TVS Shrichakra ties up with France's Michelin for new unit, shares gain

TVS Srichakra shares jumped 3 per cent in afternoon trade on Tuesday after the company said it has entered into an agreement with France-based Michelin for setting up a new manufacturing facility within its existing plant at Madurai.

The company, established in the year 1992, is a part of TVS Group and is engaged in the manufacturing and sale of two and three wheeler tyres and tubes. It has a turnover of more than $300 million.

"TVS Madurai unit with an annual capacity of 3.6 million tyres will produce bias product ranges for both Michelin as well as some tyres from TVS's product range of two wheeler tyres and will incorporate best practices from both the companies to deliver world class products to Indian consumers," the company said in a release to the Bombay Stock Exchange. "This will help the company to meet growing demand for its 2-wheel tyres in India."

Michelin, headquartered in Clemont-Ferrand, is dedicated to sustainably improving the mobility of goods and people by manufacturing, distributing and marketing tyres for every type of vehicle, the release said.

TVS Srichakra shares closed at Rs 1,649.25, up 0.32 per cent against its previous close. The scrip opened the day at Rs 1,620 on BSE and has touched an intraday high and low of Rs 1,734.75 and Rs 1,600, so far on Tuesday.