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INDIA
Limited, Bridgestone India Ltd. J.K. Industries Ltd. Goodyear South Asia Tyres Pvt. Ltd. and Balakrishna Tyres Ltd. It has 25000 MTA mixing capacity with 3 NOS of K4 and 1 NO. K42A mixer.
With a slowdown in the international market, United Rubber is also pushing domestic sales. “Currently, we are supplying around 50 – 60 tonnes each month in the India market. The way domestic sale is picking-up, it is hoped that we may cross the 100 tonnes mark in a year’s time,” said Kurian. The company feels that the universal tax system GST is going to be enforced in India
soon and that may improve the business scenario for the whole industry.
United Rubber is backed with an excellent Research and Technology Center equipped with test equipment like a Rheometer, Mooney viscometer, Hardness tester, Tensile tester, Accelerated ageing oven, Abrasion tester etc. “We are further adding one more Rheometer to the existing two,” he said. Qualified and skilled technicians man the centre. This is the backbone for rubber mixing and compounding.
Director, at the newly opened company headquarters in Gachibowli in Hyderabad, now capital of the newly carved out state of Telengna. The meeting was attended by the BoD of the listed company.
When asked why the company focused historically more on the domestic market and not exports, Reddy said, “We have always got a good price in the domestic market. Price has been a major issue when it comes to export as raw material and compounding costs have been getting higher, and we have never got the price in the international market that
few deals in that market this year,” assured Gopinath, who is responsible for spearheading the company’s export drive. The company has already designed 30-35 new patterns for the European and African markets. Vamshi’s strategy is to keep growing in the export market gradually.
The firm is focusing on innovative schemes, lending sales and marketing support to its clients to increase volumes. “We are trying to understand the franchisees and clients on an individual basis and see how we could support in terms of technology upgrades and marketing, and that
Vamshi to Open up European Market in 2015 - New Tread Rubber Plant Planned in Andhra Pradesh
we do in the domestic market. Our focus, therefore, has always been more in the domestic market.”
In order to give thrust to its exports, the company is focusing on the markets of Europe and Africa more as it has been shipping tread to few pockets in South Asia, Africa and the Middle East. “We are talking to number of companies in Europe and Africa and hope to open more markets in these areas to achieve targets this fiscal,” assured K Gopinath, Head (Sales – International). The company has declared the ongoing year as an export thrust year.
Vamshi also believes that the export market is struggling as most of the economies have experienced a slowdown in the past few years coupled with havoc played by the presence of Chinese tyres. However, the company continues to make progress and become more active on the export front despite all the challenges.
Vamshi says that it has decided to participate in overseas shows in search of clients in the targeted markets. “We participated at Tyrexpo Asia in Singapore, and now we have also taken a stand at the SEMA show at Las Vegas. Next year’s plan is to take part in the Reifen show in Germany and Tyrexpo Africa. Top of the mind priority is to get a strong hold for ‘Vamshi’ brand in global market” said Gopinath.
Interestingly, Vamshi is keen on expanding in Europe in addition to Africa and the Far East. “We are in touch with several companies in Western Europe and hope to close a
reflects an improvement in our volumes in the first four months of this fiscal,” said T S Rajan, GM (Customer Service).
New Tread Rubber Plant Planned for Andhra Pradesh
Vamshi’s tread making capacity is 450 tonnes per month, but it produces between 350 to 400 tonnes at its Nalgonda based facility depending on the demand. Interestingly, Vamshi has no plans to hike capacity at the mother plant but plans to run the plant only to its full capacity of 450 tonnes per month. The company says it is likely to achieve the 450 tonne mark in 2016-17 fiscal.
Instead Vamshi plans to set-up whole new export–oriented plant in neighbouring Andhra Pradesh.
“We are awaiting new industrial policy to be announced for the rubber industr y in the specific region of Andhra Pradesh. Once that is announced, we will spell out our plans of the new and modern second tread making plant,” confided Reddy. The company’s new plant at Andhra Pradesh is likely to have a similar capacity of 4,000 tonnes as the current Telangna plant. On investment, Reddy said, “We are planning to invest around INR 30 crore in the new plant.” The listed company may float an IPO to mop up required funds for the new project.
Creating a Pan-Indian Presence
Vamshi’s supplies 40-50 per cent of its tread rubber production to South
Indian tread makers are increasingly keen on expanding their horizons by becoming more global, whilst at the same time consolidating their home base. Hyderabad based Vamshi Rubber Limited is looking to increase its
tread business under three key separate headings (Domestic Market, State Transport Undertakings (STUs) and Exports) in order to give individual impetus to each sector. “We are targeting overall sales of
presence in the markets of South Asia, Middle East, Africa and Europe after Gopinath has assumed charge as Head of International Business. The South India based company is operating its
around 4,000 plus tonnes of tread rubber including exports, STU has seen a 10-15 per cent surge in sales in the first four months of this fiscal,” said R Surendra Reddy, Managing
46 Retreading Business