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SRI LANKA
4,500 by the precure process and 1,500 by hot cure. The plant has a mix of tyre chambers of 10 and 12 tyres from Indian equipment manufacturers along with several reconditioned autoclaves. The plant caters to clients within a 250 km radius of the plant.
DTH is also planning to expand into supplying turnkey projects in Sri Lanka to any company planning to foray in the
retreading market. In addition, the company also has ambitious plans to enter into the manufacturing of three-wheeler, light truck and tractor tyres. “We have already purchased a three-acre adjoining plot for expansion into tyre production,” Dharmasiri assured.
The company has also operated a new tyre business since 1998 and has four retail outlets under the name of Dharmasiri Tyre House (PVT) LTD.
Indian tread brand, and there is a perception in the market that Midas tread gives good mileage. “Now people are asking for good products and even willing to pay the price,” he said. The precure plant has two autoclaves of 9 and 5 tyres respectively sourced from Kerala based Indian manufacturers. The retreader, based on the outskirts of Colombo, is targeting 1,000 tyre production per month by the end of 2017. Lal Tyre started its retread plant in 2001, and used to retread more than 2,000 tyres
each month. “We used to work for the government owned Ceylon Transport Board, retreading more than 1,000 tyres for the state-owned bus service at highly competitive rates. We are slowly coming out of the government business and now focusing on the open market, where the margins are better and the returns are also there in terms of quality product,” Sujantha explained. The company has gradually reduced the government business from 12 to now merely 3 depots.
Lal Tyre to Increase Midas Intake
New Victory to Start Inner Tyre Flap Production
Central Sri Lanka based tyre retreader New Victory Motors is foraying into the production of inner tyre flaps. “The plant will be set-up in the adjoining plot by the end of 2018. We have the land and are now buying the required machinery from India,” said Dhammika Wijekoon of New Victory Motors. The tyre flaps will be supplied to retreaders and tyre maintenance outlets.
New Victory Motors, based at Mahiyanganaya on the Kandy -
Mahiyanganaya highway, opened its retread plant in 2011, and retreads 400
light truck and heavy truck tyres each month by the precure process with a six tyre Rajmahal and 3 tyre Elgi autoclaves. The company started with tyre distribution before foraying into retreading. The plans for inner
flaps is part of the company’s overall diversification and expansion plan.
The company has also opened a second retread plant in Kandy in Central Sri Lanka, about 75 km from Mahiyanganaya. The new plant became operational in January 2016.
Dhammika opened the retread plant in Kandy partly because it is his home town but also because there is no one else in the area offering retreading by the MRF tread. “It’s a small plant compared to the Mahiyanganaya plant, retreading around 150 light truck/truck tyres per month with a reconditioned nine-tyre chamber of Indian manufacture. The company sources around 2,500 kg of tread rubber from MRF each month.
Dhammika Wijekoon of New Victory Motors
The mid-sized retread plants in Sri Lanka are shifting their focus onto improving the quality standards of the end product. Retreaders are now opting for quality raw materials to offer
Sujantha, Sales Manager, Lal Tyre House (PVT) LTD.
Currently, Midas share around 15% of the total volumes but this share has been consistently growing in the last couple of
G C Sujantha, Sales Manager, Lal Tyre House (PVT) LTD.
good product to the markets. “Currently, the majority of the tread rubber used at our plant is sourced locally to cater to the price-sensitive market. We are slowly moving focus onto Midas tread imported from India and find an encouraging response from the market,” said G C
months. “Our plan is to slowly phase out the local tread as there is hardly any other plant using Midas tread in Sri Lanka. It has the quality that will improve our margins once the volumes pick- up.” he said.
The company has received positive feedback about the
48 Retreading Business