Two and three wheeler tyre maker TVS Srichakra Ltd. recently announced its planned capital expenditure of ₹ 1000 crore to ramp up manufacturing at its Madurai and Pantnagar plants. The new investment is planned to be funded by a mix of debt and internal accruals and will be made over a three-year period. It will result in an increase of two and three wheeler tyre capacity by 25-30 per cent, while also doubling the off-higher tyre capacity from current levels, the company said in a statement.
Speaking on the investment plan, S Ravichandran, Director, TVS Srichakra Limited said, "With a wide distribution network in India, growing international presence and building state-of-the-art capabilities in R&D and product development, we are further strengthening our manufacturing capabilities to cater to the growing demands in India and abroad. We believe that 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 fullest confidence in India's recovery and its prospects in the medium to long-term and is our contribution to Atmanirbhar Bharat."
TVS Srichakra is the maker of two and three wheeler tyres and supplies to a number of OEMs, apart from having presence in the domestic aftermarket. The company is also a leading exporter of two and three wheeler tyres. The expansion plan will cater to meeting the growing demand globally for the company's products, while the company also plans to utilise the investments towards expansion of its range of radial tyres and other premium offerings. The investment outline announced will also be directed towards improving TVS Srichakra's capacities and technological capabilities in the off-highway tyre segment with a focus on global markets.
TVS Srichakra announced new premium brand TVS Eurogrip in FY2020 that caters specifically towards premium two-wheelers. The company also announced the setting up of its product design centre in Milan, Italy, in the last fiscal. The manufacturer says the initial response to the TVS Eurogrip range has been encouraging and the company will expand its flagship brand on a domestic and global scale going forward.