JK Tyre & Industries, a leading tyre manufacturer for the auto sector, is looking to invest Rs 1,025 crore over as part of its capacity expansion plan.
In a regulatory filing, the company stated that its Board of Directors of JK Tyre & Industries on Wednesday approved the expansion for the enhancement of tyre manufacturing capacity to bolster the company's presence in the automotive tyre market. The filing did not mention at which plant the capacity enhancement will take place.
The plant's existing capacity stands at 155.11 lakh tyres per year. The project is expected to be funded by way of equity, internal acruals and debt. The new capacity addition, which is expected to be completed at a cost of Rs 1025 crore, is likely to increase the capacity by 19.45%. The plant's current capacity utilisation stands at about 95%, the company said in a regulatory filing.
In a separate filing, JK Tyre stated that the Board of Directors has approved the raising of funds in one or more tranches to the tune of Rs 500 crore.
JK Tyre & Industries, a part of the JK Group, is a provider of tyres across segments of passenger vehicles, commercial vehicles, farming, off-road, and two- and three-wheelers. The company has 12 manufacturing facilities—9 in India and 3 in Mexico—that collectively produce around 34 million tyres annually.