JK Tyre & Industries Limited is set to complete three major capacity expansion projects by the end of March 2026 involving a combined investment of about INR 12 billion. The projects, located at its plants in Madhya Pradesh, Uttarakhand and Karnataka, are expected to raise the company’s total production capacity by nearly 13 percent.
The investments cover new lines for passenger car, truck and light truck tyres, and are progressing on schedule for phased commissioning within the financial year. “We have been implementing three projects—one for passenger car radials at Banmore, one for truck and bus radials at Laksar, and another for all-steel light truck radials at Mysuru,” said Chief Financial Officer Sanjeev Aggarwal. He stated that total capital expenditure for the year stands at about INR 12 billion, including INR 6 billion already incurred in the first half and the balance to be spent as machines arrive for installation in the second half.
The largest project is the passenger car radial (PCR) expansion at Banmore in Madhya Pradesh, with an investment of INR 10.25 billion. This is followed by a truck and bus radial (TBR) expansion at the Laksar plant in Uttarakhand costing INR 2.61 billion and an all-steel light truck radial (ASLTR) project at the Vikrant plant in Mysuru costing INR 1.12 billion. “These projects will come up for production in the third quarter and will reach full ramp-up over the next six months,” Aggarwal said.
Consolidated capacity utilisation during the quarter stood at 88 percent, with radial facilities operating above 90 percent. Managing Director Anshuman Singhania said the company is preparing to meet rising domestic and export demand. “Our new capacities for passenger, truck and light truck radials are coming in the third quarter, and we are fully geared up to take up any surge in demand. We will not let any loss of sales on account of capacity shortage,” he stated.
The company’s Mexican subsidiary, JK Tornel, is also expanding capacity with a separate investment of USD 21 million. The project will raise installed capacity by about 15 percent and is expected to begin production in the fourth quarter of FY26. JK Tornel, which recorded its highest sales in six quarters, currently operates at about 80 percent utilisation, with radial production at 88 percent.
JK Tyre is also close to completing the merger of Cavendish Industries Limited, which is expected to strengthen synergies across its manufacturing network. The merger is anticipated to be completed by the end of November 2025 following the next hearing before the National Company Law Tribunal in Jaipur.
The total capital expenditure for the ongoing fiscal year forms part of the company’s broader programme to modernise plants, increase automation and enhance efficiency. Funding has been largely met through internal accruals and available debt lines. Net debt as of 30 September 2025 stood at INR 42.01 billion, with a net debt-to-equity ratio of 0.75 times and net debt-to-EBITDA at 2.5 times.
The new capacities are expected to begin contributing to output and profitability from early FY2026–27. Singhania said the company’s expansion strategy aims to strengthen its presence in the passenger and radial truck segments and to serve both domestic and export markets more effectively.
JK Tyre & Industries Limited, part of the JK Organisation, manufactures a full range of tyres for passenger vehicles, commercial trucks and farm equipment through nine plants in India and three in Mexico.
