JK Tyre to set up manufacturing facility in Chennai
26 May 2010
JK Tyre & Industries yesterday said it has planned an investment of Rs930 crore to establish a new radial tyre manufacturing facility near Chennai. The facility would have a total production capacity of 29 lakh units per annum.
Vice chairman and managing director Raghupati Singhania told reporters in New Delhi that the company would set up a greenfield plant near Chennai at an investment of Rs930 crore.
He said the plant would have a capacity to produce 25 lakh passenger car radials and 4 lakh truck and bus radials every year.
The company has already acquired a plot of land admeasuring 100 acres for the facility.
Of the planned investment Rs300 crore would be funded through internal accruals with the rest being raised through financial institutions, JK Tyre & Industries president and director Arun K Bajoria said.
JK Tyre & Industries has a current production of 1.63 crore tyres every year with domestic facilities producing 97 lakh units while 66 lakh tyres are being rolled out of Mexico.
"By this fiscal-end, we will add 7 lakh units more capacity in India. The domestic capacity will finally reach 1.25 crore tyres every year in 2012," Bajoria said.
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