Bridgestone India, a leading tyre manufacturer, today said it planned to set up a new production facility at Chakan in Pune at an investment of about Rs 2,600 crore.
The new plant would help the company produce 10,000 units of passenger vehicle tyres per day and 3,000 units of commercial vehicle tyres per day by 2020, Bridgestone India Managing Director Hiromi Tanigawa said today.
"By 2013 we will launch new production facility at Chakan near Pune at investments of almost USD 26 billion rupees (Rs 2,600 crore)...," he said.
The new plant would come up on 7.60 lakh square meters, nearly treble the size of its Indore plant (2.60 lakh sq m).
The company, which entered India in 1996, commenced production at its Khedhar plant in 1998 for manufacturing of tyres for passenger and sports utility vehicles in India.
It would also invest around Rs 300 crore at its Khedar plant for increasing its capacity from 14,000 units to 15,000 units, he said.
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Asked about plans for overseas operations, he said the company would focus on the domestic market as the demand was increasing.
The tyres manufactured at the proposed plant would have 40 per cent localisation, resulting in savings on import duty incurred on shipments from Japan, he said.
With the setting up of a new plant the company would also double its headcount in India. "We are having 1,700 employees in India and we will add another 1,800 (for the new facilities)," he said.
He said the company, with 1800 dealers and 200 exclusive 'Bridgestone Select' dealership points, currently enjoyed 26 per cent market share in the replacement market and 20 per cent in the commercial vehicle category.