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TYREXPO INDIA
envelopes available in the domestic market,” he claimed. Eastern has plans to sell an important amount of co-branded envelopes this fiscal.
We will see how the product picks-up in the Indian market by the first half of 2018 for further important actions and strategies to plan,” he stated.
The tread producer has ambitious plans to transform from merely selling tread rubber to being a one-stop solution provider in the Indian retread industry. “The strategy is to keep reinventing in the market by introducing new ideas,” he stressed.
The company has been overhauling its franchisee network as part of the transformation. It has formed a top-end network of ‘Infinity’ franchisees, while the remainder operate as ‘Exclusive’ franchisees. Their cumulative strength has reached around 100. “Infinity franchisees are using the high-end tread not available in the open market, while the Exclusive network uses tread rubber under
the ‘Diamond’ brand, which is available in the open market. However, we extend all kinds of material and market support to Exclusive retreaders also,” he explained. Currently, the company produces around 600 tonnes of tread rubber each month. Interestingly, Eastern also has formed a ‘Techno Commercial Wing’ that has skilled manpower ready 24/7 to take-care of any breakdown in its franchisee network. “We want our franchisees to operate 24/7, and if there is an equipment failure or breakdown, Techno Commercial can be contacted to rush to the site. There is no need to call the equipment makers,” he stated. The rubber company has also ventured into equipment manufacturing during 2016. Eastern manufactures small equipment like tyre builders and envelope expanders and has the bigger machines like tyre chambers contract manufactured as per the requirements of retreaders.
Anand Tyres Opens Second Retread Plant in Chennai
down, and tax reforms initiated by the central government could be the reason for this temporary phase. “Once the manufacturing of various key sectors picks-up and goods start moving and fleet movements gather momentum, the retreading sector will also improve,” he said.
Moreover, the entry of major tyre producers into the retreading sector has also affected the volumes of independent retreading units during the last
half decade. Large fleet owners, instead of getting their tyres retreaded outside, have also put up plants to cater to their home fleets. “We lost the account of one of major fleet owner, who has 400 trucks and retreads around 200 tyres from our plant each month,” he added
Best & Union Retreads had plans to set up a retread plant in the Middle East, but this is currently on hold, said the company.
Rajesh S, CEO, Eastern Tread
I Balasubramanian, Plant Manager, Best & Union Retread in Chennai
Best & Union
Retread Awaiting Positive Impact of GST
Anand Tyres opened its second retreading plant in Chennai at a location called Poonamalle last December. The Apollo franchisee opened its first plant in Madhavaram in Chennai four years ago. “The new Poonamalle plant retreads about 250 tyres per month and the Madhavaram unit also operates at the same level,” informed Mahendra Chowdhari, Managing Director, Anand Tyres. Both plants are of similar size and equipment and have installed capacity of about 500 tyres.
The company has a third retread unit outside Chennai at a place
called Sankagirl, near Salem about 500 km from Chennai, which opened in 2015 and retreads about 350 tyres each month. Anand Tyre is regarded as a one- stop-shop and a diversified tyre related business, having retread plants, a battery and alloy wheel business, service offerings like wheel alignment and balancing, and a market mix of international and Indian tyres brands like Apollo, Bridgestone, Ceat, Continental, JK etc from its various service centres. “The objective is to project the idea of a one-stop-shop for all tyre related
Mahendra Chowdhari, Managing Director, Anand Tyres
With the Goods and Services Tax (GST) becoming a reality, organised retreaders are keenly watching its impact on the fortunes of the domestic retreading industry. “The fact that the unorganised sector, which has never paid service tax, has now started implementing GST in its systems, is a welcome move as bringing the smallest of retreaders into the tax ambit would stabilise the price scenario in the industry,” explained I Balasubramanian, Plant Manager,
Best & Union Retread in Chennai.
Plant based at Pullambedu in Chennai, Best & Union was established in 2007 and used to retread more than 800 tyres per month about four years ago. “The new Chinese tyres spoil the market as we have been reduced to half of what we used to produce at that time. We now retread 350 tyres per month,” he said.
Various government data shows that the manufacturing sector is
56 Retreading Business