French tyre major Michelin and TVS Srichakra have inked a pact for manufacturing two-wheeler tyres at a new unit within the Indian firm's existing plant in Madurai in Tamil Nadu.
As per the agreement, "products designed by Michelin for the Indian market will be manufactured by TVS Srichakra at this new plant under the Michelin brand name", TVS Srichakra said in filing to the BSE.
"In order to meet the growing demand for its two-wheeler tyres in India, Michelin has entered into an agreement with the company for setting up a new manufacturing facility within its existing plant in Madurai," it added.
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However, the company, which is a part of the TVS Group, did not disclose the financial details.
The TVS Madurai facility, with an annual capacity of 3.6 million tyres, will produce bias product ranges for both Michelin as well as some tyres from TVS's product range of two wheeler tyres.
TVS Srichakra sells its products in the domestic market under the 'TVS Tyres' brand. It markets tyres in the overseas markets under the 'Eurogrip' brand.
The company's shares closed at Rs 1,649.25, up 0.32 per cent, on the BSE.
