Japanese tyre maker Bridgestone plans to make a foray into the two-wheeler segment over the next two years, thus helping the company deliver incremental growth to its core business of making passenger tyres. At present, Bridgestone India holds about 7% marketshare in the Rs 28,000 crore tyre market.
“We have recently identified the need to be in the two-wheeler space. It will take at least two years to finalise plans, though we have a go ahead from the headquarters,” said a company official requesting anonymity.
“We have established a presence in the passenger tyre segment. As we consolidate our position further, we are exploring newer opportunities to bring us growth,” he said without giving away details on the potential of the new segment.
At 14 million units per year, India is already the largest two-wheeler market in the world. According to Icra estimates the industry will grow to 23 million units by 2017.
Bridgestone currently has two manufacturing facilities in India in Indore and Chakan. The company will most likely make a foray in the two two-wheeler space from its Chakan facility where it will ramp up production to 10,000 units per day by 2015. Bridgestone pledged a capex of R2,600 crore for its Chakan facility, of which R2,000 crore has already been spent. The remaining capital will be utilised over the next three years.