Balkrishna Inds' brown field unit at Bhuj commences production

Balkrishna Industries said that it has commenced commercial production of brown field expansion and debottlenecking project at Bhuj Plant (Gujarat).

The production of tyres will be increased upto 50,000 MTPA. The complete ramp-up in production is expected to be achieved in the next 6 months, the company added.

While approving the third quarter financial results in February last year, the board of Balkrishna Industries had approved a Rs 1,900-crore capital expenditure plan as the tyremaker looked to expand capacity and upgrade technology to cater to the rising demand.

The company had announced a brownfield expansion in Bhuj at the cost of Rs 800 crore, which would increase the production capacity by 50,000 metric tonnes per annum.

It had approved an expenditure of Rs 650 crore will be spent on increasing the capacity of carbon black, and setting up of a captive power plant.

As part of modernization and technology upgradation, the firm had approved an outlay of Rs 450 crore for upgrading existing facilities at Rajasthan and Bhuj.

Balkrishna Industries is a tire manufacturing company. The company manufactures off-highway tires used in specialist segments like mining, earthmoving, agriculture, and gardening.

The company reported 2% rise in net profit to Rs 329 crore on a 39% increase in total income to Rs 2,079 crore in Q3 FY22 over Q3 FY21.

The scrip shed 1.59% to end at Rs 1767.80 on the BSE on Friday.

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