Capacity Addition in Madurai - Details are attached
TVSSRICHAK · price
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TVS Srichakra's Board has approved a capital investment of up to Rs. 220 crores for capacity expansion at its Vellaripatti manufacturing units in Madurai. The 2W tyre plant will see a 5% capacity addition (Rs. 110 crores) by first half of FY2028-29, while the Off Highway Tyre plant will get a 25% expansion (Rs. 110 crores) by first half of FY2027-28. The company cites growing demand for its 2/3-wheeler tyres and Off Highway Tyres as the rationale. Current capacity utilization stands at 80-85% for 2W and 75-80% for Off Highway plants. The expansion will be funded through a combination of internal accruals and debts.
This expansion signals management's confidence in sustained demand growth, particularly in the off-highway tyre segment which is seeing faster capacity addition. The brownfield expansion with existing high utilization rates supports revenue growth prospects without significant execution risk.