Tyre maker Modi Rubber, which came out of financial restructuring in April 2008, has resumed production at less than one-third of capacity and hopes for sales of up to Rs 600 crore this fiscal from truck and bus segment.
The company, which formed a new subsidiary 'Modi Tyre Company' (MTC) after the restructuring, has tied up with its erstwhile partner Continental.
"We strated production of truck and bus tyres in July at our Modipuram plant, which we have completely modernised to suit today's requirement. We have also started our tube making plant at Partapur... The entire process of starting our business again has cost over Rs 300 crore," MTC Chairman Vinay Kumar Modi told PTI.
The Modipuram plant has an installed capacity of 95,000 tyres per month, but "at present we are producing about 30,000 units a month, mainly for the domestic market.
"By the end of this fiscal, we are expecting Rs 500-600 crore from sales," Modi said, adding the plant would generate Rs 1,200 crore once it starts operating at full capacity.
Modi said it is also planning to produce radial tyres from its Modinagar plant, which could entail an investment to the tune of Rs 200 crore.
Modi Rubber had closed all three plants in Uttar Pradesh in 2001, following a strike by workers after the management proposed to link wages with productivity and was declared sick in 2006.