JK Tyre Sheds Further Light on Expansion Plans
JK Tyre has released additional details of the company’s expansion plans, and it appears far more money than previously reported will be invested in increasing production capacity. The Indian tyremaker plans to inject Rs 11 billion (£135 million) into capacity expansion during the next three years. According to India’s Economic Times, JK Tyre finance director A K Kinra has stated that both capacity for OTR tyres and for radials will be expanded in order to meet with increased demand – passenger radial capacity will be increased from its current 4.5 million units to 7 million units, and TBR capacity will be boosted from 400,000 to 1 million units per annum – and the planned expansion projects will be funded through a combination of loans and internal accruals.
Kinra added that growth in these three sectors will form the basis of JK Tyre’s future expansion, and he expects the company to achieve a revenue of Rs 50 billion (£615 million) within a three-year window. The previous financial year saw the company achieve revenues of £365 million.