TVS Srichakra approves Rs 220 crore expansion for Madurai tyre plant

TVS Srichakra Limited will invest up to Rs 220 crore to expand its tyre production capacities in response to increasing market demand. The board approved this capital investment during a meeting held on May 27, 2026, as disclosed in a regulatory filing to the stock exchanges.

Key Highlights

• TVS Srichakra to invest up to Rs 220 crore for capacity expansion in Madurai
• Rs 110 crore allocated each for two-wheeler and off-highway tyre segments
• Two-wheeler plant to add 5 percent capacity by first half of 2028-29
• The off-highway segment will expand capacity by 25 percent by first half of 2027-28
• Quarterly revenue rose 12.8 percent year-on-year to Rs 2,368.1 crore

Details of Expansion Plan

The expansion will take place at TVS Srichakra’s manufacturing facilities in Vellaripatti, Madurai. The company, which manufactures and exports the TVS Eurogrip tyre brand, will split the investment equally between its two-wheeler and off-highway tyre segments. Each segment will receive up to Rs 110 crore for capacity enhancement.

TVS Srichakra plans to finance the project through a mix of internal accruals and debt. The company aims to meet rising demand in both product categories by increasing production output.

Capacity Additions and Timeline

The two-wheeler tyre plant currently operates at 80 to 85 percent utilization, with an annual capacity of 210 lakh to 235 lakh tyres. The company will add a 5 percent capacity increment to this segment. This new capacity is expected to become operational in the first half of the 2028-29 financial year.

The off-highway tyre segment, which produces about 75 to 85 metric tons per annum at 75 to 80 percent utilization, will undergo a larger expansion. TVS Srichakra will increase this segment’s capacity by approximately 25 percent. The company expects to complete this phase earlier, within the first half of the 2027-28 financial year.

Financial Performance and Outlook

TVS Srichakra reported a 12.8 percent year-on-year increase in revenue from operations, reaching Rs 2,368.1 crore for the quarter. The company stated that this was its highest quarterly revenue to date. Strong customer demand, cost control, and operating efficiencies contributed to the improved earnings performance.

The company will fund the expansion through a combination of internal resources and borrowing. The planned capacity additions are designed to address the growing needs of both domestic and export markets for two-wheeler and off-highway tyres.

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CarBike 360 Says

The Rs 220 crore expansion marks a strategic step for TVS Srichakra as it strengthens its manufacturing footprint in India. With rising demand for two-wheeler and off-highway tyres, this investment is expected to enhance production efficiency and market reach. The move reinforces the company’s long-term growth vision while contributing to the broader development of India’s tyre manufacturing sector.