JK Tyre targets 1 mn unit capacity expansion in FY26; bets on digitalisation for efficiency
is looking to ramp up its manufacturing capacity in the current fiscal while also focusing on digitalisation of its operations to improve overall efficiency, said a top official of the company.
'We are basically increasing by another million. So, we are increasing capacity in passenger tyres, as well as in trucks and light trucks,' Anil Kumar Makkar, group chief sustainability officer, JK Organisation and manufacturing director, JK Tyre & Industries, told ETAuto.
The Delhi-headquartered company will expand its tyre manufacturing capacity from 29 million units to about 30.5 million units in FY26, aided by the ₹1,400 crore capital expenditure (Capex) earmarked for the fiscal.
The overall expansion will be driven by an increase in the capacity of its existing plants in Banmore, Madhya Pradesh, and Uttarakhand, Makkar said. The Banmore facility's capacity will be expanded from 20,000 to 30,000 tyres daily in the fiscal year 2026, with the balance being driven by the Uttarakhand plant. The company will majorly focus on increasing the production of radial tyres, a segment that currently serves the passenger car, truck, and light truck sectors.
Digital Drive Across JK Tyre's Plants
In order to achieve operational efficiency, the company is betting big on automation, enabled by artificial intelligence (AI) and machine learning (ML). The adoption has helped it reduce complaint resolution time from 20 days to just 20 minutes.
At the Chennai plant, the tyre major has implemented digital traceability with barcode tracking from raw materials to finished goods. With data-backed decisions, Makkar said the company has been able to achieve a 'significant enhancement in efficiency'.
'We use data scientists to analyse data and identify gaps where we can improve. This has helped us increase the company's capacity by over 14 per cent,' he added.
The company's Chennai and Banmore plants are almost fully equipped with the latest technologies, while the Uttarakhand plant is currently transforming.
On the other hand, the Mexico plant is being modernised with the latest machinery to manufacture larger rim sizes of 18 inches to 21 inches. It currently serves the US market. With the incorporation of AI and digitalisation in the company's plants, the tyre major also aims to upskill its current workforce.
Sustainability Initiatives
The tyremaker has also set ambitious sustainability targets, including becoming carbon neutral by 2050. Currently, renewable energy accounts for 57 per cent of standalone operations, and approximately 45 per cent of the company's overall operations include the Cavendish acquisition.
'We are targeting around 70 per cent renewable power and also looking at roughly 60 to 65 per cent biomass usage…which will probably require some investment to upgrade boilers and related infrastructure. That is all fully planned,' the executive said.
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