Published on Wed, May 09, 2007 at 08:00 | Source : Moneycontrol.com
Updated at Wed, May 09, 2007 at 08:06
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JK Tyre plans Rs 600-cr investment
JK Tyre & Industries Ltd (JKTI) is looking to expand its existing capacities. The company for this purpose is looking at investing between Rs 500 crore to Rs 600 crore spread over the next three years.
JK Tyre & Industries Ltd (JKTI) is looking to expand its existing capacities. The company for this purpose is looking at investing between Rs 500 crore to Rs 600 crore spread over the next three years.
Speaking to Business Line, Mr Arun K. Bajoria, President, JKTI, said, "The expansion will be across the four existing facilities and the investments would be spread over the next three years. But in the next 12 months we would be first investing around Rs 120 crore for increasing the capacity by around 50 per cent in the Off The Road (OTR) tyres segment used by the mining, cement, coal and earth-moving sectors. Some portion of the total funds required would be raised from internal accruals and the rest from debt."
The company has just concluded the expansion of truck radial and passenger radial capacities. "The truck radial capacity has gone up by around 50 per cent to around 4 lakh tyres per year. In the passenger radial segment we have expanded our production capabilities by around 30 per cent last fiscal and then further expanded it by around 35 per cent during the current financial year (JKTI follows a October-September financial year) which will be completed shortly," Mr Bajoria said.
Once completed, the company would have a capacity to produce 4.4 million tyres per year in the passenger radial segment. JKTI has invested Rs 225 crore to complete both these expansions.
Speaking to Business Line, Mr Arun K. Bajoria, President, JKTI, said, "The expansion will be across the four existing facilities and the investments would be spread over the next three years. But in the next 12 months we would be first investing around Rs 120 crore for increasing the capacity by around 50 per cent in the Off The Road (OTR) tyres segment used by the mining, cement, coal and earth-moving sectors. Some portion of the total funds required would be raised from internal accruals and the rest from debt." 
