Bridgestone plans Rs 674 cr expansion

Tyre major Bridgestone is learnt to have planned another Rs 674-crore expansion to reach a capacity of 8 million tyres per year for its Pithampur (Indore) unit. The company has recently demanded sops and concessions, which, according to a government source, have been cleared by the Apex empowered committee on investment.

The new expansion programme, according to the source, “will be completed by 2011 and the company will add production of 3 million tyres per year with this expansion. Under the new expansion the company will make steel-belted passenger car tyres.”

The company manufactures 3 million steel-belted radial tyres per annum and supplies them to the original equipment manufacturers and replacement market. It has already embarked upon approximately a Rs 263 crore expansion plan and had been offered concession in accordance with state Industrial Promotion policy.

“The apex empowered committee on investment has offered concession to the new expansion plan. The earlier expansion plan which will be completed next year has also been given facilities in accordance with the policy,” the source added.

This was the first major expansion by the company since its inception in 1998. The company officials could not be contacted but proposal documents seen by Business Standard reveal that the company has plans to increase the existing capacity by 4,000-6,500 tyres per day. Bridgestone India is a part of Japan-based Bridgestone Corporation.

The product range of Bridgestone includes light commercial vehicle steel belted radial tyres and tunes and passenger steel belted radial tyres and tubes.