Balkrishna to Invest £39 million in Expansion Plans

Tyre manufacturer, Balkrishna Industries Ltd says it will invest 3 billion rupees (£39 million) on expansion plans. The board of directors has reportedly approved the plans which include increasing tyre manufacturing capacities at Bhiwadi, Waluj and Chopanki plants to 100,00 tonnes per annum against 60,000 presently.

According to Indian newspaper, Hindu Business Line, other plans include doubling radial tractor tyre capacity. These developments are likely to be completed in phases. The company will raise $50 million through the issue of Foreign Currency Convertible Bonds (FCCB), equity shares, Global Depository Receipts (GDR) or other convertible securities, subject to shareholder approval.

The company is also investigating the possibility of setting up overseas distribution networks, either directly by the company or by way of joint ventures or acquisitions.

Balkrishna, otherwise known as BKT, also produces agricultural tyres for Vredestein and Nokian, not to mention the Supreme private brand, which is exclusively distributed by RH Claydon in the UK.