TVS Srichakra, part of $ 8.5 billion TVS Group and a leading manufacturer of 2 &3 wheeler tyres on Tuesday announced capital expenditure of Rs 1,000 crore to ramp up manufacturing at its Madurai and Pantnagar plants. The investment, planned to be made over a three year period, will result in an increase in 2 & 3 wheeler tyre capacity by 25-30% and doubling of off-highway tyre capacity from current levels. The company will fund the expansion through a mix of debt and internal accruals. 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 2 &3 wheeler tyres. 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.
The investment outlay will also significantly increase TVS Srichakra’s capacities and technological capabilities in the off-highway tyre segment, with a clear focus on global markets. S Ravichandran, director, TVS Srichakra said, “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. 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.”
TVS Srichakra had earlier, in FY 19-20, 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 its product design centre in Milan, Italy, in FY 19-20. TVS Eurogrip has been focusing on furthering its gain in aftermarket while strengthening its OE presence. The initial response to the new products launched in the previous fiscal has been encouraging. TVS Eurogrip will further expand its portfolio in domestic and global markets.
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