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Bridgestone mulls third factory in India to cater to northern region

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Bridgestone, Japanese tyre manufacturer, may look at setting up a third plant depending on the market situation.

“We may set up another factory in India, but we have not decided yet. It will depend on the market demand,” said Tomio Fukuzumi, who recently took charge as company’s managing director for India operations.

The company has a facility near Indore in Madhya Pradesh, which has a capacity of manufacturing 15,000 tyres a day. It commenced its second plant in Pune this year with a capacity of 4,000 tyres a day, which will be ramped up to 10,000 tyres a day by 2015.

Out of the total planned investment of Rs2,600 crore for the Pune plant, the company has invested around Rs2,000 crore, while the balance will be spent over the next few years.

The company said the existing facilities will be able to cater to the demand for the next couple of years. “We still have the capability to expand the current factories. So it will depend on the demand whether we should have another factory or expand the existing ones,” said Fukuzumi. 

“Currently, Indore plant can cover for the northern territory and Pune plant can cover South. But we may need another one in North or eastern regions, which will be decided on market situation,” he said.

The Japanese manufacturer said the demand from the original equipment manufacturers has slowed down owing to the slowdown in the market. On the other hand, replacement market has seen some growth as car owners are delaying purchases of new vehicles.

In terms of revenues, India contributes just 1% for Bridgestone globally. The company, however, is optimistic about its growth in the Indian market despite the current slowdown.

On export capabilities, Fukuzuki said that there is less potential for exports from India due to products specifically made to suit Indian roads requirements. He, however, indicated that Bridgestone may look at some potential markets for exports, going ahead.  

“We are also considering exports to some countries. Bridgestone Singapore will decide as to which products can be exported,” he said.

He, however, declined to give further details on the export plans.

Bridgestone India on Thursday launched its new B-290 tyre, specially made for the Indian market.

Rolling in
The company has a facility near Indore in Madhya Pradesh, which has a capacity of manufacturing 15,000 tyres a day

It commenced its second plant in Pune this year with a capacity of 4,000 tyres a day, which will be ramped up to 10,000 tyres a day by 2015

Out of the total planned investment of Rs2,600 crore for the Pune plant, the company has invested around Rs2,000 crore

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