JK Tyre and Industries shares jumped as much as 3.6 per cent to hit intraday high of Rs 103.20 on reports that the company would venture into two wheeler segment.
JK Tyre's president and director Arun K Bajoria had last month said that it is "looking to enter two-wheeler and three-wheeler segments. We are currently test marketing the products. We plan to enter in a bigger way this area."
The Economic Times report suggests that the tyre giant would invest in two wheeler segment through the trading route. However, the company does not intend to invest afresh in the manufacturing facilities for two wheeler segment.
The report quoted Raghupati Singhania, CMD of JK Tyre saying, "We are planning to outsource and sell two-wheeler tyres for the time being."
"We are working on signing up with vendors and we are exploring both local and international vendors. We will service both the aftermarket and OEM (original equipment manufacturer) segment," the report added.
J K Tyre currently manufactures tyres for cars, trucks and busses.
As of 11:15 a.m., shares of JK Tyre traded 2.96 per cent higher at Rs 102.50.