Tyre maker JK Industries plans to spend INR650m rupees to increase capacity to 9m units a year, on the back of rising vehicle sales and the resultant demand for tyres, a senior official said.

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JK, which recently raised capacity to 8m tyres at a cost of INR1.6bn, expected revenue in the year to September 2006 to rise 25% to about INR30bn, finance director AK Kinra told Reuters on Monday.


“The auto sector is certainly going through good times,” he said. “We are also catching up with the demand.”


He expected the expanded capacity to start production by June 2007, the report added.

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