TVS Srichakra Announces ₹220 Crore Capital Expenditure to Expand Capacity at Madurai Plants

TVS Srichakra Limited (NSE: TVSSRICHAK, BSE: 500444), one of India's leading manufacturers of two-wheeler, three-wheeler, and off-highway tyres under the TVS Eurogrip brand, has announced a major capital expenditure plan. The company's Board of Directors, in a meeting held on May 27, 2026, approved a capital investment of up to ₹220.00 crores to expand production capacities at its primary manufacturing facility located in Vellaripatti, Madurai.

The investment will be split equally across two of the company's key product segments to meet rising market demand.

Expanding the Two-Wheeler (2W) Plant

TVS Srichakra is expanding its core two- and three-wheeler tyre line to ensure it stays ahead of volume growth in domestic and export markets.

Existing Capacity & Utilization: The 2W plant currently produces approximately 210 to 235 lakh tyres per annum, operating at a high capacity utilization rate of about 80% to 85%.

Proposed Addition: The company plans to increase this capacity by approximately 5%.

Investment & Timeline: An outlay of up to ₹110.00 crores has been allocated for this expansion, which is projected to be completed and operational by the first half of FY 2028-29.

Rationale: The expansion is driven directly by the growing demand for the company's flagship 2/3-wheeler tyre portfolios.

The second half of the capital allocation targets the high-margin Off-Highway Tyre (OHT) segment, marking a more aggressive percentage capacity hike.

Existing Capacity & Utilization: The OHT plant currently has a capacity of approximately 75 to 85 metric tons per annum, running at an estimated capacity utilization of 75% to 80%.

Proposed Addition: TVS Srichakra will boost this footprint significantly with a proposed capacity addition of about 25%.

Investment & Timeline: Backed by an investment of up to ₹110.00 crores, this new capacity is scheduled to come online much earlier, targeted for completion during the first half of FY 2027-28.

Rationale: This move is designed to support the brand's growing traction in global agricultural, industrial, and construction tire markets.

The combined investment of up to ₹220.00 crores across both divisions will be funded through a balanced combination of internal accruals and debt.

Shares of TVS Srichakra Limited was last trading in BSE at Rs. 4028.75 as compared to the previous close of Rs. 3610.90. The total number of shares traded during the day was 1703 in over 519 trades.

The stock hit an intraday high of Rs. 4206.20 and intraday low of 3608.60. The net turnover during the day was Rs. 6875258.00.

Source : Equity Bulls

Keywords

TVSSrichakra INE421C01016 AutoTyres RubberProducts Capex CapacityExpansion Madurai