MADURAI, India — Indian tire maker TVS Srichakra Ltd. is committing $135 million over three years to expand capacity for two- and three-wheeler and OTR tires at its plants in Madurai and Pantnagar, India.
The investment project will result in a 25% to 30% increase in capacity for two- and three-wheel tires and a doubling of capacity for off-highway tires, the Madurai-based company said.
The investment will be funded by a mix of debt and internal accruals.
With fiscal 2019-20 sales of $297 million, TVS Srichakra — which goes to market under the TVS Eurogrip brand name — is considered the seventh largest tire maker in India and 59th largest worldwide, according to Tire Business' annual Global Tire Report rankings.
The expansion is being undertaken to help meet growing demand, both domestically and globally, for its products, the company said. The investment will also enhance the firm's capacities for radial tires and other premium products.
TVS Director S. Ravichandran said this investment "further strengthens 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 and create new benchmarks in the replacement and global markets."