Tyre maker TVS Srichakra to invest Rs 10 bn for expansion
The company will make this investment over a period of 3 years in its Madurai (Tamil Nadu) and Pantnagar (Uttarakhand) plants to increase 2 & 3 wheeler tyre capacity by 25-30 per cent and doubling its off-highway tyre capacity from current levels.
Madurai, December 8, 2020
TVS Srichakra Ltd, a part of TVS Group and India’s leading manufacturer of 2 & 3 wheeler and off-highway tyres, plans capital expenditure of Rs 10 billion to ramp up manufacturing in its Madurai (Tamil Nadu) and Pantnagar (Uttarakhand) plants. The investment, which will be made over a three year period, will result in an increase in 2 & 3 wheeler tyre capacity by 25-30 per cent and doubling of off-highway tyre capacity from current levels. The company’s manufacturing facilities in Madurai and Pantnagar has a production capacity of over 3 million tyres a month. The investment is planned to be funded by a mix of debt and internal accruals.
TVS Srichakra - the maker of TVS Eurogrip brand of tyres - supplies tyres to the leading 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 program 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 Limited, 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 Ltd 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 have been encouraging. TVS Eurogrip will further expand its portfolio in domestic and global markets.
Incorporated in 1982, TVS Srichakra Limited is one of the flagship companies of the $ 8.5 billion TVS Group which is India’s largest auto ancillary conglomerate. With global research and development capabilities and cutting-edge technology, TVS Srichakra produces industry leading tyres for the automotive sector in India and worldwide. Headquartered in Madurai, the company has manufacturing facilities in Madurai and Pantnagar, and a design centre in Milan (Italy) supporting the R&D centre in Madurai.