NEW DELHI: Delhi-based JK Tyre & Industries is vying for expansion in South-East Asia as Indian tyre companies tap the inorganic route to grow beyond domestic shores to capitalise on global growth opportunities.

Speaking to ET, Dr Raghupati Singhania, CMD, JK Tyres, said, "Even as there is vast potential in the domestic tyre market with India being the world's manufacturing hub for compact cars, we have turned our eyes towards South-East Asia for some fast-track expansion. We have encountered some interesting propositions for possible opportunities of acquisition to catapult into a global entity, after the successful integration of our Mexican subsidiary Tornel into the group."

JK Tyres had acquired Mexican Tyre company, Tornel, along with its subsidiaries for Rs 270 crore in 2008, which allowed the Indian company to expand its footprint into Central and Southern America.

JK Tyres is looking at potential acquisitions and also new plants in overseas locations. "We are actively considering greenfield manufacturing base in many emerging markets of South-East Asia that have posted some strong growth in recent years. Though nothing has been finalised yet, but we have put a strong expansion focus in different geographic regions," Singhania added without sharing any specific details. The company currently has nine plants across India and Mexico with an annual capacity of around 20 million tyres.

JK Tyres is also moving ahead with its domestic expansion plans with a capex investment of around Rs 1,000 crore to double its truck & bus radial as well as passenger car radial capacity at the Chennai plant.

Source : economictimes.indiatimes.com