The company, which started operations at its new facility in Khede, Madhya Pradesh, in March this year, is likely to operate at a capacity utilisation of 35 per cent in the current calender year, which will go up to 80 per cent next year.

"By the year 2000 we hope to be in a position to operate at 100 per cent capacity utilisation," said company director KG Shenoy.

The company's Rs 345-crore facility has an installed capacity to produce 2 million steel-belted radial tyres per annum.

To start with, sales will primarily be targeted towards the original equipment segment which will account fro 70 per cent of the turnover. "The company has already tied up with automobile manufacturers like Honda Siel, Telco, Daewoo, Hyundai and Ford for supply of steel-belted radial tyres," managing director Kunio Sasamotosaid.

Bridgestone ACC India is also in an "advanced stage of negotiations" for entering into a supply contract with Maruti Udyog and General Motors India.

The company has unveiled its premium range of tyres for passenger cars and multi-utility vehicles. While the S series, comprising S248 and S322, and Potenza RE88, has been launched for the passenger-car segment, the other version Dueler D689 has been specially designed for multi-utility vehicles.

To combat the lower degree of radialisation in the country, the company has started a promotional campaign to create awareness about the inherent advantages of radial tyres (more importantly Bridgestone radials) among local motorists.

"As the radialisation progresses, our share of the replacement market, which is initially estimated at 30 per cent of the sales, will gradually increase," said senior vice president (sales & marketing) SK Chatterji.

The company has an Rs 155-crore equity base, of which the Japanese tyre giant has a 64 per cent stake. ACChas a 19 per cent stake in the venture, while Telco holds 7 per cent. Mitsui, the Japanese mega trading house, owns the balance stake.