India Archives - Page 104 of 126 - Tyrepress

India

Posts

Dunlop India Plant Halts Production

Production at Dunlop India’s Sahagunj facility, which re-opened late last year and began producing tyres in January for the first time since 2001, has once again come to a virtual stop. According to state commerce and industry minister Nirupam Sen, a shortage of working capital is the factor behind this stoppage. “I shall discuss the issue with chairman Pawan Kumar Ruia,” he said following a meeting with union representatives and a local member of parliament. During this meeting it was alleged that company management have not been honouring the agreement they made with employees.

News of the facility’s latest woes has been widely reported in India’s media. Newspaper The Statesman has quoted union representative Kali Ghosh as saying “Mr Pawan Ruia has lost all his credibility.” He further stated that the Ruia group had not brought in capital or raw materials to run the plant, and claimed that workers are also owed money.

3rd July 2007/by Tyrepress Editors

Falcon Tyres, Sumitomo Signs Technical Assistance Deal

India’s Falcon Tyres has signed a technical assistance agreement with Japanese giant Sumitomo Rubber Industries. Chairman of Falcon’s parent Ruia group, P.K. Ruia, has stated that Sumitomo will provide know-how for the production of tyres for two-wheeled vehicles.

According to Mr. Ruia, the agreement will provide assistance for everything from improving production processes through to the introduction of tubleless and other technically advanced tyres. He said although the brand had to date focused upon the OEM segment, the current sluggish growth in OEM demand might force the company to increasingly look at the replacement market.

Falcon Tyres finalised its 2006-07 results at its board meeting on June 28, and have reported an increase in dividend from 25 to 30 per cent for the year. This follows an increase in turnover from £312.9 million £393.9 million. The company’s net profit improved from £4.4 million to £4.8 million.

29th June 2007/by Tyrepress Editors

Goodyear Opens New Indian Retail Outlets

Goodyear India is attempting to raise its profile through the opening of new branded retail outlets, the latest being in the southern state of Kerala. The two new outlets, in the towns of Malappuram and Kollam, are part of Goodyear’s efforts to gain a stronger foothold in the nation’s replacement tyre market.

The new stores will also stock a range of car care products supplied by other manufacturers, such as perfumes, car wash and tyre shine – the intention being to make the stores a place where customers can purchase all their automotive-related requirements under the one roof.

26th June 2007/by Tyrepress Editors

Challenge Bibendum Returns to China in 2007

Michelin’s Challenge Bibendum has been seeking solutions to the downside of motoring since 1998, and this year the event returns to the city that last played host to the Challenge in 2004 – Shanghai, China’s largest city and economic hub. This choice of venue is particularly appropriate given China’s growing global profile and its status as the world’s fastest growing vehicle market and vehicle producer, and a brand new location – the Automotive Exhibition Center, part of the Shanghai International Automobile City (SIAC) – has been selected to host the event between November 14 and 17.

As in previous years Challenge Bibendum will tackle pressing issues such as CO2 emissions, traffic congestion, vehicle fatalities and security of fuel supply. And while each of these problems has been present in the West for some time, the burgeoning economies of the world’s most populous countries, China and India, has created a new urgency for the development of alternatives to the status quo. Challenge Bibendum recongises that the change to more environmentally, economically and socially responsible vehicles and infrastructure will not occur organically, and thus entrepreneurs, industrialists and scientists from around the world have been invited to Shanghai to share their vision and present technical solutions to policy makers and the media.

25th June 2007/by Tyrepress Editors

Indag Rubber Ltd Joins TRIB

Indag Rubber Limited, India, has joined the Tire Retread & Repair Information Bureau (TRIB). “TRIB continues to grow internationally as more and more companies in the new tyre and retread industries throughout the world realise that TRIB is the only international retread industry association representing new tyre manufacturers, retreaders and tyre repair companies,” said Harvey Brodsky, TRIB’s Managing Director. “We are pleased that so many companies from India are realising how important TRIB’s efforts are on behalf of retreaders and suppliers to the retread and tyre repair industries everywhere, including India,” he added.

19th June 2007/by Tyrepress Editors

Ceat Undeterred by Lack of TBR JV Partner

Indian tyremaker Ceat is considering going it alone in the establishment of a truck and bus radial facility if it is unable to find a joint venture partner. The company has set aside approximately £60 million for the project but to date has not made any commitment to work with another manufacturer.

Speaking to India’s Financial Express newspaper, Ceat’s president of sales and marketing, Arnab Banerjee, said, “We are in talks with some of the leading radial technology providers in the global arena. But we are yet to reach a consensus with any of them. If the joint venture option doesn’t work out, we will definitely explore the possibility of doing it ourselves.” He added that Ceat “have the skills and the know-how,” to establish a truck and bus radial facility without external assistance.

19th June 2007/by Tyrepress Editors

Indian Tiremaker Joins TRIB

(Akron/Tire Review India’s Apollo Tyres has joined the recently renamed Tire Retread & Repair Information Bureau (TRIB), bringing the group’s membership to 480 members in 48 countries.

“TRIB continues to grow internationally as more and more companies in the new tire and retread industries throughout the world realize that TRIB is the only international retread industry association representing new tire manufacturers, retreaders and tyre repair companies,” said Harvey Brodsky, TRIB’s managing director.

18th June 2007/by Tyrepress Editors

Indian and Chinese Tyremakers to Target Mining Market at Tyrexpo

The influence of Chinese and Indian tyre manufacturers on the southern African market for OTR, mining and quarrying tyres is set to grow substantially, according to the organisers of the Tyrexpo Africa’08 exhibition. Major suppliers including Apollo International and Balkrishna from India and Shanghai Yadong, Shifeng Double Star and Techking Tires from China have already confirmed their presence as exhibitors at the next show in March 2008. ECI International, the company that organises the exhibition, believes this signals an aggressive drive to achieve greater market shares in the lucrative mining sector.

Rowena Suthers, ECI’s sales director, says: “Indian and Chinese tyre makers have become successful exporters around the globe and it’s clear from the response we are seeing that sub-Saharan markets are now firmly in their sights. That should be great news for tyre buyers and plant managers, offering wider choice at very competitive terms.”

12th June 2007/by Tyrepress Editors

Ceat to Meet Aftermarket Demand through Outsourcing

When handed lemons, make lemonade…or when OE orders dwindle, produce tyres for the more profitable aftermarket. In spite of reports coming from India that vehicle makers are reducing output, Ceat Tyres – a company that traditionally has obtained about 20 per cent of its revenues from OE supply – is planning to increase its tyre production rather than cut it back.

“The least profitable sector for us has shrunk, giving us the opportunity to sell more to the more profitable ones,” said Arnab Banerjee, the company’s vice-president, sales & marketing. Ceat plans to boost its production in the short term through outsourcing, a necessary move while it awaits the construction of its own new facilities. “Looking at the robust replacement demand, right now we are unable to manufacture enough,” Banerjee added. “My number one priority is to secure supplies through outsourcing, since the two greenfield plants we are planning to set up would come on stream only over the next two-three years,”

11th June 2007/by Tyrepress Editors

Vietnamese, Indian Tyremakers Sign Supply Agreement

Vietnam’s Southern Rubber Industry Joint Stock Company, who trade under the name Casumina, has signed a cooperation contract with India’s JK Tyre and Industries Ltd. to export truck tyres and tubes. Under the terms of the contract signed on June 7, Casumina will sell 180,000 truck tyres and tubes to JK Tyre and Industries for US$17million. These products will initially be sold under the JK Tyre brand name and later, following consumer feedback on quality, they will be sold as Casumina branded products. As part of the agreement JK Tyre will provide its latest technology to Casumina.

Casumina manufactures tyres and tubes for trucks, passenger cars and two-wheel vehicles, and began production of radials in 2005. At present the company claims to be experiencing annual growth of 38 per cent, with turnover reaching $14 million last year. In 2006 the company signed a contract with Continental to produce light truck and motorcycle tyres and tubes for the Asian market. These products were produced in Malaysia under the Sime Tyres label.

11th June 2007/by Tyrepress Editors

Slowing Vehicle Sales & Tyre Imports Squeezing Indian Tyremakers

The share market value of several Indian tyre manufacturers has fallen in the wake of news that domestic vehicle makers such as Tata Motors and Ashok Leyland are reducing their OE tyre orders. Vehicle sales in India have declined in the last year, with a 15-20 per cent fall in growth recorded. Shares in MRF Ltd fell 3.22 per cent on June 6, while stock in Ceat Tyres and JK Tyres fell by 5.07 and 3.68 per cent respectively. Apollo Tyres closed 0.81 per cent lower. “There will definitely be a little downturn in tyre stocks as auto stocks are all down,” said Ms Vaishali Jajoo, an automotive analyst with brokerage firm Angel Broking.

8th June 2007/by Tyrepress Editors

Tyremakers Meet to Address Cartel Allegations

In an attempt to address allegations of cartel behaviour amongst Indian tyremakers the Automotive Tyre Manufacturers Association (ATMA) and the Competition Commission of India (CCI) have met to discuss the issue, and negotiations have begun on the possibility of implementing a compliance programme to eliminate such practices, whether they be planned or unintended.

While a probe conducted by India’s Monopolies and Restrictive Trade Practices Commission has been stalled since the early 1990s due to a high court stay obtained by a leading tyre manufacturer, India’s tyremakers deny the claims of cartelisation, and reportedly seem eager to participate in discussions that will wipe away any blemishes remaining from past anti-competitiveness allegations or investigations.

8th June 2007/by Tyrepress Editors

Tata Steel Looking at Increasing Tyre Wire Production

India’s largest steel producer, Tata Steel, is looking at making new acquisitions throughout Asia in order to expand capacity and establish a stronger foothold as a tyre industry supplier. According to the Indian business newspaper Mint, Tata Steel’s managing director B. Muthuraman has disclosed the company is looking to purchase both finished steel product companies and iron ore or coal mines in order to boost its annual 30 million tonne steel manufacturing capacity by more than 50 per cent within a decade.

“We are looking for acquisitions in the steel wires business in Indonesia and Southeast Asia. Apart from expansion in capacity, we also want to move into high grade, higher-value add wires used in tyre cords and oil tempered wires through acquisitions,” said Muthuraman. While the company is currently the world’s sixth largest steel wire manufacturer, producing half a million tonnes per annum, at present their principal tyre industry product is bead wire.

7th June 2007/by Tyrepress Editors

India & China Fuelling Increased Carbon Black Demand

According to the US market research organisation the Freedonia Group, worldwide demand for carbon black is forecast to rise by 4.2 per cent per annum, reaching an annual consumption of 11 million tonnes in 2011. Consumption is predicted to particularly grow in the Asia-Pacific region, thanks to the continuing expansion of China and India’s automotive and tyre industries. These two countries also saw the largest increases in new carbon black capacity between 2001 and 2006. In contrast, Freedonia states that it expects demand in developed regions to “post below-average gains through 2011, with the large US and Japanese markets holding particularly weak prospects.”

Two-thirds of this anticipated demand will come from the tyre industry, which is expected to account for 7.1 million tonnes by 2011. And with little construction of new carbon black production facilities, utilisation rates in developed markets is predicted to remain at 95 per cent or higher.

4th June 2007/by Tyrepress Editors

Up Close and Personal With Dunlop

(SA Treads – South Africa) April of this year marked the end of an era. Industry icon, Pierre Dreyer, outgoing managing director of Dunlop Tyres SA and Mike Hankinson, CEO, officially announced their joint retirement from Dunlop and the tyre industry as a whole, in a move that will see them pursuing new business ventures and personal aspirations in the months and years to come. Simultaneously, Brazilian-born Dr Luis Ceneviz assumed the role of managing director of Dunlop Tyres SA on 1 April 2007. Amidst all the last-minute frenzied activity, we managed to secure an exclusive interview with all three, to not only recap any historic milestones the Company may have achieved, but gain some insight into what we can expect from this new tyre manufacturer going forward.

1st June 2007/by Tyrepress Editors