Market and product

The BSE listed Falcon Tyres has moved one step towards becoming the largest tyre maker in two and three-wheeler segment, by turning Monotona Tyres into its subsidiary.

With this move, Falcon Tyres’ capacity has gone up from 1.2 million pieces a month to 1.3 million pieces. The capacity ramping up exercise at Falcon’s existing plant is already under way, which would take its capacity to 2.3 million pieces a month, making it the largest in the segment.

“With Falcon Tyres becoming the holding company of Monotona, the combined capacity of the two companies will be 1.3 million tyres a month. Falcon itself is implementing Rs 300 crore programme to add 500,000 tyres a month to its capacity, which is expected to be operational by the end of this financial year. On completion of the projects of both the companies, Falcon and its subsidiary will have a total capacity of 2.3 million tyres a month,” Ruia Group chairman Pawan Kumar Ruia said.

This include the proposed new plant in Uttarakhand, which will have a capacity of 0.5 million pieces a month. Interestingly, the OEMs have offered the required land in Uttarakhand to put up this plant.

“This should also be useful in carving out a bigger chunk of the replacement segment, while expanding export destinations,” Ruia said.

(Source: www.mydigitalfc.com)