Leading two wheeler tyre-maker Falcon Tyres expects to begin commercial production in its Rs 550 crore greenfield Uttaranchal plant by the end of current fiscal.
"We are yet to get land from Hero Honda, but it will be handed over soon and construction is expected in two months. We hope to begin commercial production, may be in a small way, from the end of the current fiscal," P K Ruia chairman of the group said today.
The plant with a capacity of 5 lakh pieces a month would supply to Hero Honda and also meet the demands of other companies in the North India, he said.
Ruia said the company is simultaneously also expanding capacity at the existing site in Mysore at a cost of Rs 300 crore.
"Once both expansions are over we will have combined capacity of 2.3 million tyres per month to become the world's largest two wheeler tyre company," he said.
Falcon Tyres would make a rights issue, the size of which has not been finalised, to raise resources to fund the expansion.