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Indian Tyremakers at Odds with Rubber Board

Tensions between India’s tyre industry and the government run Rubber Board have recently been under strain and appear to be getting worse. Representatives from the tyre industry claim that a drop in natural rubber production of close to 50,000 tonnes since May stands to cost the industry Rs 20 billion (£242.6 million) annually, yet these concerns have been dismissed by the Rubber Board, who argue such dire predictions are no more than a ploy by the tyre companies in order to secure a reduction of import duties on rubber.

Chairman of the Rubber Board, Sajen Peter, states there are no grounds for the tyre manufacturers’ claims. “This year we had projected production to be 8.74 lakh (874,000) tonnes (and domestic consumption to be 8.53 lakh (853,000) tonnes,” he told India’s The Economic Times. “Availability is not a problem at all, even though the chickengunia disease has affected our tappers. Tyre companies have been pushing to reduce the import duty on rubber for a long time now and we are going to fight them till the very end.”

3rd September 2007/by Tyrepress Editors

New Asia Pacific Marketing Director for Goodyear

Goodyear Tire & Rubber has announced the appointment of Dipinder “DP” Singh to the position of marketing director for the company’s Asia Pacific region Consumer PBU division. The position will be based at Goodyear’s Asia Pacific headquarters in Shanghai.

The native of Mumbai, India joined Goodyear at the beginning of 2002 as director of Global Marketing Intelligence & Strategy, and has held several management positions since that time. Prior to this Singh co-founded the firm adAlive, a developer of Internet access systems for personal digital assistant devices, and served as the company’s executive vice-president, marketing and business development. In total Singh boasts more than 20 years experience in marketing strategy, brand management, advertising, market research and international marketing.

31st August 2007/by Tyrepress Editors

Dunlop India Regains Disputed Factory Land

Dunlop India has been granted a favourable ruling in the dispute over an eight acre section of land at its Chennai facility. The company has release a press statement outlining the recent decision made by the court of the sub-divisional magistrate.

“M/S VGN Enterprises, represented by V N Devadoss has forcibly and wrongfully dispossessed the position of Dunlop India Ltd on July 30, 2007. I therefore u/s 145 (4) CrPC order that the possession of the above lands shall be restored to M/S Dunlop India Ltd.”

Mr. Devadoss claims that his company, VGN Enterprises, legitimately purchased the land from Dunlop India’s former owners in 2004.

30th August 2007/by Tyrepress Editors

Modi Rubber Clawing its Way Back After Long Hiatus

After six idle years the Modi Rubber tyre factory in Modipuram, near the northern Indian city of Meerut, may soon again be a hive of tyre making activity. On August 20 local officials handed over the factory’s keys to the Modi Rubber managing director, Vinay Kumar Modi, and following this transaction Mr. Modi gave instructions for the plant and equipment to be made ready for use.

The managing director has high hopes that the Modi Rubber factory will soon be producing Modi Continental truck tyres. “It will happen in the next four to six months,” he told India’s Business Standard newspaper. In the near future Mr. Modi will commence negotiations with the German tyre major in the hope of re-establishing technical collaboration. Modi first produced Continental branded tyres in 1974.

24th August 2007/by Tyrepress Editors

Indian Tyremakers Lobby Govt to Certify Tyre Imports

In a move that echoes events taking place in the US, India’s government has listened to demands from local tyremakers to only permit ‘certified’ tyres to be imported into the country, and is now considering what measures it will introduce. Calls for legislation banning the importation of tyres not meeting this criterion have ostensibly been made in response to a number of vehicle accidents involving reportedly sub-standard Chinese made tyres, however it is also no secret that Chinese tyre imports are hurting the bottom line of Indian tyre manufacturers.

In June representatives of India’s Industrial Policy and Promotion department, Consumer Affairs department and Bureau of India Standards met with those from vehicle and tyre producers to discuss this issue and prepare a case to present to the government. A proposal to introduce a US$135 anti-dumping duty on imported tyres has also been submitted to the government.

23rd August 2007/by Tyrepress Editors

Bridgestone to Expand Capacity at Two Asian Facilities

According to a statement released by Bridgestone on August 22, the company’s subsidiary Bridgestone India Private Limited (BSID) has taken the decision to expand production capacity at its passenger car and light truck radial plant in the city of Indore. This expansion is deemed necessary to meet burgeoning demand fuelled by a booming domestic market. The Japanese tyre major also stated that its Indonesian subsidiary, P.T. Bridgestone Tire Indonesia (BSIN), will increase production capacity at its passenger car and light truck radial facility in Karawang, east of Jakarta. This planned expansion comes in response to growing demand, primarily from export markets.

The Indore plant began volume production in 1998, manufacturing passenger car and light truck radials for the domestic market, and with vehicle ownership in India skyrocketing during the subsequent nine years BSID forecasts a continued strong demand for its tyres, particularly in larger diameter rim sizes. To accommodate this domestic market appetite for Bridgestone tyres BSID has opted to invest 6 billion yen (£26.4 million) expanding production capacity at its Indore plant from its current 4,500 tyres per day up to 15,000 daily by 2010.

22nd August 2007/by Tyrepress Editors

Michelin India Introduces Regrooving Service

Michelin India has announced it will begin offering a truck tyre regrooving service which it claims will add about 20 per cent to a tyre’s total lifetime mileage. The regrooving will be performed through Michelin’s dealer network, and technicians will be given training in operating the handheld regrooving guns used in the process.

The regrooving process can potentially add up to 4mm of fresh grooves on a tyre and decrease fuel costs by as much as 10 per cent. “The company’s aim is to make our customers happy by helping them get maximum mileage from the tyres, more so because our products are at [the] high end in terms of price,” said Jason Cooper, Michelin India road staff manager.

21st August 2007/by Tyrepress Editors

Further Expansion Slated for Chinese Goodyear Plant

Further expansion is already planned for Goodyear’s tyre facility in Dalian, China. This news comes at a time when the plant’s previous 1.06 billion yuan (£70 million) expansion project is nearing completion. This new project will be the third expansion at the plant since it was established in 1995.

“By the end of this year, the daily output of the plant will be 17,000 units,” said John Gonsalves, quality and technology manager of Goodyear Dalian Tyre Co. “We plan to increase the output next year,” he added.

“About 30 per cent of the products will be exported to Asia-Pacific region, Germany, India, Egypt, Israel and North America. However, the total exports are expected to decrease later,” Gonsalves said. “China will be our main market rather than export markets.”

Goodyear’s OE customers in China include Chery Automobile, Shanghai VW, FAW-VW, Great Wall Automobile and Brilliance Automobile.

16th August 2007/by Tyrepress Editors

Dunlop India to Retain Factory Land – For Now

Dunlop India’s battle to retain a legitimate claim to a piece of land at its factory in Ambattur, Chennai has been given a boost by a decision made by a district court in Chennai. The court has ordered that, for the time being, the land seized by real estate company VGN Enterprises should remain in the hands of the tyremaker.

The court official, Ponneri executive magistrate and revenue district officer, M.S. Sangeeta, said in an interim order that “the impugned land should be placed in as-is-where-is condition without any change, construction, removal of machinery or apparatus and [the] status quo should be maintained.”

This interim order lends weight to the Ruia group’s argument that the sale of 60.86 acres of factory land to VGN Enterprises in 2004, a transaction made by Dunlop India’s previous owners, was illegal.

15th August 2007/by Tyrepress Editors

Ceat Reiterates China Outsourcing Plans

Not wanting to miss out on a sizable chunk of India’s TBR sector, Ceat Ltd has decided upon plans that will see its sales increase from their current 600-700 tyres a month to 4,000-5,000 by June 2008. However to achieve this sixfold increase the Indian tyre manufacturer will need to outsource tyres from arch-rival producer China. India’s Hindu Business Line reported further news about the company’s plans on August 13.

“We have shortlisted a few Chinese producers and are currently evaluating the performance of these tyres. The evaluation process will be over shortly to make way for regular outsourcing,” a company official told the business daily. The tyres, unlike those sourced from Pirelli, will be marketed under brand names other than Ceat.

As previously reported by Tyres & Accessories, Ceat still hopes to enter into a technology sharing arrangement with an overseas tyre major, and while the Global top five manufacturers have not shown much interest in such a deal, a number of large tyremakers are still considered to be potential partners in a greenfield radial facility. However the company confirms it will proceed with this plant even without an overseas partner.

14th August 2007/by Tyrepress Editors

Indian Tyremakers Thinking Globally

With India’s vehicle industry experiencing a slowdown of late, the country’s tyremakers have needed to consider how to best maintain their profits. According to a report published in India’s Business Standard newspaper, a number of manufacturers including Apollo, Ceat, JK Tyre and MRF are increasingly thinking internationally in the face of this new challenge. Not only are Indian tyremakers looking at establishing overseas manufacturing plants – at least one is also casting its gaze at established manufacturers in other countries with a view to acquiring one of these firms.

The nation’s second largest tyre manufacturer, Delhi based Apollo Tyres is reportedly actively pursuing the acquisition of an overseas tyremaker. It seems most likely that Apollo will seek the purchase of a company based in Europe, although an acquisition in the Americas is by no means out of the question. “Margins are better in Europe with good product acceptability and confidence in technology,” commented Neeraj Kanwar, joint managing director and COO, Apollo Tyres. The company has seen European market demand for radials increase substantially in recent times, and on the back of this Apollo aims to become a major player in Europe in the next half decade or so.

13th August 2007/by Tyrepress Editors

Ceat to Cut Costs Through Plant Relocation

Ceat Ltd. intends to move its factory located in the Mumbai suburb of Bhandup to Patalganga, near the city of Thane and around 30km northeast of Mumbai. According to a report published in India’s Economic Times on August 8, the main motivation behind the proposed shift is to reduce costs and bring down the amount spent on local ‘octroi’ taxes.

The almost half-century old factory will be dismantled and relocated in phases, and CEAT has already decided upon the sale of 6.5 acres of surplus land at the plant site. At current real estate prices the site’s entire 31 acres may well fetch up to Rs 5 billion (£61 million) when disposed of.

“It is the reality of life. The company has to shift out tomorrow if not today,” said Ceat managing director Paras Chowdhary. Ceat, a company achieving a net profit of Rs 390 million (£4.7 million) in the year to March 2007, reportedly hand over about Rs130 million (£1.6 million) in local taxes on materials entering Mumbai city limits for use, consumption or sale.

9th August 2007/by Tyrepress Editors

Dunlop India Employees Bribed to Seize Factory Land

All operations at the Dunlop India facility in Ambattur, Chennai have been suspended after real estate company VGN Enterprises reportedly used force to take possession of a section of the factory land on July 30. The tyremaker notified the Bombay Stock Exchange on August 7 that it has taken this decision following the recent activities, and in a press release claimed VGN’s “illegal” act made it impossible to carry out normal manufacturing activities.

It appears that after VGN Enterprises demolished part of the factory compound wall it drew upon the assistance of some of the plant’s workforce and occupied an eight acre piece of ground, erecting its own boundary walls around this land. VGN Enterprises allegedly paid Dunlop India workers Rs 15,000 (£180) each for their complicity in the land grab.

8th August 2007/by Tyrepress Editors

German Reifen Exhibition Expands Into China

The Chinese tyre market is becoming ever more interesting, and not only for tyre manufacturers and wholesalers. The organisers of tyre-related exhibitions are also taking a much closer look at this – as it seems – market of boundless opportunities. This November the organisers of the “Reifen” show in Essen, Germany, are organising for the very first time an equivalent in China, the so-called “Reifen China”. The organisers from Messe Essen GmbH and the China United Rubber (Group) Corp. are hoping to host a successful premiere show in Shanghai. The annual Reifen China show will take place concurrently with the “Rubber Tech China” show, both held under the same roof. Klaus Reich, director trade fairs and exhibitions with Messe Essen GmbH, and in this function also responsible for Reifen China, explains in an interview with Tyres & Accessories why his company is taking the Reifen show to China, what the expectations for this November’s show are and what exhibitors and visitors will get in Shanghai when they come to Reifen China.

7th August 2007/by Tyrepress Editors

Rubber King Tyres India: King Of The Road

Rubber King manufactures and markets a range of inner tubes, curing air bags and rubber flaps under the brand name “Rubber King”. The company has two factories and manufacturing capacities of 150,000 tubes per month and 75,000 flaps per month.
Rubber King inner tubes are made from high quality butyl rubber for better air retention and resistance to degradation from ozone. The size range is very comprehensive, with tubes available for truck and bus, light truck, agricultural, OTR and passenger vehicles for both bias ply and radial tyres and also for industrial vehicles and implements. Butyl curing bags and flaps are produced in a large number of sizes.
As well as these products, Rubber King offers the “Tire King” brand of tyres for vehicles from motorcycles through agricultural, industrial and OTR tyres.

The company exports products all over the world to more than 33 countries; not only in Asia, but to Europe, the USA, Africa and the Middle East. The quality of Rubber King inner tubes is demonstrated by the fact that many of the company’s customers are OEM tyre companies and the tubes carry a two-year warranty.

6th August 2007/by Tyrepress Editors