India’s TVS Srichakra Ltd. is planning to expand capacity for two- and three-wheeler and off-the-road (OTR) tyres at its plants in Madurai and Pantnagar, to meet growing demand for its products.
The tyre maker is committing US$135 million to the project, made up of a mix of debt and internal accruals. The expansion is expected to result in a 25% to 30% increase in capacity for two- and three-wheel tyres and a near doubling of capacity for OTR tyres; and also enhance capacities for radial tyres and other premium products.
With fiscal 2019-20 sales of US$297 million, TVS Srichakra — which goes to market under the TVS Eurogrip brand name — is considered the seventh largest tyre maker in India and 59thlargest worldwide.
“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 TVS Director S. Ravichandran.
The investment “further strengthens our manufacturing capabilities to cater to the growing demands in India and abroad,” he added.