Bridgestone to double Indian investment

Bridgestone, the Japanese tyre maker, plans to double its proposed investment in India to bring the targeted capacity on-stream before the scheduled date in order to tap the growing domestic demand for radial tyres. 

The company had earlier announced it would spend Rs2,600 crore for setting up a plant in Chakan near Pune, which would be operational by 2013.

“The installed capacity of the plant was planned to be ramped up to 10,000 passenger car tyres per day and 3,000 truck and bus radials (TBRs) per day by 2020. However, with the rising demand in the Indian market, we have decided to prepone the production increase,” said Hiromi Tanigawa, managing director, Bridgestone India.

“We are reviewing the requirement for the Indian market, which is growing drastically. We might have to double our investment and put in an additional Rs2,000 crore approximately in order to meet the requirements of the Indian market,” he said.

The company is also looking at expanding its product portfolio to gain better market share in India.

Currently, Bridgestone has a market share of 26% in passenger radial tyres in the replacement market. The tyre maker recently unveiled its eco-friendly tyres ‘Ecopia’, which will be imported from its Thailand plant, and offer Indian buyers 30% lower rolling resistance as compared to regular tyres.

Bridgestone is also planning to launch motorcycle and tractor tyres soon.

“We have different tyre categories globally. In future there is a high possibility of introducing motorcycle and tractor tyres in the Indian market. We are looking at penetrating in new segments as soon as possible,” said Tanigawa.

The company started manufacturing TBRs in May this year at its Indore plant.

Bridgestone has a 5% market share in TBRs, which it plans to treble to 15% in the next five years in the replacement market.