TVS Srichakra rolls out 7 new tyres

To extend reach in after-market

TVS Srichakra launched seven new two-wheeler tyres (tyres with differences in width and features to fit different models) to capture a bigger share of the after-market for tyres and reduce its dependence on direct sales to companies.

The tyres were first launched in Chennai on Thursday, and will next be introduced in Bangalore, Hyderabad, Pune and New Delhi "" cities with a large two-wheeler population.

TVS Srichakra currently generates 60 per cent of its revenue from direct sales to companies such as Hero Honda and TVS Motor, and 25 per cent from the after-market.

The company has a 12 per cent marketshare in the after-market and the new launches are part of a plan to increase its share to 20 per cent, said S Balasubramanian, vice-president "" marketing.

The image sought to be projected for the new launches is that which would appeal to young vehicle owners. Balasubramanian described the new launches as "trendy products." The seven new tyres have been named Jumbo, Crusader, Terminator, Dragon, Octavia, Badshah and Josh.

Balasubramanian said the company had roped in two Japanese professionals to participate in the process and test riding associated with the launch of the tyres.

TVS Srichakra's concentration on the after-market comes in the wake of a tough environment for tyre suppliers (MRF, Ceat and Falcon) to two-wheelers. TVS Srichakra has not been able to pass on the significant increase in the cost of inputs based on petroleum such as rubber chemicals in a proportionate manner to its customers.

Balasubramanian said the company last raised the price at which tyres are supplied to companies about three months ago.

Despite the tough environment on the price front, demand for tyres has been promising this year, Balasubramanian said . He added that the company may increase its manufacturing capacity for two-wheeler tyres by 15 per cent from the current level of 6 lakh tyres a month.

In addition to its existing client list of two-wheeler manufacturers, the company is working on adding Honda Motorcycle and Scooter to the client list.

In future, the company is not likely to extend its range in tyre manufacture. Balasubramanian said that TVS Srichakra had taken a strategic decision to stick to the manufacture of tyres for two-wheelers and three-wheelers.