TVS Srichakra has entered into a contract manufacturing agreement to make two-wheeler tyres under the Michelin brand.

In an announcement to the stock exchanges, the TVS group company said a new plant would be set up at TVS Srichakra’s site in Madurai in southern Tamil Nadu.

The annual manufacturing capacity of the new unit will be 3.6 million tyres.

A company announcement said it will make bias tyres under the Michelin and its own brands for motorcycles and scooters,.

Company officials, however, declined to share details about the agreement and investment plans.

With a total capacity of 24 million tyres a year at two plants — at Madurai and Rudrapur (Uttarakhand) — the ₹2,100-crore TVS Srichakra is the largest supplier of two-wheeler tyres to OEMs.

TVS Srichakra officials had said in a recent interaction with media persons that it will manufacture two-wheeler tyres for the sub-500 cc bikes for which TVS Motors and BMW Motorrad have tied up. Both companies had announced the plans in 2013 and the bike is expected to be rolled out next year.

Michelin, the French multinational tyre manufacturer, has a truck radial tyre manufacturing unit near Chennai.

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