“The board of directors of the company at their meeting held on Saturday, September 1, 2018, has approved a capex plan of up to $ 100 million for setting up a Greenfield tire plant in the USA through a wholly owned subsidiary to be set up,” Balkrishna Industries said in a statement.
The Company shall also incur capex of up to Rs 10 billion for its Indian Operations. The entire capex will be completed within a period of 30 months. This is in addition to the current capex underway for the carbon black plant, it added.
Balkrishna Industries said its see increased traction in sales volume in Americas over the next few years. The current sales volume has been around 30,000 MT. The board, therefore, approved setting up of a Greenfield project with a capacity of 20,000 MT p.a. The USA project will be funded via investments from the Parent Company and local debt.
Looking at the overall demand in the higher diameter segment, the board has approved a capex of up to Rs 5 billion towards setting up a new line of 5,000 MT p.a. for layers of all steel radial OTR tires and additional mixing line in Bhuj, Gujarat. The capex for setting up of the new state of the art facilities in Waluj, Maharashtra will be approximately Rs 5 billion including a Co-generation plant and in-house warehousing facilities for raw materials and finished goods, it added.
At 10:32 am; Balkrishna Industries was trading 6% lower at Rs 1,282 on the BSE against 0.3% rise in the S&P BSE Sensex. A combined 1.08 million equity shares changed hands on the counter on the BSE and NSE so far.