TVS Srichakra to invest Rs 1,000 crore in Capex; stock gains 6 per cent
TVS Srichakra Limited announced its planned capital expenditure today of Rs 1,000 crore to ramp-up manufacturing in two of its plants in Madurai (Tamil Nadu) and Pantnagar (Uttarakhand).
The investment is planned over a time horizon of 3 years. The project, once fully completed, will result in an increase in its two & three-wheeler tyre production capacity by 25 per cent-30 per cent. The production capacity of off-highway tyres is also expected to double from the current levels.
The investment is planned to be funded by a mix of debt and internal accruals. TVS Srichakra, besides holding a significant presence in the domestic market, supplies tyres to mostly two & three-wheeler manufacturers that operate in India. The company is also a leading exporter of two & three-wheeler tyres.
The expansion project taken by the company will focus on setting up of additional capacities in this space to cater to the growing demand for tyres in this segment both, domestically and globally. Enhancing capacities in the company’s pioneering range of radial tyres and other premium products is also considered in this capital expenditure.
TVS Srichakra Limited, the makers of TVS Eurogrip brand of tyres, is one of India's leading manufacturers and exporters of the two, three-wheeler tyres as well as off-highway tyres. Incorporated in 1982, it is one of the flagship companies of USD 8.5 billion TVS Group, which is India's largest auto ancillary conglomerate.
On Tuesday, the stock closed at Rs 1,704.00, up by 5.54 per cent against its previous close of Rs 1,614.00 on NSE.
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