Leading tyre manufacturer, TVS Srichakra announced its plans for Rs 1,000 crore capital expenditure to ramp up manufacturing in its Madurai and Pantnagar plants. This investment is planned to be made over a three-year period.
The investment, when fully made, will result in an increase in two- and three-wheeler tyre capacity by 25-30 percent and doubling of off-highway tyre capacity from current levels.
The investment is planned to be funded by a mix of debt and internal accruals. The expansion program being undertaken will focus on setting up additional capacities in this space to cater to growing demand across its customer base – both domestically and globally.
The company also plans to enhance capacities in the pioneering range of radial tyres and other premium products. This will also significantly increase the company's capacities and technological capabilities in the off-highway tyre segment, with a clear focus on global markets.
S Ravichandran, director, TVS Srichakra 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 us 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.”