JK Tyre to invest Rs 100cr for capacity expansion

JK Tyres technical director, V.K. Mishra, while talking to media persons here, said “funds for expansion would be generated through internal accruals and by debts from banks and other FIs”. Plans to open tyre-care shops on major highways and further cash in upon the potential of the original equipment (OE) market are also in the offing, Mishra said.

Presently, JK is an OE supplier to Ashok Leyland, Tata Engineering and Volvo. Mishra said, “In India, the radialisation level in the truck-bus segment is presently only around 1.5 per cent, but expected to reach around 5 per cent by 2004-05. The trend towards radialisation has been further accelerated by entry of new generation vehicles, need to reduce operating costs, need for faster transportation and need of higher riding comfort.”

The company would also tie-up with re-treading companies. In collaboration with Continental AG, JK Tyre has been rolling out steel truck radials.

Mishra also said, “JK Tyre is constantly working towards self-sustenance with its zero-error manufacturing. Our R&D centre, Harishankar Singhania Elastomer and Tyre Research Institute (HASETRI), is working towards this”.

(The correspondent was in Mysore at the invitation of JK Tyre)