Tyre Manufacturing major JK Tyres, on 1 November, announced that its Board of Directors had approved an expansion plan that aims to enhance the company’s tyre manufacturing capacity.

The company said that as of 13 July, the annual capacity for tyre manufacturing at JK Tyre & Industries stands at 155.11 lakh tyres and has a utilisation rate of 95%. The company said it has fourth plans to boost this capacity by 19.45% by October 2025.

The total consideration of this said investment is Rs 1,025 crore, which is required for the success of this expansion project. The finance of this project is to be done through a combination of equity, internal accruals, and debt.

The major reason behind this expansion initiative is the robust growth observed in the Indian auto industry. The company sees an optimistic growth opportunity to further solidify its market presence in the market.

In its regulatory filing, the company said, “The Indian auto industry is witnessing good growth, which is expected to continue for some time. Hence an opportunity to increase the company’scompany’s market presence further in the automotive tyre market.”