CHANDIGARH: Metro Tyres today said it has designed and developed high-end tubeless tyres for motorcycles in technical collaboration with Continental AG of Germany.
"Being a preferred partner of Continental AG (Two wheeler tyres), we are already enjoying a niche brand equity in global markets and our entry in Tubeless Tyres will further strengthen our global positing," said Metro MD Rummy Chhabra in a statement.
Initially, Metro Tyres will manufacture tubeless tyres at its state-of-the-art plants in Ludhiana where it has invested Rs 30 Crore for up gradation and capacity expansion.
Besides, Metro has earmarked another Rs 50 Crore to be invested in Manesar(Gurgaon) to for tubeless tyres venture.
To begin with, Metro tyre is looking at OEMs and Export markets for their tubeless tyres.
"Low market penetration and increasing adoption of tubeless tyres in two wheelers are expected to dynamically expand the tubeless tyre market size in the country and will position India as one of the most attractive destinations for global players to source tyres" Chhabra said.
In the wake of growing Indian two-wheeler industries, especially high-end motorcycles, Metro Tyres is sensing a huge demand for tubeless motorcycle tyres.
"Motorcycles is still ruling the two wheel industry and the driving force behind tyres sales. The overall 10-12 per cent growth in motorcycle sales and over 29 per cent growth in exports sales are together paving way to create demand for tubeless tyres," he said.
Metro has already started supplying these tyres to Continental for the overseas market, while in the domestic market OEM development is already there for 250CC bikes.
The company has capacity to produce 2 lakh motorcycle and two-three wheeler tyres and tubes per month, which will be escalated to 5 lakhs tyres and tubes per month post Manesar expansion.
It is looking at a turnover of Rs 600 crore by 2012 and planning to be a 1,000 crore player in the next 4 years.
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