Michelin eyes India foray to beat global slowdown
French tyre maker Michelin is building capacities in the new regions of China, Brazil and eastern Europe to expand its global footprint, even as its India plans for a manufacturing site is gathering steam.business Updated: Jun 01, 2010 21:03 IST
French tyre maker Michelin is building capacities in the new regions of China, Brazil and eastern Europe to expand its global footprint, even as its India plans for a manufacturing site is gathering steam.
Hit by the global slowdown, the tyre maker has already lined up an invesment of Rs 4,000 crore over the next seven years to open a manufacturing facility in India by 2012-end. The company has also acquired 250 acres of land in Tamil Nadu.
The company recently opened its fourth manufacturing facility in Brazil and is already present in China. Its now gearing up for its India foray. “We cannot think of the future without including India in our plans,” said Jean-Dominique Senard, managing partner, Michelin.
“Sales from the high-growth countries countries contribute 33 per cent to the company’s overall global revenues. We produce 24 per cent of our products in these areas and there is need to export more. We expect this number to go up to 40 per cent in the next 10 years.”
Michelin will now tap the original equipment manufacturers (OEM) segment in India.
It will roll out premium, middle and the mass products.
(The author’s travel and stay was sponsored by Michelin)