A Analysis of Capital Budgeting Practices at JK Tyres & Industries Ltd

This study investigates the capital budgeting practices at JK Tyres & Industries Ltd., a leading manufacturer in the Indian automotive sector. The research focuses on understanding how the company evaluates potential investments and allocates resources to maximize returns while minimizing risks. Various capital budgeting techniques, such as Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, and Profitability Index, were analyzed to assess their effectiveness in the decision-making process. Data was collected through a combination of primary and secondary sources, including interviews with key financial managers and the company’s financial reports from the past five years. The findings reveal that JK Tyres & Industries Ltd. primarily uses a combination of traditional and modern techniques for capital budgeting, balancing between cost efficiency and strategic growth. The study underscores the importance of adopting robust capital budgeting frameworks to enhance financial performance and competitive positioning in the dynamic automotive industry. Recommendations are provided for optimizing capital allocation and integrating risk management strategies to support sustainable growth.