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MRF Factory - Permalur

Discerning the surging demand for truck and bus radial tyres, the Indian tyremaking industry (which is into manufacturing radial tyres) could see investments worth Rs. 2,615 crore by 2011, thereby generating an extra capacity of 3.77 million units truck and bus radials, as predicted by Automotive Tyre Manufacturers’ Association. Radial tyres typically offer better fuel efficiency and last longer than regular tyres. Currently, only about 8-12 per cent of trucks and buses in India run on radial tyres, which is expected to go up manifold.

While Apollo Tyres is going ahead with Rs. 1,100 crore in a new radial tyre unit to enhance its output four-fold, JK Tyres Ltd would be infusing Rs. 250 crore at its truck radial plant in Mysore to increase capacity to 1.2 million units from the current 370,000 units.

It was reported earlier that Madras Rubber Factory (MRF) has entered into an agreement with the Tamil Nadu state government to set up a manufacturing unit with an initial production capacity of 3.5 lakh radial tyres (for both trucks and cars) a month in the first phase, which would be doubled by the end of 2009. The company has earmarked Rs. 900 crore for the project at a 290-acre site in Perambulur, near Tiruchi in Tamil Nadu. Nearly 2,500 jobs would be created when the production goes on-stream.

According to a senior representative of a commercial vehicle maker, the company currently has huge orders for delivery of buses from state-level road agencies and now expects the federal government to place orders for more. The States that had now placed orders include Karnataka, Maharashtra and Uttar Pradesh. Talks were on with transport departments in 40 cities about orders for city buses, the representative added. He further stated that repeat orders by state road transport corporations have prompted them to increase production capacity at its existing plant. He concluded by saying that it is eyeing some orders under the recently announced incentive scheme for the automobile sector under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for 15,000 buses. Out of this, low floor buses constitutes about 800 to 1,000 units and Volvo is eyeing over 50 per cent market share in the low floor bus segment with 300-350 units, adding that another 250-300 coaches would be sold, taking the total sales of the company to 550-600 units. He concluded by saying that it will be requiring more bus and radial tyres for its vehicles,

1 comment

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