New Delhi, Aug. 26: Metro Tyres is exploring opportunities for its two-wheeler and bicycle tyres in Europe.

The flagship company of the Metro group will enter Europe with its two-wheeler tyre brand Ortem Tyres. It already has a technology partner in the continent — Germany’s Continental AG.

“Starting operations in Europe will help us remain closer to our strategic customers in the region, develop local markets and increase profitability of our operations,” said Rummy Chhabra, managing director of Metro Tyres.

The company is aiming to increase its turnover to Rs 750 crore in a couple of years. Last fiscal, it recorded a turnover of Rs 400 crore.

Metro Tyres has set up its office in Barcelona along with a production distribution centre.

This will help the company improve its customer service, particularly in terms of supplies and logistics.

Metro Tyres plans to enter into agreements with original equipment manufacturers to increase sales. The company recently tied up with Continental AG to roll out tubeless motorcycle tyres.

Under the agreement, Continental AG will provide the technical knowhow to Metro Tyres. The tyres will be made in India to cater to global two-wheeler companies such as Honda, BMW and Yamaha.

The company plans to introduce these tyres in the domestic market also in the future.

Metro Tyres has increased production of its Metro-Continental motorcycle tyres from 25,000 pieces per month to 50,000. It will further scale up production to one lakh tyres in the next few months.

The company has manufacturing facilities in Ludhiana and Manesar. It also plans to set up a greenfield plant to make motorcycle, scooter and three-wheeler tyres in one of the tax-free zones in North India at an estimated cost of Rs 50 crore.