Shares of JK Tyre & Industries Ltd. are trading at a 52-week high with gains of nearly 7 percent on Friday after the tyre-manufacturer completed the first phase of its capacity expansion of its radial tyre manufacturing facility in Banmore, Madhya Pradesh. This phase of the capacity expansion was carried out with an investment of Rs 312 crore.
The company has planned a two-phased expansion of its existing facility at Banmore to cater to the increasing demand for Passenger Car Radial (PCR) tyres.
Post the expansion, JK Tyre's annual output from the said plant will increase by 31 percent to 51 lakh units, from 39 lakh units earlier, according to the company's exchange filing.
Second phase of the expansion at the said facility is likely to be completed by April 2024 with an additional investment of Rs 617 crore.
JK Tyre's Banmore facility spreads across 211-acre and has created direct and indirect employment opportunities for nearly 15,000 individuals, the company said. The expansion will generate additional employment for another 7,000 people in the region.
The Banmore facility, established in 1991, is involved in the manufacturing of high-tech products such as eco-friendly tyres, smart tyres, and puncture guard tyres and caters to both domestic and international clients.
JK Tyre has set a goal to bring down carbon emissions by half by 2030.
Shares of JK Tyre are trading 6.9 percent higher at Rs 221.55 after making an intraday 52-week high of Rs 224.30. The stock has risen nearly 20 percent on a year-on-year basis.
