Manufacturer of two and three- wheeler tyres TVS Srichakra Ltd announced ₹1,000 crore capital expenditure plan which include ramping up of capacities at its facilities, the company said on Tuesday.
The investment spread over a three-year period would result in 25-30 per cent increase in two-three wheeler tyre capacity and also doubling of 'off-highway' tyre at its facilities in Madurai and Pant Nagar, respectively.
The proposed capital expenditure would be met through "a mix of debt and internal accruals', the Tamil Nadu based company said."
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"We are further strengthening 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...," TVS Srichakra Ltd Director, S Ravichandran said.
"The investment reflects our fullest confidence in India's recovery and its prospects in the medium to long-term and is our contribution to (Centre's) Atmanirbhar Bharat," he added.
The expansion programme would focus on setting up additional capacities to cater to the growing demand across its customer base in domestic and overseas markets.
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The capex plan also covers the increase in capacity of radial tyres and premium products, the company said.
In FY2019-20 TVS Srichakra launched the brand TVS Eurogrip and also announced the setting up of a 'product design centre' in Milan, Italy.
TVS Eurogrip would further expand its product portfolio in domestic and overseas locations, the company said.
This story has been published from a wire agency feed without modifications to the text.