TVS Srichakra to invest $140m to increase tire manufacturing capacity

TVS Srichakra, an Indian tires and tubes company, revealed plans to invest INR10 billion ($140 million) to boost its manufacturing at its Madurai and Pantnagar plants.

The investment will be made over a three-year period.

When fully made, the investment will give TVS Srichakra an increase of 25-30% in two and three wheeler tire capacity, besides doubling of its off-highway tire capacity from present levels.

The Indian tires and tubes manufacturer plans to fund the investment through a combination of debt and internal accruals.

TVS Srichakra will also look to boost capacities in its variety of radial tires and other premium products.

The investment is also expected to considerably ramp up the company’s capacities and technological capabilities in the off-highway tire segment, with a focus clearly on international markets.

TVS Srichakra to invest $140m to increase tire manufacturing capacity. Photo courtesy of TVS Eurogrip.

S Ravichandran – TVS Srichakra Director 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 Eurogrip, which was announced by the Indian tires and tubes company in FY 19-20, alongside a new variety of products. The new two-wheeler tire brand will focus on gaining further in aftermarket while consolidating its original equipment (OE) presence.

TVS Srichakra also announced plans to establish a product design center in Milan, Italy.