Michelin to invest Rs 4,000 crore in TN plant, to ramp up production by 45 per cent
Published On 04-Jun-2016 02:25:49
[caption id="attachment_1347" align="alignnone" width="1024"] Michelin Truck and Bus tyres production to grow by 45%[/caption]
Michelin, in India, will raise the annual truck and bus tyres' production to 16,000 tonnes, the French tyre manufacturer said. The company will ramp up operations at its manufacturing facility in India by nearly 45 per cent in order to reach the set production target.
The tyre manufacturer has also rolled out its first India-specific range of products, the X Multi, on Monday at its manufacturing base near Chennai. The tyres have been specially developed for Indian road and climate conditions. The tyres will be sold in the country starting from Rs 20,000 excluding local taxes.
Speaking to reporters at the event, Nour Bouhassoun, Chairman and President, Africa, India and Middle East at Michelin, said, "By the end of this year, the production from this facility will be 16,000 tonnes. Last year, the production was around 11,000 tonnes. We are investing every year and the production will be growing every year."
Currently, Michelin’s plant in India is located at Thervoykandigai, about 60 kilometers away from Chennai. The manufacturing unit currently manufactures tyres for medium and heavy commercial vehicles for the Indian market whereas a small part of the total production output is exported to other neighboring countries as well. The company believes the Indian truck tyre market is rapidly growing and, as a result, it has decided to increase its investment in India.
Michelin will be investing Rs 4,000 crore in the facility so as to expand the annual production capacity. The plant employs around 1,500 workers at present.