TVS Tyres expects 30% growth

Two-wheeler tyre manufacturer TVS Tyres expects to maintain a growth rate of 30 per cent in the Indian market, this despite the quick-paced growth of the car market.

Talking to Business Standard on the launch of three new technology tyres, M Sivasubramanian, general manager (marketing) of the company, said, "The company in the last three years raised its capacity from 600,000 tyres to 900,000 tyres per annum, and has been investing about Rs 4,000,000 annually in research and development.

Sivasubramanian said, the introduction of low-cost four-wheelers and price revision as result of increasing rubber prices would not make any dent on the sales of two-wheelers and they project an increase in the demand of tyres for two-wheelers.

Due to growing awareness, the consumers replace the wheels at a shorter interval whereas the replacement market was smaller a few years back. TVS introduced puncture resistant tubeless tyres, polyester fabric tyres and dual tradE tyres for the Punjab market in Chandigarh on Friday.

Of the total output, TVS Tyres supplies 56 per cent to the OEMs, 16 per cent in the export market and 28 per cent to the retail buyers. The laregst part of the production was supplied to Hero Honda, he said.

The main strength of the company in the export market was the off-the-highway tyre. He told that these tyres were used for the low-speed vehicles for short distances and used for heavy loads such as in construction, cargo, he said. According to him, the export business of the company registered a growth of 30 per cent.

TVS Tyres registered a turnover of Rs 468 crore in 2006-07, and expects to clock in a turnover of Rs 550 crore in 2007-08.

The plant of TVS Tyres is located near Madurai and is running at optimum capacity. In order to expand in future it would scout for new location keeping in mind the proximity for raw material, he added.