TVS Srichakra Limited has officially informed the stock exchanges regarding a significant capital investment approved by its Board of Directors on May 27, 2026. The company plans to invest up to Rs. 220.00 Crores to expand manufacturing capacities at its units in Vellaripatti, Madurai, aiming to cater to the rising market demand for its products.

The proposed capital expenditure is bifurcated equally between the 2-wheeler tyre plant and the Off-Highway Tyre plant, with each segment receiving an investment of up to Rs. 110.00 Crores. The expansion for the Off-Highway Tyre plant is scheduled for completion in the first half of FY 2027-28, while the 2-wheeler plant expansion is slated for the first half of FY 2028-29. The company intends to finance this growth through a combination of internal accruals and debt.

TVS Srichakra, widely known by its brand name “TVS Eurogrip,” is a prominent manufacturer of two-wheeler and three-wheeler tyres and off-highway tyres. Throughout 2025, the company focused on strengthening its distribution network and enhancing its product portfolio to maintain competitiveness in the automotive tyre segment. The company has been consistently working to optimize its manufacturing efficiency, with current capacity utilization rates standing at approximately 80-85% for its two-wheeler segment and 75-80% for its off-highway tyre segment.

In terms of financial performance during 2025, TVS Srichakra continued to navigate the challenges of the commodity-driven tyre industry. The company’s growth strategies have historically been supported by a stable investor base, with various institutional entities maintaining interest in the firm’s long-term expansion projects. This latest investment decision reflects the company’s commitment to scaling its operations to meet both domestic and international demand for its specialized tyre offerings.