JK Tyre & Industries plans to expand its Chennai plant at an outlay of Rs 1,430 crore. It has already invested around Rs 1,000 crore for producing four lakh TBRs (truck and bus radials) and 25 lakh PCRs (passenger car radials) per annum. In the next phase of expansion the capacity will be enhanced to 12 lakh TBRs and 40 lakh PCRs a year.
After the board meeting in Chennai, JK Tyres Chairman and Managing Director Dr Raghupati Singhania said, "The investment will be completed in the next 15 to 18 months. The Company, keeping in view the long term demand growth, is undertaking expansion of its Chennai facility for both truck and passenger car radials. Currently the plant is running in full capacity and with the expansion plans, we will be adding four lakh TBRs and 15 lakh PCRs."
With this expansion, JK Tyre would aim to maintain its leadership position in TBR segment with a market share of about 40 per cent. Later it plans to export 30 per cent of the products that are manufactured to 90 markets to bring down the sourcing from China and Vietnam.
For the quarter ended September 30, 2013, the tyre manufacturer has reported a consolidated turnover of Rs 1,956 crore. Profit before tax was Rs 107 crore, up 78 per cent compared to Rs 60 crore a year ago. The company's net profit for Q2 was Rs 66 crore as compared with Rs 69 crore last year, while net sales of the company stood at Rs 1,799 crore for the quarter as against Rs 1,729 crore. Operating profit soared 46 per cent at Rs 215 crore during the second quarter of current financial year.