Mumbai: Tyre major JK Industries Ltd is increasing capacity to nine million units a year, at an estimated cost of Rs65 crore, on the back of rising tyre sales and buoyant vehicles market. The capacity expansion is expected to be completed by June 2007.
The company had recently raised capacity to eight million tyres at a cost of Rs160 crore.
JK Tyres, which owns the JK and Vikrant brands and caters mainly to the car radial and commercial vehicles segment of the automobile sector, expects a 15 per cent rise in sales during 2006-07.
JK Tyres has projected a 25 per cent rise in revenue in the year ending September 2006 at Rs 3,000 crore.
The company is also set to review its tyre prices in September as it faces intense pressure on margins due to an increase in input costs.
"We will take up fiscal year results in September and this will be the time when we will review the prices of tyres as well," reports quoted J K Tyres president Arun K Bajoria as saying.
Bajoria said the spurt in prices of inputs like rubber, carbon black and other raw materials had put severe pressure on the operating and profitability margins of the company.