JK Tyre to invest Rs 800 crore in Chennai plant in Phase 2 expansion program
Published On 06-Jun-2016 21:51:50
JK Tyre is looking into the prospect of investing Rs 800 crore on its Chennai manufacturing plant before the end of this financial year. The investment will be a part of the company's second phase expansion programme which was announced in October 2013. According to the Phase -2 expansion programme, the tyre maker will invest a total of Rs 1,430 crore.
After the plant expansion, the manufacturing capacity of bus/truck radial tyres will rise up to 12 lac tyres per annum from the current 4 lac per annum capacity. The passenger car tyre capacity is also likely to go up to 45 lac units per annum from the current 25 lac units annually. Very soon, JK Tyre is also planning to enter into the two-wheeler and three-wheeler tyre sector.
Increasing demands from OEMs and the company's expansion in new sectors and foreign markets like North America has compelled JK Tyre to consider increasing its production capacity. Arun Kumar Bajoria, Director and President, Intenational Operations of JK Tyre said that 15 per cent of total tyres manufactured are exported.
The company is also focusing on expanding its operations in the emerging markets of Southeast Asia. The newly-launched SUV tyre called Ranger will also be exported to international markets. This tyre features a dual-tread compound that provides maximum grip and control. The Ranger tyres will be available in two ‘specialised’ applications, Ranger A/T for all-terrain performance and Ranger H/T for on-road application.
A few days ago, the tyre maker disclosed its quarterly financial details. The consolidated turnover was Rs 1,952 crore, out of which the company made a net profit of Rs 118 crore in the first quarter. Overall, the manufacturer made 113 per cent more profit than the first quarter of last year.