JK Tyre & Industries Ltd has announced board approval for a major capacity expansion initiative worth Rs 1,130 crore, targeting increased production of commercial and passenger vehicle tyres. The board meeting, concluded on February 6th, 2026, approved the expansion under SEBI Regulation 30 disclosure requirements.

Expansion Details and Investment

The capacity expansion encompasses three key tyre categories across multiple manufacturing facilities. The company plans to increase production of Truck & Bus Radial (TBR) tyres, All Steel Light Truck Radial (ASLTR) tyres, and Passenger Car Radial (PCR) tyres by 6.5%.

Manufacturing Facilities and Product Focus

The expansion will be implemented across three strategic locations to enhance the company's manufacturing footprint:

• Vikrant Tyre Plant (VTP): TBR and ASLTR tyre production expansion
• Laksar Tyre Plant (LTP): TBR tyre manufacturing enhancement
• Banmore Tyre Plant (BTP): PCR tyre capacity addition

The current capacity of 204 lakh tyres per annum includes capacity additions already under implementation, indicating the company's ongoing commitment to scaling operations.

Financing Strategy

The Rs 1,130 crore investment will be funded through a combination of internal accruals and debt financing. This financing approach reflects the company's balanced capital structure strategy while supporting significant growth investments.

Market Rationale and Industry Outlook

The company cited robust demand across tyre categories in the Indian market as the primary driver for this expansion. The strategic initiative aims to increase JK Tyre & Industries' market presence in the automotive tyre sector, capitalizing on favorable industry conditions.

With capacity utilization already exceeding 90%, the expansion addresses immediate market demand while positioning the company for sustained growth in the commercial and passenger vehicle segments.

JK Tyre & Industries has received reaffirmation of its credit ratings from CARE Ratings Limited following the completion of its merger with subsidiary Cavendish Industries Limited. The development comes after the National Company Law Tribunal approved the merger through its order dated November 20, 2025, with the merger becoming effective December 22, 2025.

Merger Details and Impact

Following the tribunal's approval, Cavendish Industries Limited has ceased to exist as a separate entity effective December 22, 2025. All assets, liabilities, rights, and obligations of the subsidiary have been transferred to and vested in JK Tyre & Industries Ltd. The credit facilities previously availed by Cavendish Industries are now deemed to be availed by the parent company.

CARE Ratings has withdrawn the ratings previously assigned to Cavendish Industries' bank facilities following the merger completion. The rating agency confirmed that the merger has no impact on JK Tyre's credit profile, as their analytical approach for the company was already consolidated, including the subsidiary.

Credit Rating Reaffirmation

CARE Ratings has reaffirmed JK Tyre's credit ratings across all facilities and instruments. The company received confirmation of these ratings on January 13, 2026, at 11:19 AM.

Rating Rationale and Company Strengths

CARE Ratings highlighted several key factors supporting the rating reaffirmation. The assessment continues to derive strength from JK Tyre's long operational track record and significant market share supported by strong brand recognition across all vehicle categories. The company maintains a leadership position in the Truck and Bus Radial (TBR) segment.

The rating agency also emphasized the company's diversified portfolio across major original equipment manufacturers and the replacement market. This diversification is supported by a wide and robust distribution network, with exports reaching over 100 countries globally.

Corporate Governance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, relating to credit ratings. The announcement was signed by Company Secretary Kamal Kumar Manik and communicated to both BSE Ltd. and National Stock Exchange of India Ltd.