Makers of tyres in India, JK Tyre and Industries (JK Tyres) unveiled its plan to set up a greenfield radial tyre manufacturing unit in Sriperumbudur. The company is going to spend Rs. 1,500 crore for the whole thing.

As much as 100 acres of land will be covered under the factory and the total capacity of the plant is going to be 50 lakh passenger cars radial tyres and six lakh truck/bus radial tyres.

It is expected that the unit will become operational from October 2011 and will come to its full capacity by 2012.

As of now, the total annual capacity of JK Tyres is about 1.55 crore tyre. This information was given by Raghupati Singhania, Vice-Chairman and Managing Director.

He further added that a memorandum of understanding (MoU) for the plant has already been signed by himself in the presence of the Tamil Nadu Chief Minister, M. Karunanidhi. As for the significance of the place he said that it was chosen since Chennai is becoming an automobile hub.

The unit is going to be environment-friendly and will be all possible ways to keep itself that way.