Balkrishna Industries Ltd. (BIL), a Mumbai-based Indian multinational engaged in the manufacture of tyres for agricultural, industrial, and OTR (off-the-road) vehicles, has completed the expansion plan of a 55,000 MTPA (metric tonne per annum) carbon black project and power plant in Bhuj, Gujarat, as on December 31, 2022.
The company on Monday said that the Rs 650 crore project was part of its expansion plan approved by the board in November last year. The company had planned the advanced carbon black project of 30,000 MTPA to be commissioned by the March quarter.
Further, it commissioned a 50,000 MTPA brownfield tire plant at Rs 800 crore investment and expects a ramp-up of production in the second half of the current financial year.
Balkrishna Industries spent Rs 450 crore on modernisation, automation, and technology upgradation.
The company's board decided to revert to its earlier decision of ceasing operations at the old plant in Waluj, Maharashtra. The earlier approved capital expenditure of Rs 350 crore for modernisation of the old plant will now be utilised at the new plant site to bring in economies of scale.
The execution will be done as a brownfield project, which is expected to be completed by the first half of the financial year 2024. The Waluj location will accordingly have an overall capacity of 55,000 MTPA at a single site.
The Balkrishna Industries Ltd. stock ended 0.29 percent lower at Rs 2,125 on Monday.
