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INTERVIEW
Vacu-Lug Aims to Grow 20% in the Next Two Years
Zenises Group announced acquisition of UK retreader Vacu- Lug Traction Tyres Limited at the end of July 2018. In an interaction with Retreading Business from his base in the United Kingdom, Harjeev S Kandhari, CEO, Zenises Group expressed the belief in a positive future for retreading in Europe and committed to upgrade the Grantham-based company’s existing infrastructure and add new equipment at the UK site in the near future.
Moreover, at the time of acquisition, Zenises Group made several large capital commitments in equipment and technology to ensure Vacu-Lug emerges as the
investment plans to upgrade the infrastructure at the UK site?
HK: We have made large capital commitments to Vacu-Lug and intend to both upgrade and expand the infrastructure there. We are in the planning stages of this with the Capital Expenditure Committee of the Board of Vacu- Lug.
RB: Is there any plan to add new equipment at the existing site in 2019?
HK: Yes, but this is not finalised as we are still in the middle of the 2-year capex plan.
customers access to their fleet tyre data anytime, anywhere. This ease of use was further enhanced in 2017, when Vacu-Lug was the first in the industry to release a mobile tyre management app (VMS Mobile), setting an
industr y benchmark.
RB: What is the number of VMS customers and do you have any targets to further expand the client base?
HK: We have over 75 managed contracts looking after circa 30,000 assets. Contracts range in size from 50 – 2,500 units/trailers. On top of this, we support a further 75 direct accounts where we supply our retread products. We also
manage OTR fleets in the mining and construction industries. There are numerous targets, but it is a long procurement process where the sales team has to tender.
RB: What do you think about the future of retreading in Europe?
HK: With the anti-dumping legislation on Chinese products, I think that the future for Retreading in Europe is fantastic. I also believe that as environmental concerns grow in Europe, industries that are environmentally friendly like us will benefit tremendously.
Harjeev S Kandhari, CEO Zenisis Group
VMI Scoops Michelin Supplier Award
During an official ceremony held on October 25th, 2018 at the museum Aventure Michelin in Clermont- Ferrand, France, VMI was recognised for its exceptional contribution to the Michelin Group over the past years. Harm Voortman, CEO of VMI Group received the award from Mr Jean
Dominique Senard, Chief Executive of the Michelin Group.
Michelin presented
the award referring specifically to the commitment of
building a
partnership with
the Michelin Group
to drive greater
shared benefits for
the future. The
award
acknowledged the performance of
VMI over the past
several years in meeting the challenging high standards of Michelin.
The long-lasting cooperation between VMI and Michelin dates back to the early 70’s with the deliver y of a batch- off followed by several other types of machinery. More
recently, the cooperation has evolved into the supply of highly advanced tyre building technology.
Voortman commented; We are very honoured to have received this prestigious award from Michelin and we highly appreciate the rewarding cooperation. We
most advanced independent retreader in Europe over a period of time.
Retreading Business: What was the thinking behind the acquisition of Vacu-Lug?
Harjeev Kandhari: We believe that Vacu-Lug is a very well-run business with a lot of potential for growth. We believe that being part of the Zenises family will allow Vacu-Lug the room and tools to achieve that growth.
RB: Could you please give us some background into the current retread volumes at Vacu- Lug and your aims for the near future?
HK: We process over 230,000 casings per year and intend to grow 20% in the next two years. The company is the largest independent retreader in Europe and controls one of the largest market shares in the European market.
RB: Are there any expansion or 12 Retreading Business
RB: Vacu-Lug operates licensed retread operations in 32 countries. Do you have plans to open any new markets?
HK: No not yet. We are focused in the UK market.
RB: What is unique about the VMS fleet management system?
HK: The VMS System gives Vacu- Lug the ability to manage over 30,000 vehicles, trailers and items of plant nationwide. It captures detailed information on all tyre and service-related activities, including transactional and financial details at wheel position level. It provides a solution to Transport Managers who require a reliable tyre service to ensure safety and compliance at all times. It allows those managers to access and analyse fleet data in real-time using full tyre usage reports per vehicle and trailer and enables 100% traceability for compliance. The VMS system also authorises 320 jobs daily, whilst allowing
feel this award is a recognition of our efforts to assure the success of our customers by supplying advanced technology and services. We look forward to our joined cooperation in the years to come.”