JK Tyre investing €150m in capacity expansion

New Delhi – JK Tyre is planning to invest INR14 billion (€155 million) in capacity expansion over the next two years, the Indian tire maker has confirmed to ERJ.

As part of the move, the New Delhi-based manufacturer is aiming to invest INR10 billion in expanding production capacity for passenger car tires (PCR) by 16%, said JK Tyre in a 7 June statement to ERJ, confirming local press reports.

Another INR4 billion will be invested in ramping up the output of off-road and radial truck & bus (TBR) tire production, with marginal increases in capacity, the tire maker added.

JK Tyre currently has a total capacity to produce 34 million units of tires per year, which includes 15 million units of PCR and 4 million units of TBR tires.

The remaining capacity includes truck bus bias, two- and three- wheeler, off-road and speciality tires.

To be completed in “the next 18-20 months” the project will be partially financed by an INR5 billion fund-raising round, which was completed in January.