India
A filing submitted to the Bombay Stock Exchange shows Dunlop India to have experienced a net loss of Rs 1.644 million (₤22,200) during the quarter ending December 31, 2010 – down from a net profit of Rs 6.383 million in the corresponding quarter a year earlier. This net loss occurred despite a year-on-year 37.68 per cent increase in income during the quarter to Rs 576.9 million (₤7.8 million).
With more than a quarter (11 million) of South Korea's population of around 40 million living in the capital Seoul and a further 1.1 million living in the country's capital of heavy industry Ulsan, it is clear the country's population s centred on its bustling metropolises. But while space can be found at a premium in the largest cities, the businesses that operate in each of these cities take advantage of the synergies available due to the close proximity of the workforce and other related companies.
Singapore based holding company Wealth Sea Pte Ltd has made an offer to acquire a 20 per cent stake in Dunlop India. The aim of this offer, which closes on February 7, is to acquire 1,43,96,575 shares in the company. Although Dunlop India is listed on the Bombay Stock Exchange it is controlled to a large extent by the Ruia Group; through the Ruia floated Wealth Sea the group intends to increase its ownership share.
On January 31, India’s Aditya Birla Group disclosed it has entered into a definitive agreement to acquire US-based Columbian Chemicals Company from One Equity Partners, the merchant banking arm of J. P. Morgan Chase & Co. Aditya Birla has purchased One Equity Partners’ equity in Columbian Chemicals through its associates Alexandria Carbon Black Company and Thai Carbon Black Company Limited, along with SKI Investment, an Aditya Birla Group company.
Tyrexpo Asia 2011 organiser ECI International has announced that the event’s eighth staging in Singapore will be opened officially by Dr Stephen Evans, secretary general of the International Rubber Study Group (IRSG). The Singapore-based IRSG provides statistical data and analysis for all aspects of the rubber industry. In opening the show, Evans will follow in the footsteps of his predecessor at the IRSG, Dr Hidde Schmidt, who performed a similar role at the opening of Tyrexpo Asia in 2009. ECI says the show will be the largest in terms of exhibitor numbers in the 15-year history of the event when it opens its doors from 29-31 March, 2011.
Apollo Tyres has announced a deal with Kwik-Fit to sell its tyres throughout the fast-fitter’s 180 car service centres across The Netherlands. Apollo’s entire summer and winter range of passenger car and 4×4 tyres will be available from Kwik-Fit. Martin Post, general director at Kwik-Fit, said, “Apollo is a trendy brand that suits the character of Kwik-Fit. We very much look forward to offering our customers quality tyres from Apollo.”
India’s JK Tyre has posted net profits for its third quarter ending 31 December, 2010 of 90.14 million rupees, a year-on-year reduction of 74.93 per cent on the 360.46 million rupees posted in the same quarter at the end of 2009. “It was a very challenging quarter as the prices of natural rubber have increased 100 per cent, attaining unprecedented levels. Other raw materials have also registered a sharp increase of nearly 40 per cent,” stated JK Tyre & Industries vice chairman & managing director Raghupati Singhania.
Japan’s Kobe Steel has formed a joint venture with India’s Larsen & Toubro Limited to manufacture and sell tyre production machinery in India. Called L&T Kobelco Machinery Private Ltd., the joint venture will make rubber mixers and twin-screw rollerhead extruders used in manufacturing tyres. Plans call for construction of the plant to begin in February 2011 and production to begin in October 2011. Approximately 500 million rupees (900 million yen) will be invested in the facility.
The acceleration in demand for tyres in rapidly growing economies like China and India has led to a sharp increase in natural rubber prices over a sustained period, as a look at the tyrepress.com News archive will tell readers. Now climatic conditions in major rubber supplying nations Thailand and Indonesia could prevent production upgrades, potentially leading to shortages and further price increases, according to estimates made by the Association of Natural Rubber Producing Countries.
India’s Balkrishna Tyre (BKT) is setting some ambitious targets for its continued growth. In 2009 BKT held a 3 per cent market share in the off-highway tyres segment (comprising Agricultural, Industrial, Construction, Earth Moving Equipment, ATV and Lawn & Garden), with an expected share for the end of 2010 reaching 4.5 per cent, according to BKT. By 2015, the company hopes to reach a 10 per cent share. BKT has grown its turnover from $82 million in 2004, to $220 million in 2007 and $310 million at the end of 2009. The production value for the end of 2010 is estimated to be $450 million.
Less than ten months after entering commercial production Apollo Tyres’ Chennai facility has produced its millionth passenger car tyre. The milestone tyre, an Acelere in size 185/65 R14, rolled off the production line on the evening of January 17 – one of some 7,000 PCR tyres and 1,300 TBR tyres manufactured that day.
While much attention has been focused on the amount of tyres being produced in China in general and the rapid growth of the most professional Chinese tyre manufacturers, the machinery companies that supply them have kept their similarly meteoric rise somewhat beneath the radar. But while the tyre mould and machinery making companies have managed to avoid the limelight so far, some market observers argue that their growing influence should not be ignored.
India’s Ruia Group has stated it is at a “very advanced” stage of discussion regarding a proposed joint venture with an international partner to build a passenger car radial factory. This information appears to confirm news published by the Calcutta Telegraph last November; the Indian newspaper reported that the Ruia Group was engaged in talks with Sumitomo regarding the construction of such a factory.
Expansion work at JK Tyre & Industries’ facility in the city of Mysore and its new project near Chennai will be completed this year and are expected to help the company secure more than 20 per cent of India’s tyre market. Speaking to the Hindu Business Line newspaper, company marketing director A.S. Mehta said the two projects would help the company attain a higher market share through raising the Mysore plant’s capacity from 800,000 to a million tyres a year and from the 400,000 tyres a year expected to be coming out of the new Chennai plant by the end of 2011.
In the coming years, Lanxess subsidiary Rhein Chemie plans to expand its production of curing bladders for the tyre industry. These plans have been given a boost by its acquisition of Argentina based curing bladder and release agent manufacturer Darmex S.A. for an undisclosed sum. As a result of the acquisition, Lanxess reports that Rhein Chemie will become one of the “world’s leading providers of release agents for rubber products in a highly fragmented market.” Rhein Chemie will also acquire Darmex’s bladder technology in Latin America, a key production hub for leading tyre manufacturers. The release agents and bladders belonging to Darmex will be branded under Rhein Chemie brand name.
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