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INDIA
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Eastern Expands and Aims for Complete Automation
India’s retreading industry is learning to adjust to changing market dynamics spurred by fiscal reforms like the introduction of the single taxation system GST and increasing digitalisation. It is considered likely that the transformation of the taxation system may hasten the process of consolidation within the unorganised sector by forcing retreaders either to fall in line by shifting to the organised model aligned to the new fiscal regime, or to shut shop.
In this new reality, Indian tread producers and retreaders realised that they will not get far by restricting themselves to merely making treads or retreading tyres. There is a growing realisation of the need to adopt modern production and trade practices, aligning with the new inclusive system and leaving the age-old practices of evading taxes or duties.
India’s prominent tread maker Eastern is also transforming the whole company in line with the changing times. The company has already embarked on a major expansion with the aim of achieving maximum automation over the next few years, adding more land, buying adjoining plots to streamline operations that lead to production cost reductions, and by improving plant efficiencies to produce good products that can compete globally. Eastern has also charted a new growth strategy involving the launch of new compounds, building-up the whole franchisee network and expanding overseas, particularly in the European market in the years to come.
Established in 1993, Eastern Treads’ mother plant is located about 70 km from Cochin, on the way to the hilly and picturesque holiday resort of Munnar. “Currently, the site spreads over an area of 4 acres and recently a two-acre adjoining plot
was added to the existing site to further expand the plant area,” informed Rajesh S, CEO, Eastern Treads in an interaction with Retreading Business at the company headquarters based in Cochin.
The investment is an integral part of streamlining all operations including the production of bonding gum and conventional treads within a single location. The new plot was formally acquired by the company early October.
In the interest of assuring a seamless operation, the mixing and extrusion facilities will remain at the existing site, while the pressing and online buffing system will be shifted to the new adjoining plot. The company plans to shift to cold feed extrusion and phase out the existing hot feed extrusion process.
Increasing plant automation
Eastern manufactures in between 600-700 tons of tread liner each month. But despite the additional land added, the company has no plans to further hike capacity as the focus is on achieving more automation. Currently, the site is partially automated, and the idea is to achieve complete automation in the next few years.
“We are looking forward to establish a fully-automated operation with almost no human intervention over the next few years,” Rajesh stressed. Automation brings more consistency, improves product quality, cuts manufacturing costs and increases profitability.
Eastern’s R&D wing is installed with testing equipment comparable to any tyre producer. It has also achieved reverse engineering capability. The company says its R&D team can crack the compound composition and properties of any tread liner in order to make changes in their own product. The company also Teflon coats each mould to