VMPL
Ahmedabad (Gujarat) [India], May 20: Viaz Tyres Ltd. is preparing for a major expansion into tyre manufacturing as the company looks to move beyond its traditional butyl tube business and build a larger presence in India's replacement-driven tyre market.
The company reported consolidated revenue of ₹108.34 crore for FY26, up 89.2 percent from ₹57.25 crore in the previous year. Net profit rose 58 percent year-on-year to ₹5.27 crore, while EBITDA stood at ₹9.57 crore, reflecting a 31.5 percent increase over FY25.
The next phase of growth for the company will be driven by a new manufacturing facility coming up in Mehsana, Gujarat. Spread across 1,50,000 sq. ft., the plant is expected to begin operations in calendar year 2026 and will manufacture tyres for two-wheelers, three-wheelers, light commercial vehicles and agricultural vehicles.
The expansion marks a significant shift for Viaz, which has so far been known primarily as a manufacturer of butyl tubes used across bicycles, motorcycles, passenger vehicles and commercial vehicles.
Management believes the move into tyres will substantially increase the company's revenue potential, as tyres generate higher realizations than tubes and cater to a much larger market. India's tyre industry continues to be dominated by replacement demand, with a large share of sales linked to vehicle servicing and replacement cycles rather than fresh vehicle purchases.
The company plans to invest around ₹40-45 crore as part of the expansion and has set a revenue target of ₹350 crore by FY29.
Viaz also indicated that its financial position has improved during the year, supported by better working capital management and positive cash flow from operations. The company said the improvement in cash generation is expected to support future expansion while reducing pressure on working capital requirements.
Industry estimates suggest India's tyre sector is likely to see sustained growth over the coming years, driven by rising vehicle ownership, increased freight movement, rural demand and a greater push toward domestic manufacturing. The company's entry into multiple tyre categories comes at a time when several mid-sized manufacturers are looking to scale capacity to capture a larger share of the replacement market.
Alongside its domestic operations, Viaz exports products to markets including Libya, Oman, Egypt, Brazil, Colombia and the UAE. The company has traditionally focused on the butyl tube segment but is now positioning itself for a broader role within the automotive components and mobility manufacturing space.
The Mehsana facility is expected to become the company's largest manufacturing investment to date and will play a central role in its planned scale-up over the next three years.
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