India
Tyrexpo Asia 2013 has smashed through the 150-exhibitor milestone; with six months still to go before opening day, the biennial event is now 90 per cent full, an unprecedented position in the show’s 16-year history. Event organiser ECI International also reports the presence of “heavyweight” domestic Singaporean, Malaysian, Indonesian and Chinese exhibitors, plus interest from a large number of Indian, European and US suppliers.
India’s Govind Rubber Ltd has reported net sales of Rs 782.3 million (£8.9 million) for the three months to 30 June, a 35.6 per cent year-on-year increase. Net profit, at Rs 10.1 million (£), was up 248 per cent on the corresponding quarter of 2011. The tyre maker recently announced an Rs 8.5 billion (£115,500) expansion project at its Alwar plant in India, and the company also intends to set up a new greenfield facility in Dahej. According to company chairman and managing director Vinod Poddar, the new facility will have a daily capacity of 225 tonnes.
According to business association the Federation of Indian Chambers of Commerce and Industry (FICCI), tyre manufacturing in India is one of the sectors most affected by what it calls ‘inverted customs duty structure’. Results of a FICCI survey show the tyre sector, along with several others, are most keenly disadvantaged by the structure of India’s import duties, which charge higher duties for imported raw materials than for imported finished products.
Stamford Tyres Corporation and Sumitomo Rubber Industries have commented further on their plans to set up a joint venture sales company in India. Yasutaka Ii, director and senior executive officer of Sumitomo Rubber, said “India is a market with huge potential. We are delighted to continue our partnership with Stamford Tyres which has a strong distribution track record, as part of our group’s expansion into new markets. This new joint venture will allow the two companies to leverage on their expertise to address the needs in the Indian market and tap onto this market’s huge potential.”
In addition to discussing strategic plans for the coming years, today’s Apollo Tyres annual general meeting saw the release of the company’s approved unaudited results for the first quarter of India’s 2012-13 financial year, the three months to 30 June 2012. During the quarter, net sales rose 12 per cent to Rs 31.65 billion (£367.5 million) and operating profit increased 48 per cent year-on-year to Rs 3.61 billion (£41.9 million). Net profit jumped 79 per cent to Rs 1.38 billion (£16.0 million); Apollo attributes this rise to “a more judicious product and customer mix.”
Japanese tyre maker Sumitomo Rubber Industries and Singapore’s Stamford Tyres Corporation have announced plans to establish a joint venture sales company in India. The operation, Falken Tyre India Private Limited, will start business in April 2013 and be 60 per cent owned by Sumitomo Rubber subsidiary Sumitomo Rubber Asia (Tyre) PTE. Ltd, with Stamford owning the remaining share. Falken Tyre India will focus on India’s replacement tyre market; Sumitomo says it will supply tyres that “meet the local needs.”
In a speech at Apollo Tyres’ annual general meeting, company chairman Onkar S Kanwar named several regions the company has identified as potential future “home markets” and sites for manufacturing facilities. He shared that Apollo increased its revenues 37 per cent to US$2.5 billion last year and is currently growing at above local industry rates in its current home market regions of India, Europe and South Africa – and therefore the company feels the time is right to expand this base. He cautioned, however, that such plans may squeeze profit margins in the short-term.
An analyst in India opines that JK Tyre & Industries is currently a very good investment, and he states that shares in the company may be capable of achieving gains as high as 40 per cent over the coming half year or so. Aashish Tater, head of research at Kolkata-based Fort Share Broking, told Indian business news broadcaster CNBC-TV18 that there is a “bullish call” on the tyre sector, and he named Goodyear India and JK Tyre & Industries as the broker’s “prime picks.” Tater particularly feels that the second of these offers opportunities for investors.
Taking place in the beautiful surroundings of Düsseldorf’s Schloss Eller, BKT celebrated its Silver Anniversary in style on the evening of 5 June. The Indian OTR tyre manufacturer, distributed in the UK by Kirkby Tyres and RH Claydon, numbers Europe “one of its strongest markets”; the company’s representatives say that nearly 50 per cent of its sales go into the continent. The company was publicising its new production plant in Bhuj, Gujarat in Western India, having invested $365 million in the new plant, partially self-financed. The company exemplified its green credentials introducing the plant by showing that part of its investment is devoted to a large green area and clean energy and water treatment plants are anticipated as additions to the current production plant and research and development centre.
India’s Ceat Tyres has posted a consolidated net profit of Rs 290 million (£3.3 million) for the quarter ending 30 June. Net sales increased to Rs 12.2 billion (£139.9 million) during the three-month period. “Despite relatively weak market conditions due to lower OEM demand, rising fuel costs and depressed economic sentiments locally as well as globally, we managed to close the first quarter of this fiscal year on a positive note,” commented Ceat managing director Anant Goenka. “We will continue to focus on improving our product mix and operational efficiencies. In FY13, our priorities will be to ramp up our radial plant at Halol to full capacity, strengthen the brand and expand internationally.”
In addition to reporting its financial results for the quarter ending June 30, at JK Tyre & Industries’ annual general meeting the company shared its plans to acquire natural rubber plantations in Southeast Asia. Vice-chairman and managing director Raghupati Singhania told the broadsheet DNA at the 30 July meeting that the tyre maker has identified plantations of interest in Malaysia, Indonesia and Vietnam and is “now zeroing in on them.” The company intends to source 10 to 15 per cent of its natural rubber from these plantations.
Formula One’s stay in Hungary’s Hungaroring this weekend for the country’s Grand Prix has started as per previous weekends in the UK and Germany; with rain affecting free practice sessions. With the P Zero White medium tyre and P Zero Yellow soft tyres the nominated tyres, Pirelli saw the intermediate Cinturato Green tyres used more than had been hoped, though ambient temperatures of 29°C and 45°C track temperatures, the drivers used what dry running time they had on Friday to assess the performance and degradation levels on both tyres, using a variety of fuel loads. Pirelli says this information is more crucial than usual in Hungary, as it is very difficult to overtake on the tight and narrow track. There was also significant surface evolution on the underused circuit over the course of the day as more rubber was laid down.
Tyre and tube manufacturer Govind Rubber Limited has announced an 8.5 billion rupee (£97 million) expansion plan for its. GRL is setting up a Greenfield project in Gujurat, near Dahej, taking up most of the capital investment (approximately 7.5 billion rupees/£86 million). Chairman and managing director Vinod Poddar said “The plant will have a production capacity of 225 tonnes per day,”
German firm Steinbichler Optotechnik GmbH of Neubeuern has been engaged in the supply of high-precision optical measuring and sensor technology for quarter of a century and the tyre industry, along with the automotive and aviation industries, is a main beneficiary of its solutions. The company reports a successful week at June’s Reifen 2012 trade show and says this year’s show delivered even better results than previous events. The show also offered Steinbichler an excellent opportunity to present its new ‘Steinbichler Intact’ tyre testing systems to existing and prospective customers.
Trelleborg president and CEO Peter Nilsson has reported a “strong quarter” for the Swedish company. During the second quarter of 2012 the firm’s sales rose slightly to SEK 5.66 billion (£520 million) while operating profit increased 34 per cent to SEK 875 million (£80 million). Net profit amounted to SEK 712 million (£65 million).
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