JK Tyre & Industries has said it will invest Rs 1,430 crore to ramp up capacity at its Chennai manufacturing facility which makes radial tyres for trucks, buses and cars.
"We have earmarked capex of Rs 1,430 crore to increase our truck and bus radial capacity by additional eight lakh tyre per annum and car radial capacity by another 20 lakh tyre per annum at the Chennai plant," A K Bajoria, president and director of JK Tyre & Industries, said on Monday.
Moreover, the company is also spending Rs 140 crore at its Mexican subsidiary, Tornel, to increase capacity by 18 per cent from its present capacity of 3.2 million tyres.
"In the first phase of expansion in our Mexican subsidiary Tornel, we are investing Rs 140 crore in next 10 months."
He further said that after ramping up the capacity in Mexican subsidiary, JK Tyre would introduce Tornel brands in India.
The company also launched on this day 10 new products for passenger cars, truck and light commercial vehicles. It is now targeting an increase of Rs 300 crore in its turnover.
JK Tyre had turnover of Rs 5,444 crore as on March 31 this year.
"With the launch of this new range, we are hopeful of increasing our market share in high performance tyre segment significantly," Mr Bajoria said.
The products launched today also included ultra-high performance car tyre designed for premium high-end luxury cars like Audi, BMW and Mercedes.
Mr Bajoria further said that JK Tyre has also started supplying tyres to Volkswagen group from India.
"We are going to be their worldwide partner. Wherever they have a plant, we are going to get a slice of that."
Indian tyre market is estimated at Rs 46,000-50,000 crore. JK Tyre has a share of 18-20 per cent in the passenger vehicle tyre segment.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
