TVS Tyres guns for Rs 1,000 crore sales

At present, two of its products – Jumbo and Dragon – together contribute 60 percent of the sales volume. Also in the pipeline is a radial tyre – the first by the company. Currently, Yamaha’s FZ16 is the only bike in India that sports a radial tyre. Like tubeless tyres, radials are also expected to increase gradually in the two-wheeler market.

TVS Tyres supplies to almost all OEMs, with Hero Honda being its single largest customer. Hero Honda sources 40 percent of its tyre requirement from TVS Tyres. Another key client is TVS Motor Company which buys all its tyres from TVS Tyres, while 35 percent of Bajaj Auto’s tyre requirement is supplied by TVS Tyres.

In the overall two-wheeler original equipment market, TVS Tyres has a 40 percent market share which makes it the No. 2 player, after MRF. In the aftermarket, which contributes 38 percent to its overall revenue, TVS’ share stands at 23 percent. Almost half of its total turnover comes from business from OEMs, while exports contribute 13 percent of the total revenue. Even though TVS Tyres manufactures a whole range of products applicable in various segments, including off-road products, it is the two-wheeler tyres that bring in 75 percent of the total business of the company.

After emerging as the largest motorcycle tyre manufacturer in India, TVS Tyres is stepping on the gas to move forward faster. Apart from setting up an in-house test track, it has roped in Japanese and European consultants for process and product development.

For the next stage of growth, TVS Tyres is ramping up production at its plants (one each in Madurai and Rudrapur) from a cumulative figure of 14 lakh to 17 lakh units per month.