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Maxxis Tyres launches first Indian plant, to invest Rs 2,640cr

Press Trust of India  |  Sanand (Guj) 

Maxxis Rubber India, a unit Taiwan-based Maxxis Group, today launched its first at Sanand, with an investment of around Rs 2,640 crore.

Of the entire investment of USD 400 million (around Rs 2,640 crore), the company has invested USD 320 million initially for its first phase, which will have a production capacity of 20,000 two-wheeler tyres and 40,000 tubes a day, according to

The plant, spread across 106 acre, was inaugurated by today.

The company plans to increase its capacity to manufacture 60,000 two-wheeler and 12,000 four-wheeler tyres under the second and third phases, according to Liou.

"is an exciting market. If the market allows us, we have vigorous and ambitious plans in Our target is to complete all investments at the plant by 2021," Liou said, adding, Maxxis is targeting to capture 15 per cent of the country's two-wheeler market in the coming five years.

The company currently serves as an OEM (original equipment manufacturer) to Honda, Maruti Suzuki, Mahindra, Tata and

The India production will at present meet the demands of the domestic market for which the company has so far been importing from

However, Liou said the company plans to eventually explore exporting from India.

"We have a presence in 180 countries. Over the years we will shift our production to India and will explore the possibility to export the products from here," he said.

Liou said that considering the quality and other concerns, 98 per cent of raw materials will be imported from south east and east Asian markets. "We will gradually localise supply from India," he added.

The company had signed a memorandum of understanding (MoU) at the Vibrant Investors' Summit in 2015.

"was promoting Make In India and suggested us to come and set up a plant in He assured us full support from the and things progressed very fast as we were able to set up the plant within one year," Liou said.

Meanwhile, Rupani said that Gujarat now accounts for 15 per cent of total foreign investment in the automobile sector, and the Maxxis' decision to set up a plant in Gujarat will strengthen India-tie and create job opportunity for the locals with over 2,000 people getting employment here.

"In Gujarat, Sanand, Mandal, Becharaji, and have emerged as Entry of Maxxis here will put Gujarat on the map of tyre manufacturing centres of the country," he said.

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

First Published: Thu, March 08 2018. 17:45 IST