The agency also arranged for the expansion of Truck Bus Radial (TBR) for its subsidiary Cavendish Industries.

JK Tire and Industries Sanjeveve Aggarwal The company has planned a capital expenditure of Rs 11 billion for the next fiscal. The tire manufacturer plans to invest in regular maintenance of existing infrastructure and expansion of capacity.

Speaking on an analyst call, Aggarwal said, “Total expenditure for the next two years (2023) FY24 and FY24 will be Rs 110 including about Rs 300 crore Rs 100 crore on maintenance capex.”

Majority of the capex (Rs. 53) crore will be utilized for expansion of Passenger Car Radial (PCR) capacity.

The company also plans to expand the Truck Bus Radial (TBR) capacity of its subsidiary Cavendish Industries.

“The previously announced bottleneck removal program has been implemented and completed. Ongoing projects include Rs 2.36 billion TBR capacity expansion and Rs 5.3 billion PCR capacity expansion.

“These are the two major expansion projects currently underway. In addition, the annual maintenance capex is about 15 About Rs 3 billion over two years, Agarwal pointed out, billion,” Agarwal noted.

He added that the domestic and international markets complement the PCR There is a high demand for tires. The expansion of PCR capacity at the Banmo plant in Madhya Pradesh will be funded through debt and internal accruals, Aggarwal added. We have been in touch with the lenders and they are very positive that they will be able to provide sufficient loans to fund it. ” he noted.

This expansion will increase loan volumes by 35%. Aggarwal said that the current annual production of PCR tires is around Rs 9 million. “The board approved the projected cost of Rs 5.3 crore for the expansion of PCR capacity at Banmore Tire Plant. The proposed expansion plan and the recently initiated debottlenecking program will increase PCRR capacity by 35%,” said Ans human Singhania, Managing Director, JK Tire and Industries.

The proposed expansion is expected to be operational by December 2023 expansion year.” He added.

Commenting on the outlook for the tire industry, Singhania said: “We believe that with improved economic confidence and record agricultural production, demand across all sectors will increase significantly. Coupled with improved realization rates in the country, rural demand is expected to be strong this year.”

Singhania also said that demand for cars and tires will improve due to easing inflationary pressures and improved geopolitical sentiment.

JK Tires operates in more than 105 countries/regions. We have 1800 people around the world. Many distributors.