Mumbai: Japanese tyre-maker Bridgestone Corporation today said it will invest about $36.7 million (over Rs168 crore) in its Indore manufacturing unit to produce new truck and bus radial products.
“The total investment will be approximately $36.7 million with production scheduled to begin in the first half of 2011,” Bridgestone said in a press release.
The Tokyo-listed company, which at present enjoys close to 30% market share in passenger-car radial tyre segment, now aims to strengthen its position in the commercial vehicles (bus and trucks) market.
The world’s biggest tyre maker will expand operations at its plant to produce new truck and bus radial (TBR) products, the release added.
“India is growing rapidly and its potential seems to be unlimited. Therefore, our decision to produce TBR is in response to the ever-increasing demand in the Indian market,” Bridgestone India managing director H Tanigawa said.
Capacity is expected to reach about 400 units per day by the second half of 2012, the release said.
The company’s 12 year-old Pithampur plant in Indore, Madhya Pradesh, is already in the midst of a ramp up worth $56.3 million (Rs259 crore).
This will boost auto and light truck tyre capacity by 40% to 15,000 tyres per day by mid 2010.
“We are now going to put more focus on the Indian market than ever and are looking for newer possibilities to grow in terms of volumes and numbers,” Tanigawa said.
”Further, the TBR production will generate additional employment for around 200 people,“ Tanigawa said.
Bridgestone Corp, a leading tyre-maker in both the OEM (original equipment manufacturer) and replacement markets in India, said it expects demand for truck and bus radial tyres to rise led by the growth in expressways and other road infrastructure.