Tyre companies benefetting from lower crude and rubber prices: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, shares his views on JK Tyre.

ET Now: Let us start with a big news maker and the big news maker is Kesoram/JK Tyre. Do you think this is a good deal for JK Tyre?

Deepak Shenoy: We have not analysed the contours of the deal. JK has done two acquisitions. So we believe that at this point, the entire tyre pack is benefitting from two things -- the lower crude price, the lower rubber prices. They are kind of using this mechanism to or this temporary situation perhaps to increase their footprint and that is a good thing. This deal is probably on the face of it, better for Kesoram than it is for JK but once they integrate, there is potentially better thing in the offing, all tyre companies have moved up substantially and I do not believe JK Tyre will lag in that department.