Page 63 - RB-61-12-2

INDIA
Cochin Rubbers Hopes for Growth Despite Slowdown
The export-oriented Cochin Rubbers had never been visited by Retreading Business despite numerous trips by the writer to Kerala in the past.
On arrival at the factory in the Industrial Estate of Kalamassery near the picturesque Cochin airport. I briefly met with Mr P M Shamsuddin, Managing Director, Cochin Rubbers. He knew of Retreading Business and shook hands with me and asked his General Manager to explain about the company.
Cochin Rubbers exports the majority of its production to various international markets as it is an export-oriented unit though it does sell part of its production in the local market too. “We can only sell a certain amount of our production in the domestic market. We are not allowed to open sales offices in the home market due to being tagged as an “export-oriented unit”, clarified Suresh Chauhan, General Manager, Cochin Rubber. The company sells around 100-150 tonnes of tread rubber in the Indian market. “We manufacture around 600 tonnes per month and export around 500 tonnes of tread every month,” claimed Chauhan.
Cochin Rubbers started its first factory way back in the 1980s,
today, the Kerala based company has five units operating in the state. “Two factories manufacture tread rubber, while the other three are the mixing plants,” he informed. The company’s three masterbatch mixing compound units boasts a clientele that includes the major Indian tyre brands like – MRF, Apollo, CEAT, JK, Falcon etc to name a few. It has installed four Alfred Herbert made K- 4 Intermixers that have considerably improved the quality and quantity of masterbatch compound. The company has also installed a 40 foot press last year, including a calendar for bonding gum.
Cochin Rubber has the combined capacity of manufacturing 800 tonnes per month but manufactures on an average 600 tonnes per month. “Though the tread rubber business is dull, there is slowdown in the pick-up as hauliers increasingly prefer low-priced Chinese tyres. They are not good for retreading, hurting the retreading and tread sectors,” believes Chauhan. The company feels that actual market trends would be clear by June, when the retreading industr y booms during the high summer season. “We are hopeful of 10-20 per cent increase. We plan to end 2012-13 fiscal with an average
of around 700
tonnes per
month,” hopes
Chauhan.
Commenting
upon the
domestic
market, he said,
“The market
conditions are
not so bad but
there is
increasing
amount of
unfair
competition.” It
is supplying to
various states in India like Uttar Pradesh, Madhya Pradesh, Gujarat, Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Orrisa.
The Indian tread making units of Cochin Rubbers also feed the four retreading factories that the company operates in the Gulf region. “We have four retreading plants in Saudi Arabia, two in Dammam and two in Jeddah,” added Chauhan.
Cochin Rubbers entered the Saudi market about 10 years ago. The four units have a combined production of around 1,000 tyres per day. When asked about plans of setting up more retreading plants in the Gulf countries, Chauhan replied, “There
are no such plans at the moment.” The company operates in the price sensitive market though it claims to manufacture tread of good quality. “We make only a premium quality International Product Range (IPR),” confirmed Chauhan. Cochin Rubbers export market spreads mainly to the US, Canada, various countries in Africa and the Gulf market.
Cochin Rubbers factory