Elgitread Puts Europe on the Agenda

Since Elgitread (India) Ltd., the Indian supplier of retreading material, machinery, accessories and services, gained a new exclusive importer for the important German market (Hämmerling group), business in Europe is said to be getting better and better. Until four or five years ago Elgitread focussed most of its capacity on the development of the North and South American markets, explains K. Gopinath in an interview with Tyres & Accessories. Since then, Europe has reached a new position on top of the Elgitread agenda, the general manager responsible for international marketing continues.

It is in particular the markets where pre-cure retreading has a major share like for example Germany. Other markets like the UK, France or Italy are regarded by Elgitread as being more difficult because mould-cure retreading is the leading technology there. In Italy for example there is no importer at the moment. The Indian company only supplies treads for pre-cure retreading and no rubber compounds for mould-cure retreading.

During the Reifen show in Germany Elgitread showed two new treads to its new and existing customers. Globally there are about 750 customers in 45 countries, according to a company brochure. Both traction tread patterns TNR and TDN are available in widths of 220 to 270 millimetres and tread depths of 18 to 20 millimetres, the general manager points out.

Furthermore, Elgitread offers a whole range of up-to-date tread patterns for various applications. Currently there are more than 100 designs.
In the meantime the “supplier of solutions to the retreading industry” has published its annual business results for the 2005/2006 period, which ended on 30 March as is commonplace in India. Last year Elgitread experienced a slight turnover growth of 2.8 per cent; in 2005/2006 about 1.333 billion rupees were turned over (£15.8 million). However profit before taxes dropped considerably by 34.3 per cent to 134 million rupees (£1.59 million).

Net profit also decreased last year, while it was 135 million rupees in 2004/2005, it dropped down to 104 million rupees (£1,23 million) in the last reporting period. Elgitread managing director Sudarsan Varadaraj pointed out that the most recent annual report could barely be compared to previous year’s. The reason was that the company has changed its reporting standards which in turn led to a new evaluation of stock inventory. During the annual general meeting in August Elgitread will propose to pay a dividend of 45 per cent.