JK Tyre & Industries to invest ₹900 crore over next two years for expansion.

Tyre manufacturer JK Tyre & Industries will be investing ₹900 crore for expanding capacity over the next two years.

The investment will result in increasing the capacity by 13 per cent in passenger vehicle tyres. Earlier, the company had planned an investment of ₹700 crore in 2018 but that was scrapped because of the coronavirus.

“We are undertaking step-by-step expansion and are deep bottlenecking. We are proactively doing things in terms of catching up with the lost time and slow down in the auto industry. In the last two quarters, our market share has increased in terms of volume and value,” said Raghupati Singhania, chairman and managing director of JK Tyres and Industries. .

The company is expecting to maintain its export level at ₹1,900 crore.

“Our exports have been growing in various directions. Apart from America, exports are big in Latin countries, Africa and the Middle East which are important destinations for us. The American and European markets have slowed down. We will be able to maintain if not grow substantially,” said Singhania.

The company is also focusing on reducing its long-term debt and has reduced the debt by 30 per cent in the last three years.

“We have been trying to deleverage the company and have reduced our long-term debt substantially. The company is in growth mode,” added Singhania 

HBL