French tyre major Michelin today inaugurated a new production line that would take the company to double it's plant capacity, a top official said today.
The company which had set up it's facility at Thervoy Kandigai in Thiruvallur district near Chennai had invested about Rs 3,500 crore.
"We have inaugurated a new production line today. New tyres of Michelin will be produced that will help truck companies to save lot of fuel and energy.....", Michelin Group, Chief Executive Officer, Jean-Dominique Senard, told reporters at the factory.
The new production would serve the increase in demand for both replacement market and original equipment manufacturers in the country.
According to him, with the introduction of new production line, the total capacity of the factory will double by end of next year.
The Chennai plant is producing around 15,000 tonnes a year, it will be more than doubled by end of 2018, he said.
France Ambassador to India, Alexandre Ziegler who inaugurated the new production line, said, "I am delighted to be here with Senard, at a time when the company is expanding it's presence in the Indian market".
"This is another successful example of how our French companies actively contribute to make in India and innovate in India", he said.
The Michelin X-Guard range of trucks would come factory fitted with heavy commercial vehicle Ashok Leyland Captain 3718 PLUS long and medium distance commercial vehicles.
"We are pleased to partner Michelin for our latest range of 37tonne trucks. The radial tyres provide tremendous fuel efficiency, helping us offer a differentiated product in this segment", Ashok Leyland Managing Director Vinod K Dasari said.
Responding to a query, Michelin India, Executive Vice-President, Member of Board, Mohan Kumar, said the company by end of next year would produce 30,000 tonne tyres for commercial vehicle segment.
"70 per cent of produced here serves the Indian market. When we double the plant capacity by end of next year we will have a whole range of tyres", he said.
Declining to reveal additional investments made for expanding the production, he said the company had invested Rs 3,500 crore so far at the plant.
With the addition of new production line, the company would also expand the employee base by 150 from the current 850, he said.
To a query on retail outlets, Kumar said the compan has about 5,000 outlets across the country and the company would also take digital route for marketing purposes.
The company is present in over 170 countries and employs 1.11 lakh people at 70 plants across 18 countries.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)