JK Tyres to Expand Production, Build New Factory

JK Tyres is planning to expand the production capacity of its Banmore, Gwalior facility in Madhya Pradesh. According to India’s Business Report, the company will invest 2 billion rupees (roughly £24.2 million) over the next three years in the expansion. The company has reportedly already invested 700 – 800 million rupees in the facility.

In addition to the expansion plans, the company also intends to set up another plant in the area. The announcements come despite a dip in Indian tyre industry profits due to increasing raw material costs.

“The company has continued to grow despite the increase in the raw material prices, and with the state government offering backward area packages, we are planning to build a second plant,” Raghupati Singhania, vice-chairman and managing director of the company said. However, the company’s management refused to divulge the size and nature of the investment and construction work for the second plant.

“We are focusing on our investment at the Banmore facility. We plan to invest approximately 2 billion rupees over the next three years to increase our capacity from 2.2 million tyres to 3 million tyres,” he added. JK Tyre’s Madhya Pradesh plant started production in 1991 with an annual production capacity of 570,000.