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Investigation reveals coordinated theft by contractors and employees through bulk pilferage and excess loading schemes

Goodyear India Limited disclosed that a comprehensive investigation by Ernst & Young uncovered a sophisticated theft operation at its Ballabgarh manufacturing plant, resulting in the loss of 4,571 tyres valued at approximately INR 39.11 million.

The tyre manufacturer’s board reviewed the investigative findings during a meeting that concluded last week, revealing what the company described as “potential theft of tyres in bulk by contractual workers involved in security, warehousing and loading operations, acting in collusion.”

Dual Theft Operations Exposed

The Ernst & Young investigation, spanning October 2023 to November 2024, identified two primary theft methods that enabled the systematic pilferage of farm tyres from the Faridabad-based facility.

Bulk Theft Scheme: The more significant operation involved truckloads of tyres being removed from the plant through coordination between third-party loading supervisors, warehouse workers, security guards, and external accomplices. Electronic communications reviewed by investigators revealed references to 4,057 tyres across 20 dates between July and December 2024, with detailed SKU counts discussed among the conspirators.

Security records were deliberately manipulated to conceal the theft, with one security contractor admitting to accepting kickbacks from a loading supervisor to avoid recording truck details carrying stolen merchandise.

Excess Loading Operation: A secondary scheme involved loading additional tyres beyond invoiced quantities onto legitimate shipments, with the excess stolen during transit. The investigation revealed a significant increase in overweight dispatches during the July-November 2024 period, with 50 per cent of overweight trucks dispatched during this timeframe, compared to historical patterns.

Quality assurance protocols were compromised, with one employee admitting to receiving instructions from a third-party warehouse vendor to disregard overweight trucks and dispatch them without conducting mandatory quality studies. The employee estimated that 5-6 excess tyres were loaded per truck in select shipments to Goodyear warehouses.

Quality Control Manipulation

The investigation also uncovered systematic inflation of tyre rejection quantities during pre-dispatch inspections. A quality assurance employee acknowledged receiving kickbacks to artificially inflate rejected tyre counts in daily reports, despite no physical rejections having occurred, allegedly to help manage inventory shortfalls maintained by the third-party warehouse vendor.

Data analysis revealed an increase in rejection rates in 2024 compared to 2023, with the manipulation involving collusion between employees and third-party quality inspectors.

Operational Control Gaps

Beyond the theft schemes, Ernst & Young identified significant weaknesses in Goodyear’s inventory management and production processes. The manual production handover system lacked proper verification, with multiple employees admitting that the defined processes weren’t followed.

Production records maintained manually revealed discrepancies, with multiple spreadsheets containing different production numbers for the same periods. The investigation found that production during shutdown periods wasn’t recorded in the Production Management Information System, creating variances that couldn’t be validated due to unreliable manual records.

Financial Impact and Response

The financial impact of the inventory shortage identified in November 2024 was already recognised in Goodyear India’s financial statements for the quarter ended 31 December 2024. “The management has taken cognisance of the findings and initiated appropriate legal and disciplinary actions against those involved,” the company stated in its regulatory filing. “Proactive measures, including a site security assessment and tightened controls, have been implemented.”

Investigation Methodology

Ernst & Young’s fact-finding review employed comprehensive investigative techniques, including data analytics, transaction testing, background checks on suspected third parties, forensic imaging of electronic devices, and interviews with employees and contractual workers.

The investigation covered electronically stored information from the laptops and server backups of suspected individuals, utilising keyword-based searches to identify suspicious communications that proved crucial in establishing the theft patterns.

Regulatory Compliance

The disclosure fulfils Goodyear India’s obligations under Regulation 30 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015. The company initially informed stock exchanges of the inventory variance on 12 February 2025.

“The Company remains committed to upholding the highest standards of corporate governance and safeguarding stakeholder interests,” Goodyear India stated in its filing.

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Kimi Antonelli secured his second Formula 1 victory at the Japanese Grand Prix, a triumph shaped by a pivotal strategic gamble involving Pirelli’s tyre compounds. While most of the grid initiated their race on the Medium C2 rubber, Antonelli’s campaign was defined by impeccable timing. A poor getaway initially dropped the Mercedes driver down the order, but he was perfectly positioned to capitalise on a mid-race Safety Car, making his pit stop at the ideal moment to vault back into the lead. He held off Oscar Piastri in second and Charles Leclerc in third, converting the opportunity into a commanding win.

The early stages of the race at Suzuka were marked by significant turbulence behind the frontrunners. Piastri and Leclerc both enjoyed blistering starts off the line, with the McLaren driver surging past Antonelli to seize an immediate lead that he held comfortably through the first stint. Although Piastri’s scheduled pit stop was executed cleanly, the deployment of a Safety Car shortly thereafter proved decisive. Antonelli, who had yet to make his mandatory stop, was gifted a free pit lane entry under the neutralised conditions, allowing him to inherit track position that he would not surrender for the remainder of the afternoon.

Under overcast skies and cooler temperatures around 18 degrees Celsius, the strategic picture largely aligned with pre-race expectations. The majority of the field committed to a one-stop strategy, starting on the Medium C2 compound before switching to the Hard C1 for the final stint. The only exception was Valtteri Bottas, who inverted the approach by starting on the Hards and moving to the Mediums. Once racing resumed, Antonelli demonstrated he was the fastest driver on track, immediately carving out a decisive gap over the chasing pack to secure his victory.

Behind the leader, a fierce multi-car battle unfolded for the remaining podium positions. Piastri emerged at the head of that fight to claim second, while Leclerc secured third after a brilliant wheel-to-wheel duel with George Russell, who ultimately finished fourth. Lewis Hamilton also capitalised on the Safety Car by pitting immediately, mirroring the race-winning strategy. With this result, Antonelli made history as the youngest driver and first teenager to lead the Formula 1 World Championship, now holding 72 points, ahead of Russell with 63 and Leclerc with 49.

Dario Marrafuschi, Pirelli Motorsport Director, said, “The quickest strategy on paper was essentially the one adopted by all the drivers in the race, with Valtteri Bottas the only driver to do something different. No team evidently considered it worthwhile to take a risk on the Soft compound, either at the start or in the final stages, despite it remaining a viable option thanks to the low degradation recorded in the preceding days. Albon’s use of the C3 was clearly not driven by strategic considerations, given the high number of pit lane visits he made. During the Grand Prix, the compounds did not restrict the cars’ race pace.

“The safety car triggered by Bearman’s off-track moment certainly benefited those who had not attempted the undercut, including race winner Kimi Antonelli. Without the neutralisation, we still believe that the pit stop would have taken place in the laps immediately thereafter. Pirelli’s Japanese trip will not end today, as on Tuesday and Wednesday we have scheduled two days of testing at Suzuka for the development of next season’s dry-weather tyres. Assisting us on track, with one car each, will be the Red Bull and Racing Bulls teams.”

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Georgian company Tegeta Motors, through its environmental arm Tegeta Green Planet, recently spearheaded a major cleanup effort by removing roughly 2,000 illegally discarded tyres from a former landfill near the settlement of Giorgitsminda, Georgia. The operation addressed years of unchecked dumping that had endangered local soil, water and community health.

Despite the challenging terrain, the contaminated site was fully cleared within days using the company’s own resources and in strict adherence to safety protocols. All collected tyres are now set to undergo recycling in line with technical regulations, transforming a longstanding environmental hazard into a manageable waste stream.

This initiative reflects the broader mission of Tegeta Green Planet, which operates under the principle of extended producer responsibility (EPR). Beyond simply remediating a single location, the organisation aims to raise public awareness about the severe consequences of uncontrolled automotive waste disposal, ensuring that collection, transport and recycling are carried out lawfully.

The company has a history of such actions, having previously organised similar cleanups in Tbilisi and Bakuriani. With roughly 45 collection points across Georgia, Tegeta Green Planet encourages responsible disposal through its recycling initiative. Authorised in 2022 to manage the national EPR scheme for waste tyres, the organisation has since attracted nearly 350 manufacturers to its collective compliance system.

Shalva Akhvlediani, Director, Tegeta Green Planet, said, "We are delighted that, as part of a joint initiative between Tegeta Motors and Tegeta Green Planet, we have implemented another large-scale project and cleared the contaminated area of car tyres. Such activities significantly reduce the negative impact on the environment, especially considering that the collected waste is recycled in full compliance with technical regulations. We have carried out similar projects many times before. Last year alone, Tegeta Green Planet collected and recycled more than 6,000 tonnes of automotive waste – tyres, batteries and used oil. We are proud that these figures are growing every year, and in this way, we are contributing to the development of a circular economy and environmental protection in our country. We ask our citizens to report any areas contaminated with automotive waste to us. This can be done via the Tegeta Green Planet website or the Tegeta app, and we will respond accordingly.”

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The Alliance for the Future of Tires (AZuR) has expanded its network with the addition of Granuband, a Dutch leader in high-quality tyre recycling, as its newest partner. As a prominent manufacturer of rubber granules, Granuband strengthens AZuR’s mission to advance a sustainable circular economy for tires across Europe through its expertise in material recovery.

Established in 1991, Granuband specialises in the mechanical recycling of end-of-life tyres using state-of-the-art facilities to produce premium rubber granules and powders. These materials are exported globally for use in sports surfaces, infrastructure projects, industrial goods and various technical applications, showcasing the versatility of recycled rubber.

Beyond manufacturing, Granuband plays a critical role in the collection and logistics of used tyres, traditionally focusing on passenger car tyres in the Benelux region. In recent years, the company has expanded its operations to include truck, agricultural and other specialised tyre categories, driven by a longstanding commitment to innovation in technology, logistics and new applications.

Since 2024, Granuband has operated under Circtec, an international firm specialising in advanced tyre pyrolysis. This integration merges Granuband’s mechanical recycling strengths with Circtec’s chemical recovery technology, creating a comprehensive system that recovers nearly all tyre components. Together, they aim to boost recycling rates, optimise raw material use, cut CO₂ emissions and develop new recyclable materials. Granuband’s addition to AZuR notably reinforces the mechanical recycling pillar, a vital component of the circular economy.

Network coordinator Christina Guth said, “With Granuband, we are expanding our network to include an important player in the mechanical recycling of used tyres. High-quality rubber granules are key to closing the material cycle and reducing dependence on primary raw materials.”

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The Yokohama Rubber Co., Ltd. hosted its 12th Panel Discussion on Biodiversity as an online event on 6 March 2026, bringing together a wide range of participants from 121 locations across Japan. This annual gathering serves as a platform for reflecting on the significance of biodiversity conservation. This year’s programme featured a keynote speech by Dr Kaoruko Kurata, a professor at Yokohama National University’s College of Education and Institute for Multidisciplinary Sciences, titled ‘Creating a Well-Being Society from the Perspective of Biocultural Diversity’. Following her address, the event highlighted the Yokohama Rubber Group’s own conservation efforts, with a lively discussion themed ‘Nature Positive Initiatives through Collaboration between Communities and Companies’ moderated by Dr Tetsuya Kitazawa, Director of Ecology Path Inc. and a lecturer at Edogawa University. The exchange included the company’s employees alongside representatives from local governments, businesses, non-profit organisations, and civic groups.

A central case study presented was the ongoing work at Kameyama Satoyama Park, a Nature Symbiosis Site. Under a support agreement with Kameyama City in Mie Prefecture, Kameyama Bead Company, a tyre bead manufacturing and sales subsidiary of Yokohama Rubber, conducts activities such as removing invasive species and maintaining the park grounds. A city official joined to discuss these efforts, which helped all participants deepen their understanding of practical conservation measures.

Since the adoption of the global nature positive goal at COP15 in December 2022, momentum has grown worldwide, including in Japan. The Yokohama Rubber fully supports this direction and has been an active participant in the TNFD Forum and the 30by30 Alliance for Biodiversity since January 2023. The company advances conservation across its value chain through initiatives like the YOKOHAMA Forever Forest tree-planting events, water quality and biodiversity monitoring and community awareness programmes at its global sites, alongside promoting agroforestry on natural rubber farms. Operating under its sustainability management slogan, Caring for the Future, the company remains committed to creating shared value by addressing social issues through its core business activities.

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