A recent FICCI survey made it amply clear that the Covid-19 pandemic has had a deep impact on Indian businesses which could lead to "unprecedented collapse" of the Indian economy. Only a substantive and urgent economic package by the Government could save a large section of the industry from permanent impairment, survey findings stated.

The survey has just brought to the fore what businesses, cutting across segments, have been realizing ever since the Corona outbreak led to shuttering of businesses and disruption of supply chains. A financial stimulus is, indeed, imperative in view of the huge financial impact on businesses especially to those like auto & tyre sectors who had been facing exceptional distress even before the arrival of the current pandemic. For instance, Tyre industry is poised to lose sales of nearly Rs 10000 crore due to lock-down till the end of April. There is huge blockage of funds by way of inventories of raw materials and in the form of finished goods. Many OEMs have asked for deferment of payments and realizations from the replacement market have dried out.

It is heartening to note Government’s resolve to fight back with full might. Hon’ble Prime Minister has exhorted his cabinet that Government must work on war footing to mitigate the impact of Covid-19 and strategize for the emergent conditions. However, what is of greater significance is PM’s advice to lessen the country’s dependence on other nations and give a sincere push to 'Make in India' as a long-term strategy to immune the country from external trade shocks. He emphasized on boosting India's manufacturing and exports to benefit from emerging world realties.

Certainly, it is all the more important now to identify champion sectors where the country has much better bet of attaining the ideals of Make in India. These sectors will include the ones which have significant employment potential, have proven credentials in domestic manufacturing and exports, enjoy wide acclaim for quality worldwide and have the capacity to ramp up and become global leaders.

On all these counts, Tyre Industry in India has withstood the test very well over the years. It is unfortunate that Indian Tyre Industry has remained one of the less celebrated success stories on manufacturing landscape of India. The industry has not been adequately acclaimed for sterling achievements in areas such as exports, research & development and innovation. It is time that industry’s key contribution as wheels of nation’s economy gets adequately noticed.

For one, Tyre Industry is self-sufficient in India with indigenous capacities to manufacture practically all kinds of tyres from a moped tyre to mammoth off-the-road tyres. Not many countries in the world can boast of this capability.

Not only has the Tyre Industry worked for a self-reliant India ever since independence but has emerged as a major exporter with Indian manufactured tyres being exported to more than 100 countries in the world including the most discerning ones such as US and European countries. Exports of tyres from India are in the range of Rs 12000 crore per annum (nearly 20% of the industry revenue).

Job creation potential of the Tyre Industry is huge in view of a rich value chain extending from rubber planters to tyre mechanics. Industry supports over one million Natural Rubber (NR) planters since as much as 75% of the NR produced in the country is consumed in tyre manufacturing. Another million or so are engaged in tyre manufacturing, tyre retreading and those employed at tyre dealerships and tyre repair services across the length and breadth of the country.

Indian Tyre Industry is increasingly converging with the world in terms of practices, product quality and research & development. Today India has some of the finest radial tyre manufacturing facilities in the world. International vehicle majors (OEMs) have been rolling out leading brands in India on Indian made tyres underscoring the quality edge. The Indian Tyre Industry is emerging as a force to reckon with in the global manufacturing ecosystem. As many as four Indian tyre companies find a pride of place among the top 30 tyre companies in the world.

At a time when private investments have been hard to come by, Tyre Industry in India has continued to invest handsomely in capacity creation and technology. Ongoing and recently completed investments are to the extent of Rs 51000 crore which is unprecedented in the history of the industry.

There is little doubt that India is in the sweet spot as far as tyre manufacturing goes. Seasoned entrepreneurship, availability of skilled manpower, availability of NR plantations and products surpassing international quality benchmarks –are all the ingredients to make India a hub for tyre manufacturing in the world.

Tyre Industry deserves to be a shining example of Indian manufacturing (much like IT or Pharma in the respective sectors) in view of advancements in technology, contribution to Auto and Transport sectors, job creation potential and growth projections.

Currently, several countries in the world are looking to reduce their dependence on China for political, economic and strategic reasons. US and Japan are openly looking for alternatives to China to source products which offer quality and price competitiveness. And therein lies the opportunity of casting the net wider for exports of tyres from India.

However Indian Tyre Industry can leverage this opportunity and replace China in several key markets only if production and exports are provided a policy push by the Government and bottlenecks are removed. China enjoys huge economies of scale as far as tyre manufacturing is concerned. For instance China exports tyres worth US $15 bn in a year which is nearly double the size of Indian Tyre Industry. Actually China has provided large export incentives to its tyre companies since the manufacturing capacity in China is many times that of its domestic requirements. To insulate its companies from the vagaries of fluctuation in Natural Rubber prices and availability, China is maintaining large reserves of rubber as a state policy.

Corona outbreak can work to India's advantage as the quality of tyres produced in India has received worldwide acclaim. India can leverage this opportunity, if production and exports of tyres is given a strong fillip. That requires a support to the industry much in the same way that Chinese Government has been providing to its tyre companies.

India’s economic engine needs a lot of help from the Government to restart after the lockdown. However support to a champion sector like Tyre Industry which has already proven its credentials as employment and export revenue generator will pay dividends in multiples.

The valedictory function of the Platinum Jubilee celebrations of the Rubber Act 1947 and the Rubber Grower’s Conference was inaugurated by Minister of State for Fisheries, Animal Husbandry, Dairying and Minority Affairs, George Kurian at Mammen Mappillai Hall, Kottayam. The event also witnessed the rollout of iSNR, an eco-friendly and sustainable EUDR-compliant Indian Natural Rubber. The function was presided over by Member of the Legislative Assembly Thiruvanchur Radhakrishnan. Other guests included Vice Chairman of the Rubber Board G. Anil Kumar and Rubber Board member N. Hari.

The technical session highlighted innovations and advancements in the rubber sector. Executive Director of the Rubber Board, M. Vasanthagesan, outlined the development of a digital platform aimed at connecting growers with agencies interested in adopting rubber plantations for harvesting. Director of TRST01, Manoj Vembu, detailed India’s preparedness to implement EUDR processes for natural rubber exporters, an area of significant importance. Dr Joby Joseph provided an in-depth analysis of the socio-economic impact of rubber on the country.

Two panel discussions addressed critical themes in the industry. The first session, titled ‘Handholding Stakeholders through Schemes & Policies’, was moderated by Chairperson and Managing Director of Kerala Rubber Limited Sheela Thomas. Panellists included Tomson Francis, Vincent V.A., Binu Mathew, A.J. Jose, B. Sreekumar and Chandralekha K.

The second session, focused on ‘Sustainable Farming Practices’, was moderated by Managing Director of the Plantation Corporation of Kerala Dr James Jacob. Panellists included Dr Shaji Philip, Dr Mohammed Satik, Dr Ambily K.K., Mr Reju and Dr Phebe Joseph.

Awards were presented to organisations excelling in various categories on the ‘mRube’ platform during 2023-24. Balkrishna Industries was recognised in the tyre sector, while Rubfila International and Classic Industries and Exports were awarded in the non-tyre sector. Manimalayar Rubbers (P) won in the rubber dealer category and Lissy Rubbers received the latex processing sector award. Kavanar Latex was acknowledged in the rubber processor category.

Regional awards included Jalebasa RPS – North Tripura for the North Eastern Region and Puliyanam RPS for other areas. Loyalty awards were given to Ceyenar Associates and Soniya Rubbers, while innovation awards went to Thunchath Ezhuthachan Rubbers and Vembanadu Rubbers .

The event brought together a diverse group of stakeholders including members of the Rubber Board, growers, labourers, technical experts, policymakers and other industry representatives, underscoring its significance in the Indian rubber sector’s journey toward innovation and sustainability.

Yokohama Rubber Co., Ltd. (YRC) has confirmed the closure of its Prague plant, managed by subsidiary Yokohama TWS Czech Republic a.s., which focuses on the production and sale of cross-ply off-highway tyres (OHT) including those for agricultural machinery. Production from the facility will be redistributed across other YRC plants.

Yokohama TWS, a key subsidiary of the YRC group, is enacting measures to tackle challenges in the off-highway tyre sector. In response to market volatility and shifting customer preferences, the company is implementing a wide-reaching strategic programme aimed at enhancing efficiency, improving service delivery, and ensuring long-term competitiveness. This strategy centres on three core initiatives including increased investment in innovative, sustainable products and enhanced digitalisation to elevate customer service and the optimisation of its manufacturing footprint to bolster operational excellence and uphold a ‘local for local’ philosophy.

Under this strategy, Yokohama TWS will halt operations at the Prague facility by June 2025. The plant, part of YRC’s over 30 global manufacturing sites and in operation for over 90 years, has been hindered by inefficiencies stemming from an outdated production platform.

The company will coordinate with partner firms, suppliers and relevant stakeholders to manage the closure and will provide support to the 270 employees impacted.

YRC, a leading global producer of passenger car radial, truck and bus radial, and off-highway tyres, is headquartered in Japan. The group, already the world’s largest agricultural tyre manufacturer and second in industrial tyres, seeks to expand its OHT market share through strategic investments. The company continues to refine its manufacturing footprint to ensure sustainable profitability and future resilience. 

Bridgestone EMEA (Bridgestone) has launched the Ecopia Trailer to complement its line-up of flagship Ecopia long-haul tyre range equipped with ENLITEN technology.

The range provides decreased rolling resistance and improved wear life compared to its previous generation, thereby improving fuel efficiency and reducing total cost of ownership across Steer, Drive and Trailer axles, while also contributing to significantly lowering CO2 emissions. Bridgestone Ecopia Steer, Drive and Trailer contribute to a reduction in carbon emissions by 3.2 percent, 6 percent and 5.6 percent every km travelled while the tyre is in operation due to the substantial fuel savings. Additionally, the Ecopia Steer, Drive and Trailer tyres have greatly improved their wear, resulting in a 38.4 percent, 10.8 percent and 20.4 percent reduction in CO2 emissions per kilometre during manufacturing.

Compared to its predecessor, the range offers a reduction in rolling resistance on all axles, with the Drive axle seeing an improvement of up to 12 percent. This makes it possible to achieve the highest fuel economy performance possible, earning an A-grade EU badge. Additionally, Bridgestone Ecopia provides improved mileage on all axles, with a 40 percent increase on the Steer axle (due to the inclusion of Spiral Belt Technology), a 6 percent increase on the Drive axle, and a 10 percent increase on the Trailer axle.

Waqqas Ahmad, Commercial Sales Director, Bridgestone EMEA, said, “Bridgestone Ecopia represents the future of long-haul transport. Efficient and innovative, our flagship long-haul tyre range is engineered to help reduce fuel consumption and carbon emissions – without compromising tyre performance levels. Now with the launch of Ecopia Trailer, our partners can maximise these benefits. For both fleet operations and the OEMs we work with, the complete Bridgestone Ecopia range is here to support your decarbonisation objectives, help you meet new and upcoming sustainability regulations and, at the same time, reduce your total cost of ownership.”

Bridgestone Ecopia Trailer will be available to the European market from February 2025.

CEAT Limited announced its unaudited results for the third quarter ending 31st December 2024. On a consolidated basis, revenue rose 11.4 percent year-on-year to INR 32,999 million, with an EBITDA margin of 10.5 percent and a net profit of INR 970 crore.

Commenting on the performance, Managing Director Arnab Banerjee, said, “We witnessed strong year-on-year double-digit growth, driven by the replacement segment. While rising raw material costs impacted our margins, we progressively passed on part of the increase through price hikes in select categories during the quarter. Demand remains stable and our order book pipeline is robust across all segments. Raw material prices are expected to remain flat in Q4 and we anticipate the growth momentum to continue.”

On a standalone basis, CEAT reported revenue of INR 32,918 million, up 11.6 percent Y-o-Y with an EBITDA margin of 10.4 percent and a net profit of INR 960 million.

Commenting on the financials, Chief Financial Officer Kumar Subbiah said, “Gross margins were impacted during the quarter due to rising raw material costs. We managed to offset part of this through price increases and cost controls. Meanwhile, our capital expenditure for the quarter amounted to INR 2830 million, fully funded through internal accruals, ensuring that our debt levels remained stable.”