JK Tyre & Industries Ltd., is setting up a world-class greenfield project at Sriperumbudur, near Chennai at an investment of Rs 1,500 crore. The company signed a memorandum of understanding (MoU) with the Tamil Nadu government for the project. The new radial tyre manufacturing facility will have the capacity to make 50 lakh passenger car radial tyres and six lakh truck and bus radial tyres. The plant will roll out radial tyres by the end of 2011 in its first phase. With the commissioning of this plant, the capacity of the company will reach 1.55 crore tyres per annum by 2012.

The company has invested around Rs 500 crore on expansion of its plants over the last few years. It has signed a supply agreement with Bharat Earth Movers Ltd to supply tyres for their earthmoving equipments. The company will shortly roll out tyres weighing 3.7 tonne and 12 feet in diametre from the Mysore plant. JK Tyre invested around Rs 130 crore in expanding the Mysore plant which has a capacity to roll out 50,000 earthmoving equipment tyres