With the aim to strengthen its topline, JK Tyre and Industries plans to add up Rs 2,000 crore with the establishment of a new radial tyre facility in Sriperumbudur near Tamil Nadu from fiscal 2012-13 onwards.

The company's top company made this declaration.

Managing Director Raghupati Singhania said, "The new plant is expected to add Rs. 2,000 crore to our turnover. The plant will roll out its first tyre sometime next October. By then the total production capacity for the company will be
1.55 crore tyres."

JK Tyre signed up a MoU with the Tamil Nadu administration for establishing the facility, which will generate about 1,000 direct jobs.

Mr. Singhania stated that the 100 acre Sriperumbudur facility result in saving up freight cost of the company as all these years the company fulfilled the needs of the southern zone from its facilities situated in Karnataka and other regions across the country.

Mr. Singhania added that the new facility will not majorly change the company's sales to vehicle makers and retail/replacement market.

"In the car and trucks segment our sales to original equipment manufacturers (OEM) is 55 percent and 14 percent respectively. The new plant may not alter this ratio," Mr. Singhania added.

He also said that a small portion of the output from the planned facility will be exported to other countries.

He said that JK Tyres has been boosting up its overall capacity in the recent years at an expenditure of Rs 500 crore.

JK Tyre invested approximately Rs 130 crore in amplifying the earthmoving equipment tyre capability.

The company has a capacity to launch 50,000 tyres for this vehicle section.

Mr. Singhania said that purchasers of trucks fitted with Chinese tyres are now asking for further reductions from the vehicle mnufacturers.