Shares of TVS Srichakra surged 9 per cent to Rs 1,760 on the BSE in the intra-day trade on Tuesday after the company announced its capital expenditure plan of Rs 1,000 crore to ramp up manufacturing in its Madurai and Pantnagar plants.
The company, a leading Indian manufacturer of 2 & 3 wheeler and off-highway tyres, said the 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 25-30 per cent and doubling of off-highway tyre capacity from current levels. The investment is planned to be funded by a mix of debt and internal accruals," it said.
The expansion program being undertaken will focus on setting up additional capacities in this space to cater to growing demand across its customer base - both domestically and globally. Included in this investment, is a plan to enhance capacities in the company's pioneering range of radial tyres and other premium products.
The management believes that the capital outlay will enable TVS Eurogrip to further its growth aspirations and help strengthen its partnerships with vehicle manufacturers and create new benchmarks in the replacement and global markets.
TVS Srichakra had earlier, in FY 19-20, announced the launch of its new brand TVS Eurogrip as well as a new range of products. TVS Eurogrip has been focusing on furthering its gain in aftermarket while strengthening its DE presence. TVS Eurogrip will further expand its portfolio in domestic and global markets.
At 01:23 pm, the stock was trading 7 per cent higher at Rs 1,725 on the BSE, as compared to a 0.36-per cent rise in the S&P BSE Sensex. A combined 73,000 equity shares had changed hands on the counter on the NSE and BSE till the time of writinf of this report. The stock hit a 52-week high of Rs 1,863 on January 17, 2020.
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