JK Tyres seeks govt nod for Rs 1,000 cr plant

At present ,JK tyres’ overall annual production of radial tyres at existing plants stands at 45 lakh for passenger cars and 8 lakh for trucks and buses. The company also produces 12 lakh non-radial passenger car tyres and 25 lakh non-radial truck tyres. JK Tyres expects its technical collaboration with Germany’s Continental AG to help in the manufacture of radials at the new plant.

Highly placed sources in the commerce ministry told The Indian Express that according to JK Tyres’ proposal,of the total cost of Rs 982.71 crore,Rs 317 crore will be raised from internal accruals while the remaining Rs 665.7 crore would be raised through borrowings. The company,sources said,would employ 1,192 people at the proposed facility. JK Tyres envisages raw material requirements at the proposed plant to include 1,848.82 tonnes per month of rubber (natural,synthetic and reclaim) besides 1,982.89 tonnes per month of other materials (including polyester fabric,nylon,steel cord,bead wire and carbon black).

JK Tyres,which earlier this month said it plans to raise prices by up to 4 per cent,had announced expansion plans at a total cost of Rs 1,500 crore. The company,which in 2008 acquired Mexican tyre manufacturer Tornel,has also entered into sourcing arrangements with companies in China,Vietnam and Sri Lanka for various products. With presence in over 80 countries,primarily in Central and South America and Africa,is now looking to expand its footprint in Europe.