Balkrishna Industries takes U-turn, to operate both old and new plant at Waluj

Given the current business outlook, the company has now decided to continue operations at both the plants along with modernising the old plant.

By Shahkar Abidi calendar 17 Nov 2022 Views icon5586 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

In a bid to cater to the growing demand in the marketplace, Balkrishna Industries, a supplier of tyres to off-highway and agriculture segments has put off its plans to shut its old plant in Waluj, Maharashtra. Instead, it will use it to meet incremental demand along with the newly commissioned greenfield plant which is just five kms from the old plant. 

Given the current business outlook, the company has now decided to continue operations at both the plants along with modernising the old plant, the company said in a statement.

The capex of around Rs 350 crore allotted for it, will help bring economies of scale. This will take up the overall capacity to over 55,000 MTPA at a single site and is expected to be ready by H1FY24. “The achievable capacity will increase back to 3,60,000 MTPA by H1FY24 post commissioning of the Waluj brownfield project,” the company informed investors.

Secondly, the company's other brownfield plant commissioned at an investment of Rs 800 crore at Bhuj, Gujarat is expected to complete ramp-up in production by the second half of this fiscal year.

Likewise, the company's carbon black and captive power plant may be commissioned next month. Further, the project of advanced carbon material will be commissioned by Q4FY23. 

Balkrishna reported a net profit of Rs 404 crore during Q2FY23, registering a seven percent growth as against Rs 377 crore in Q2FY22. The revenues of the company stood at Rs 2,806 crore during Q2FY23, a jump of 35 percent from Rs 2,080 crore registered in Q2FY22. 

 

 

RELATED ARTICLES
TVS Credit secures Rs 480 crores investment from Premji Invest to fuel growth strategies

auther Autocar Pro News Desk calendar09 Jun 2023

The primary capital raised will be used by TVS Credit to enhance its initiatives in expanding its customer base in new m...

Top 10 budget friendly cars and SUVs with ADAS

auther Autocar Pro News Desk calendar09 Jun 2023

Advanced Driver Assistance System (ADAS) incorporates functionalities such as adaptive cruise control, blind spot monito...

HSBC India partners with Tata Motors to promote mass adoption of electric vehicles

auther Autocar Pro News Desk calendar09 Jun 2023

Consumers holding a salaried account with HSBC India will get a chance to apply for this loan to purchase an electric ve...