JK Tyre investing in additional production capacities

During a recent earnings call, JK Tyre & Industries’ managing director, Anshuman Singhania, shared that the company is investing Rs 14 billion (£131.76 million) to increase its production capacities for TBR, PCR and ASLTR (all-steel light truck radial) tyres. He commented that these projects are “under implementation and progressing well.”

The tyre maker will direct the majority of this investment towards passenger vehicle tyre production, allocating approximately Rs 10 billion (£94.11 million) in this area. Company president Anuj Kathuria informed earnings call participants that JK Tyre’s current PCR capacity utilisation is “in excess of 95 per cent.” The company aims to increase its market share in the SUV segment.

JK Tyre will dedicate around Rs 3.8 billion to 3.9 billion (£35.76 million to £36.70 million) to expanding capacities for truck and off-highway tyres. According to Kathuria, capacity utilisation for TBR is currently above 90 per cent.

This latest expansion of JK Tyre’s production capacities builds upon ongoing projects to boost both TBR and PCR capacities. Singhania says these are “nearing completion,” and he anticipates that the tyre maker will achieve full production by the first quarter of FY25, the three months to 30 June 2024. As of May 2024, JK Tyre has a combined installed capacity of approximately 34 million tyres per annum. This figure covers production at the company’s five location and nine plants in India, including the three it acquired from Cavendish Industries in 2016, as well as its three JK Tornel facilities in Mexico.