Maxxis Rubber India today officially inaugurated its first manufacturing facility in India at Sanand, Gujarat. The plant was inaugurated by Vijaybhai Rupani, Chief Minister, Gujarat, in the presence of Tsai-Jen Lo, Chairman, Maxxis Group; Cheng-Yao Liao, President, Maxxis India and Jia-Ciao Liou (Gary), Spokesperson, Maxxis India. Production from the first phase of the facility began in August, 2017.
Maxxis is making an investment of over $ 400 mn (about Rs 2,640 crore) in setting up this plant, which is spread across an area of 106 acres. The company said that the facility is currently manufacturing two-wheeler tyres and tubes, with a capacity to produce about 20,000 tyres and 40,000 tubes per day in the initial phase. It added that is has currently injected about $ 320 mn of the total investment. Maxxis is targeting a market share of 15 % of India’s two-wheeler tyre market within five years.
The Sanand plant currently imports 98 % of the raw materials for production of tyres. Maxxis India currently serves as an OEM tyre supplier to Honda Motorcycle and Scooter India, Maruti Suzuki India Ltd, Mahindra & Mahindra, Tata Motors and Jeep. The company’s product portfolio from Sanand will be exported to South Asia, and will further expand to Africa and Middle East countries in the coming years.
Liao said Maxxis Global is targeting to become one of the top five global tyre manufacturers by 2026 and India market will play a vital role in the growth. Maxxis monitored the market for over two decades and then devised the strategy for entering India, with the plant in Sanand being the first step of its full range appearance in the country, he added.
The Sanand facility is an integrated manufacturing plant that offers all facilities from mixing to tyre building and curing, noted Gary. He said that the plant currently employs a workforce of 600, and is working to extend its manpower to 2,000 employees within a span of five years.