Odisha based Elgi franchisee Kool Retreaders is planning to upgrade its Rayagada based production site.
Elgi Retreader to Increase Autoclave Capacity
The plant has been in operation for the last 25 years, retreading by both the precured and mould cure processes. Truck tyres are retreaded by the precure process using two 3-tyre autoclaves, while farm tyres are cured in electric hot moulds.
Rayagada is located in Southern Odisha and is about 400 km from the state Capital Bhubaneswar, but is in proximity with the Southern Indian state of Andhra Pradesh, which is about 30 km away.
“We are keen on upgrading the plant machinery and replace one of the 3-tyre chambers with a 5-tyre autoclaves, but we are holding on for the moment due to prevailing market sentiments,” said Dinesh Agrawal, the owner of Kool Retreaders, Rayagada.
When asked about the new 2-series line of equipment showcased at the Elgi Franchisee conference recently, he said, “This is a competitively priced line but we will replace the machinery one-by-one, starting with the chamber. We will take the decision by the end of this year, and the market will hopefully normalise by that time.”
The plant, which started in 1994, retreads around 3,600 tyres annually, although the pandemic has dropped the monthly average by 20%.
Considering the plant location, which lies in the tribal region populated by the indigenous people, the site has comparatively good volumes. “We are catering to the fleets, in addition to which the Rayagada economy is based on agriculture. As a result we retread about 850 farm tyres yearly by the hot process. Farm tyre volumes are high during June, July & August,” said Agrawal.
Kool Retreaders also sells new car tyres in multiple brands including MRF, Goodyear, Yokohama, Bridgestone and Ceat, as well as providing batteries and services such as wheel balancing and alignment.