TVS Srichakra Ltd., a manufacturer of 2- and 3-wheel tires and for off-road vehicles, announced its planned capital investment of Rs 1,000 crores to increase manufacturing at its Madurai and Pantnagar plants. This investment is planned for a period of three years. The investment, when fully made, will result in an increase in 2- and 3-wheel tire capacity by 25-30% and a doubling of off-road tire capacity from current levels. The investment is expected to be financed through a combination of debt and internal accruals.
TVS Srichakra supplies tires to most of the two- and three-wheeler manufacturers operating in India, as well as having a significant presence in the domestic aftermarket. The company is also a leading exporter of 2 and 3 wheel tires. The expansion program that is being carried out will focus on the creation of additional capacities in this space to meet the growing demand in its client base, both nationally and globally. This investment includes a plan to upgrade the capabilities of the company’s range of radial tires and other premium products.
TVS Srichakra Ltd had previously announced, in fiscal year 19-20, the launch of its new brand TVS Eurogrip, as well as a new range of products. The company had also announced the installation of its product design center in Milan, Italy, in fiscal year 19-20. TVS Eurogrip has focused on increasing its profits in the aftermarket while strengthening its original equipment presence. The initial response to the new products launched in the previous year has been encouraging. TVS Eurogrip will further expand its portfolio in national and global markets.
Talking about the investment plan, Mr. S Ravichandran, Director of TVS Srichakra Limited, said: “With an extensive distribution network in India, a growing international presence and leading-edge capacity building in R&D and product development, we are further strengthening our capabilities. manufacturing to cater to the growing demands in India and abroad. We believe 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 full confidence in India’s recovery and its medium and long-term prospects and is our contribution to Atmanirbhar Bharat. ”
