Page 21 - RB96

INDIA
Cuttack Franchisee Prasad Enterprises Focuses on Quality
Eastern, TVS etc. “Cuttack is about a 3,000 retread tyre market each month and maintaining volumes of 300 tyres in such a highly competitive market is a big deal,” said Mohanty.
However, it seems radials have yet to keep pace in the mining region compared to other parts of the countr y. The site still retreads a
majority of nylon tyres with 220 tyres retreaded being nylon and only 80 radials. “Customers are shifting towards radial, especially with improvements in the road infrastructure, and it is hoped production will be evenly distributed between radial and nylon by 2022.”
With Covid 19 under control in the Eastern state of Odisha, business is coming back to normal compared to other Indian states. The coastal state was among those where Covid 19 was handled with the most caution and care right from its outbreak by the State government. “Business is improving as Covid 19 cases are coming down swiftly, and the State is likely to be fully recovered from the virus in the next couple of months. New tyre sales as
have installed a whole new unit because the market had started shifting towards radials, and the plant had to be updated with the changing trends,” he explained. Currently, the site is functioning on two autoclaves of 2 and 3 tyres respectively. On further expansion, he confirmed, “We are open to installing another two tyre chamber if the demand improves, as capacity is driven by demand.”
Another hindrance is the availability of trained manpower. Therefore, the company’s focus is now more on quality rather than increasing volumes. With the focus on quality retreading, the company operates 90% of its business with regular customers, who have stayed with them for many years. stays with it from last many years and merely 10% are floating. Only 10% of the company’s clientele consists of floating customers.
On the subject of any indicators observed regarding increases in retread volumes, he said, “Improved GST collection, the announcement of infrastructure projects and the launch of vaccination in the country are all positive indicators for the market.” The Cuttack franchisee is largely catering to the mining sector as Odisha is a mineral rich state, possessing 28% of India’s total iron ore deposits, 24% of its coal, 59% of its Bauxite and as much as 98%
Elgi Aims to Improve Export Shipments by 8-10%
Sushanta Mohanty of Prasad Enterprises
well as retreading production is gradually picking-up now,” said Sushanta Mohanty of Prasad Enterprises, based in the outskirts of former state capital Cuttack. Retreading and new tyre sales improved from last November, and the Cuttack plant has regained the
Indian tread rubber major Elgi Rubber Company Limited is now streamlining its franchisee network to take on the changing dynamic in the retreading sector. With improving road infrastructure, increasing radialisation and fiscal restructuring measures such as the implementation of GST, the retreading industr y in India is being transformed.
Retreaders are now increasingly investing in new equipment that caters to the surging radial output in the countr y. The Coimbatore headquartered firm is also gearing- up its franchisee network to increase volumes. “The idea is to drive the franchisee network to modernise plant machiner y and improve volumes with focus on ‘value for money’,” informed S Shankar Vadivel, General Manager, (Sales – SAARC), Elgi Rubber Company Limited.
With generation-next joined at the Elgi headquarters, focus is more on the energising the franchisee base as new strategies are drawn to increase volumes by aggressively promoting the product range in the domestic and export market. The company is in the midst of identifying new markets overseas as well as on the domestic front. “Early economic
indicators are positive and showing signs of recovery in the post-Covid 19 phase. Elgi hopes to increase volumes in the coming fiscal starting from April 2021,” stated Shankar without quantifying the volumes in terms of numbers.
Elgi is aiming to increase overseas shipments in fiscal 2021 by achieving growth of between 8-10%. “We are hopeful of opening new international markets besides
serving the existing geographies,” he said.
However, there are also challenges in the overseas markets particularly due to the changed shipment scenario post-pandemic as some
economies have opened-up whilst a few are still closed or only partially open, posing supply-chain challenges.
“Colombo and Singapore ports are facing congestion issues, impacting transit times, freight charges have tripled to some destinations, in addition to which container availability has also been an issue,” he added.
The company says it is currently focusing on the North & South American markets of Brazil, Argentina, Bolivia, Colombia etc. Elgi is also holding preliminar y negotiations in markets of Turkey, Egypt and Afghanistan. Supplies to Yemen started in 2018, while Iraq opened recently in Januar y.
Shankar Vadivel
pre-pandemic production of 300 tyres per month. The plant is the oldest franchisee of Elgi in the Eastern zone, retreading around 3,600 tyres annually.
Launched in 1985 as an Elgi franchisee, the almost 35-year-old plant replaced its old equipment with new mchinery in 2015. “We
of the country’s chromite. Most of the area’s fleets are engaged with the region’s iron ore mines. Cuttack is an intensely competitive market in which all the major tread brands are available. The area has 14 organised retreaders representing all the main brands such as Elgi, JK, Indag, MRF,
Retreading Business 21