JK Tyre spurts on the plans of investing additional Rs 1430 crore in Chennai facility

 

JK Tyre & Industries is currently trading at Rs. 113.00, up by 1.20 points or 1.07 % from its previous closing of Rs. 111.80 on the BSE.

The scrip opened at Rs. 112.90 and has touched a high and low of Rs. 115.00 and Rs. 112.00 respectively. So far 52806 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 131.25 on 10-Jan-2013 and a 52 week low of Rs. 80.05 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs. 114.70 and Rs. 103.60 respectively. The current market cap of the company is Rs. 463.97 crore.

The promoters holding in the company stood at 47.34% while Institutions and Non-Institutions held 14.21% and 38.44% respectively.

JK Tyre & Industries is planning to invest additional Rs 1430 crore in its Chennai facility. In this regard, the company has already received its board’s approval. The said investment will give a boost to the facility, from where 30 per cent of the products will be exported to around 90 markets. This will also help the company to bring down the sourcing from China and Vietnam.

Further, the company will invest $25 million in Mexico to enhance its passenger car radial (PCR) facility to cater the needs in the region. The capacity would be expanded to 25 per cent and it is expected to be commissioned in 10 months.

JK Tyre & Industries is the flagship company under the umbrella of JK Organization. JK Tyre is the pioneer for Steel Radial technology in India. Over the years, the company has expanded and diversified its business portfolio. It has developed into a multi product, multi-location corporate entity. 

NITESH KUMAR

PGDM 1ST