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Icra expects domestic tyre demand to grow 7-9% between FY'19-FY'23

Press Trust of India  |  New Delhi 

The domestic demand is expected to grow in the range of 7-9 per cent over the five year period between 2018-19 to 2022-23, rating agency said Thursday.

The market would also continue to witness investments over the period of next three years, it added.

"expects the domestic demand to grow by 7-9 over the next five years (2018-19 to 2022-23)," Vice President and Co-Head, said in a statement.

With a stable demand outlook and strong credit profile, the domestic makers will continue to invest in capacities, he added.

"Based on announcements, the industry is likely to witness a capacity addition of over Rs 20,000 crore in the next three years," Srikumar said.

The revenue growth for tyre industry is pegged at 14-15 per cent for 2018-19, with operating margin and net margin of 14 per cent and 7 per cent, respectively, almost in line with 2017-18, he added.

"For 2019-20 to 2021-22, revenue growth is projected at 9-10 per cent with operating and net margins at 14-15 per cent and 6-7 per cent, respectively," Srikumar said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 11 2019. 18:25 IST