Bridgestone to pump in Rs 168-cr in India to expand capacity

MUMBAI: Feb 3, 2010 - Japanese tyre-maker, Bridgestone Corporation, today said it will invest about USD 36.7-million (over Rs 168-crore) in its Indore manufacturing unit to meet the burgeoning demand of truck and bus radial tyres in the country.

The world's biggest tyre-maker will expand operations at its plant to produce the new truck and bus radial (TBR) products, a press release said. The plant currently manufactures about 8,000 passenger-car and light truck tyres.

The Tokyo-listed company, which presently enjoys close to a 30 per cent marketshare in the passenger-cars radial tyre segment, now aims to strengthen its position in the commercial vehicles (bus and trucks) market.

Radialisation refers to changing from traditional tyres that use nylon threads to ones that use steel wires. The rate of radialisation among cars, truck and bus manufacturers is increasing rapidly. Radial tyres help boost mileage significantly, resulting in a net saving of up to 10 per cent on fuel bills.

"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's Managing Director, H Tanigawa, said.

Production is scheduled to begin in the first-half of 2011, while production capacity is expected to reach about 400 units per day by the second-half of 2012, the release said.

Source Indiacar.com Source: Economic Times (2/3/2010)