Kesoram tyre unit plans capacity expansion

Kolkata: Kesoram Industries has decided to further expand radial tyre production capacity by 100 tonne per day (tpd) and cross-ply or bias tyres by 125 tpd at its unit in Uttarakhand at an estimated cost of Rs 840 crore.

The company board had approved the proposal setting commercial production timeline for the new project by early 2010.

The BK Birla group outfit’s greenfield plant near Haridwar in Uttarakhand had earlier projected a capacity of 257 tpd at a cost Rs 650 crore and was to go on stream this month. Now, the company has informed in a note to the accounts for 2007-08 that “a part of production capacity is expected to start commercial production in May 2008, and balance in phases by end of 2008/early 2009”. The plant will enjoy 100 per cent excise duty exemption for five years.

Meanwhile, production capacity of the company’s tyre unit at Balasore has been increased in phases from 198 tpd to 252 tpd and the last phase of the project started commercial production in November 2007.

The ongoing execution of the project for capacity addition of 1.65 tonne a year at the company’s Vasavadatta Cement unit in Andhra Pradesh, however, remains on schedule. The project is expected to be completed by the year-end.