Manufacturer of two and three-wheeler tyres, TVS Srichakra Ltd announced Rs 1,000 crore capital expenditure plan which includes ramping up of capacities at its facilities.
The investment, spread over three years, would result in 25-30 per cent increase in two-three-wheeler tyre capacity and also doubling of ”off-highway” tyre at its facilities in Madurai and Pant Nagar, respectively.
The proposed capital expenditure would be met through a mix of debt and internal accruals.
“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,” TVS Srichakra Director, S Ravichandran said.
“The investment reflects our fullest confidence in India”s recovery and its prospects in the medium to long-term and is our contribution to (Centre”s) Atmanirbhar Bharat,” he added.
The expansion programme would focus on setting up additional capacities to cater to the growing demand across its customer base in domestic and overseas markets.
The capex plan also covers the increase in capacity of radial tyres and premium products, the company said.
In FY2019-20 TVS Srichakra launched the brand TVS Eurogrip and also announced the setting up of a ”product design centre” in Milan, Italy.
TVS Eurogrip would further expand its product portfolio in domestic and o