French tyre major Michelin is set to double its production capacity at its Chennai plant by the end of calendar 2018 to sustain growth momentum. It will also be expanding its product portfolio, said a top executive.
“Currently, we are producing 15,000 tonnes per annum,” said Jean Dominique Senard, CEO, Michelin Group. “By end 2018, we would have doubled it to 30,000 tonnes. This also calls for providing direct employment to 150 people.”
In a media briefing, Mr. Senard said India was a priority market for the tyre company. “We have a Research Centre here and this will be expanded further to build digital knowledge and to strengthen our offerings,” he said.
Michelin India established its modern radial truck and bus tyre manufacturing facility at SIPCOT Thervoy Kandigai Industrial Park, near Chennai in 2010-11, investing ₹3,500 crore. It started making tyres from 2013. Today, it sells through 5,000 outlets in 150 cities. The company, which has achieved full production capacity, announced the inauguration of a new production line to meet increasing demand from the replacement market and original equipment manufacturers.
“About 70% of what we sell in India is produced locally. We are expanding our product portfolio. Two years from now, we will be producing locally 100% of our requirements. Currently, we are exporting some of our produce to West Asia and Europe. This will be increased,” said Serge Lafon, executive vice president, trucks and bus tyres.
TVS Tyres alliance
Highlighting Michelin’s ‘strong presence’ in inter-city coaches, trucks and in the military sector, he said the firm had outsourced the production of two-wheeler tyres to TVS Tyres. “We have been seeing 50%-60% growth every year. The tie-up will be further strengthened. We will not be producing these two-wheeler tyres,” he said.
On Tuesday, Michelin announced a pact with Ashok Leyland to supply Michelin X Guard range of radical truck tyres for its Captain 3718 Plus long- and medium-distance commercial vehicles. The new range of radial truck tyres will offer up to 10% savings in fuel, is exclusively designed, engineered and made for India, said Mohan Kumar, executive vice president, Michelin India