Page 55 - RB-80-17-1

INDIA
Karun Sanghi: The Indian Retread Industry Needs a Body that Speaks
on its Behalf
After all, we are talking about a US$ 1 billion industry with surprisingly no one to speak on behalf of it.
Q: How big is the Indian retread industry in terms of annual volumes?
A: The Indian retreading industry is widely scattered and there are hardly any figures prepared on record. It can be broadly divided into the organised and unorganised sectors, and it is estimated that India’s new tyre market is about 16 million tyres annually (both radial and nylon Tyres), and roughly around half of the tyres (i.e. about 8 million) are retreaded yearly by approximately 20,000 retreaders. Therefore, there should be a representative body or association that could represent an industry of this size and scale.
Q: What issues should the new association focus on?
A: These days there is a growing concern regarding the depleting environment in the country, and the retreading industry receives lot of adverse publicity in the media. For example, an accident occurred in the Eastern State of West Bengal recently, and that vehicle was moving on retreaded tyres, and as a result the state government started talking about banning the use of retreaded tyres.
Therefore, if there is a representative body that speaks for the industry to the government and also educate policy makers from time to time about the benefits of retreading, this kind of confusion and bad media could be handled properly. No one tried to find out if the tyre was properly retreaded in the Bengal accident and how retreading is not responsible for killing people but saving the environment.
Q: An industry association should also educate people about retreading?
A: Yes, we need to educate people about quality retreading, which is as good as new tyres, and how it is great to get the tyres retreaded at a quality outlet, various kinds of
retreading, the selection of appropriate retreading or retreader etc.
Q: The idea is to bring certain quality standards in the retreading industry?
A: Absolutely right, but it too early to comment on that as a lot depends upon how things will shape up, but certainly, in the longer run, some kind of quality standards should be put in place to enhance the overall retreading standards in the country. It could also lead to a better understanding and greater acceptability of retreading in India.
Q: Would the Association also act as a bridge between the industry and government departments in formulating policy framework?
A: Certainly, but it will take a lot of effort to reach that level like lobbying the government to formulate favoured policies for the benefit of the industry. This would only happen with the increased credibility of the association.
Q: Do you think the Indian retreading industry will consolidate in the future and that would also improve quality standards in the industry?
A: Surely, the time is changing and the industry will consolidate on the lines of what happened in the US, where the number of retreaders came down to around 800 now compared to more than 12,000 about three decades ago. Another example is Malaysia, which had 800 retreaders earlier but now merely 70. Once the quality standards improve in India, the number of retreaders may come down to 2,000 over a period of time.
Q: Are you confident of convincing people to become members of the association and bring credible numbers?
A: Yes, I know enough people to become founding members and come with contributions. I am sure to get 10-15 people initially to get the things started and form the body by 31st March.
Karun Sanghi, Managing Director, Tyresoles India Pvt Ltd, 51, is the brain behind forming a much-needed retreading industry association in India. Sanghi feels that the time has come for such a body to represent the large retreading industry that is spread all over the country. He is passionate about saving the deteriorating environment in the country, and that reflects in his work, as he heads the prominent Mumbai headquartered retreading company Tyresoles, which expanding rapidly in the country.
Sanghi strongly believes that an association’s role is to be an industry mouth-piece, as well as to formulate and improve quality standards, especially at a time when major tyre producers are also entering the retreading industry. The sector is going through a period of transformation, he believes, and it is time to get vocal and be noticed.
Sanghi intends to form the association ideally on the lines of counterparts in other countries like RMA (Retread Manufacturers Association) or the Retread Tire Association (RTA).
This Correspondent traveled to Mumbai and was part of the historic occasion when the first such effort was made to form an association, christened as ‘Indian Tyre Retreading Association’
(ITRA), and met the man behind the idea.
Q: How did the idea of the Indian Retread Association come to you?
A: I was attending the Asia Retread Conference (ARC 2016) organised in the Malaysian capital Kuala Lumpur last October, and the industry was represented by the most of the participating countries. There was no one else to represent the large retreading industry from India as few Indian retreaders or tread producers participated in their individual capacity. To my surprise, the head of Automotive Tyre Manufacturers Association (ATMA) from India was speaking on behalf of the Indian retreading industry.
Q: You actually started working on the idea of Retreading Association at the ARC?
A: Yes, the idea actually came at the ARC, and I initiated a discussion with representatives of various industry associations attending the conference.
Q: Do you think a retread industry body is required in India as the industry is highly underestimated?
A: I strongly believe we need to have a representative body of the retreading industry in India.
Retreading Business 55