Apollo Tyres, one of India’s largest tyre manufacturers is said to have improved its productivity by 9 percent. The tyre major worked with Amazon Web Services (AWS) partner Deloitte, to implement an Internet of Things (IoT) solution on Amazon Web Services, connecting its production equipment to a data lake. 

Through a centralised dashboard the company saw nine percent improvement in its productivity on primary equipment and nine percent reduction in energy usage as it got access to real-time data collection, integration, and advanced analytics.

At present, Apollo Tyres has seven manufacturing plants in Asia and Europe. AWS states that the company’s widespread operations was facing limited insights into the performance of its expensive equipment’s. It wanted an IoT solution to digitalise and standardise its manufacturing processes, where machine data held the key to process efficiency.

While many may not be aware, manufacturing tyres is a very complex process and involves numerous steps and a variety of heavy equipment. The machines at Apollo Tyres were equipped with supervisory control and data acquisition (SCADA) systems, which collect data on production capacity and other metrics. But this data was siloed, offering a window into the performance of individual machines only, with no basis for comparison between machines or plants.

AWS stated that limited visibility were particularly concerning in the case of Apollo’s tyre rubber mixers. These machines are crucial to the manufacturing process. They are also extremely capital intensive — representing an investment of about $24 million (INR 2 billion) each, including related infrastructure — labour intensive, and energy intensive. Any improvement to their performance promised significant returns.

Shibu George, Global Head Advanced Manufacturing, Apollo Tyres said, “With the help of Deloitte, we could shine a light and show our teams how the data could help them improve. It was a great experience. When we started streaming data to AWS, we could compare the performance within the plant, and across plants. That was a unique opportunity.”

With seamless access to mixer data, Apollo Tyres was able to identify performance discrepancies and take corrective actions. The company proceeded with deeper analytics and improved productivity by nine percent — equivalent to the capacity of more than one mixer. 

This also helped reduce its energy usage by three percent, which may look small, but it is important to understand that a single mixer has a massive energy load of about 10 megawatts, which is enough to illuminate a town of about 200,000 people. Reducing CO2 emissions in this energy load by a mere three percent is equivalent to cutting emissions from 4,000 vehicles traveling for an entire year.

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Apollo Tyres is preparing to introduce the Vredestein Quatrac Pro 2, a next-generation ultra-high-performance all-season tyre slated for release in the summer of 2026. This product is engineered with a completely new architecture, innovative materials and an advanced directional tread to achieve leading performance standards. It is specifically designed for compatibility with contemporary electric and hybrid vehicles, offering low rolling resistance and minimal noise alongside a reinforced structure to accommodate their greater weight without compromising dynamic response.

This breakthrough tyre is conceived as a versatile, performance-focused option suitable for a broad range of vehicles, including sports cars, high-performance saloons and SUVs, and will be available in a wide selection of sizes. The launch continues the Vredestein brand's longstanding leadership in the all-season category, a segment it has helped define since the 1990s and where it currently offers the most comprehensive product range.

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CEAT Ltd reported strong growth in the December quarter, supported by higher volumes, improving operating margins and continued investment in capacity expansion, while flagging near-term pressure from currency movement and raw material costs.

The tyre maker posted consolidated revenue of INR 41.57 billion for the third quarter of FY26, up about 26 percent year on year. Standalone revenue rose 20.1 percent to INR 39.57 billion, driven by growth across replacement, OEM and international markets.

“This was a good Q3 for us, with more than 20 per cent year-on-year growth on a standalone basis,” said Arnab Banerjee, Managing Director and Chief Executive Officer. “Volume momentum continued across segments, supported by GST rationalisation, improving consumer sentiment and steady recovery in OEM demand.”

Demand outlook remains supportive

Management said the Indian tyre market entered calendar 2025 on a stronger footing, aided by tax reforms, rising electric vehicle adoption and premiumisation. CEAT expects the industry to deliver healthy single-digit growth over the medium term.

“Increasing disposable income in rural markets following robust rabi sowing and kharif harvest completion has been supportive,” Banerjee said, adding that replacement demand for truck and bus radials is expected to remain in the mid-to-high single digits, with seasonal upside during the summer months.

Two-wheeler tyres continued to perform strongly, while OEM demand for medium and light commercial vehicles recovered following GST rationalisation. Passenger vehicle demand is expected to grow at double-digit rates in the near term, supported by easing financing conditions.

International demand for radial commercial vehicle and passenger car tyres remained firm, with India emerging as a credible sourcing base for global OEMs and distributors.

Margins improve despite cost headwinds

Standalone EBITDA rose to INR 5.56 billion, translating into a margin of 14.1 per cent. Consolidated EBITDA stood at INR 5.68 billion, with margins improving both sequentially and year on year.

Gross margins, however, contracted sequentially by about 109 basis points, largely due to currency depreciation and inventory adjustments.

“The depreciation of the rupee and a modest rise in international natural rubber prices could result in a 1 to 1.5 per cent cost headwind over the next few quarters,” said Kumar Subbiah, Chief Financial Officer. “While crude-linked inputs remain stable, currency remains the key variable to watch.”

Standalone profit after tax came in at INR 1.92 billion, compared with INR 2.02 billion in the previous quarter. The decline reflected a one-time provision of INR 578 million linked to new labour code implementation.

“This provision largely relates to past service costs,” Subbiah said. “The ongoing quarterly impact going forward is expected to be minimal.”

Camso integration on track

CEAT said the integration of its Camso off-highway tyre business is progressing broadly as planned. Quarterly revenue stood at about USD 20 million, reflecting the ongoing transition of customer relationships from Michelin to CEAT.

“Most existing customers have approved the business transfer, ensuring continuity,” Banerjee said. “There are some one-time transition and IT costs in Q3, which will not recur from Q4 onwards.”

Management said underlying operating margins at Camso are already in double digits and are expected to improve further as utilisation rises and CEAT gains greater control over sourcing and sales.

Capex remains elevated

Capital expenditure during the quarter stood at INR 2.54 billion, taking cumulative spend for the year to INR 6.73 billion, excluding acquisition-related intangibles.

The board approved an additional INR 13.14 billion investment at the Chennai plant to add 3.5 million passenger car tyres of annual capacity, with completion targeted for the second half of FY28. The project will be funded through a mix of internal accruals and debt.

“Our capex guidance remains broadly in line with earlier estimates,” Subbiah said. “We will continue to monitor leverage closely to ensure balance sheet strength.”

Standalone gross debt stood at INR 29.54 billion, with debt-to-EBITDA improving to 1.25 times.

EV, premiumisation and sustainability

CEAT maintained a strong position in electric vehicle tyres, with more than 30 per cent share in OEM passenger EV tyres and about 20 per cent in two-wheeler EVs. The company continues to invest in premium products, including larger rim-size, run-flat and ZR-rated tyres, to improve realisations.

On sustainability, CEAT announced a partnership with CleanMax to develop 59 MW of hybrid wind-solar capacity, targeting about 60 per cent renewable energy usage by FY27.

“Q3 closed on a strong note, supported by a robust product pipeline and improving customer confidence,” Banerjee said. “We remain focused on sustaining growth while maintaining margin discipline and investing for the long term.”

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Himadri Speciality Chemical Ltd reported a sharp rise in profit for the quarter and nine months ended 31 December 2025, supported by margin expansion and accelerating investment across speciality carbon black capacity, export infrastructure and downstream materials.

The Kolkata-based speciality chemicals group said profit after tax for the nine months rose to INR 5.6 billion, exceeding the full-year profit recorded in FY25. Earnings before interest, tax, depreciation and amortisation increased to INR 7.3 billion, reflecting stronger operating leverage and a shift towards higher value-added products, despite softer revenue.

Revenue for the nine-month period stood at INR 33 billion, while total sales volumes increased by about three percent year on year to 428,572 tonnes. The company said its product mix remained focused on speciality and application-specific offerings, supporting profitability amid market volatility.

For the December quarter, consolidated EBITDA rose about 12 percent year on year to INR 2.5 billion, while profit after tax increased 36 percent to INR 1.9 billion, underlining continued margin improvement.

Investment-led expansion remains central to Himadri’s growth strategy. During the quarter, the company commenced trial production at its brownfield speciality carbon black expansion project at Mahistikry. Once fully operational, the project will increase total speciality carbon black capacity to 130,000 tonnes per annum, positioning Mahistikry as the world’s largest single-site facility for speciality carbon black. The project involves an estimated capital expenditure of INR 2.2 billion and is aimed at premium applications including plastics, inks, coatings and other niche segments.

Himadri also commissioned a high-temperature liquid coal tar pitch terminal at New Mangalore Port, creating a second export corridor alongside Haldia on India’s eastern coast. During the quarter, the company executed its first export shipment of 3,600 tonnes of liquid pitch to the Middle East. Management said the new terminal enhances logistics flexibility, reduces concentration risk and supports export-led growth in coal tar derivatives.

Beyond core expansions, the company continues to deploy capital across multiple growth platforms funded largely through internal accruals. These include forward integration into speciality chemicals such as anthraquinone and carbazole, with planned capital expenditure of INR 1.2 billion, as well as phased investments in lithium-ion battery materials, including a lithium iron phosphate cathode active material plant targeted for commissioning from FY27.

During the quarter ended 31 December 2025, upon receipt of INR 2.4 billion in balance consideration from promoters, Himadri allotted one crore equity shares to the promoters. Following the allotment, promoter shareholding increased to 52.5 per cent.

Commenting on the performance, Anurag Choudhary, Chairman and Managing Director, said the results reflected disciplined execution, operational efficiency and steady progress on strategic investments. He said the commissioning of new capacities marks the beginning of the company’s next phase of growth.

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In a major step to advance its global manufacturing footprint, China’s Triangle Tyre has unveiled plans for a new facility in Cambodia. The company will invest CNY 3,219 billion (approximately USD 462 million) to construct a tyre plant in Svay Rieng Province, with construction slated to commence in March 2026. This project represents a cornerstone of the firm’s international expansion strategy and a deepening engagement with the Belt and Road Initiative.

The future facility is designed to produce six million high-performance passenger car tyres and one million commercial vehicle tyres annually. It will employ proprietary manufacturing technologies developed by Triangle Tyre. Output from the Cambodian plant is primarily destined for key international markets, including North America, Europe, the Middle East, Africa and Southeast Asia.

Establishing a local, wholly-owned subsidiary will facilitate the project's implementation and ongoing operations. Company officials position the investment as a strategic move to optimize global supply chain and sales networks while enhancing overall market competitiveness. Financial projections indicate the project is expected to generate average annual revenues of approximately CNY 2,585 billion (approximately USD 371 million) upon reaching full production, with an estimated investment return rate of 15.1 percent.

This overseas capacity expansion is viewed as a direct response to China’s ‘Go Global’ policy. It aims to secure new market opportunities and sustainable profit growth, thereby strengthening the company’s position for long-term development in the global tyre industry.

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