In a move that would heighten competition for French tyre major Michelin and Bridgestone in the Indian market, Delhi-based JK Tyres will soon sell radial tyres manufactured by Mexico?s Tornel ? the company it acquired last year ? in the Indian market. The tyres would be competitively priced at Rs 15,000-Rs 25,000 and come with the specification that JK Tyres doesn?t have in India. ?To test the market with Tornel radial tyres, we would introduce those tyres in the Indian market. After gauging the customer response, we would go on full steam with Tornell tyres in India,? JK Tyres and Industries marketing director A S Mehta said.

The tyres will start selling in the market from January 2010.

In an effort to expand operations overseas, JK Tyre and Industries had acquired Tornel for Rs 270 crore. Around 70% of the company?s tyres are used to cater to customers in Mexico and Brazil. At present, the company is not interested in any American firm as it has already made inroads into that market.

With India and South America under its domain, JK Tyres has now set sights on the South East Asian market to cater to customers at that end. The company is planning to set up a plant in Thailand through acquisition or green field project route. ?Right now, it?s just in the planning process. The plan will take some time to mature into reality,? Mehta said.

JK Tyres will also increase tyre prices by 3-5% in December to battle high input costs. ?Rubber prices are troubling everybody. We have not yet increased, but we will have to. It will be anywhere in the range of 3-5%. We will be able to finalise later this month,? Mehta said. Rubber prices, which make up nearly 60% of the cost of tyres, has been rising steadily in the past. They have shot up nearly 24% in October-December putting pressure on the margins of tyre makers. Tornel?s three plants in Azcapotzalco, Tultitlan and Hidalgo together have a production capacity of 290 tonne per day while JK Tyre at its four plants in India have a combined capacity of 650 tonne per day.

JK Tyres will raise its car radial capacity by 11% at a plant in Gwalior to five million tyres, Mehta said.

The firm has completed expanding truck radial capacity to 800,000 units from about 370,000 units in October at an investment of Rs 315 crore.