TVS Group company TVS Srichakra that specialises in two- and three-wheeler tyres will soon enter the motorcycle radial segment in the next couple of months.
25 Feb 2015 | 3372 Views | By Shobha Mathur
TVS Group company TVS Srichakra that specialises in two- and three-wheeler tyres will soon enter the motorcycle radial segment in the next couple of months.
The tyre major has just completed development of bike radials and will launch them in the local market soon for two-wheelers, P Vijayaraghavan, ...
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TVS Group company TVS Srichakra that specialises in two- and three-wheeler tyres will soon enter the motorcycle radial segment in the next couple of months.
The tyre major has just completed development of bike radials and will launch them in the local market soon for two-wheelers, P Vijayaraghavan, director, told Autocar Professional in an exclusive interaction in New Delhi. These tyres will initially be targeted at the aftermarket and then will be supplied to OE manufacturers for their high-powered bikes. At present, only Yamaha and Bajaj Auto motorcycles are shod with radials but these will soon be coming on other bikes as well, according to him.
“At present only MRF is developing radials for motorcycles. We will be the second manufacturer to make them though they may not command large volumes,” says Vijayaraghavan.
Meanwhile, tubeless tyre fitment in two-wheelers is steadily gaining in popularity and TVS Srichakra is making them in large numbers at both its plants in Madurai and Rudrapur in Uttarakhand. From 1.7 million tyres monthly at the beginning of this fiscal year, it has ramped up capacity to 2 million tyres a month. Further capacity ramp up is also in progress at both the factories to reach volumes of 230,000 units by December 2015.
Vijayaraghavan says the company is working on a three-year business plan till 2016-17 and would be finalising its capex plans for the next two years by early March. “We not only have indications from vehicle manufacturers for 2015-16 requirements but from some on their plans for 2016-17 also.” This follows as a result of expected turnaround in the Indian automotive industry in the coming days.
Having launched tractor radials in four sizes for the export market a year ago, TVS Tyres has now doubled the portfolio and has developed another 20 sizes that will now be rolled out this year. These tyres, the company says, have done well especially in Europe and are being exported to 80 countries for the aftermarket and also for OE applications through distributors. At present, 13 percent of the topline is exported mainly to Europe, USA, Middle East and other countries. The East European market is expanding in a big way and with the rollout of the new tractor radials, for which pilot production has kicked off, the company hopes to garner a bigger brand recognition in TVS Euro tyres as well as in revenues.
TVS Srichakra performed particularly well in the last three quarters, growing almost 17 percent during April-December 2014 compared to the same period in the previous year. It hopes to close the current fiscal at a similar growth rate upping its topline to Rs 1,950 crore from the existing Rs 1,700 crore. Another 17 percent growth is targeted in FY’16. For the past year, the tyre maker has been growing at 18-20 percent in the aftermarket and it is bullish of continuing this growth run.
Vijayaraghavan concludes by saying that financial restructuring, by cutting down interest costs, at the close of the last fiscal has help deliver good results for the company and has led to an increase in the bottomline.