| The company has already invested Rs 70-80 crore in the facility. Besides expansion, the company also intends to set up another plant in the area. |
| The Madhya Pradesh plant started production in 1991 with a production capacity of 570,000 tyres per annum and a range of tyres and passenger radials in particular. |
| "The company has continued to grow despite the increase in the raw material prices, and with the state government offering backward area packages, we are planning to build a second plant," Raghupati Singhania, vice-chairman and managing director of the company, told Business Standard. |
| He, however, refused to divulge the size and nature of the investment and construction work for the second plant. |
| "We are focusing on our investment at the Banmore facility. We plan to invest approximately Rs 200 crore over the next three years to increase our capacity from 2.2 million tyres to 3 million tyres. We have already made an investment of Rs 70-80 crore in this regard and the work is scheduled to be completed by September end this year," he added. |
| On the interrupted power supply and poor infrastructure prevailing in the state, Singhania said, "The power position and nature of infrastructure are almost the same in Banmore as in the rest of MP. However, Madhya Pradesh has a more favourable environment for the industry in some respects than other states." |
| He said the tyre industry was under pressure due to the escalating crude prices, which had led to a steep increase in costs. |
| However, JK Industries Ltd has tackled the situation through cost-cutting operations like reduction of overheads, improved working capital management, product reengineering etc. |
| Growing big |
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