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NEPAL
Nepal Tyre Resoling Association Bringing Retreaders into its Fold
Nepal’s tyre retreading industry is
Devendra Paudel, President, Nepal Tyre Resoling Association
organised under a representative body called the Nepal Tyre Resoling Association (NTRA). The Kathmandu based association has 65 members from mainly four districts, having plants in the cities of Kathmandu, Bhaktapur, Lalitpur and Kabre. “The basic objective is
to bring the maximum number of retreaders into the association to take care of the interests of the people in the trade and industry,” said Devendra Paudel, President, Nepal Tyre Resoling Association. The NTRA has yet to emerge as a pressure group to lobby for the interest of the retreaders, but it has made a beginning by providing a platform for interaction between the stakeholders in the industry. “Currently, during our meetings ideas and problems are being shared we have even given a few representations to the government,” he said.
The association was originally formed eight years ago and elects a new President every five years. Commenting on the number of retreaders in Nepal, Paudel said; “There are around 190 retreaders in Nepal with a certain degree of professionalism and more than 100 unorganised plants running on minimal equipment.” Around 95 per cent of the market is pre-cure. No conclusive figures are available on the size of the retread market, but estimates suggest a market in the region of 24,000 retread tyres
each month and 288,000 tyres annually.
The retread market is heavily controlled by the Indian tread, tyre and machiner y brands. On the tread rubber side Elgi is the leader in the franchise business, while Kottayam based Midas is the leader in the open market. Other Indian brands present are Indag, Tolins, MRF, Poddar and Capital. Local brands include Jyoti and Lion. On the plant side, Elgi is the market leader, having supplied 12 plants in the country, followed by Kerala based High-Tech and V7, and Delhi based Indag.
The Nepalese market has mostly remained constant for the last couple of years and has recovered to its original position as before the 2015 earthquake. The market has not experienced any jump in volumes despite reconstruction having started in various Nepalese towns and cities. The work may have been very slow, and that has not been reflected in the overall volumes due to poor existing infrastructure and government’s apathy towards development, although a few road projects have
been visible in the capital Kathmandu.
Considering that Nepal is a small land-locked country and dependent on its supplies from neighbouring India, the movement of which is exclusively by truck, the volume of retread tyres should be much more than it is right now.
There is challenge from the unorganised sector and there is absolutely no support from government in terms of tax and trade benefits, added Paudel. “Moreover, there is no exposure to the technological advances made by the industry to the domestic retreaders,” he emphasised.
He further commented; “We also called for duty concessions on imports as the industry is solely dependent on imports, largely from India, for rubber and machinery. If there are certain concessions as for other bigger industries, it would definitely be a boost for the retreading sector as people would start investing in advanced technology.”
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