TVS Srichakra to invest Rs 1000 crore in capex

MUMBAI: South India based leading tyre maker TVS Srichakra Ltd, a part of $8.5 billion TVS Group on Tuesday announced its planned capital expenditure of Rs.1,000 crores to ramp up manufacturing in its Madurai and Pantnagar plants.
This investment is planned to be made over a three year period this will result in an increase in 2 & 3-wheeler tyre capacity by 25-30% 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.

Included in this investment, is a plan to enhance capacities in the company’s pioneering range of radial tyres and other premium products.

The investment outlay announced today will also significantly increase TVS Srichakra’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, TVS is further strengthening its 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”,” added Ravichandran.

TVS Srichakra Ltd had earlier, in FY 19-20, announced the launch of its new brand TVS Eurogrip as well as a new range of products. The company had also announced the setting up of its product design centre in Milan, Italy, in FY 19-20. TVS Eurogrip has been focusing on furthering its gain in the aftermarket while strengthening its OE presence.

Post an encouraging initial response to the new products, TVS Eurogrip will further expand its portfolio in domestic and global markets.

Incorporated in 1982, it is one of the flagship companies of the USD 8.5 Billion TVS Group which is India’s largest auto ancillary conglomerate.

With global research and development capabilities TVS Srichakra a Madurai headquartered company has manufacturing facilities in Madurai (Tamil Nadu) and Pantnagar (Uttarakhand) with a production capacity of over 3 million tyres a month.

The company has a design centre in Milan, Italy supporting the R&D centre in Madurai and the tyres are tested in Indian, European, and Japanese road conditions. It sells its tyres in over 85 countries across the world.