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make a foray into that market.”
The tread maker says it is keen on forging strategic alliances with foreign companies to introduce their product and technology in the Indian and neighbouring markets. “We are looking for global partner to associate with us in any way, whether it be on the technology side, strengthening our franchisee network or introducing new products in this part of the world,” said Rajesh.
Eastern Tread is a part of the $250 million Eastern Group, which has interests in spices, bedding, hospitality, real estate and rubber. The group exports to 52 countries globally and once competencies and quality parameters have been optimised, the company says it is geared up to expand its retread offering into any of the countries, where the group currently exports.
year, creating an environment conducive to further expansion. On the reasons for expanding in Tamil Nadu rather than Kerala, he said; “Tamil Nadu is a larger state with a high industrial base compared to Kerala, which is a smaller state with a highly fragmented and unorganised retreading industry in addition to a shortage of skilled manpower.”
The Palakkad unit operates both precure and conventional hot processes, retreading about 1,000 TBR tyres and LCV tyres by the precure process and OTR tyres like tractor, crane, JCB and loader tyres by the conventional system each month. The OTR retread facility at
Palakkad opened in 2016.
The Tuticorin and Cochin units only operate the precure process and have larger volumes. However, both plants can retread 2,000 TBR and LCV tyres each month, but capacity is currently under-utilised.
“We are looking at ways to increase volumes and have approached Eastern to help us improve numbers,” he stated. All three units have one large 6-tyre autoclave for TBR tyres and a smaller one of the same capacity for LCV tyres.
On the capacity planned for the two upcoming plants, Venkatesh added; “We are looking at 2,000 tyre capacity plants.”
Commenting on the future of
Eastern Franchisee Plans Two Sites in Tamil Nadu
One of the major Eastern franchisees in Kerala, Vijay Retreads, is planning to set-up two more plants in the neighbouring state of Tamil Nadu. Hitherto, an Elgi partner, the company shifted to Eastern about in 2014.
Currently, Vijay Retreads operates three retreading sites in Kerala with one each in Palakkad, Cochin and Tuticorin. “The Palakkad site was the oldest, started way back in 1984. The second plant came almost three decades later in Cochin in 2014, and the third, based at Tuticorin, commenced operation in 2016,” informed P V Venkatesh, Managing Director, Vijay Retread. Now the plan is to have five retreading plants with two more coming-up in neighbouring Tamil Nadu. “National elections are due next year, and we will launch the other two sites post-election in 2019,” he clarified. The company believes rising fuel prices and issues related to GST are still not resolved by a large section of the industry, delaying further expansion. The company believes the scenario is likely to be clarified within the next

P V Venkatesh, Managing Director, Vijay Retread