JK Tyre & Industries Expands Manufacturing Facility

Today, the shares of JK Tyre & Industries Limited experienced a notable upsurge of 9.31%, reaching a new 52-week high of Rs 226.75 per share on BSE. This surge was accompanied by a significant increase in volume by more than 3.38 times. 

With a substantial investment of approximately Rs 1000 crore, the company has devised a comprehensive expansion strategy in two distinct phases for its existing Banmore facility. This strategic endeavour is aimed at effectively meeting the rising demand for passenger car radial (PCR) tires, positioning the company to capitalise on market growth opportunities. 

The company proudly declares the successful culmination of the initial stage of augmenting its radial tire manufacturing facility, entailing a substantial investment of Rs. 312 crores. This strategic expansion initiative will yield a remarkable 31% enhancement in the plant’s yearly production capacity, surging from 39 lakh to 51 lakh units. 

Additionally, the forthcoming second phase of expansion, slated for completion by April 2024, will witness an additional investment of Rs 617 crore, resulting in another 31% amplification of the production capacity. 

Speaking on the occasion, Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries Ltd., said, “The expansion of this manufacturing facility reflects our unwavering dedication to innovation, sustainability, and our substantial contribution to the growth story of Madhya Pradesh. As India enters ‘Amrit Kaal,’ – the 25-year journey towards the country’s centenary as a modern, developed democracy, we at JK Tyre believe this development to be a strategic move. This is vital as the Indian economy engages with the global economy to foster regional prosperity. Our production and manufacturing capabilities are constantly evolving along with our product in order to meet the demands of our customers, both domestically and internationally.” 

JK Tyre & Industries, under the astute leadership of Dr R. P. Singhania as Chairman and Managing Director, stands proudly as the cornerstone of the esteemed JK group. Renowned as a premier tire manufacturer in India, it holds a prestigious position among the top 25 global manufacturers, offering an extensive portfolio catering to various business sectors encompassing Truck/Bus, LCV (Light Commercial Vehicles), Passenger Cars, MUV (Multi Utility Vehicles), and Tractors. 

The stock has witnessed significant buying activity as it has given multi-bagger returns of more than 120% in just 1 year. Furthermore, the stock has increased by more than 250% in the last three years. 

Investors should keep a close eye on this small-cap trending stock.

Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.