TVS Group’s tyre manufacturing arm TVS Srichakra has announced expansion of its manufacturing operations in the country as it plans a fresh investment of Rs 150 crore this year. The investment will see TVS Srichakra increase its monthly production capacity from 2 million tyres at present to 2.3 million tyres by December 2015.
The capacity expansion will predominantly be done at TVS Tyres manufacturing bases in Madurai, Tamil Nadu and Rudrapur, Uttarakhand. In 2014-2015, the Madurai plant manufactured 1.6 million tyres monthly whereas the Uttarakhand facility churned out 400,000 tyres on a monthly basis during the same period.
“During 2014-15, we have increased our output from 1.7 million tyres per month to 2 million tyres per month. We are now investing Rs 150 crore so as to increase the overall capacity from two million tyres per month to 2.3 million tyres, which we expect to reach by December 2015,” said P Vijayaraghavan, Director of TVS Srichakra.
Further, TVS Tyres is currently developing two types of radial tyres for the forthcoming TVS-BMW motorcycle. Additionally, the company is also looking forward to develop tyres for earth-moving equipment while it has already started production of tractor radial tyres, focusing mainly on European and US markets.
TVS Srichakra has had a phenomenal run during 2014-2015 as the company’s net profit rose to more than double to over Rs 100 crore. At the end of March 2015, TVS Srichakra reported a net profit of Rs 104 crore as against Rs 47 crore in 2013-2014. This is for the first time the 2/3-wheeler tyre manufacturer has crossed Rs 100 crore figure in profit.
TVS Srichkara’s total revenue for 2014-15 stood at Rs 1,896 crore in comparison to Rs 1,671 crore in the previous year, thereby registering growth of 13 per cent.