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INDIA
Midas Reaches to Meet Demand
makers have again revised their prices due to upward trend maintained by raw material prices in the Indian market. “Raw material prices are up by 10 per cent and we have increased the prices by 10 per cent. The raw material prices of rubber, synthetic rubber, carbon black and oil are up by almost 20 per cent from last year,” complained Paulose.
Meanwhile, the tread maker has introduced three new patterns in the domestic market. It has launched M26 in 275mm width with a depth of 18mm as highway compound, while the M20 winter design has been introduced in 280mm width, providing high grip during winters.
The company also ventured into the manufacturing of envelopes a few years ago and now has one of the widest envelope ranges in the world. Midas has recently introduced a new envelope for the 4.50 x 10 tyre size. The envelope has a full skirt intended for use with electric bonder. It is also introducing inner envelopes for the tyre sizes 315/80R22.5 and 385/65R22.5. Midas has also launched its own fast cure bonding gum recently for retreaders using a 125 deg C Electric Bonder system. “We have introduced a fast cure bonding gum capable of reducing cure time by half an hour. This will improve casing life, while reducing costs and improving
George Varughese, Managing Director, Midas Tread
Paulose Varughese, Director, Midas Tread
Indian tread makers are increasingly opening up the international markets for their tread brands. The major brands have been quite successful in their endeavours as tread brands like ‘Midas’ have become the most sought after Indian tread brands in the global market. The Kottayam based tread maker keeps on expanding to meet growing demand in both the domestic and international markets. The company’s two facilities at the hub of the Indian rubber growing state Kerala are running full steam to meet its supply commitments in the India and abroad. In order to spread its global network of clients, Midas has recently opened two more new territories. “We have opened up in the markets of Armenia and Israel recently. We are shipping one container a month each to both these markets,” informed Paulose Varughese, Director, Midas Tread. Midas is further hiking capacity by adding new intermixers. “We have installed one a couple of weeks back and are installing another in the next six months to meet the increase in demand,” confirmed Paulose. Midas has two units, one at Manimala and the other at Ettunanwor. It has already installed an intermixer at Manimala and will shortly instal another at Ettunanwor. The company was manufacturing around 2,500 tonnes of tread rubber on an average per month in 2011. “With the installation of an intermixer at Manimala and another one in the pipeline, the production is likely to increase to 3,000 tonnes per month on average in 2012. The capacity at the Manimala plant has been increased by almost 500 tonnes per month,” said Paulose.
Midas is expanding its production to meet its increasing supply
commitments, although the tread maker admits to have experienced a slight slowdown in the international market. “We feel a slight slowdown worldwide. We have no knowledge about the conditions in China as we are not supplying there as of yet,” Paulose says. He also feels the market has slowed down in the UAE as well. “The UAE has been one of our mainstay in the Gulf region and even that market is experiencing a slight recession,” he noted. When asked about India, Paulose replied, “Our supplies are stable in the domestic market.”
Midas entered the export market in the year 2000 and 10 per cent of its production is shipped overseas. “We are exporting around 15 – 20 containers ever y month,” he said. The three month May, June and July are the busiest months for the tread maker. The company has been exhibiting at the Essen show for the past decade and has created a sizeable clientele in the European market. “We have been supplying to Germany, Poland, Finland, Portugal, Greece and Turkey for a long time. We will shortly be opening up in the Scandinavian market, most likely after the German show,” Paulose stated. The company has been performing well in the global market due to the continued improvement in the quality of its product range.
It has been noticed that road infrastructure in many markets is improving and tyres are lasting longer. If we add the fact that radicalisation also adds to the lifespan of a tyre, we can see how tread consumption has possibly declined slightly. “Still the market conditions are now stable,” Paulose feels. The hiking of raw material prices are always a matter a concern for the manufacturer. The tread
ZL2 has been introduced in 230mm width. This is an off-road compound capable of giving chip resistance in off road applications and better mileage in windy conditions and on hillside roads.
capacity,” claimed Paulose. The product has thoroughly tested over the last two years and many of Midas’s regular retreaders have already moved to the new fast cure bonding gum.
Chandy Brings
Midas Volumes
Kottayam based MM Chandy & Co is the biggest dealer of Midas tread in Kerala and has been selling the Midas tread range for almost three decades. “We started way back in 1983-84 as an extension to our new tyre business. We have been with Midas since then. The tread maker has consistently improved the product quality and
that is the reason we stayed with them for all these years,” said Mr Ninan M Chandy, Managing Director, M M Chandy & Co.
The company is picking more than 300 tonnes of tread per month from Midas and supplying it all over
Kerala. The distributor has a state wide network with offices in North, South and Central Kerala, covering almost every district. “We started with just 330 kg as a first consignment three decades ago. Since then we have been growing consistently by 5 per cent every year,” recounts Chandy. Previously,
Mr Ninan M Chandy, Managing Director, M M Chandy & Co.
58 Retreading Business