Balkrishna investing Euro 56 million to expand factories

Mumbai, India -- Balkrishna Industries is investing Rs3000 million (Euro 56 million) to almost double output of tyres from its three factories in India.

Balkrishna's vice-president for Finance, Mr Bansal confirmed the amount, but did not have time to say any more about the project. The Indian Newspaper, The Hindu said the project would expand ruber processing capacity to 100 000 tonnes per year from 60 000 tonnes per year at the company's tyre factories in Bhiwadi, Waluj and Chopanki.

Balkrishna, part of the Siyaram Poddar group, operates a tyre factory in Waluj, making car, moto and tractor tyres. Govind Rubber, another Siyaram Poddar group member operates a tyre factory in Bhiwadi, that makes car and moto tyres and tubes. The third factory, in Chopanki is focussed on tyres for bicycles.

The Hindu added that the company will double radial tractor tyre capacity, and the new capacity will be on stream by the second quarter of 2007.

The company is also reportedly planning to set up overseas distribution systems through either joint-venture companies or wholly-owned subsidiaries.