JK Tyre initiates ₹1,025 Crore expansion plan to boost capacity by 19%

JK Tyre & Industries, a leading player in the tyre manufacturing sector, has announced a significant expansion plan to augment its tyre production capacity. The company's Board of Directors, in a statement released on November 1, unveiled the initiative aimed at enhancing manufacturing capabilities.

As of July 13, JK Tyre & Industries boasts an annual tyre production capacity of 155.11 lakh tyres, operating at an impressive 95 percent utilization rate. The company has set forth plans to elevate this capacity by a substantial 19.45 percent, targeting an augmented capacity by October 2025.

To realize this ambitious expansion, an investment of ₹1,025 crore has been earmarked by JK Tyre. The funding for this project will be sourced through a combination of equity, internal accruals, and debt.

The impetus behind this expansion stems from the robust growth witnessed in the Indian automotive industry. With a positive outlook for sustained sectoral expansion, JK Tyre & Industries envisions a significant opportunity to further consolidate its foothold in the automotive tyre market.

"The Indian auto industry is witnessing good growth, which is expected to continue for some time. Hence an opportunity to increase the company's market presence further in the automotive tyre market," stated the company in its filing with the stock exchange.