General Tyre seems gearing up to step up its game as it reported the company in collaboration with Rubber Company is planning to invest approximately PKR 1.26 billion. Report indicates that the move is a part of company’s expansion plans in future.
The move indicates that General Tyre is working hard to position itself amongst the dominant players of Pakistan’s automobile industry. As per the stock filing, the company’s board of directors has already given a green signal to the management for buying a land worth PKR 1.26 billion in a bid to set manufacturing plans and warehouse of the firm.
The company plans to set up manufacturing plant on the 50 acres of the land that it plans to acquire and an additional 20 acres of land will be used to set up manufacturing plants and warehouses. For those who are not familiar, Rubber Company and General Tyre is considered as the major supplier of different types of tyres to many automobile firms who either manufacture or assemble motorbikes, cars, and heavy vehicles.
Moreover, considering the fact that Pakistan’s automobile industry is expanding at a very fast pace as the new entrants are penetrating the industry and existing players are scaling up their operation to cater the increased demand of vehicles. It is safe to assume that the demand of tyre is also experiencing a surge in the local market.
General Tyres and Rubber Company have been experiencing an increase in their profits from PKR 259 million in FY11 to PKR 1,023 million in FY16, collectively.
It is safe to say that General Tyre and Rubber Company is making efforts to deliver strong results and is well positioned to leverage the upcoming economic opportunities. In any case, we’ll keep a tab on the upcoming trends of the company to keep our readers updated.