French tyre major Michelin to double India capacity

Plans to focus on OEM market, announces tie up with Ashok Leyland

French tyre manufacturer Michelin will double its manufacturing capacity in its Chennai facility to 30,000 tonnes per annum by the end of year 2018, as part of its plan to expand its presence in the truck tyre market both in India and abroad.

Currently the manufacturing facility near Chennai has a capacity of around 15,000 tonne a year.

"We had very small presence in some countries and India was one of them. But I am confident about the growth of India, where we are looking at a long-term presence," said Jean-Dominique Senard, chief executive officer of Michelin Group.

"India is growing fast. We are there at the right time to explore the market with the right product," he said. He added that the company will have an advantage in terms of products to suit the electric vehicles segment and its Indian investments are in line with exploring such possibilities.

At present, around 70 per cent of the commercial vehicle tyres sold by the company in India are made in its plant in Chennai and in two years, it is aiming at producing the entire truck tyres sold in India from this plant, said Serge Lafon, executive vice president-trucks and bus tires product line and member of the Group Executive Committee, Michelin.

The Chennai plant currently operates at full capacity and exports about 10-20 per cent of its production. This year, it started exporting to Europe.

The company has so far invested about Rs 3,500 crore in India in manufacturing and R&D assets. It has been supplying to the replacement market and will increase its presence in the Original Equipment Manufacturer (OEM) market.

Michelin today announced that it has signed an agreement with Ashok Leyland to supply its X Guard range of radial truck tyres for its Captain 3718 Plus long- and medium-distance commercial vehicles. The company has inaugurated a new production line for the range. The range of radial truck and bus tyres offer up to 10 per cent fuel savings, which is a speciality of the brand, said the management.

The company currently has a headcount of about 850 and is looking at adding 150 more direct employees to cater to its expansion plan. It has an R&D facility in Gurgaon, which works for both Indian and global requirement.

Michelin has tie up with TVS Srichakra to meet a part of its two-wheeler tyre sales in India, while the rest is imported. The two-wheeler tyre business is growing at 50-70 per cent, said Mohan Kumar, executive vice president, board member, Michelin India Pvt Ltd.