JK Tyre & Industries Ltd. said it will boost capacity at its 3-year-old facility in Chennai nearly 66 percent via a $230 million investment. Ceat Ltd. is planning to double passenger tire production capability at its 2-year-old Halol plant, a project that will cost $104 million.
JK Tyre said its capital spending will boost annual capacity to 4.8 million radial tires a year at the Chennai facility, allowing it to take advantage of rising demand for radial tires. The plant opened in 2010 and makes passenger and truck/bus tires.
The expansion will boost employment 50 percent to 7,vacuum bottle500, the company said. The investment will be funded by internal accruals, debt and equity.
The New Delhi-based company, the world's 25th-largest tire maker, said the market for radial truck/bus tires is expected to expand to 30 percent by mid-2014 from 26 percent currently and to 55 percent in the coming five years.
The expansion will support JK's drive to expand its annual revenue to $1.6 billion by 2015,Clawfoot tubs up nearly 45 percent from the fiscal 2013 level, the company said.
JK announced the expansion along with its second quarter earnings. For the period ended Sept. 30,carbon fabric net income rose 35.6 percent to $57 million on 8.8 percent higher sales of $231 million.
Meanwhile, Mumbai-based Ceat didn't disclose a timetable for its Halol expansion. The project will boost the facility's capacity by about 80 percent to roughly 270 metric tons per day.
Ceat Managing Director Anant Goenka said the expansion is in response to rising demand in India for passenger and utility vehicle tires,carbon prepreg both from the original equipment and replacement markets.
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