TVS Srichakra Ltd is all set to expand its tyre manufacturing capacity at two of its plants — Madurai in Tamil Nadu and Pantnagar in Uttarakhand.

The two and three-wheeler tyre major, which currently churns out 2.3 million units per month across both its plants, is functioning at full capacity and gearing up to ramp up and cater to the growing demand both from the original equipment manufacturers and after-market demand.

“A decision on the expansion of both the plants along with the investments required will be finalised by February end. The company had increased its manufacturing capacity from 1.7 million tyres per month in 2012-13 to 2 mtpm in 2013-14 and again from 2 mtpm to 2.3 mtpm with the addition of 3,00,000 units per month in October last,” said P Vijayaraghavan, Director.

In an interaction with BusinessLine , the industry veteran said: “TVS Tyres has become the largest supplier of tyres for two and three-wheelers in the country for the OEMs. With the company having over 3,000 strong dealer network, we are training attention on the after-market, where we are amongst the top three in the country. By augmenting fresh capacities, we would be able to further expand our presence in the after-market segment.”

Apart from its supplies to OEMs and meeting the requirement in the after-market segment, the TVS Group company and part of the $8-billion (about ₹50,000-crore company), also produces tyres for some marquee brands such as Michelin from a dedicated plant for the latter’s supplies. In addition, the company, which closed last financial year with a turnover of ₹1,896 crore, is in the process of consolidating its exports.

While exports account for about 13 per cent of the company’s business, apart from two-wheeler tyres, they also include tyres for special applications, tractors, compactors, backhoe loaders among others marketed under the Eurogrip brands. The exports are mainly to South America, South Africa and South-East Asian countries.

“Last year, the company had launched tractor radial tyres and is in the process of expanding the range. The company has been customising tyres to suit the requirements of various manufacturers and it is set to launch radial tyres for motorcycles within the next two months,” he said.

Published on February 2, 2016