JK Tyre and Industries may increase prices for the third time this calendar year.

Reeling under high inflation and rising input costs such as oil and rubber, the company is mulling over raising prices by 4-5 per cent by August to negate the impact of spiralling input costs.

“Nearly 75-80 per cent of the total tyre costs are of raw materials. Globally, tyre makers have been increasing product prices ever since oil touched $100 a barrel, but Indian industry has been hesitant to hike prices. We might make another price correction by August, as there is no other option for us but to pass on some of the costs,” JK Tyre vice- chairman and managing director Raghupati Singhania told the media. The firm had revised prices twice by 2-2.5 per cent in January and June during this year.

Besides rising input costs, the influx of cheap bus and truck radial tyres was also affecting the industry, he said. “We are not against imports of radials, in fact, demand is rising and there's room for exports, but Chinese companies are dumping products here at very low prices for which we have sought the government's intervention,” he added.

Singhania said JK Tyre had completed the acquisition of Mexican tyre maker Tornel on June 13. It plans to cater to central and south American markets through Tornel, where it already has a presence. “We would utilise Tornel’s excess capacity to make our own brand cater to the export market in those countries. Last year, JK Tyre exported products worth $40-45 million to the region,” he added.

Both JK and Tornel tyres would co-exist in the South American market. Tornel would make JK the biggest tyre maker out of India with a combined capacity of 940 tonnes per day and revenues of $1 billion.

JK Tyres/BSE Rs 102.50 ^