JK Tyre & Industries: INR 1100-Crore Investment Allocated for FY 25

Expanding Capacity for PCR Tyres

JK Tyre & Industries, a frontrunner in India's TBR segment, is set to inject a substantial investment of INR 1100 crore for the fiscal year 2025. The focus lies on bolstering capacity, particularly in the Passenger Car Radial (PCR) tyre category, aligning with the escalating consumer preference for SUVs.

Ambitious Expansion Goals

The company's ambitious plan involves ramping up production across all manufacturing facilities to achieve an impressive annual output of 35 million units by FY 25. This marks a significant increase from its current capacity of over 33 million units.

Strategic Capital Expenditure

New Delhi saw the revelation of JK Tyre's capital expenditure blueprint, earmarking INR 1100 crore for the upcoming financial year. The major portion of this investment is dedicated to enhancing manufacturing capabilities to cater to the burgeoning demand for tyres in the domestic market.

Insights from Leadership

Raghupati Singhania, Chairman and Managing Director of JK Tyre, highlighted, "Our Board previously sanctioned INR 1,100 crore, with the final tranche expected by March 2024. Subsequently, an additional INR 1100 crore has been approved, targeted for completion by March 2025. A significant portion will be devoted to enhancing capacity with a strong emphasis on maintaining quality."

Continuous Investment in Expansion

The tyre industry leader has consistently channeled investments toward capacity expansion and infrastructure maintenance since FY 2022-23. The cumulative expenditure for FY 23 and FY 24 totaled INR 1,100 crore, inclusive of maintenance expenses.

Responding to Market Trends

Acknowledging their dominance in the TBR segment, JK Tyre is strategically gearing up to significantly enhance capacity, particularly in the PCR category. Raghupati Singhania emphasized the success achieved through innovative offerings such as puncture guard tyres, smart tyres, and the recently introduced Levitas tyres.

Addressing Production Challenges

Singhania acknowledged prior challenges in producing larger rim sizes, particularly in the 16-inch category. However, the company is committed to meeting the escalating demand for larger sizes, now extending up to 21 inches, tailored for the burgeoning SUV market.