne 0 2.73 0 0 water consents in
TOTAL 357.528 8486.88 2688 665.71 any location.

JK Tyre conducting awareness session for employees
Compliance 1
Consents of Establishment (CFE)
At JK Tyre, a comprehensive compliance management 2 & Consents for Operation
system is in place at all the manufacturing locations. We are (CFO) of the facilities under
committed to 100% compliance of all applicable statutory Air, Water and Hazardous
and regulatory laws and the Company has ensured adequate Waste Management
Water Cess Acts
and requisite infrastructure and support to comply with all
submission and
the obligations. All our employees have also been sensitised due payment
in this regard and are committed to fully comply with all to the Pollution
compliance-related policies and procedures. The fact that Control Board
all JK Tyre manufacturing locations have been certified to 3
management systems such as ISO 14001, BS OHSAS 18001;
SA 8000, ISO 50001 etc. bears testimony to the fact that Collection & disposal
of all hazardous wastes
commitment to compliance is the fulcrum of all operations in
and other wastes
the Company. including biomedical
We evaluate and amend our compliance programme wastes and e-wastes
as per regulations and
periodically to reflect changes in regulations and the overall
Key Environmental authorisations
regulatory environment.
obligations being
A comprehensive listing of all applicable rules & regulations adhered-to by
as applicable to each of the manufacturing locations has been manufacturing Periodic environmental
monitoring of all applicable
drawn up, together with their obligations. Responsibilities has locations stack emissions, ambient air
been defined for compliance to each of these obligations 5
quality, ambient noise and
Compliance status report from the manufacturing locations all effluent parameters and
Preparation & submission
is submitted to the Management on a periodic basis. submission of mandatory
of all environmental reports to the Pollution
Effectiveness of compliance is ensured by regular reviews returns, reports and Control Board
and audits. statements as called-for in
As on date, there have been no violations or any fines the rules and regulations.
imposed on any compliance obligations in any of the 4
manufacturing locations.

Blood donation by employees on 83rd birth anniversary of former Chairman late Shri Hari Shankar Singhania
Health & Safety

JK Tyre accords top priority to continued investments in state-of-the
‘Occupational Health & Safety’ and has art technology and quality human
a zero tolerance towards any incidences resources.
related to it. Our goal is to build an
To maintain and improve upon the well-
accident-free organisation, so that our
established safety systems, extensive
employees can work happily in a safe
trainings were conducted by internal
and healthy environment. Rigorous and
and external experts on fire-fighting
elaborate health and safety policies and
and emergency handling, electrical
mechanisms are in place, which ensure
safety and road safety. There have been
that there is full compliance of safety
no fatalities recorded in the reporting
norms at all levels of the organisation. Rigorous and
period and as in the past also.
The management’s commitment
elaborate health and
towards occupational health and safety
standards is articulated in the Health,
safety policies and
Safety, Security, Environment and Quality mechanisms are in
(HSSEQ) policy, that emphasises on place, which ensure
continual improvement and is based that there is full
on management systems developed compliance of safety
in accordance with internationally norms at all levels of
recognised standards, supported by the organisation.

10
9 HIRA (hazard
Near Misses identification
– capture, 1
and Risk
analysis and Assessment) is
actions in place for the
activities Awareness building
by training and
LOTO (Lock out retraining at
Tag Out) system regular intervals
8 and Work Permit to all sections of
Systems employees – at all
levels.
2
Periodic External Safety Approach Safety awareness

audits from & training to all
competent persons, – Highlights are new joinees – MCS,
Govt. agencies all manufacturing Workmen, Contract
labour
locations
7
Robust Audit
system to identify
3
JSA – job safety and correct unsafe
Analysis for all conditions and
activities acts, including Inter
department and
Periodic Safety inter-plant safety
committee Top Management audit system
meetings commitment
6 - all meetings
involving all
sections of start with a
employee review of safety 4
category performance
All the improvements initiated are shared across the group and horizontal deployment is done.
Safety Data- 2016-17

Location-1 Location-2 Location-3.1 Location-3.2 Location-3.3 Location-4
Incident Rate 0.998 0.428 0.056 0.093 0 0.360
LDR 0.35 322.7 115.2 6.16 0 5.1
Occupational disease rates and work-related fatalities have been nil for the reporting period. First aid level injuries have been
excluded and calendar days have been considered in determining the safety data.

Pushpawati Singhania Hospital and Research Institute, a multi-speciality hospital, New Delhi, co-promoted by JK Tyre
Our community
The joy of spreading joy...
Giving back to the community is central important stakeholders. Our community
to the culture of JK Tyre and we believe development initiatives have evolved
strongly that serving local communities through continuous grassroots
is not only integral to running a interactions, community aspirations,
business successfully, but is part of our local needs, field based learnings and our
individual responsibility as citizens of unstinted commitment to social well- Our CSR programs
the world. Our CSR programs extend being. Our community development extend well beyond
well beyond the legal compliance and initiatives may largely be categorised in the legal compliance
instead of relying on cheque book to education, health, livelihoods & water and instead of relying
driven charity, we prefer adopting conservation, wherein we emphasise on cheque book
a methodical approach to provide over empowerment of communities and charity, we prefer
sustainable livelihood solutions to local main-streaming them in core process of adopting methodical
communities. development. approach to
JK Tyre has been proactively engaged provide sustainable
in developing communities and always livelihood solutions
considered them as one of the most to local communities.

Socio Economic empowerment of rural women through market - oriented vocational training
Creating Sustainable Livelihoods
We believe in providing sustainable initiated Agricultural & cattle breed and generate higher returns from every
long term livelihood solutions to improvement programs for enhancing acre. During the year 2016-17, more
communities. In rural India, Agriculture farm & off-farm incomes of poor and than 2,000 farmers were benefited from
and Livestock are the major sources marginal communities. We are also agricultural improvement initiatives.
of livelihood and therefore we have working over skill development to make
Women’s Self Help Groups have
unemployed youths capable of getting
been formed to initiate thrift & credit
meaningful jobs and also developing
activities at smaller scale. They are
future entrepreneurs.
also empowered through trainings
Under the livestock development on Income Generation Activities to
programme, artificial insemination, further improve their financial status.
fodder development and healthcare Its a known fact that enabling women
services are provided at farmers’ to earn independent incomes has a
doorstep. During the year 2016-17, more positive impact on their families and
than 3,000 artificial inseminations have communities as it is spent largely on
been performed, around 400 hybrid their children’s education, health and
calves were born and more than 15,000 nutrition and is a powerful catalyst
Under the livestock cattle have been provided various other for gender development and social
health care services like vaccination, de- inclusion.
development
worming, de-ticking, fertility treatment,
programme, etc.
Location specific & market oriented
artificial trainings on Mobile repairing, Motor
We are working towards making winding, Beautician, Tailoring, etc
insemination,
agriculture more inclusive by enabling have been imparted to around 500
fodder marginal farmers to enhance their unemployed youths to enhance their
development and knowledge and skills in modern entrepreneurial & employability skills.
healthcare services agricultural practices like access to latest These small ventures have the potential
are provided at technology, high-yielding variety/ seeds, to grow into successful and profitable
farmers’ doorstep. optimum fertiliser regime, pesticides independent enterprises in the future.

Training program on beauty and wellness
Health Care & Sanitation
Open defecation remains a persistent benefited more than 2.5 Lakhs people
problem across the length & breadth of from transporter fraternity. A network of
country. It is particularly acute in rural people living with HIV/ AIDS (PLHIV) in
areas where there is a lack of awareness Rajsamand, Rajasthan is also supported
regarding the causality between open enabling PLHIVs to adhere to regular
defecation and health related issues, medication & linking HIV patients with
especially of diarrhoeal diseases which welfare schemes of government.
are a major cause of child mortality. We
The tyre manufacturing plants of the
partnered in Government’s ambitious
Company are located in remote areas,
‘Swachh Bharat Mission’ & helped
where adequate health services are not
building of more than 1100 toilets
available and therefore we have been
in rural areas. We also ensured that
engaged in providing quality health care
these newly built toilets are being
services to poor and marginal people
used & maintained well and therefore
since long. Project ‘Parivartan,’ initiated
communities have been made aware
in the year 2004 has provided better
of consequences of open defecation A network of people
Maternal and child care services and
through meetings, rallies, walks of
significantly brought down Maternal and
living with HIV/ AIDS
shame, posters, banners, etc. and
Infant Mortality Rates in remote tribal
(PLHIV) in Rajsamand,
community ownership. Rajasthan is also
areas of Kankroli, Rajasthan.
The Company is actively engaged in supported enabling
Pushpawati Singhania Hospital & PLHIVs to adhere to
prevention of HIV/AIDS among long
Research Institute, New Delhi is a super regular medication &
distance truckers & transporters. There
speciality hospital co-promoted by JK
are 11 clinics running all across country linking HIV patients
Tyre for well-being of common public
at high risk HIV/ AIDS locations with with welfare schemes
following no profit- no loss philosophy.
the help of partner NGOs and it has of government.

Lakshmipat Singhania School, Kankroli, Rajasthan
Education
The Adult literacy program, running quality vocational education for the
since year 2004 at all manufacturing benefit of more than 500 local students
locations of JK Tyre has transformed each academic year. This engagement
the lives of more than 45,000 rural has resulted in enhancing reputation
illiterate women. These women are now of adopted ITIs, wherein now campus
functionally literate, may read and write interviews are being conducted by
with ease, do basic calculations, help reputed corporates providing
their children in study, started income almost 100% employment to these
generation activities and forging ahead students.
with their head held high. The Adult
We also support many schools for
literacy program at Central Prison,
bringing improvement in pedagogy,
Mysore is a unique initiative and it
learning outcomes, digital learning &
helped more than 5,000 prison inmates
infrastructure. We run remedial classes
to become literate with our efforts.
for weaker students after the school
JK Tyre has adopted 3 Government ITIs timings, so they may catch up with other
under PPP model to impart job oriented classmates and get main-streamed.
JK Tyre has Road Safety

adopted 3 To generate awareness about road safety, awareness programs are implemented
Government key stakeholders have been identified with the help of competent NGOs in
ITIs under PPP and road safety trainings are provided to collaboration with local Traffic Police
model to impart transporter community, school children departments benefiting a large number
job oriented and general public. The road safety of people.
quality vocational
education for the Water Conservation
benefit of more Water is at the core of sustainable achieved the distinction of being the
than 500 local development and is critical for existence lowest water consuming company and
students each of Industry and local communities. It established newer benchmarks for water
academic year. is indeed satisfying that JK Tyre has consumption in tyre industry globally.

Employee volunteers spreading messages during road safety campaign
Taking a few steps further, the Company Farm Pond: Farm ponds are dug up
initiated various water conservation in a low lying area of agriculture field for
initiatives to make local communities harvesting the rain water, which would
water sufficient through mass awareness have otherwise been wasted due to
and implementation of sustainable surface run off. These water harvesting
water harvesting interventions. The focus structures not only recharge the ground
is on building, reviving and maintaining water but also provide 1-2 crucial
water harvesting structures as well as protective irrigation during Rabi crop.
implementing other measures which There are total 25 Farm ponds
help to reverse land degradation, excavated which are benefiting large
provide critical irrigation and increase number farmers directly and
agricultural productivity. The whole indirectly.
program is planned, implemented
Farm Bunding: Farm bunding in
and evaluated in a participatory way,
agricultural fields is a most widely
where communities are not merely
practiced technique by farmers to
stakeholders rather the key drivers of the
check runoff, control soil erosion and in
water conservation initiative. The major
situ moisture conservation. More than
activities implemented under water
500 acres of farm bunding has been
conservation program are as mentioned
completed which would help conserve
below;
soil moisture and ground water
Earthen dam/ Tank: Earthen tanks are recharge.
The whole program
meant to harvest rain water with large
Bore well Recharge & Soak pits: Bore- is planned,
water storage capacity. Mostly, water
tanks are constructed on community
well recharge pits are very effective way implemented and
of harvesting ground water sustainably evaluated in a
lands and benefit a large number of
in long run. While soak pits conserve participatory way,
farmers through providing water for
underutilised waste water from water
irrigation and also recharging ground where communities
sources like hand pump, etc. Many
water. Total 20 water tanks have been are not merely
bore well recharge & soak pits have
excavated/ de-silted, harvesting large
been constructed to help farmers in
stakeholders rather
amount of water for irrigating agriculture
conserving water.
the key drivers of the
fields, ground water recharge, drinking water conservation
water for animals, etc. initiative.

Assurance statement
INDEPENDENT ASSURANCE Inclusivity, Materiality and Responsiveness. The specified sustainability performance
information/data disclosed in the report has been evaluated.
OPINION STATEMENT Opinion Statement
Our work was carried out by a team of sustainability report assurors in accordance with
the AA1000 Assurance standard, AA1000AS (2008) and GRI Standard. We planned and
performed this part of our work to obtain the necessary information and explanations
Statement No: SRA-IND-659169-1
we considered to provide sufficient evidence that JKTL’s description of their self-
declaration of compliance with the GRI Standard were fairly stated.
We conclude that the JKTL Sustainability Report 2016 Review provides a fair view of the
JK Tyre & Industries Limited Sustainability Report 2016-17 JKTL’s CSR programmes and performances during 2016. We believe that the 2016
economic, social and environment performance disclosures are fairly represented. The
sustainability performance disclosures disclosed in the report demonstrate JKTL’s efforts
The British Standards Institution is independent to JK Tyre & Industries Limited recognized by its stakeholders.
(hereafter referred to as “JKTL” in this statement) and has no financial interest in the
operation of JKTL other than for the assessment and assurance of this report. Methodology
Our work was designed to gather evidence on which to base our conclusion. We
This independent assurance opinion statement has been prepared for JKTL only for the undertook the following activities:
purposes of assuring its statements relating to its sustainability report, more particularly A top level review of issues raised by external parties that could be relevant to
described in the Scope, below. It was not prepared for any other purpose. The British JKTL’s policies to provide a check on the appropriateness of statements made in the
Standards Institution will not, in providing this independent assurance opinion report
statement, accept or assume responsibility (legal or otherwise) or accept liability for or Discussion with senior executives on JKTL’s approach to stakeholder engagement.
in connection with any other purpose for which it may be used, or to any person by We had no direct contact with external stakeholders
whom the independent assurance opinion statement may be read. This statement is Interview with staff involved in sustainability management, report preparation and
intended to be used by stakeholders & management of JKTL. provision of report information were carried out
Review of key organizational developments
This independent assurance opinion statement is prepared on the basis of review by the Review of supporting evidence for claims made in the reports
British Standards Institution of information presented to it by JKTL. The review does not An assessment of the company’s reporting and management processes concerning
extend beyond such information and is solely based on it. In performing such review, this reporting against the principles of Inclusivity, Materiality and Responsiveness as
the British Standards Institution has assumed that all such information is complete and described in the AA1000 AccountAbility Principles Standard (2008)
accurate.
Conclusions
Any queries that may arise by virtue of this independent assurance opinion statement or A detailed review against the AA1000 AccountAbility Principles of Inclusivity, Materiality
matters relating to it should be addressed to JKTL only. and Responsiveness and the GRI Standard is set out below:
Inclusivity
This report has reflected a fact that JKTL is seeking the engagement of its stakeholders
Scope
through various channels. Being the first year of reporting, JKTL has limited its
The scope of engagement agreed upon with JKTL includes the following:
engagement primarily to its internal stakeholders while also considering the feedbacks
1. The assurance covers the whole Sustainability Report 2016 of JKTL prepared “In
received from its external stakeholders over the last few years. The company has plans
accordance” with GRI Standard – Core option, and focuses on systems and activities of
to include its external stakeholders in the engagement process more formally in the next
JKTL and its manufacturing operations at Kankroli, Banmore, Chennai and Mysore during
year of reporting. A comprehensive survey though has been done within the tyre
the period from 1st April 2016 to 31st March 2017.
manufacturing business included in the report which has brought in a wide range of
material topics to be included for reporting.
2. The AA1000 Assurance Standard, AA1000AS (2008) Type 1 engagement evaluates
the nature and extent of JKTL’s adherence to all three AA1000 AccountAbility Principles:
In this Sustainability Report, material data disclosed is primarily restricted to the Assurance Level
manufacturing operations pf JKTL at Kankroli, Banmore, Chennai and Mysore. This The Type 1 moderate level of assurance provided is in accordance with AA1000
report covers the fair reporting and disclosures for economic, social and environmental Assurance standard, AA1000AS (2008) in our review as defined by the scope and
information. In our professional opinion, the report covers the JKTL inclusivity issues; methodology described in this statement.
however, the future report should be further enhanced by detailing more information on
the major and prioritized stakeholders. Responsibility
It is the responsibility of JKTL’s senior management to ensure the information presented
Materiality in the Sustainability Report is accurate. Our responsibility is to provide an independent
JKTL publishes sustainability information that enables its stakeholders to make informed assurance opinion statement to stakeholders giving our professional opinion based on
judgments about the company's management and performance. In our professional the scope and methodology described.
opinion the report covers JKTL’s material issues by using JKTL’s materiality matrix and
boundary mapping. Our view of an area for improvement for the report was adopted by
JKTL before issue of this opinion statement. For and on behalf of BSI:
Responsiveness
JKTL has implemented the practice to respond to the expectations and perceptions of its
stakeholders. It includes client survey and different feedback mechanisms to external
stakeholders and internal stakeholders. In our professional opinion the report covers
JKTL’s responsiveness issues, however, the future report should be further enhanced by --------------------------------------------
the following areas: Kumaraswamy Chandrashekara
- Provide further information regarding responsiveness mechanism to different Head - Sustainability. BSI Group India
stakeholders
GRI - reporting
JKTL provided us with their self-declaration of compliance GRI Standard and the
classification to align with “In accordance” - Core.
------------------------------------------
Based on our verification review, we are able to confirm that social responsibility and
Mr Wilfred Chan
sustainable development disclosures in all 3 categories (Environmental, Social and
Head of Operations, BSI Asia Pacific
Economic) are reported with reference to “In accordance” with the GRI Standard – Core
21 December 2017
option.
New Delhi, India
In our professional opinion the self-declaration covers JKTL’s social responsibility and
sustainability issues, however, the future report will be improved by the following areas:
Integrate data collection and analysis systematically between the systems
established for management systems on quality, environment & safety and GRI.
Competency and Independence

The assurance team was composed of Lead auditors experienced in industrial sector,
and trained in a range of sustainability, environmental and social standards including
GRI-G4 and GRI Standard, AA1000, ISO10002, ISO 14001, OHSAS 18001, and ISO
9001, etc. BSI is a leading global standards and assessment body founded in 1901. The
assurance is carried out in line with the BSI Fair Trading Code of Practice.

Industry memberships
and associations
JK Tyre and our Chairman & Managing Chemical & Allied Products Export
Director serve various leading Apex Promotion Council (CAPEXIL),
chambers and Government Bodies of Government of India, as Chairman of
India, like Auto Tyres & Tubes Panel
Confederation of Indian Industry (CII) as Indian Wire Rope Manufacturers

Member of National Council for over 15 Association (IWRMA), as Chairman on the
years early 70’s
PHD Chamber of Commerce & Xavier Institute of Management (XIM),

Industry, Senior Member of Managing Bhubaneswar, as Member of Board of
committee and Past President for over 30 Governors
years
Indian Institute of Technology (IIT),
Asia-New Zealand Foundation (Asia-NZ Chennai, as Member of Board of
Foundation), New Zealand, as Honorary Governors
Advisor, representing India for over 20
Rubber Board Kottayam, as Member
years
And Apex Chambers like ASSOCHAM,
Indo-American Chamber of Commerce
Indo American Chamber of Commerce
(IACC) – Past President of North India
(IACC) and also in a number of Apex
Council, and Member – Executive Council
bilateral bodies of India and International
/ North India Council for over 30 years
Business Community
Has been Chairmen of Automotive Tyre
Have been Chairman of various
Manufacturers Association – 3 times
Apex bilateral bodies of Indian and
JK Tyre has served various Government International Business community in the
Bodies, such as, 1990’s:
Indian Rubber Manufacturers Research India-Argentina Joint Business Council

Association (IRMRA) – A Minsitry of India-Brazil Joint Business Council
Commerce & Industry, Govt. of India India-Cuba Joint Business Council
Body (Immediate Past President) India-Columbia Joint Business Council
Expert Committee on Natural Rubber India-Mexico Joint Business Council

Policy – A Govt. of India body, as its India-South Africa Joint Business
member Council

GRI Index
GRI Standard 2016 Disclosure Page No
102-1 Name of the organisation 1
102-2 Activities, brands, products, and services 11
102-3 Location of headquarters Back Cover
102-4 Location of operations 11, 14
102-5 Ownership and legal form 11
102-6 Markets served 14
102-7 Scale of the organisation 11, 38, 50
102-8 Information on employees and other workers 38, 45
102-9 Supply chain 28, 29
102-10 Significant changes to the organisation and its supply chain 28, 29
102-11 Precautionary Principle or approach 22, 23
102-12 External initiatives 73
102-13 Membership of associations 73
102-14 Statement from senior decision-maker 6
102-16 Values, principles, standards, and norms of behaviour 21
GRI 102: 102-18 Governance structure 36
General 102-40 List of stakeholder groups 47
Disclosures 102-41 Collective bargaining agreements 39
102-42 Identifying and selecting stakeholders 47
102-43 Approach to stakeholder engagement 47
102-44 Key topics and concerns raised 49
102-45 Entities included in the consolidated financial statements 1
102-46 Defining report content and topic Boundaries 1
102-47 List of material topics 49
102-48 Restatements of information 1
102-49 Changes in reporting 1
102-50 Reporting period 1
102-51 Date of most recent report 1
102-52 Reporting cycle 1
102-53 Contact point for questions regarding the report 1
102-54 Claims of reporting in accordance with the GRI Standards 1
102-55 GRI content index 74
102-56 External Assurance 72

Economic Performance
GRI 103: 103-1 Explanation of the material topic and its boundaries 49, 50
Management Approach 103-2 The management approach and its components 50
2016
103-3 Evaluation of the management approach 50
GRI 201: 201-1 Disclosure 201-1 Direct economic value generated and 51, 52
Economic distributed
Performance
2016
Procurement Practices
2016
GRI 204: 204-1 Disclosure 204-1 Proportion of spending on local suppliers 28
Procurement Practices
2016
Energy
GRI 103: 103-1 Explanation of the material topic and its boundaries 49, 53, 55
2016
GRI 302: 302-1 Disclosure 301-1 Energy consumption within the 56
Energy organisation
2016 302-3 Energy intensity 56
Water
2016
GRI 303: 303-1 Water withdrawal by source 62
Water 2016 303-3 Water recycled and reused 62
Emissions
Management Approach 103-2 The management approach and its components 58, 59
2016
103-3 Evaluation of the management approach 58, 59
GRI 305: 305-1 Direct (Scope 1) GHG emissions 60
Emissions 2016 305-2 Energy indirect (Scope 2) GHG emissions 59, 60
305-4 GHG emissions intensity 59, 60

Effluents & Waste
2016
GRI 306: 306-2 Waste by type and disposal method 63
Effluents & Waste
Environmental Compliance
2016
GRI 307: 306-2 Non-compliance with environmental laws and regulations 64
Environmental Compliance
Employment
2016
GRI 401: 401-1 New employee hires and employee turnover 45, 46
Employment
Occupational Health & Safety
2016
103-3 Evaluation of the management approach
GRI 403: 403-2 Types of injury and rates of injury, occupational diseases, 66
Occupational Health & Safety lost days, and absenteeism, and number of work-related
2016” fatalities
Training & Education
2016
GRI 413: 404-1 Average hours of training per year per employee 46
Training & Education
Local Communities
2016
GRI 413: 413-1 Operations with local community engagement, impact 68-71
Local Communities assessments, and development programs

A PRODUCT
info@trisyscom.com
JK Tyre & Industries Ltd.
3 Bahadur Shah Zafar Marg, New Delhi - 110002
Ph: +91 11 33001112, 33001122, Fax No. +91 11 23322059
www.jktyre.com I Follow us on: /JKTyre You /JKTyreCorporate /jktyrecorporate /+JKTyreCorporate

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towards

But at JK Tyre we wish to go a step

And this has become a REALITY.

02 I JK Tyre & Industries Ltd.

Key Institutional JK Tyre’s soles with soul

Sustainability Report 2016-17 I 03

Renewable Energy Source

04 I JK Tyre & Industries Ltd.

Sustainability Report 2016-17 I 05

I have great pleasure

08 I JK Tyre & Industries Ltd.

JK Tyre is committed towards goal of Monitoring carbon footprint is part

Sustainability Report 2016-17 I 09

The major business of JK organisation include Tyre, Paper, Cement, Agri-Genetics,

‘Commitment is the best means of growth’

Lala Lakshmipat Singhania

Key Architect of JK Organisation & Founder of the Company

“We as businessmen are anxious to contribute to the best of our

10 I JK Tyre & Industries Ltd.

Sustainability Report 2016-17 I 11

Started All Steel

JK Tyre has maintained a strong

12 I JK Tyre & Industries Ltd.

Sustainability Report 2016-17 I 13

14 I JK Tyre & Industries Ltd.

Presence in 105 countries

Global 145 935

The Company’s tyres are marketed under the

Sustainability Report 2016-17 I 15

Lakshmipat Singhania - IIM, Lucknow National Leadership Award

16 I JK Tyre & Industries Ltd.

JK Tyre has been selected It has also once again

JK Tornel Awarded with

“Superbrand”, One amongst “Outstanding Quality

Sustainability Report 2016-17 I 17

JK Tyre has always been conscious of its commitment

18 I JK Tyre & Industries Ltd.

DR. RAGHUPATI SINGHANIA

BHARAT HARI SINGHANIA

ARVIND SINGH MEWAR

DR. WOLFGANG HOLZBACH

Manufacturing Excellence - Institutionalise Quality Culture

Sustainability Report 2016-17 I 19

Strategic Plan is essential for the Company for following reasons.

20 I JK Tyre & Industries Ltd.

Sustainability Report 2016-17 I 21

MONITOR AND REVIEW

Establishing Risk Risk Risk Risk

COMMUNICATION AND CONSULTATION

Based on ISO 31000:2009

22 I JK Tyre & Industries Ltd.

Raw material shortage risks

Sustainability Report 2016-17 I 23

Customer Interaction Program

At JK Tyre, the first mission emanating

24 I JK Tyre & Industries Ltd.

Sustainability Report 2016-17 I 25

26 I JK Tyre & Industries Ltd.

Sustainability Report 2016-17 I 27

28 I JK Tyre & Industries Ltd.

Sustainability Report 2016-17 I 29

R&D and Technology: All

The state of the art facility houses the