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INDIA
TVS Forms Indian JV with US - based Myers Tire
Nigam, the tyre repair segment, which would include services like patching for punctures, retreading (re-manufacturing process for tyres that replace the tread on worn tyres), or wheel balancing, is almost non-existent in India and is dominated primarily by unorganised players. Through this JV, Myers will provide technology, personnel training and equipment required for the tyre repair market in India, thus opening up a new segment and bringing this under the organised service segment.
With over 200 million cars on Indian roads, the JV sees a business opportunity of INR 250 million for tyre repairs in 2012, and targets a revenue of INR 1000 million in the next three years.
Myers also plans to use this JV and its presence in India as a hub for exports in the Asian market. The $800 million company currently has a large chunk of its operations in North America, and is looking to expand within the Asian region.
“We are pleased about expanding our long term relationship with TVS ASL, a leading automotive aftermarket company in India”, said John C. Orr, President and CEO of Myers Industries. “Our small investment in this joint venture
Meanwhile...
aligns with the geographic expansion strategy for our Distribution Segment. The global presence of Myers Tire Supply, which excels in providing tools and consumables to independent tire dealers and tyre retreaders, complements TVS’ strength in equipment sales to automobile dealers in India,” he added
The tie-up would also enable TVS Automobile to become the only organised player to have expertise in all segments of aftermarket service industr y, he said.
MYTVS operates a number of businesses including 79 workshops as well as multibrand and OEM authorised service centres, offering roadside assistance with 4,000 authorised service providers, telematics-based vehicle tracking systems and immobilisers. The company also has an automobile parts sourcing and distribution business and eight BPCL petrol pumps in Tamil Nadu, a company statement said.
TVS Automobile solutions Ltd is a subsidiar y of T V Sundaram Iyengar and Sons and has been in the after- market car service business for the last 10 years, it added.
India’s TVS Automobile Solutions, a part of TVS & Sons has formed a joint venture (JV) with US-based Myers Tire Supply International to promote each other's products in different markets of Asia.
fragmented and unorganised after- market tyre repair and service business in India."
"With this JV, we will become the only organised player to have expertise in all the sections of after-
James Drohan, General Manager, Myers Tire Supply International (MTS) with Sanjay Nigam, president and CEO of TVS Automobile Solutions
Myers Tire Supply is a $175 million arm of Myers Group. The company deals in tyre and tube repair tools, accessories and consumables besides in the supply of puncture repair kits for both passenger and commercial vehicle for radial and tubeless tyres.
The JV, in which TVS Automobile Solutions will hold 65 per cent stake and the rest with the US partner will initially focus on the after-market tyre repair and service business in India.
Myers Tire Supply, along with TVS ASL, will look to make a mark for its business in India and other parts of Asia through this joint venture, the company said in a statement. TVS ASL has several businesses including MyTVS brand of car workshops, insurance brokers, telematics and tools and equipment.
Commenting on the partnership, Sanjay Nigam, president and CEO of TVS Automobile Solutions, said, "This joint venture will give us the first mover advantage in the largely
market automobile service industry," Nigam said.
Together, the two companies will develop their global sourcing capabilities and operate through a localised branch network to meet customer demands with competitive quality and pricing.
"Not only does this joint venture coincide with the geographic expansion growth platform for our distribution segment, but it also provides entr y into the fast-growing Asian market," said James Drohan, general manager of Myers Tire Supply International Inc.
Myers Tire Supply International is a leading distributor of equipment, tools, accessories and consumables for tyres in the US, with more than 40 branches across the countr y. Speaking in Chennai, Sanjay Nigam said that the group company has undertaken a major restructuring exercise as part of its business plan. “Our tie-up with Myers will bring in the global best practices in the aftermarket tyre service business through its service equipment and
consumables,” he said.
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conservative estimate, the tyre service business in India could be of the order of $50 million, largely controlled by the unorganised sector.
According to
Michelin Enters India’s
Retread Market with TVS Tread
Michelin Tyres inaugurated two new Michelin certified Recamic tyre retreading facilities in Tamil Nadu on 15th May. The two units are located at Coimbatore and Salem and bring quality retread solutions for the truck and bus customers in the region. The new facilities have been set up in collaboration with TVS Tread, the retreading arm of the TVS Group, with the primary objective of working together towards the advancement of the retreading sector in the Indian commercial vehicle segment.
The two facilities from Michelin and TVS Tread will provide quality retreading solutions for radial tyres that will help reduce operational costs for transporters. Collaborating for the cause of higher tyre mileage and fuel savings, these retread facilities will further help in differentiating the performance of Michelin tyres by improving on the second and third lives of the Michelin casings, claims the French tyre company. The announcement comes as a strategic move with both the companies sharing a strong focus
to help the Truck/Bus fleet owners to optimise their operational costs. Both facilities will offer the Michelin group brand Recamic tread for use on all Michelin casings besides offering TVS treads on non-Michelin casings. The facilities are designed and certified to offer retreads for all radial casings. Besides providing retreading on customers’ casings the plants will also produce
Recamic retreads on Michelin owned casings, which will be marketed exclusively through the Michelin Truck Service Network.
Speaking at the announcement, B Kumar, Country Manager, Channel Development, Michelin India said, “We are excited about our collaboration with TVS Tread and we expect to leverage this partnership not only to streamline the industry but also to help us expand our network in the country. The collaboration builds on our strategy to provide quality retread and repair solutions that not only last long, but prove value for money for the fleet owners.” Dedicated to the improvement of sustainable mobility,
14 Retreading Business