New Delhi: JK Tyre & Industries Ltd on Tuesday said it will foray into the power sector with plans to set up 1,360-MW power plant near Jhansi in Madyha Pradesh, on which it will make an initial investment of Rs 1,300 crore.
“Yes, as a group we are venturing into the power sector. To start with, we will be confined with thermal power plants. We are putting up a 1,360-MW power plant near Jhansi in Madyha Pradesh,” JK Tyre & Industries Ltd vice-chairman and managing director Raghupati Singhania told reporters.
He said in the first phase, the company will start a 660 MW plant within the next two year.
“In the first phase, the total investment will be Rs 1,300 crore. This project is basically a commercial project and the business will be controlled under a separate entity and we will form a special SPV in the coming days,” he said but did not elaborate on the overall investment for the entire project.
On the financing of the project, he said the company will raise funds but details will be be decided later.
On the tyre sector, Singhania said JK Tyre & Industries is looking to advance the opening of its new plant in Chennai in order to meet growing demand.
“As the demand is growing we are trying to expedite for an early operationalisation of the Chennai project. The plant will be ready by this year from an earlier schedule of around May-June 2012,” he said.
The Chennai plant will an initial capacity of 25 lakh passenger car tyres and 4 lakh truck and bus radial tyres annually. The firm had invested Rs 1,000 crore on the plant.
He said in due course of time when demand grows, the capacity of the plant could be increased 3-4 times.
The company also showcased a range of footwears manufactured from used tyres in association, which were developed in association with Footwear Design and Development Institute.
On asked whether the company is looking to commercialise the product, Singhania said: “This can be done. We will be evaluating all options and we will be able to tell you only after that”.