New Delhi: Tyre major JK Tyre is planning to invest Rs 1,100 crore over the next three years to expand its production capacity as it sees its revenues crossing Rs 5,000 crore marks by then.
JK Tyre and Industries Finance Director A. K. Kinra stated, “To meet the increased demand for radial and off the road (OTR) tyres, we will invest Rs 1,100 crore in expanding our production capacity by 2010.”
He added that the company would fund the growth plans through a mix of debt and internal accruals.
According to the growth plans, JK Tyres would raise the passenger radials constructing capacitance to seven million units annually from the existing 4.5 million units and would increase its bus-truck radial manufacturing ability to one million units by 2010 from the present four lakh tyres a year.
The company anticipates that the expansion in passenger, truck-bus radials and off-the-road (OTR) tyres would energize its future earnings.
“Demand for OTR tyres, passenger and truck-bus radials have been growing steadily. We expect the future growth in these segments to drive our top-line to cross the Rs 5,000 crore marks in the next three years," he said, adding, the company closed the previous fiscal with revenues of Rs 2,970 crore.
The company has four construction plants -- two in Mysore and one each in Banmor in Madhya Pradesh and Kankroli in Rajasthan.
Passenger radial tyres are fabricated at the company's Banmor plant; whereas the two facilities in Mysore manufacture truck-bus radials and Vikrant brand nylon tyres, while Kankroli produces OTRs and JK nylon tyres.