JK Tyre expanding capacity, investing in new technology

New Delhi – JK Tyre & Industries Ltd has found new investment support for its plans to enhance its manufacturing technologies and increase capacity for energy-efficient tires.

International Finance Corp. is investing $30 million (€28 million) in the Delhi-based tire maker for a 5.6% share in the company, JK Tyre announced 22 March.

The investment will part-finance capacity-expansion and integration of “advanced, resource-efficient technologies” into the production of commercial and passenger car radial tires.

With the funds, JK Tyre said it aims to increase production capacity for energy-efficient radial tires by over 10% —from 32 million to over 35 million units/year by 2025.

The Indian tire maker's statement, however, did not provide further details about where the expansion project is to be carried out.

Ranked third in India and 21st globally, JK Tyre operates six production facilities in the country.

Three of the facilities, based in Banmore, Madhya Pradesh; Chennai, Madras; and Chinnpanduru, Andreh Pradesh, produce passenger car tires.

The expansion, JK Tyre said, aligns with the national vision of “a self-reliant India” and strong focus on industrial job creation.

The automotive industry, it said accounts for almost 49% of India’s manufacturing GDP, with tire manufacturers contributing to 2%: “And demand is expected to grow further.”

The expansion projects "are not only growth-oriented but also promote sustainable development,” said Dr Raghupati Singhania, chairman & managing director.

“Innovation and technology are at the core of each of our products, which keeps us ahead of the curve to meet the needs of our customers.”

Describing JK Tyre “a leading green tire manufacturer with a demonstrated focus on sustainability”, IFC India country manager Wendy Werner said the partnership aimed to drive capacity expansion and scaled manufacturing of energy-efficient tires.

“IFC aims to catalyse further investments and market competitiveness, and in so doing, contribute to India’s goals to become both self-reliant in domestic manufacturing,” she added.