A ride to success
JK Tyre Steel Wheels, a retail arm of JK Tyre is making its presence felt across the nation via franchise route. Through its franchise concept the brand is showcasing high quality products and services. Explore more
The rising economy, performance of domestic automotive industry, and the better conditions of the transport scenario are successfully fueling the performance of the tyre industry in India. Keeping these factors in mind, JK Tyre came up with the idea of launching a one stop solution for complete tyre sales and services requirements of the customers. A S Mehta, Marketing Director, JK Tyre informs, “With the objective of meeting customer needs, we established a nation wide chain of franchised retail outlets branded as JK Tyre Steel Wheels.” The retail venture has re-defined the tyre retailing concept in India by providing a wide range of JK Tyre passenger car tyres and tyre care solutions in an ambient environment. Here is the case study of JK Tyre’s franchise venture, encompassing its success journey, the ups and downs and its franchise strength.
Inception of JK Tyre
JK Organisation came into existence way back in the middle of the 19th century and its subsidiary JK tyre was started off in late 1970s. It ranks among the top private companies today. The company has bagged a number of credits to its name since its inception. The company has pioneered the radial technology in India and is the first Indian tyre company to be recognised as ‘Superbrand’ by the Global Advertising Professionals. It has also started a unique concept called JK Tyre Steel Wheels in 1996 to provide value added services like wheel balancing, alignment and tyre care to customers. The company has opted for franchise route to expand JK Tyre Steel Wheels.
Presently, the company is operating through a retail chain of over 125 franchised Steel Wheel outlets spread across the length and breadth of the country. Besides this, the comapny has also presence in a number of multi brands outlets. JK Tyre has marked its presence right from Srinagar in north to Madurai in south and from Surat in west to Aizawal in the east.
Model for expansion
Over the years, JK Tyre and Industries has expanded and diversified its business portfolio. It has established itself as a multi-product and multi-location company that brings in the best in products and services to the valued customers. With its core focus on customer satisfaction, the company took the franchise route to expand the presence of its one stop solution across the nation. Mehta further added, “The company will continue to expand its Steel Wheels retail outlet network in metro and semi-metro areas of the country. Apart from this, the company also plans to expand its franchise network to tier II and III towns.”
Take up the franchise
JK Tyre and Industries has been a forerunner in the economic and social advancement of India. It always aimed at creating business opportunities for the aspiring entrepreneurs via franchising. So, if you are also entertaining the option of getting started with a business of this type, then JK Tyre Steel Wheels is one of the best available options. All you need to do is to meet the criteria; the company has laid for selecting its franchisees, which includes:
- Minimum retail space of 750 sq. ft at a strategic location with adequate parking space
- Ability to invest in stocks, showroom interiors, and wheel servicing equipment
- Minimum off-take and turnover as per company policy
Strong business support system
Joining hands with such a dynamic company offers a number of benefits to the prospective franchisees. Take for instance, the company shares with its franchisees the cost of the showroom development, interior and exterior renovation of the showroom. Apart from building the showroom, the company also helps the franchisees in buying the car wheel service equipments at subsidised rate. Being a well known name in the industry, JK Tyre provides every possible support to its franchisees to ensure the proper working of the franchisees and the development of franchise network.
Hurdles in the way to franchise success
Even with all the hand holding and availability of all the necessary requisites, the success of the franchise business cannot be guaranteed. This is because; the success of a franchise depends not just on the strong foundation but also on the business acumen of the franchisee. Especially with this kind of business where customer satisfaction is of prime importance, a franchisee needs to take into account every aspect of keeping the customers happy. As Mehta says, “The main challenge for the franchisees is to provide world class products and service support to the customer, which will give them an edge over the competition.”
Outlook for the future of tyre industry
With the rising utilisation of automobiles, the demand for better automobile products and services are also growing rapidly. Even the radialisation of tyres is also gaining significance. Radialisation refers to the transformation of traditional tyres by using steel wires instead of nylon threads and the rate of radialisation among the passenger car, bus and truck manufacturers is hastily increasing though its acceptance is still limited. Moreover, the future of tyre industry is looking prosperous with the rising number of companies entering into outsourcing agreements with tyre producers in foreign countries. Even in the domestic market, it is predicted that the tyre makers will increase their focus on expanding the dealership networks via franchising to penetrate the growing customer base.
To conclude, JK Organisation has striven to make India self reliant by pioneering the production of a number of industrial and consumer products, by adopting the latest technology as well as developing its own know-how. It has also undertaken industrial ventures in several other countries. This quickly expanding, tyre company offers enormous opportunity to the aspiring entrepreneurs taking the franchise of JK Tyre Steel Wheels.
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