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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.

A new joint venture, UniPyrum, has been established by Pyrum Innovations AG and the independent tank farm operator UNITANK Holding GmbH, with the ambition to build a European network for processing end-of-life tyres. Based in Hamburg, the venture will be managed by a dedicated team overseeing the expansion of multiple advanced recycling facilities. The initial blueprint calls for the development of five to 10 such plants across strategic European locations, beginning with several sites in Germany.

Each new facility will feature a modular setup, starting with a minimum of three modern thermolysis reactors. This configuration allows a single site to process at least 22,000 tonnes of scrap tyres annually, with the flexibility for future capacity increases based on local demand. For the launch, three initial target regions have been selected, with comprehensive preliminary work on engineering and business planning already completed. A UNITANK facility in Emleben, Thuringia, is under strong consideration as the first operational location, and the partners are preparing to initiate approval processes imminently.

UNITANK, which holds a 51 percent majority stake in the partnership to Pyrum’s 49 percent, is actively securing the venture’s commercial foundations. This involves concurrent negotiations to establish reliable supply chains for feedstock tyres and to secure offtake agreements for the recycled output. The collaboration combines Pyrum's proprietary technology with UNITANK's industrial logistics expertise to accelerate the rollout of this recycling infrastructure.

Jan Vogel, CEO, UNITANK Group, said, “We are delighted to take a decisive step forward in our longstanding and trusting partnership with Pyrum by establishing this joint venture today. In addition to our core business in the tank storage sector, this creates a new business area with strong growth potential that is independent of the energy transition. The combination of Pyrum’s leading technology and our extensive experience in operating critical infrastructure in the energy sector opens up exciting opportunities for the future. The aim is for the new joint venture to rapidly develop and operate a network of used tyre recycling plants in Germany and neighbouring countries.”

Pascal Klein, CEO, Pyrum Innovations AG, said, “Since our initial memorandum of understanding with UNITANK, we have worked intensively together to further develop our partnership. We are delighted to reach this important milestone today. Following the positive funding approval in Greece and the recently signed shareholder agreement with SUAS, the founding of the joint venture with UNITANK represents the next important step in finally accelerating the construction and operation of new plants. UNITANK’s many years of experience in operating critical infrastructure and its diverse technical and logistical expertise complement our technology perfectly. Together, we are significantly increasing Europe-wide recycling capacity for end-of-life tyres and actively promoting the circular economy.”

Sri Trang Agro-Industry Public Company Limited (STA), under the leadership of Executive Director Chalermpop Khanjan, has entered a strategic partnership to advance sustainability through innovation. The company participated in a ceremony to sign a Memorandum of Understanding (MOU) with Chiang Mai University and five other leading industrial sectors. This collaboration is dedicated to promoting the development of knowledge, research and innovation, firmly aligning with STA's commitment to sustainability and its core Environmental, Social, and Governance (ESG) values.

The partnership’s specific objectives include advancing joint research, supporting specialised training programmes and strengthening collaborative networks to directly address climate change. A key focus is the transfer of technology and environmental innovations, including climate adaptation solutions, to be applied across business, government and community sectors to drive tangible, shared learning. This initiative reinforces STA’s mission to generate long-term value for all its stakeholders, including farmers, local communities, customers and consumers.

Concurrently, an industrial panel discussion titled ‘Innovations Toward Industrial Sustainability’ was held. Dr Saranthinee Mongkolrat, Sustainability Division Manager at STA, delivered a presentation on ‘Carbon-Smart Natural Rubber: Turning Plantations into Long-Term Carbon Sinks’. Her session underscored the critical role of natural rubber plantations in carbon sequestration and their contribution to a more sustainable industrial future.

Through this integration of expertise, technology and cross-sector collaboration, Sri Trang Group continues to drive its long-term sustainability mission. The Group is committed to consolidating its position as a global leader in the green natural rubber industry, thereby fostering balanced growth and supporting sustainable development on both a national and international scale.

In a strategic move to deepen its engagement in the Middle East, Hankook Tire, along with Al Dobowi Tyre Company, the official distributors of Hankook in UAE since 1978 under Al Dobowi Group, has entered a three-year official partnership with the celebrated football club Al Ain FC, effective January 2026. The alliance was formally inaugurated at Al Ain’s Hazza Bin Zayed Stadium. This collaboration aims to significantly elevate Hankook’s premium brand stature on a global scale by connecting with the club’s vast regional fanbase and leveraging prominent marketing channels, such as stadium LED advertising.

Al Ain FC, founded in 1968 and currently leading the 2024/2025 season, is the most decorated club in the UAE, boasting numerous domestic and continental titles. Partnering with such an institution provides Hankook a powerful platform to reinforce its market leadership. The sponsorship strategy includes exclusive initiatives like a VIP Hospitality Program and the Ainawi Membership season cards, designed to foster closer sales relationships and deliver distinctive experiences to stakeholders across the region.

This partnership builds upon Hankook's established efforts to cultivate a premium image in the Middle East and Africa, underscored by the introduction of its high-performance Ventus evo tyre series and its role as an original equipment supplier for luxury automotive brands in the local market. Simultaneously, Al Dobowi Group continues to enhance its advanced service infrastructure, aiming to surpass customer expectations at every touchpoint and further strengthen consumer engagement alongside Hankook.

Jong Woo Kim, Vice President – Middle East & Africa Regional HQ, Hankook Tire & Technology, said, “We are delighted to enhance communication with local customers and consumers and expand brand touchpoints through this partnership with Al Ain FC, a representative club of the UAE. Based on our global technical leadership, we will continue to share Hankook Tire’s premium value across the Middle East.”

Surender Singh Kandhari, Chairman, Al Dobowi Group, said, "Al Ain FC is a symbol of success, and we are honoured to join this journey. This partnership brings together three brands standing for performance and long-term commitment."

Citira, a Sweden-based company specialising in circular tyre management, has announced a definitive strategic step in its ambition to become a leading, integrated provider in the Northern European circular tyre ecosystem with the acquisition of Tyrefix. The agreement, executed on 20 January 2026 and expected to close imminently, secures a robust and scalable operational foundation for Citira in the United Kingdom, representing a core pillar of its geographic expansion.

Tyrefix is renowned for its four decades of specialised service excellence. The company operates a nationwide fleet delivering on-site tyre management, repair and replacement exclusively for off-highway and earthmoving machinery, a sector where equipment uptime, worksite safety and service reliability are non-negotiable for its industrial clientele.

This transaction is fundamentally value-driven. It provides Citira with immediate access to Tyrefix’s established national network, its deeply entrenched customer relationships and its unique mobile service expertise. The integration of this proven model is anticipated to generate significant commercial synergies and cross-selling opportunities across Citira’s broader portfolio, enhancing service offerings for all customers.

Post-closure, Tyrefix will continue its operations under the trusted Tyrefix brand, preserving its customer-facing identity and its experienced management team, including Oliver Johnson, Jon Pitman and Steve Bareham, who will transition to become co-owners within the Citira group. The transaction facilitates a full exit for the current investment company, Literacy Capital, and other minority shareholders, transferring ownership to Citira and marking a new chapter of growth.

David Boman, CEO, Citira, said, “I am very happy to welcome Oliver, Jon, Steve and the entire Tyrefix team to Citira. Tyrefix’s model is unique and has shown great success during several decades, and still has potential for growth across current and new market segments. With Oliver at the helm, I am confident that our expansion into the United Kingdom will become another success story of Citira.”

Oliver Johnson, CEO, Tyrefix, said, “Joining Citira allows Tyrefix Group to advance our already strong market position in off-highway tyre services while providing additional solutions to minimise vehicle downtime. By becoming part of a larger organisation, Tyrefix Group gains access to additional resources and increased opportunities to accelerate our growth plans.”