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INDIA
Continental Bullish on Indian Retreading Scenario
Continental is bullish on the Indian retreading industry and plans to enter the sector in the near future. "We are considering entering the retreading market in India. We have not set any time- line for a retreading foray but it is definitely an area we are considering for the future, " informed Andreas Penkert, designated CEO of Continental India Ltd to Retreading Business in a media event in New Delhi recently. When asked about the
nature of the retreading exercise, Penkert commented, "We have not made any firm decision about moving into retreading, tread manufacturing or the equipment side. It is too early to comment on the nature of the foray but we are looking at it as a future opportunity for growth in the Indian market."
Continental recently announced its expansion plans for the Indian market. After the acquisition of Modi Tyres
Company Limited (MTCL), the new entity, Continental India Ltd, is ramping up its operations significantly in both the replacement market and the OEM space in India. Continental India is increasing production at the Modipuram plant to more than half a million bias truck and bus tyres (TBX) already this year. From there, TBX production is planned to continuously grow to more than one million units in 2013. In addition, Continental India announced further investments of more than 50 million Euros to start production of radial tyres for passenger cars and commercial vehicles in the second half of 2013.
Continental plans to manufacture radial tyres from the Modipuram plant and will generate a competitive leap via being able to offer both radial and bias tyres out of local production. This move will also create further job opportunities as Continental India Ltd plans to increase its headcount by more than a third from the current
1,600 employees up to between 2,200 to 2,400 within the next few years. A major portion of Modi sales historically came from aftermarket sales. While a strong focus will still be the tyre replacement market,
Continental, as one of the leading international automotive suppliers, intends to build a significant share in the OEM business as well in India.
In July 2011, Continental formally completed the acquisition of Modi Tyres Company Limited which included the existing TBX plant in Modipuram, plus the tube plant located in Partapur and all related operational assets to those plants including all customer relationships. Alok Modi, member of the founding family of Modi Tyres Company Limited, will be on the Board of Directors of Continental India Ltd.