Tyre major JK Tyres is planning to start manufacturing two-wheeler and three-wheeler tyres soon. Meanwhile, the company is planning to invest around Rs 800 crore in the current fiscal at its Chennai plant.
"We are doing some test marketing of both (two-wheeler and three wheeler tyres), in few months we will hit the market," said Arun K Bajoria, president - industrial operations, JK Tyre & Industries Ltd.
Bajoria refused to give any more comments on this.
JK Tyre & Industries Ltd recently launched its SUV multi-terrain tyres, Ranger. This is to address the demand emanating from one of the fastest growing segment of the Indian Auto Industry. JK Tyre will also be exporting these new range of tyres.
Meanwhile, he said, the company would invest around Rs 800 crore at the Chennai plant before end of 2015-16. This was part of company's plan to invest Rs 1,430 crore, for phase-II expansion which was announced in October 2013. The investment will be funded through debt and internal accruals.
Post phase-II expansion, the company's Chennai plant capacity for bus truck radial tyres will increase to 1.2 million per annum from 400,000. For passenger car it will be increased to 4.5 million units per annum from 2.5 million.
The expansion comes on the backdrop of increase in demand from the OEMs, the company's foray into North American markets and growing replacement markets.
Bajoria said, at present 15 per cent of the the total produced in JK Tyres are being exported to over 100 countries.
JK Tyre reported a consolidated net profit of Rs118 crore for the first quarter ended June 30, 2015, up by 113 per cent from Rs 55 crore in the corresponding quarter. The company achieved a consolidated turnover of Rs 1952 crore.
Dr Raghupati Singhania, chairman & managing director of the company commented that JK Tyre continues to realise value through its product mix and offering new technologically advanced products to the consumers across the product categories.