Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  MUMBAI STOCK EXCHANGE  >  JK Tyre & Industries Limited    530007   INE573A01042

JK TYRE & INDUSTRIES LIMITED

(530007)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Exclusive: India's JK Tyre, other firms face antitrust scrutiny in bid-rigging case

10/16/2020 | 05:51am EST
FILE PHOTO: A worker retreads a used rubber tyre at a workshop in Agartala

NEW DELHI (Reuters) - India's antitrust regulator is investigating JK Tyre & Industries Ltd after a state government accused the company of bid rigging, and the probe has been expanded to other firms, according to sources and legal filings seen by Reuters.

The Competition Commission of India (CCI) last year ordered a probe after the northern state of Haryana said JK Tyre employed unfair trade practices while bidding to supply tyres for public transport vehicles, a court filing showed.

The case details and CCI's initial assessment were contained in a Sept. 19 state court filing made by JK Tyre contesting some of the watchdog's demands. The filing, reviewed by Reuters, has not previously been reported and the CCI does not disclose current probes into cartel cases.

According to documents in the filing, Haryana state told the CCI that JK Tyre was the sole bidder in a tender and quoted high prices. The watchdog in November ordered a probe saying "non-participation by other tyre manufacturers" was suggestive of a "concerted act to rig the bid".

A JK Tyre spokesman declined to comment "as the matter is currently subjudice."

In August this year, the CCI decided the role of other tyre firms should be examined and expanded its scrutiny to include Apollo Tyres, CEAT, MRF, and the Indian units of France's Michelin and Germany's Continental AG, two sources familiar with the case said.

It was not immediately clear whether the CCI has approached those tyre firms with inquiries.

The sources declined to be identified as details of the probe were confidential. The CCI and the Haryana state government did not respond to requests for comments. MRF, Michelin and Continental also did not respond to requests for comments, while CEAT and Apollo declined to comment.

A finding of bid-rigging could lead to a potential fine of up to three times the profit in each year prices were fixed by the companies, or 10% of annual revenue, whichever is higher.

JK Tyre, which has a market value of $190 million, says it accounts for 30-36% of the market for different types of tyre variants that is worth some $9 billion annually.

"EMAIL DUMPS"

Haryana state has alleged JK Tyre was the sole bidder in the tender in 2018 and its prices were around 34% higher than previous purchase rates, the documents show.

"There appears to be some arrangement or understanding amongst the tyre manufacturers ... The matter warrants a thorough and detailed investigation to unearth the entire modus operandi resorted to," the CCI's Nov. 2019 order said.

As part of the probe, the CCI this year sought "email dumps" over five years belonging to some senior executives in the JK group, saying they were essential for the investigation.

JK Tyre has challenged that demand at the High Court of Punjab and Haryana, saying it was cooperating with the investigation and the emails of those executives had limited or no relation to the case.

The watchdog's probe team was "acting in a completely unreasonable, arbitrary and whimsical manner", JK Tyre said in the Sept. 19 filing.

The court will next hear the case on Oct. 28.

(This story corrects typographical error in headline.)

(Reporting by Aditya Kalra in New Delhi; Editing by Edwina Gibbs)

By Aditya Kalra


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
APOLLO TYRES LIMITED 2.07% 177.6 Delayed Quote.6.16%
CEAT LIMITED 0.95% 1139.2 End-of-day quote.15.21%
CONTINENTAL AG 6.28% 119.4 Delayed Quote.-2.52%
JK HOLDINGS CO., LTD. 2.79% 847 End-of-day quote.32.55%
JK TYRE & INDUSTRIES LIMITED 0.43% 81.05 End-of-day quote.8.28%
MICHELIN SCA 3.57% 110.1 Real-time Quote.-2.57%
MRF LIMITED -0.17% 79817.4 End-of-day quote.20.34%
All news about JK TYRE & INDUSTRIES LIMITED
10/16EXCLUSIVE : India's JK Tyre, other firms face antitrust scrutiny in bid-rigging ..
RE
09/14JK TYRE & INDUSTRIES LIMITED : Ex-dividend day for final dividend
FA
01/16During Bezos visit, India minister says Amazon's $1 billion investment is no ..
RE
More news
Financials
Sales 2021 80 546 M 1 087 M 1 087 M
Net income 2021 747 M 10,1 M 10,1 M
Net Debt 2021 - - -
P/E ratio 2021 26,6x
Yield 2021 0,19%
Capitalization 19 957 M 270 M 269 M
Capi. / Sales 2021 0,25x
Capi. / Sales 2022 0,21x
Nbr of Employees 5 938
Free-Float 36,0%
Chart JK TYRE & INDUSTRIES LIMITED
Duration : Period :
JK Tyre & Industries Limited Technical Analysis Chart | 530007 | INE573A01042 | MarketScreener
Technical analysis trends JK TYRE & INDUSTRIES LIMITED
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 3
Average target price 75,67 INR
Last Close Price 81,05 INR
Spread / Highest target 4,87%
Spread / Average Target -6,64%
Spread / Lowest Target -22,3%
EPS Revisions
Managers
NameTitle
Raghupati Singhania Chairman & Co-Managing Director
Bharat Hari Singhania Co-Managing Director & Executive Director
Anshuman Singhania Co-Managing Director & Executive Director
Sanjeev Aggarwal Chief Financial Officer
V. K. Misra Technical Director
Sector and Competitors