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INDIA
Ganesh A Kabadi of Vidya Tyres
he explained.
The retreader is pinning its hopes on the positive impact of GST introduced by the government on 1st July. “Now it is a level playing field as the removal of multiple taxes has bridged the price gap with the unorganised players. Now the advantage is on our side,” he said.
He believes that retread volumes will pick up. “Volumes are likely to pick-up in the next two months as post-GST, a lot of fleet owners are inquiring for price quotes,” he said.
Also in Karnataka is Mangalore-based
Maxworth Retreads. This company last carried out a technical upgrade of its Mulky based facility in 2013. Having done this, the retreader is now bullish about its market prospects after the Indian government introduced its GST. The move is expected to push retread volumes as traffic surges with the removal of check-posts on each state border.
“We expect a 30 per cent increase in logistics. A surge in vehicle movement will lead to tyre burn out and an increase in retread volume,” commented A J Anand Nelliat, Managing Partner, Maxworth Retreads.
The company is positive about GST and its impact on truck movement as it is one of the largest truck tyre retreaders in Mangalore, a port city on the Arabian sea and a major commercial centre in the Southern Indian state of Karnataka. Maxworth started operation in 1996 and retreads 1,000 plus tyres per month. “We specialise in tubeless radials as 50 per cent of our volume comprises of tubeless radials and the remainder of a mix of bias and normal radials,” he explained. Mangalore based fleet owners are tech-savvy and prefer tubeless radials over normal or
bias tyres.
The plant is spread over a one-acre plot and has space for further expansion if the volumes increase in the near future. “We are equipped with modern equipment, and we can take on any production challenge. We have the trained
manpower. If the flow picks-up by 20 per cent, we are ready to handle it with our existing resources,” said Anand.
Maxworth Retreads is one of the largest Elgi truck tyre franchisees in Karnataka, consuming more than 100 tonnes of tread rubber annually.
Still in Karnataka, Mysore-based Shanba Industries is in the midst of finalising a plant modernisation and will soon order new equipment. “We are planning to buy a new buffer and builder in the next few months,” said Niranjan S B, Business Team Leader,
Shanba Industries.
The plant retreads about
800 tyres each month
with a majority 60 per
cent of production
consisting of Maxi cab
tyres, with the remaining
40 per cent being truck
and bus tyres. When
asked why there was the
focus on Maxi Cab tyre
production, Niranjan said,
“Mysore is not an
industrial town or a
transport hub but a
tourist centre with a lot of
maxi cabs running around
carrying tourists to
various locations.”
The plant opened in
1984, and has the
capacity to retread 1,400
tyres per month. The
franchisee sources around 8 tonnes of tread each month and has 3 autoclaves with one four-tyre chamber for LCVs and a couple of 3 & 2 tyre autoclaves for truck and bus tyres.
The plant covers the districts of Mandya, Chamarajanagar, Kollegal, Coorg and Ramanagara.
Shanba Industries is open to further expansion if volumes pick-up in the near future. “If the volume grows further, we may install
another chamber as we
have a lot of space for
further expansion,” he
said.
Our fifth Elgi franchisee
is Tamil Nadu-based
Super Transports. Elgi’s
largest franchisee in the
Southern state of Tamil
Nadu is targeting a
significant increase in
retread volume. Super
Transports (P) Limited,
part of L G Balakrishnan
Brother Ltd (LGB), has
five units in the districts
of Karur, Dindigul,
Madurai, Namakkal and
Trichy. “We are targeting
a 5,000 tyre retread
volume each month by
the end of 2018,” said V
R Venkateswaran,
Assistant General Manager, Super Transports (P) Limited.
When asked about any specific strategy formulated to achieve the target, he replied, “We have identified untapped markets, and now the focus will be on having our presence in new areas,” he said. The company has strong sales and logistics support which covers more than 60 cities and towns in Tamil Nadu. “We have 15 collection vehicles to provide a 24/7 pick-up service with a 45-strong sales and service team to take care of our clientele,” he stressed.
Niranjan S B, Business Team Leader, Shanba Industries
of tread each month.
In the south of Karnataka, we find Elgi’s Hubli based franchisee. Vidya Tyres is a smaller retreader but still looking to expand in what it sees as a developing market. Vidya Tyres is currently planning to open a second plant about 80 km from its existing location, at a place called Koppal. “The Hubli plant started in 2013 and retreads 150 truck/bus tyres per month. Our plan is to open a similar plant in Koppal by 2019,” said Ganesh A Kabadi of Vidya Tyres.
Hubli is the second largest city in Karnataka after the capital Bangalore. “The market is worth
Super Transport started in 1979 with its first plant in the Karur district and became an Elgi franchisee three years later. Its five units retread a wide range of tyres from passenger cars to TBR and OTR.
A J Anand Nelliat, Mg Partner, Maxworth Retreads
V R Venkateswaran, Asst General Manager, Super Transports (P) Limited
around 2,000 retread tyres per month with the presence of both precure and conventional systems. The small retread market is crowded with 15 retreaders with five of them in the organised sector, these being franchisees of Elgi, TVS, MRF, Vamshi and JK respectively,”
52 Retreading Business