India-based tyre maker JK Tyre & Industries is stepping up its production in its Chennai plant to 90 lakh car and bus/truck radial tyres per year.
Raghupati Singhania, JK Tyre & Industries Vice Chairman and Managing Director said that the expansion is now nearing its second phase which will start right away as the company added Rs 220 crore as an investment for it to the plan to boost the production capacity of its facility in Chennai.
“We want to take the capacity of the Chennai plant to 75 lakh car radial tyres and 16 lakh bus/truck radial tyres per annum in the next 3-5 years. We have already incurred about Rs 1,000 crore in the last 24 months, which was our first phase of expansion. Now, we have earmarked a further Rs 220 crore for the next 15 months, which is the second phase,” he said.
Today, the Chennai plant can only produce 25 lakh car radial tyres and 4 lakh bus/truck radial tyres per year for the domestic and export markets.
Recently, the company has reported its net profit of Rs 25.99 crore against he net loss from last quarter of Rs 54.99.
“Festival demand is going to improve sales for the second half of the year,” an optimistic Singhania said. (RJA)