TVS Srichakra Ltd

TVS Srichakra is a part of USD 8.5 billion TVS Group and one of the leading auto ancillary groups. Incorporated in June 2nd, 1982, Srichakra Tyres (STL) was promoted by R Naresh, T V Sundram Iyengar Sons Pvt. Ltd. and Sundaram Industries Pvt. Ltd. The company was renamed as TVS Srichakra Tyres Limited on Oct 1997. The company manufactures twowheeler, threewheeler and other industrial tyres. The Company has 3 subsidiaries, TVS Srichakra Investments Limited (TSIL), TVS Sensing Solutions Private Limited (formerly known as ZF Electronics TVS India Private Limited) subsidiary of TSIL and Fiber Optic Sensing Solutions Pvt Ltd(subsidiary of TSSPL).In Sep.94, the company came out with a rights issue to meet the cost of expanding the installed capacity from 15 lac to 24 lac tyres/tubes and to meet the longterm working capital requirements, at a project cost of Rs 3.60 cr. Some of the major clients of STL are Hero Honda, Bajaj Auto, TVS Suzuki, etc. The company has a joint venture with DuPont and Cherry. STL exports to the US and the European market. In 199596, the company expanded its production capacity to 33 lacs p.a. Technology for modernisation of certain sections of its plant is imported from Schiesser Rubber Technology, Switzerland. During 199798, the company has expanded its plant capacity of Automotive Tyres to 36 lakhs nos per annum and Tubes to 33 lakhs no per annum. This was funded through Long Term Debt and Internal Accruals. Nitya Sarvamangala Trading and Holding Ltd and TVS Srichakra Holdings Ltd are its subsidiaries. The company launched a new premium range of moped tyre, under the name MEGA STAR during the year 19992000.In 200001 company has expanded its plant capacity of the tyre division from 53 lakh nos to 55 lakh nos of tyres per annum. The company has also invested Rs.3.17 crores for this expansion and modernization. It is developing new tyres for the export market. During 200203 the 2 subsidiary companies viz Nitya Sarvamangala Trading Holding Limited and TVS Srichakra Holdings Limited was amalgamated with the company with prior approval from the board as well as from the Honble High Court of Chennai. It has also increased the tyre capacity and tube capacity to 73.62 lakh and 65.52 lakh respectively. The above expansion as well as modernization of its plant was done at an outlay of Rs.525 lakhs. The company has invested in modeling software, machine center and in other related infrastructure for developing proven products, in the least possible development cycle time.The Company is accredited with ISO 9001 and ISO 14001 and won TPM Excellence award and practicing Six Sigma and Lean Manufacturing Techniques.During FY 2015, the Company entered new markets for the sale of off highway tyres and expanded its twowheeler tyre distribution channels. In order to improve the visibility of the brand, it participated in various international shows. Besides, it continues investments in brand building and thus provides two wheeler conveyance solutions in the industry while maintaining low cost of manufacturing.During FY 2016, the company sold its investments in TVS Europe Distribution Limited due to strategic reasons. It has taken initiatives for brand building to increase the aftermarket business. During FY 2017, the company focused on premium models and increased share of business in the market. During FY 2018, the company took concrete steps for technological advancements required in the tyre industry for BSVI standards and vehicle electrification.TVS Sensing Solutions Private Limited (TSSPL) (formerly known as ZF Electronics TVS India Pvt. Limited (ZFTVS)) became a wholly owned subsidiary of TSIL from 4th June 2018 and subsequently its name was changed to TSSPL.In August 2019, the company has launched the Brand TVS Eurogrip targeted at meeting the needs of the millennial customers. TVS Eurogrip is born out of extensive consumer research and significant investments in global RD, design and technology platforms. On 08 December 2020, the company announced its planned capital expenditure of Rs.1,000 Crores to ramp up manufacturing in its Madurai and Pantnagar plants. This investment is planned to be made over a three year period. The investment, when fully made, will result in an increase in 2 3 wheeler tyre capacity by 2530% and doubling of offhighway tyre capacity from current levels. The investment is planned to be funded by a mix of debt and internal accruals.