TVS Srichakra lines up Rs 1K cr expansion plan

Chennai: At a time when most companies are cutting or freezing capex, two and three wheeler tyre maker TVS Srichakra has announced a Rs 1,000 crore spend to ramp up manufacturing in its Madurai and Pantnagar plants. This investment will be made over a three year period. When complete, this ramp up will result in a 25%-30% increase in two and three wheeler tyre capacity as well as doubling of off-highway tyre capacity from current levels. The company plans to fund this investment with a mix of debt and internal accruals, a company statement said. Last financial year, the company had announced the launch of its new brand TVS Eurogrip as well as a new range of products. It 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. “TVS Eurogrip will further expand its portfolio in domestic and global markets,” said the statement. S Ravichandran, director, TVS Srichakra said, “We are strengthening our manufacturing capabilities to cater to the growing demands in India and abroad. This capital outlay will enable TVS Eurogrip to further its growth aspirations and help strengthen its partnerships with vehicle manufacturers.”

“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 statement said.