 "JK Tyre")
JK Tyre Photo: Company website
JK Tyre & Industries is set to invest Rs 1.32 crore in acquiring a 26 per cent equity stake in Truere Galaxy Private Limited, a company focused on generating solar power. This strategic investment will involve purchasing 1.32 million equity shares at a face value of Rs 10 per share, the company said in an exchange filing on Wednesday.
Truere Galaxy, incorporated only earlier this year in April, specialises in renewable energy through the installation of rooftop solar panels. The investment by JK Tyre aligns with its commitment to sustainable and cost-effective energy solutions. By securing a group captive power status, JK Tyre aims to source solar power for its operations, furthering its sustainability goals.
Truere Galaxy operates within the electricity, gas, steam, and air conditioning supply sectors and is based in Bishrakh, Uttar Pradesh. The company, which has two directors, Narender Kumar and Pravin Gupta, is classified as a private entity with an authorised and paid-up capital of Rs 1 lakh.
JK Tyre plans to invest Rs 1,400 crore over two years
Earlier this year, Anshuman Singhania, managing director of JK Tyre & Industries, told The Economic Times that the company is operating at 85 per cent of its available capacity. To meet the growing demand for its products, Singhania added that JK Tyre has embarked on a significant investment plan. The company is nearing the completion of an Rs 800 crore investment cycle to enhance capacity at its facilities. In addition, JK Tyre plans to invest a further Rs 1,400 crore over the next two years to expand production, particularly in the truck, bus, and passenger car radial segments, solidifying its leadership in the radial tyre market.
JK Tyre profits up 37.41 per cent in Q1FY25
Financially, JK Tyre posted a strong performance in the first quarter (Q1) of the financial year 2024-25, with a 37.41 per cent year-on-year increase in profit after tax (PAT), reaching Rs 211.44 crore. However, revenue from operations saw a decline of 2.12 per cent year-on-year, totalling Rs 3,639.08 crore. Despite geopolitical challenges and rising ocean freight costs, the company’s exports achieved double-digit growth during the quarter. JK Tyre’s subsidiaries, including Cavendish Industries Ltd and JK Tornel in Mexico, also made notable contributions to the overall revenue and profitability.
Following its quarter results, the company said it was optimistic about the demand for tyres, driven by ongoing policy reforms and a sustained focus on infrastructure development. The company’s strategic investments in capacity expansion and renewable energy are poised to strengthen its market position and support its long-term growth objectives.
First Published: Aug 21 2024 | 4:09 PM IST