BANMORE, India — JK Tyre & Industries Ltd. has completed Phase I of a capacity expansion of its tire plant in Banmore, Madhya Pradesh, India, raising the factory's capacity for radial passenger tires by 31% to 5.1 million units a year.
JK Tyre invested $38 million to carry out the expansion of the 32-year-old Banmore facility.
Phase II of the expansion project, now under way, will boost capacity another 31% to nearly 6.7 million units by April 2024. The company has budgeted $75 million for Phase II.
Raghupati Singhania, chairman and manging director of JK Tyre, said the expansion "reflects our unwavering dedication to innovation, sustainability and our substantial contribution to the growth story of Madhya Pradesh. …"
"This is vital as Indian economy engages with the global economy to foster regional prosperity," he said. "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."
The plant, opened in 1991, sits on a 211-acre site and represents direct and indirect employment for nearly 15,000 individuals in the state. This expansion will generate over 7,000 new jobs in the region, JK Tyre said, resulting in increased regional economic growth.
JK Tyre marked the completion of Phase I with a ceremony at the plant attended by Shivraj Singh Chouhan, chief minister of Madhya Pradesh; Narendra Singh Tomar, union minister of agriculture and farmers' welfare; and Jyotiraditya Scindia, union minister of civil aviation and steel.
The Banmore plant is one of four tire factories JK Tyre operates in India.
Based on fiscal 2021 sales of $1.59 billion, JK Tyre is considered the third largest tire maker in India and No. 21 worldwide, according to Tire Business' annual Global Tire Report rankings.