JK Tyre & Industries is to invest Rs 1.32 crore to acquire a 26% ownership position in Truere Galaxy Private Limited, a solar power generation company. This strategic investment would include the purchase of 1.32 million equity shares with a face value of Rs 10 per share, the company announced in an exchange filing on Wednesday.
Truere Galaxy, founded in April of this year, specializes in sustainable energy by installing rooftop solar panels. JK Tyre's investment reflects its dedication to sustainable and cost-effective energy solutions. By obtaining group captive power status, JK Tyre intends to get solar power for its operations, increasing its sustainability objectives.
Truere Galaxy, headquartered in Bishrakh, Uttar Pradesh, supplies energy, gas, steam, and air conditioning. The business, which has two directors, Narender Kumar and Pravin Gupta, is designated as a private entity with an approved and paid-up capital of Rs one lakh.
JK Tyre is to Invest Rs 1,400 crores over Two Years
Earlier this year, Anshuman Singhania, managing director of JK Tyre & Industries, told The Economic Times that the company is functioning at 85% of its full capacity. Singhania stated that JK Tyre has launched a big investment strategy to satisfy the increased demand for its products. The company is reaching the end of a Rs 800 crore investment cycle to increase capacity at its plants. JK Tyre also intends to invest an additional Rs 1,400 crore over the next two years to boost manufacturing, notably in the truck, bus, and passenger vehicle radial categories, thereby cementing its position as the market leader in radial tyres.
JK Tyre profits increased by 37.41 percent in Q1 FY25
Financially, JK Tyre performed well in the first quarter (Q1) of the fiscal year 2024-25, with a 37.41 percent year-on-year growth in Profit After Tax (PAT) to Rs 211.44 crore. However, revenue from operations fell 2.12 percent year on year to Rs 3,639.08 crore. Despite geopolitical challenges and growing ocean freight costs, the company's exports increased by double digits throughout the quarter. JK Tyre's subsidiaries, particularly Cavendish Industries Ltd and JK Tornel in Mexico, contributed significant contributions to overall sales and profitability.
Following its quarterly results, the company expressed optimism regarding tyre demand, citing ongoing legislative reforms and a continued focus on infrastructure development. The company's strategic investments in capacity development and renewable energy are expected to boost its market position and support its long-term growth plans.
