Balkrishna Industries board approves Capex of Rs 1,900 crore
Mumbai-based tyre manufacturing company, Balkrishna Industries Ltd announced on Monday post the market session that its board of directors has approved a Capex plan of Rs 1,900 crore.
With the overall rise in demand, the board has planned a brownfield expansion project with an estimated cost of Rs 800 crore. The company plans brownfield expansion and debottlenecking project, coupled with the addition of balancing & ancillary equipment in Bhuj. The achievement of this project will result in an increase of achievable tyre production capacity by 50,000 MTPA.
Additionally, the company is planning to enhance carbon black capacities and setting up a captive power plant with an estimated cost of Rs 650 crore. The board has approved to enhance the installed capacity of carbon black from 1,15,000 MTPA capacity to 2,00,000 MTPA. It also includes 30,000 MTPA of high-value advanced carbon material along with setting up an additional power plant with a capacity of 20 MW.
Moreover, it also approved the modernisation, automation & technology upgradation of a few existing types of equipment along with the installation of an automated material handling system. This Capex will be undertaken in Rajasthan and Bhuj (Gujarat) facilities to improve quality and efficiency. The project will cost around Rs 450 crore and is expected to complete by H1FY23.
Despite new capacity expansion plans, at 11.25 am on Tuesday, its share was trading 9.47 per cent down at Rs 1,665.30. It recorded an intraday high of Rs 1,885 and an intraday low of Rs 1,657 on BSE.