JK Tyre and Industries has announced a significant investment of Rs 1,400 crore to expand its production capacity for Truck and Bus Radials (TBR), Passenger Car Radials (PCR), and All Steel Light Truck Radial (ASLTR) tyres. This investment, planned over the next 18-20 months, aims to meet the growing demand from automakers.

The funding for this project will be sourced through Rs 730 crore in debt and the remaining amount through equity and internal accruals. Earlier in FY24, JK Tyre raised Rs 500 crore through a Qualified Institutional Placement (QIP) to support the upcoming capital expenditure.

Chairman and Managing Director Raghupati Singhania stated that this investment will notably increase the company's PCR capacity by 16%, with minor increases in TBR capacity. Currently, JK Tyre's total production capacity stands at nearly 34 million units per annum, including 15 million PCR units and 4 million TBR units, with the remainder consisting of Truck Bus Bias (TBB) tyres, as well as tyres for two/three wheelers.

The company plans to allocate around Rs 1,000 crore towards expanding PCR capacity, while approximately Rs 380-390 crore will be dedicated to enhancing the output of Off The Road (OTR) and TBR tyres. Additionally, JK Tyre intends to introduce tailored tires for the Sports Utility Vehicle (SUV) aftermarket segment.

This strategic expansion underscores JK Tyre's commitment to addressing the increasing demands of the automotive industry and strengthening its market position.