TVS Srichakra has announced a significant capital investment of up to ₹220 crore aimed at expanding capacity at its manufacturing units in Vellaripatti, Madurai. The decision was approved by the company’s Board of Directors during a meeting held on 27 May 2026.
The investment will be divided equally between the company’s two-wheeler tyre plant and its off-highway tyre plant, with each facility receiving up to ₹110 crore. The expansion is set to increase the production capacity of the two-wheeler tyre plant by approximately 5% and the off-highway tyre plant by about 25%.
Currently, the two-wheeler tyre plant operates at a capacity of approximately 210 to 235 lakh tyres per annum, with a utilisation rate of 80-85%. Meanwhile, the off-highway tyre plant has a capacity of approximately 75 to 85 metric tons per annum, with a utilisation rate of 75-80%.
The proposed capacity additions are expected to be completed in the first half of the financial years 2028-29 for the two-wheeler tyre plant and 2027-28 for the off-highway tyre plant. The expansion will be financed through a combination of internal accruals and debts.
TVS Srichakra’s rationale for the investment is to meet the growing demand for its two/three-wheeler tyres and off-highway tyres, ensuring the company remains competitive in the market.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).