TVS Srichakra will invest Rs. 492 million (US$ 5.2 million) in its manufacturing facilities in Madurai, Tamil Nadu, and Rudrapur, Uttarakhand, to increase production capacity and meet rising demand for two and three-wheeler tyres.

In a regulatory filing dated October 17th, 2026, the company stated that the investment would fund line balancing and debottlenecking initiatives, including an increase in curing capacity. The expenditure was approved by the managing director on the same date under delegated authority, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires the disclosure of significant corporate actions.

The proposed expansion is expected to increase the company's existing manufacturing capacity by approximately 6-7%. TVS Srichakra currently has an annual production capacity of around 34-35 million tyres, equivalent to 34-35 million tyres, with capacity utilisation of 85-90%. The additional capacity is expected to become operational in phases from January 2027, enabling the company to integrate the expansion into its existing production operations.

The investment will be financed through a combination of debt and equity. By optimising existing production lines and increasing curing capacity, the company intends to improve output and meet growing demand without establishing a new manufacturing unit. The phased implementation is also expected to minimise disruption to ongoing operations.

TVS Srichakra manufactures tyres for two- and three-wheelers and markets its products under the Eurogrip brand. With existing capacity utilisation at 85-90%, the planned addition of 6-7% in capacity is intended to support higher production volumes and the company's future growth.