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INDIA
Nikee Tyre Targeting 24,000 Retreads Annually
majority of the cases. “Our bad debts are increasing,” said Nimse. He further said, “Customers are now increasingly becoming conscious about quality as most of the customers are coming due to the quality and service offered at our site. However, customers are reluctant about shelling out extra for the quality and services despite the fact raw material prices like rubber and diesel are further hardening.”
When asked about further
expansion once the plant has achieved the required targeted production levels of 2,000 tyres per month, he added, “We can expand, but it all depends on improvements in market liquidity. If the credit cycle comes down to 30-45 days, options are open.”
Nikee Tyres caters mainly to fleets based in Mumbai as well as Neva Shewa port as the majority 80% of the volumes come from the container fleets serving the port.
Elgi’s largest franchisee in Maharashtra is keen on making sure its site is functioning to the full installed capacity. The Nikee Tyre unit based at Pune-Nashik highway falls in the Pune district and produces 18,000 tyres annually, retreading a variety of
retreaded with the cold process and OTR tyres with the traditional hot process.”
The plant achieved normal production post-lockdown and has even experienced a slight increase in production. “Our production has been up by about 100 tyres for the
Rajendra Nimse of Nikee Tyre & Plant
tyres from bus/truck to tractor and JCB.
“Currently, the plant on average retreads 1,500 truck/bus tyres each month by the precure process and monthly output can be raised to 2,000 units. Our objective is to fully utilise the installed capacity at
last couple of months, which further indicates that the target of 2,000 monthly production is achievable.”
The plant consumes around 13 tons of precure tread, while for the hot process, tread is sourced from different brands like Mahant,
Elgi’s Delhi-based franchisee Pushpa Retreads is planning to expand capacity by installing a second chamber at its site based in the Okhla Industrial Estate, an industrial suburb in South Delhi. Pushpa Retreads is one of the Coimbatore headquartered tread and equipment manufacturers Elgi’s oldest franchisees in Northern India, having been a franchisee for the last two decades. The additional chamber is expected to help the retreader to focus on the bus tyre segment. “Currently, we are focusing more on the truck tyre side. The idea is to improve
The South Delhi based retreader says it is likely to increase monthly production by 250 tyres. Currently, the plant consumes 52 tons of tread rubber annually, and with the additional chamber the tread consumption would likely to go up by 10 tons.
At present the unit has returned to functioning on pre-Covid19 levels as production almost normalized with effect from November 2020. Vasuja says the plant has also experienced improvements in radial volumes over last few years. The volume of production has shifted to a 60-40 radial/bias split in favour of
Pushpa Retreads to Expand in Bus Retread Segment
Vinay Vasuja of Pushpa Retreads
the plant, considering the troubling times,” explained Rajendra Nimse of Nikee Tyre Retreaders Private Limited.
Established in 1994 as an Elgi franchisee, Nikee Tyre diversified into the OTR segment in 2000 with tractor tyres. The range was then further expanded with JCB tyres in 2015, though production remains low at about 40-50 OTR tyres each month. “We operate both the hot and cold systems, truck tyres are
Eastern, Manjunath, or sometimes from Elgi also. The site operates on 3 autoclaves of 9,3 and 2 tyre respectively, along with 4 tyre bonders.
In India, retreaders are struggling with retrieving outstanding capital from the market. The payment cycle further worsened post lockdown as most of the retreaders are now operating their businesses on 100 per cent credit, which has extended to 120 days now in the
volumes on the bus side once the new autoclave is installed,” said Vinay Vasuja of Pushpa Retreads. The retreader operates the site on one 8-tyre chamber and plans to install a new four tyre chamber shortly. Starting as an Elgi franchisee in 2001, the unit retread 6,000 tyres per annum.
“We have identified the school bus and tourism bus segments as key targets as the government is working on opening schools with Covid 19 cases coming down. Besides this, luxury bus fleets engaged in interstate tourism would also be targeted,” he explained.
radials. “The market is moving towards radials as the OEMs are launching more vehicles with radial fitments,” he explained.”
Tread makers are also introducing radial patterns as per the market requirements. Some of the popular radial patterns used by the retreaders are TZYL-220, TZA2 (Rib), TZYL (Lug), while on the Nylon side TSM 210 is popular rib pattern, explained Vasuja.
22 Retreading Business