The Board of Directors of BKT, a market leader in the mining tyres segment, has firmed a capital expenditure (capex plan) of up to $100 million for setting up a greenfield tire plant with a capacity of 20,000 MT p.a in USA through a wholly-owned subsidiary (to be set up). The company shall also incur capex of up to over ₹1,000 crore for its local operations. The entire capex will be completed within a period of 30 months and is in addition to the current capex underway for the Carbon Black Plant.
Sales volume has been around 30,000 MT in the Americas and increased traction in sales volume is expected over the next few years. A local plant would accelerate the growth prospects. The USA project will be funded via investments from the parent company and local debt.
With regard to Waluj in Aurangabad, a greenfield project will be set up on a freehold land of 22 acres owned by the company, which is within a 5-km radius of the current location. The capex for setting up the new state-of-the-art facilities will be approximately ₹500 crore, including a co-generation plant and in-house warehousing facility for raw materials and finished goods. The new facilities will bring greater operational efficiencies, leading to a recurring saving in operation. The existing plant will continue to operate till the new plant becomes operational, and there would be no change in the capacity.
BKT to Unveil High-Tech products at IMME 2018
BKT will unveil a multitude of innovations in the International Mining & Machinery Exhibition (IMME) 2018 to be held in Kolkata from Oct 31 to Nov 3, 2018. The event will be visited by the mining fraternity and will showcase the latest range of mining machinery, equipment, high-tech solutions, services and supplies from India and abroad.
“The Indian mining sector plays a very important role in the country's infrastructure development and economy. With the industry’s focus on adapting internationally advanced technology, there is a huge potential in India’s mining equipment sector. IMME is the largest mining machinery and technology expo in Asia, where the entire mining fraternity will be present. The event will bring together OEMs and associated industries on one platform, along with potential customers. At the event, BKT will unveil its latest innovation at its stall D-09,” informs Rajiv A. Poddar, Joint Managing Director, BKT
For Bhuj, the Board of Directors has approved a capex of up to ₹500 crore towards setting up a new line of 5,000 MT p.a., considering the overall demand in the higher diameter segment for layers of All Steel Radial OTR tires and additional mixing line in Bhuj.
The entire capex of ₹1,700 crore would be funded via a mix of debt and internal accruals.
Going ahead, the company plans to unveil a multitude of innovations in the International Mining & Machinery Exhibition (IMME) 2018 to be held in Kolkata from October 31 to November. The event will witness the presence of the latest mining fraternity and will showcase the latest range of mining machinery, equipment, advanced technology solutions, services and supplies from India and from abroad.
“IMME is the largest mining machinery and technology expo in Asia where all mining fraternity will be present. The event which would bring our OEMs under one umbrella, would also witness the unveiling of our latest technology innovation,” Rajiv A. Poddar, Joint Managing Director, Balakrishna Industries Ltd said.
To experience the innovations, visit BKT stall in IMME 2018 at stall number D09