New Delhi, Nov 10 (PTI) JK Tyre and Industries is gearing up to invest another Rs 5,000 crore over the next 5-6 years to expand its production capacity, including some dedicated lines for export markets,
according to Chairman and Managing Director Raghupati Singhania.
The company, which on Monday introduced India's first embedded smart tyres for passenger vehicles, is currently in the process of investing Rs 4,000 crore to ramp up its manufacturing infrastructure.
The ongoing investment cycle, which commenced around 4 years ago, is expected to end next quarter.
"For the next 5-6 years, we are now planning for another Rs 5,000 crore investment to enhance our capacities, both for car as well as truck tyres," Singhania told PTI in an interaction.
As part of the endeavour, the company also plans to create some production lines dedicated especially for exports, he added.
"We see that going forward India could have a good opportunity in the global markets, we want to utilise this opportunity," Singhania stated.
Currently, JK Tyre gets around 14 per cent of its overall revenues from exports.
The company exports tyres to around 110 markets globally.
With high tariffs in the US impacting business, JK Tyre is focusing on adding new export markets, Singhania said.
"Exports from India are naturally getting restricted (to the US), because with the 50 per cent duty and so on, I hope and wish that some kind of a bilateral trade agreement (with the US) will culminate in successful outcomes, so that will help, but this is still a question mark," he said.
If there is an agreement, things would be better, but if it takes time and for that interim period, the company has revised its export strategy.
"We have diverted our exports from India to other markets...there is a demand and we are diverting shipments to other countries..also we are diverting a lot of exports to the US from our plant in Mexico," Singhania said.
"But in the long term, if this (high tariff situation in the US) continues, then Indian tyre exports to the US will certainly be impaired," he added.
On domestic market growth estimates with GST rate rejig, Singhania said he expects the industry to grow in the range of 5-7 per cent this year, with JK Tyre expected to perform a shade better.
"In the long term, the GST 2.0 will also help in generating demand even in the rural sector because of the affordability factor," he noted.
Singhania stated that the revival of small cars would also entail growth for the domestic tyre industry, with the overall volumes going up.
Commenting on the introduction of embedded smart tyres for passenger vehicles, he noted that the range features advanced sensors within the tyre structure.
Designed and developed in-house and manufactured at the company's Banmore facility in Madhya Pradesh, the technology continuously monitors critical parameters in tyres, including air pressure, temperature, and potential air leaks, delivering real-time actionable insights that significantly enhance vehicle safety, performance, and efficiency.
"By integrating intelligence at the very core of performance, we are transforming the way India drives, making mobility smarter, safer, and more sustainable," Singhania said.
The embedded smart tyres will be available in the aftermarket through the company's dealerships, initially in sizes ranging from 14 inches to 17 inches. PTI MSS SHW
