TVS Srichakra, a leading manufacturer of two- and three-wheeler and off-highway tyres, has announced a capital expenditure of ₹1,000 crore to ramp up manufacturing in its Madurai and Pantnagar factories. The investment is being planned to be made over a three-year period.
The investment will significantly increase TVS Srichakra’s capacities and technological capabilities in the off-highway tyre segment, with a clear focus on global markets, said a statement.
The investment, when fully made, will result in an increase in two- and three-wheeler tyre capacity by 25-30 per cent and doubling of off-highway tyre capacity from current levels. The expansion will be funded by a mix of debt and internal accruals.
Growing demand
The expansion programme being undertaken will focus on setting up additional capacities in this space to cater to growing demand across its customer base — both domestically and globally. Included in this investment is a plan to enhance capacities in the company’s pioneering range of radial tyres and other premium products.
“With a wide distribution network in India, growing international presence and building state-of-the-art capabilities in R&D and product development, we are further strengthening our manufacturing capabilities to cater to the growing demands in India and abroad. We believe that this capital outlay will enable TVS Eurogrip to further its growth aspirations and help strengthen its partnerships with vehicle manufacturers and create new benchmarks in the replacement and global markets,” said S Ravichandran, Director, TVS Srichakra.
“This investment reflects our fullest confidence in India’s recovery and its prospects in the medium to long term and is our contribution to Atmanirbhar Bharat,” he added.
The company supplies tyres to most two- and three-wheeler manufacturers that operate in India, besides holding a significant presence in the domestic after-market. The company is also a leading exporter of two- & three-wheeler tyres.
In FY19-20, the firm announced the launch of its new brand, TVS Eurogrip, as well as a new range of products. The company had also announced the setting up of a product design centre in Milan, Italy.