TVS Srichakra doubling off-highway tyre capacity

TVS Srichakra Ltd., the two- and three-wheeler as well as off-highway tyre manufacturer, is planning a 10 billion rupee (£102 million; 112 million euro; US$135 million) investment programme. According to the company, the investment will increase two- and three-wheeler tyre production capacity by 25-30 per cent and double of off-highway tyre capacity from current levels.

As well as supplying “most two and three wheeler manufacturers that operate in India” and holding “a significant presence in the domestic aftermarket”, TVS is also a leading exporter of two- and three-wheeler tyres. While the investment is not explicitly limited to radial tyres, the investment will directed to these and “other premium product”.

Renewed European focus

The investment news comes 18 months after the launch of the TVS Eurogrip brand as well as a new range of products. At the same time, TVS also established a design centre in Milan, Italy intended to support the company’s research and development centre in Madurai, India. Furthermore, the brand’s tyres are tested in Indian, European, and Japanese road conditions. A few months after the opening of the Milan design centre, the location had six senior officials, but, speaking at the time, TVS chief technology officer V Sivaramakrishnan told journalists “the headcount there will be increased”. Put all this together and there is a European flavour to the company’s development plans.

Commenting on the capital expenditure news, TVS Srichakra Limited director S Ravichandran said: “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 longterm and is our contribution to Atmanirbhar Bharat”.

TVS Srichakra has manufacturing facilities in Madurai (Tamil Nadu) and Pantnagar (Uttarakhand) with a production capacity of over 3 million tyres a month.