TVS Srichakra to invest Rs 1,000 cr to ramp up capacity at two facilities

TVS Srichakra Ltd, part of the $8.5 billion TVS Group and a leading tyre maker will invest around Rs 1,000 crore to ramp up manufacturing at its Madurai and Pantnagar plants. The proposed investment will be made over a three-year period.

The investment, when fully made, will result in an increase in two- and three-wheeler tyre capacity by 25-30% and doubling of off-highway tyre capacity from current levels. The investment is planned to be funded by a mix of debt and internal accruals.

The Madurai (Tamil Nadu) and Pantnagar ( Uttarakhand) facilities have a production capacity of over 3 million tyres a month. The company has a design center in Milan, Italy, supporting the R&D centre in Madurai and the tyres are tested in Indian, European, and Japanese road conditions. TVS Srichakra’s products are available in over 85 countries across the world.

TVS Srichakra is India’s leading two- and three-wheeler tyre manufacturer. The company supplies tyres to a majority of two- and three-wheeler manufacturers in India, apart from having a significant presence in the domestic aftermarket.

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.

S Ravichandran, director, TVS Srichakra Limited, said, “With a wide distribution network in India, growing international presence and the building of state-of-the-art capabilities in R&D and product development, we are further strengthening our manufacturing capabilities to cater to the growing demand 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”.