Apollo Net Profit Up to First Quarter
(India/Rubber Asia) Leading Indian tyre maker, Apollo Tyres Ltd, reported a net profit of 166.9 million (£2.07 million) for the first quarter ended 30 June against 156.3 million rupees last year.
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TVS Srichakra rolls out ‘Magnificent Seven’
(India/Rubber Asia) TVS Srichakra Ltd, has rolled out seven new tyres for the aftermarket, with a view to increasing its share in the two and three-wheeler segment from the current level of 12 per cent to 20 per cent, according to Mr S Balasubramanian, vice-president (Marketing).
Of the seven tyres, termed by the company as the “Magnificent Seven”, four are for motorcycles and mopeds while the remaining two are for autorickshaws. TVS Srichakra also plans to increase exports from 15 to 40 per cent this year, according to Mr. Balasubramanian.
India’s Car Sales Slow
(India/Rubber Asia) Passenger car sales in India during the first six months of 2005 slowed down compared to the same period last year, according to Anang D. Jena, research director, Synovate Motoresearch. Total production of passenger cars in the January-June 2005 period was about 505,951 units, up by 12.5 per cent over the corresponding period last year. However, total sales during the period stood at 530,811 units, up only by 7.6 per cent over the same period last year.
JK Tyre Plans to Double OTR Sales
(India/Rubber Asia) JK Tyre, one of India’s Big 3 tyre makers, is planning to double its turnover in the off-the-road segment from 350 million to 700 million rupees (roughly £4.35 million – £8.7 million) by next year, local media has reported.
The company is also considering manufacturing tyres for 50 tonne rigid-frame dump trucks and 85 tonne trucks. It currently makes tyres for 35 to 40-tonne dump trucks. These, made for dumpers used in mining and quarries cost between 60,000 and 200,000 rupees (£750 – £2500).
Chinese Retreading Market Presents World of Opportunity
While much has been made about the enormous potential of the emerging Chinese tyre market, the opportunities go further than this alone. For every tyre that is produced and used in the People’s Republic there is a potential money-making opportunity for the retreading and collection aspects of the tyre business.
It is not overstating the situation to say there is huge potential for retreading in China. Currently around 265 million tyres are produced in China each year, across all segments. At the same time the domestic market’s 3 million vehicles currently demand 130 million tyres annually, according to a Hong Kong Trade Development Council report.
Metro Tyres Hints at IPO
Metro Tyres has suggested that it might consider going public in order to fund a possible acquisition of Falcon Tyres. The news follows the company’s recent admission that it was interested in purchasing Falcon Tyres.
TIA Announces Hall of Fame Inductees
The Tire Industry Association (TIA) has announced the 2005 inductees into the Hall of Fame. These are Eugene Beck Jr., president of Beck Tire International and John Sieff, retired president of S&M Tire Company and Mr. Tire Service.
This year an additional category – that of “Historical Contributors” -has been added for individuals, living or deceased, who have been out of the tyre industry for at least 20 years. There are four inductees; Fernley Banbury, inventor of the Banbury mixer, Theodore Smith, founder, president, publisher and editor of the India Rubber Review (now Tire Review) and Marius Mignol and Pierre Bourbon of Michelin, inventors of the radial tyre.
Amtel is Officially Selling Vredestein in Russia
Amtel has begun producing and selling Vredestein tyres in Russia following its acquisition of the Dutch company Vredestein Banden several months ago. The company plans to import around 30,000 tyres and produce another 15,000 under the brand at its Kirov plant this year.
It further expects to import 200,000 tyres in 2006 and to produce approximately 1 million at its Kirov location. The company makes 150 per cent more profit on tyres sold under the Dutch trademark than on its own brand.
Amtel owns the Voronezh, Kirov and Krasnoyarsk and Belaya Tserkov tyre plants, Khimvolokno of Kemerovo and the Volgograd Technical Hydrocarbon Plant all in its domestic market. It produced 14.39 million tyres in 2004 whilst Vredestein’s Dutch plant produces about 5 million tyres per year. It also has sites in India and Indonesia that produce tyres for agricultural use and an independent enterprise in Malaysia that makes bicycle tyres.
TIA Announces Hall of Fame Inductees
The Tire Industry Association (TIA) has announced the 2005 inductees into the Hall of Fame. These are Eugene Beck Jr., president of Beck Tire International and John Sieff, retired president of S&M Tire Company and Mr. Tire Service.
Indian Manufacturers Publish Quarterly Results
(India/Rubber Asia) Leading Indian tyre maker, Apollo Tyres Ltd, reported a net profit of 166.9 million rupees (£2.2 million) for the first quarter of the current financial year, ended 30 June, up 13.6 million rupees (£180,000) compared with the same period last year.
Tyre Prices to Go Up: O S Kanwar
(India/Rubber Asia) Indian tyre prices are likely to go up by 4 to 5 per cent in the coming days, according to Mr. Onkar S Kanwar, chairman of Apollo Tyres Ltd. Rocketing prices of raw materials such as natural rubber, carbon black and other petroleum products, plus the existing duty structure which impacts the profitability of companies are the reasons for the impending tyre prices hike, he says.
Ecclestone Insists F1 Will Not Go to Hutchison
The speculation that Formula One might soon be under new ownership was correct, but contrary to reports, the sport will not be falling into Far Eastern hands, the Daily Telegraph has reported.
Bernie Ecclestone yesterday dismissed talk of a $1 billion bid from a Hong Kong-based conglomerate, Hutchison Whampoa. “I spoke to Hutchison. They sent a boy to do a man’s job. We are not interested in selling to them. We get offers like this every day, but it is not what we want for the future of F1,” Mr Ecclestone told the newspaper.
Apollo’s Kanwar Heads Exports Panel
(India/Rubber Asia) Onkar S. Kanwar, chairman of Apollo Tyres, has been named as the head of the Board of Trade working groups (WGs) set up by the Indian Commerce Ministry in order to boost exports from the country.
Mr Kanwar, who is also the president of the Federation of Indian Chambers of Commerce and Industry, heads the WG on “trade facilitation”. The WGs were expected to submit their reports to the Board chairman before September.
JK Tyre Plans Latin American Production
JK Tyre is looking into the possibility of expanding its bias tyre production by making strategic share acquisitions in Latin America. “The demand for tyres, both in India and the international markets, is at a high. While we are expanding our production capacities in India, we also feel the need to source tyres from other markets to feed the growing demand,” said JK Tyre VC and MD Raghupati Singhania.
At the same time JK Industries’ Mysore plant rolled out its millionth truck radial, marking a milestone for the company. The one-millionth tyre was presented at a function at the former Vikrant Tyres Truck Radial Tyre Plant that was acquired by JK Industries in 1996. Speaking on the occasion, deputy chief minister Siddaramaiah said the government’s decision to divest its stake in Vikrant Tyres had been vindicated. He said the capacity of the plant had increased from 100 tonnes in 1996 to 213 tonnes a day at present.
Pirelli Will Not Build Indian Plant
Pirelli S.p.A. says it has no plans to build a new tyre plant in India, denying the news item in earlier reports that it may be looking at that possibility. Pirelli’s published statement was to the point: “The Pirelli Group has no plans to build a new factory in India for tyre production.”
