TVS Srichakra Approves ₹220 Crore Capacity Expansion for Tyres
TVS Srichakra Limited approved a capital investment of up to ₹220 Crores for capacity expansion at its Madurai manufacturing units. ₹110 Crores will enhance 2W tyre capacity by 5% by H1 FY29. Another ₹110 Crores will boost Off-Highway tyre capacity by 25% by H1 FY28. Financing will combine internal accruals and debt.
A substantial capital expenditure of ₹220 Crores for capacity expansion directly impacts the company's operational capabilities, future revenue potential, and market competitiveness.
The company is investing significantly in capacity expansion to meet growing demand, which is a positive indicator for future growth and market position.
TVS Srichakra Limited has announced a significant capital investment of up to ₹220 Crores towards capacity expansion at its manufacturing units in Vellaripatti, Madurai. This decision was approved by the Board of Directors during their meeting held on May 27, 2026.
The investment is strategically divided between two key areas. Up to ₹110.00 Crores will be allocated to the 2-Wheeler (2W) Plant to meet the growing demand for the company's 2/3-wheeler tyres. This expansion aims to increase the existing capacity by approximately 5%, which currently stands at around 210 to 235 lakh tyres per annum and is utilized at about 80-85%. The addition of this new capacity is expected to be completed within the first half of FY 2028-29.
Concurrently, another ₹110.00 Crores will be invested in the Off-Highway Tyre Plant to cater to the increasing demand for these specialized tyres. This will lead to a proposed capacity addition of about 25%, building upon the existing capacity of approximately 75 to 85 metric tons per annum, which is currently utilized at about 75-80%. This capacity enhancement is slated for completion within the first half of FY 2027-28.
The financing for this expansion will be a combination of internal accruals and debt. The company has informed the stock exchanges about this development in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
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TVS Srichakra Limited filed this with the NSE as a statutory disclosure, categorised under capex. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by TVS Srichakra Limited. Read the original for the full detail.