Metro Tyres to invest Rs 10 cr in expansion

Ludhiana based Metro Tyres Ltd has decided to increase the production of its Metro-Continental motorcycle tyres from 25,000 pieces to 50,000 pieces per month.

Keeping in mind the increasing demand for two-wheeler tyres, Metro has decided to expand its four manufacturing facilities in Ludhiana with an investment of Rs 10 crore.

In the next 12 months, the production of its motorcycle tyres is expected to go up to 100,000 per month.

Besides this, Metro is also considering setting up a manufacturing facility, for which the decision on the location will be taken very shortly. It is also working on various options in the market to fund this project, including a public issue.

Metro Continental tyres are being manufactured in one of its high-tech plants in Ludhiana with state-of-the-art foreign technology provided by Continental AG of Germany.

Metro has invested over Rs 40 crore in this plant. Part of the machinery for this plant has come from Continental and the rest was sourced from other leading manufacturers in the world.

Managing Director Rummy Chhabra said, "We have four manufacturing plants in Ludhiana, one in Gurgaon, and one in Noida. All our Ludhiana plants have a capacity of producing 100,000 two-wheeler tyres and tubes per day. In three of our Ludhiana plants, we manufacture bicycle tyres and in the Gurgaon plant, automobile tubes for Continental AG. In one of our Ludhiana plants, we will manufacture 30,000 motorcycle tyres per month, whose capacity will now be increased to 100,000 per month after our investment of Rs 10 crore."