Text: Anusha B
In a bid to expand its capacity from 2 million tyres to 2.3 million tyres per month, Madurai headquartered TVS Tyres invests Rs 150 crore in its Madurai (Tamil Nadu) and Rudrapur (Uttarakhand) facilities. This expansion plan chains out from last years increase in capacity from 1.7 million tyres to 2 million tyres. TVS Tyres is a brand owned by TVS Srichakra Limited, manufacturer of 2 and 3-wheeler tyres and off-road tyres for the domestic and export markets. Incorporated in 1982, the company manufactures and markets its products under the ‘TVS Tyres’ and ‘Eurogrip’ brands.
The company’s Director, P Vijayaraghavan said, “During 2014-15, we have enhanced our capacity from 1.70 million tyres per month to 2 million tyres. We see the demand growing and to catch up with the market, we are now investing around Rs 150 crore to expand our capacities further.”
The company caters all the leading brands in OEM segment which includes Bajaj Auto, Hero MotoCorp India, Honda Motor cycle & Scooter India, TVS Motors, Yamaha Motor.India. Being specialised in variant fits and could deliver bespoke tyres meeting the client’s specifications the company gains much momentum in the market with increased client satifaction.
Commenting on the financial results, Vijayaraghavan added that, “Our profit is 13% more than the previous financial year (2013-2014) which supersedes our expectations. EBITDA has crossed 72% over the previous fiscal and this has been realised with the step by step increase in every quarter. The performance of the company has gone exceedingly well and we are sustaining the tag as one of the largest suppliers of OEMs and maintains the share with them. We are one of the most preferred vendors for OEMs on their 2 and 3-wheeler needs. Judicious use of inventory, focused approach in after-market, bringing down raw material cost increases the cash inflow for operations which in turn efficient us to reach the level we are now.”
Meanwhile the company’s profit in 2 and 3-wheeler segments have almost doubled and the net profit has touched its peak of Rs 103 crore which awestruck the industry in various angles. This signs a positive flag to invest off the box and stimulates its business brain convolution to action at the earliest.
The export market both off-road and two-wheeler clings its peak now by tapping tractor radial tyre segment serving European market and the same will shape up in 12-18 months. In parallel 2-wheeler tyre market is going up in South America, Africa and South East Asia, says Vijayaraghavan. He continued saying that, “We are not sure increasing the export radius as terrain paves a pivotal role to idea us on the characteristics of the road. The road-composition is almost the same in the aforementioned countries and our tyres are the right-fit. We even can boastfully say that upto 30000 kms our tyre moves prior to wearing and we supersede the expectations of the export markets against their anticipation of 10000 kms. As we cater the ‘More For Less’ market we stand on the top of the mind of overseas users. We have no plans to enter 4 wheeler segment though it is luring,” averred Vijayaraghavan.
TVS Srichakra to make 2-wheeler tyres for Michelin
TVS Srichakra has entered into a contract manufacturing agreement with French tyre maker Michelin to make two-wheeler tyres under the Michelin brand. Under the deal, a new production line will be set up inside the Madurai tyre factory of TVS Srichakra. According to TVS Tyres, this deal will help both the companies to share the best practises to deliver world-class tyres to Indian consumers. In India Michelin has a truck radial tyre manufacturing unit near Chennai.
