TVS Srichakra to Ramp-Up Production to 23 Lakh Tyres a Month

New Delhi: TVS Srichakra will increase its production capacity to over 23 lakh tyres per month by the end of this year to cater to the growing demand for its products in domestic as well as export markets.

The company, which is a part of the TVS Group, had raised its monthly production capacity to 20 lakh tyres - from the earlier 17 lakh tyres - at the beginning of the current financial year.

"We have initiated work to add another three lakh tyres per month to our production capacity in Madurai and Rudrapur, which will take our total output to 23 lakh tyres by December 2015 or January 2016," TVS Srichakra Director P Vijayaraghavan told PTI.

He did not share financial details of the expansion plan, stating that the company is still in the process of compiling a 3-year business plan, covering capex for the next two years which will be finalised by early next month.

Elaborating on new products, Vijayaraghavan said the company is looking to launch radial tyres for motorcycles and around nine new bias tyres for the aftermarket in the current year.

"We plan to launch motorcycle radials in the next few months. Last year, we had launched 10 bias tyres," said Vijayaraghavan.

On the domestic two-wheeler industry, he said: "We expect the industry to maintain a double-digit growth in 2015-16. It grew by nearly 13 per cent in the April-December period."

The two and three wheeler tyre maker expects its sales to beat the industry growth rate, he added.

In the domestic market, the Chennai-based firm sells its products under the 'TVS Tyres' brand. It markets tyres in the overseas markets under the 'Eurogrip' brand.

At present, the company gets around 13 per cent of its turnover from exports and is looking to ramp-up shipments of tractor radials.

"Having launched tractor radials tyres a year back, we are now adding more sizes with initial focus on the European markets," Vijayaraghavan said.

The company, which posted a turnover of around Rs 1,700 crore in 2013-14, is also eyeing increasing exports of two wheeler tyres to markets like South America, Africa and Middle East.

"We expect rise in two wheeler tyre exports to markets like South America, Africa and Middle East as these regions are quite similar to us terrain-wise and ruggedness. Whereas, conditions in Europe are totally different," Vijayaraghavan said.