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Tyre firms plan more investment in 2010

“In line with growing demand, tyre companies are likely to make significant increase in their capex plans in 2010-11, to expand capacity and meet product demand.”
 
Increasing demand in the auto sector in the face of a recovering economy may help the country’s tyre industry to clock 7-8 per cent growth in FY11. Also, in line with growing demand, tyre companies are likely to make significant increase in their capex plans in 2010-11, to expand capacity and meet product demand. 
 
“The Indian tyre industry may grow at around seven to eight per cent at Rs 27,000 crore in the next financial year from Rs 25,000 crore presently, on the back of a high demand in the the automobile sector,” said A. S. Mehta, Director (Marketing) of JK Tyre & Industries. 
JK Tyre, which is one of the leading players in the domestic market, aims a growth rate of 20 per cent in the next one year. It has chalked out an investment plan of Rs. 1,200 Cr over the next two years to expand production in its car and truck radial segment. Another leading tyre manufacturer, Ceat, said it has set a target of achieving an income of Rs. 3,500 Cr in the next financial year.

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