JK Tyre to invest additional Rs 1,430 crore in Chennai plant

JK Tyre and Industries plans to invest an additional Rs 1,430 crore in its Sriperumbudur plant as part of plans to ramp up capacity, a top company official said today.

"We will be investing Rs 1,430 crore in our Chennai plant which we will be implementing in 15 months time," JK Tyre and Industries Chairman and Managing Director Raghupati Singhania said after the company's Board meeting here.

The company had already invested about Rs 1,000 crore in the facility producing four lakh truck, bus radials and 30 lakh passenger car radials.

"Chennai plant is a state-of-the-art plant. That is running in full capacity. With the expansion plans, we will be adding four lakh truck, bus radials and 15 lakh passengar car radials," Singhania told reporters here.

Asked about increasing the workforce at the plant, he said currently about 500 people were employed and with the expansion plan, there will be 50 per cent increase in the workforce.

Answering another query, he said the company would increase its market share in the truck, bus radial to 40 per cent and 22 per cent in passenger car radial with the expansion.

On funding for the proposed investment plans, he said part of it would be raised through internal accruals and borrowing.

"In the first phase of Chennai plant, expansion will be to eight lakh TBR and 15 lakh passenger car radials in Chennai plant", company President and Director Arun K Bajoria said.

The company currently has five manufacturing plants in the country and three facilities in Mexico.