After completing a round of investments at its greenfield plant near Chennai, J K Tyre and Industries is planning further investments in Chennai as well as pump in Rs 100 crore at its Kankroli plant around 72 kilomters from Udaipur in Rajasthan.
Buoyed by good revenue figures of over Rs 1400 crore during the second quarter, the company is hoping demand to pick up during the second half of the financial year.
"We just completed investing close to Rs 1000 crore at our Sriperumbudur plant near Chennai, we are now planning to invest further Rs 220 crore at Chennai. Also, we would be investing Rs 100 crore at our Kankroli plant in Rajasthan", said A K Bajoria, president & director, J K Tyre & Industries Ltd.
Adding further he informed that the company's Chennai plant now has an installed capacity of 25 lakh car radials and 4 lakh truck and bus radials, that would expanded up to 30 lakh car radials and 6 lakh truck and bus radials post expansion. The company's Kankroli plant makes tractor tyres and nylon tyres.
"This will be the second phase of expansion at Chennai, thereafter we would embark on a third phase of expansion at the plant", Bajoria said.
As for the second half of the fiscal, Bajoria feels demand is expected to pick up.
"We are expecting more liquidity in the market, as well as a stablising of fuel prices that would boost consumer sentiments. With this, as the festive demand sets in, we are expecting, H2 to be better compared to H1", he added.