Anshuman Singhania, Managing Director at JK Tyre & Industries told ET, the company is utilising 85% of available capacity and will be investing fresh capital to meet demand for its products going ahead. “We are investing Rs 800 crore to enhance capacity at our facilities. This investment cycle is on the verge of completion. Separately, we are looking at investing Rs 1400 crore to increase production and maintain our leadership in radials over the next two years”, he informed.
JK Tyre Chairman and MD, Raghupati Singhania expects the domestic tyre demand will remain strong due to the automobile industry's growth and a positive economic environment. The company's consolidated net profit surged five-fold to Rs 249 crore in the September quarter, largely due to its strong performance in the domestic market.
JK Tyre Market Demand: With demand expected to remain robust, JK Tyre plans to enhance its tyre production capacity by 20% by 2025. The company can currently produce around 3.4 crore tyres per annum from its 12 manufacturing facilities across India and Mexico.
According to the ESG assessment study, the company has been consistently demonstrating exemplary performance across all themes of environment, social and governance. With an overall ESG score of 78 out of 100, JK Tyre has been regarded as the best among peers.
So far in 2023, shares of tyre companies, such as Apollo Tyres Ltd, Ceat Ltd and JK Tyres & Industries Ltd, have rallied 21-47%. Some stocks have beaten benchmark index Nifty Auto by a wide margin.
JK Tyre has launched new puncture guard tyres for four-wheelers for the Indian market, these tyres use self-healing technology to sustain any punctures.