Madurai-based TVS Tyres to invest Rs 150 crore to expand its capacity both in Madurai and Rudrapur facility. In 2014-15, the company had manufactured a monthly 1.6-million tyres in Madurai plant and 400,000 tyres in Rudrapur plant. 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 the market, we are now investing around Rs 150 crore.”
During the financial highlights disclosure, Vijayaraghavan P, Director, TVS Tyres said, “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 our business brain convolution to action at the earliest. Our profit is 13% more than the previous financial year (2013-2014) and succeeds our expectations. EBITDA has crossed 72% over the previous fiscal and this is has been realised with the step by step increase in every quarter.”
The caters to all the leading OEMs like Bajaj Auto, Hero Moto Corp, Honda Motor cycle & Scooter India, TVS Motors and India Yamaha Motor. In the export market the company is revenue has also increased and it is planning to tap new markets. Vijayaraghavan said, “Our export market for off-road tyres is cling its peak now by tapping tractor radial tyre segment serving European market, in parallel 2- wheeler tyre market is going up in South America, Africa and South East Asia. 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.”
TVS Tyre’s aftermarket activities show a significant increase and one of the leans taken forward to highlight here is the launching of new logo and various TV commercials. The company feels that its main USP is having a test rides at their own test track and intense field evaluation is achieved. Some of the products also go to Japan to further ensure its quality with different tests and no doubt they have a room for Japanese to come and test here the products intended for a test to assure quality service.
