JK Tyre looks to make 35 mn tyres a yr by 2025
Currently, the tyre maker collectively produces 32 million tyres annually from its 12 facilities
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Hyderabad: Indian tyre major JK Tyre and Industries Limited is on an expansion spree utilising a part of its Rs 800 crore investment into expanding the manufacturing capacity of its brownfield plants near Gwalior in Madhya Pradesh and Haridwar in Uttarakhand. With the increase in manufacturing capability in place, the company is eyeing to produce 35 million tyres by 2025.
The tyre maker recently received an investment of Rs 240 crore from International Finance Corporation to partly finance the expansion of its manufacturing facilities. This investment raised by the company is part of the expansion announcement made last year at Rs 800–900 crore over the next two years.
Anshuman Singhania, Managing Director, JK Tyre and Industries said, “Part of our Rs 800–900 crore of investment will be utilised to expand our brownfield facilities. These plants manufacture tyres in the passenger and commercial vehicle category. By 2025, we will produce 35 million tyres from the present 32 million.”
JK Tyre has a total of 12 manufacturing plants, nine in India and three in Mexico. “Right now there are no plans to open new facility as we are looking at utilising our assets to its full potential. However, if the incentive provided by the State government is highly attractive, we might think about it,” president of JK Tyre and Industries, Anuj Kathuria said.
On a query about the company’s share in the total tyre market in India, the officials said that with all the tyres put together, the market is around Rs 70,000 crore and is expected to reach Rs 100,000 crore by FY 2025 in India. In the commercial vehicle segment, JK Tyre is leading with a double digit share, Singhania said without disclosing the numbers.
JK Tyre was in Hyderabad on Tuesday for the launch of its new tyre range, Levitas Ultra. The tyre is designed for the premium cars.
