GRP, an Indian rubber recycling company, reported a 20 percent year-over-year revenue growth for both Q3 and the first nine months of FY25, despite facing margin pressures from elevated raw material costs.

The company recorded total income of INR 1,327 million in Q3 FY25, with EBITDA margins holding steady at 9.8 percent. For the nine-month period, revenue reached INR 3,912 million, while EBITDA stood at INR 363 million.

"We achieved a 12 percent increase in volumes on a standalone basis, with Reclaim Rubber volumes growing nine percent despite subdued global tyre demand," said Harsh Gandhi, Managing Director of GRP Limited.

The company recognized INR 121 million in Extended Producer Responsibility (EPR) credits year-to-date, with an additional INR 180 million worth of credits valued at minimum support price still available for sale.

Expansion Plans

GRP is moving forward with its INR 2.5 billion expansion plan, having secured financing from French development finance institution Proparco. The company has also received shareholder approval to raise an additional INR 1.5 billion through a qualified institutional placement.

"We remain on track to commence operations for the first line of crumb rubber and continuous pyrolysis line by Q4 of this financial year," Gandhi stated, noting that INR 330 million has already been invested in the project.

Industry Developments

The expansion comes as major carbon black producers like Birla Carbon, Epsilon Carbon, and Phillips Carbon Black launch recovered carbon black products using tyre pyrolysis oil (TPO).

"With carbon black producers now actively sourcing TPO to produce their own grades of recovered carbon black, it allows us a new avenue for sale, which was maybe 6 to 8 months ago, was non-existent," Gandhi explained.

Future Outlook

The company expects margins to stabilize following recent raw material cost pressures, particularly in its synthetic rubber reclaim business. GRP's subsidiary focused on recycled polyolefins is gaining approvals from major brands ahead of new recycling regulations taking effect from April 2025.

"Once we do get into this business, there are a lot of synergies between the two businesses, and that will allow for the overall margin profile of the business to move towards mid-teens and even a little higher towards the high-teen EBITDA numbers for a consolidated level," Gandhi added.

The Yokohama Rubber Co., Ltd., has once again secured a spot in CDP’s A List of companies for its leadership in corporate sustainability. This is Yokohama Rubber’s third-straight and sixth time on the A list by the global environmental non-profit organisation. The company received the highest score for its leadership in environmental transparency and climate change.

Based on its answers to the CDP's 2024 climate change questionnaire, Yokohama Rubber was chosen in recognition of its efforts to reduce greenhouse gas emissions, reduce the risks associated with climate change and publish extremely transparent information. By tackling social concerns via its business operations, Yokohama Rubber is generating shared value under the sustainability motto ‘Caring for the Future’.

The global environmental disclosure system for businesses, cities, governments and regions is managed by CDP. Since its founding in 2000, it has encouraged businesses to reveal their environmental effects, cut greenhouse gas emissions, maintain forests and preserve water supplies. CDP scores are frequently used to influence procurement and investment choices in the direction of a resilient, sustainable and carbon-free economy. More than 2,100 firms in Japan and over 24,800 companies worldwide, including over 70 percent of corporations listed on the Tokyo Stock Exchange's Prime Market, answered CDP's environmental disclosure questionnaire in 2024.

 MRF, India's leading tyre manufacturer, reported a 38 percent decline in third-quarter profit despite higher sales, as rising raw material costs and currency fluctuations squeezed margins.

Net income fell to INR 3.15 billion in the quarter ended 31 December compared with INR 5.10 billion a year earlier, the Chennai-based company said in a statement. Revenue rose 13.76 percent to INR 70.99 billion, driven by growth in replacement sales, institutional sales and exports.

The company's profit before tax decreased to INR 4.24 billion from INR 6.82 billion in the same quarter last year. Tax expenses for the quarter stood at INR 1.09 billion.

The tyre maker cited challenges from increasing commodity prices, particularly natural rubber and crude-based raw materials, along with a stronger US dollar contributing to higher overall expenses.

TyreSafe has entered into a partnership with RED Driver Training, one of the UK’s leading driving schools, as its first dedicated driving school supporter.

TyreSafe's goal to increase road safety, especially for new drivers starting their adventures as road users, has reached a major milestone with this partnership. In order to promote lifetime habits that lead to safer roads, TyreSafe hopes to increase its efforts to teach new drivers the value of tyre safety and maintenance by collaborating with RED.

By providing thorough driving instruction throughout the UK through a robust network of RED franchised driving instructors, RED Driver Training plays a crucial part in helping thousands of students annually get their driving licenses. RED offers advanced driving experiences in addition to training, such as their well-liked ‘skidpan’ sessions, which assist new drivers in successfully navigating hazardous situations. In order to guarantee that students have the information and abilities necessary to drive safely and responsibly, they also assist them with a dedicated theory and practical test preparation app.

Stuart Lovatt, Chair of TyreSafe, said “We are thrilled to partner with RED Driver Training, an organisation that shares our commitment to road safety and education. New drivers are at a crucial stage in forming safe driving habits, and through this partnership, we have an incredible opportunity to instil the importance of tyre safety from the very beginning of their journey on the roads. Together, we hope to create a generation of drivers who understand the vital role tyres play in road safety.”

Colin Paterson, Head of Marketing at RED Driver Training, said “At RED, our goal is to equip new drivers with the skills, confidence and knowledge to stay safe on the roads, and tyre safety is an integral part of that. Joining forces with TyreSafe allows us to enhance our offering and emphasise the critical role tyres play in keeping drivers and passengers safe. We’re proud to be TyreSafe’s first driving ‘school’ supporter and look forward to working together to make a real difference. Our ‘Learn to Drive with RED’ app makes us more than just a normal driving school, and in co-operation with TyreSafe, we are keen to explore the creation of collaborative video content and more.”

Apollo Tyres Ltd. reported a five percent year-over-year increase in revenue from operations for Q3 FY25, reaching INR69.28 billion. However, the company’s net profit declined 32 percent to INR 3.37 billion, down from INR 4.97 billion in the same period last year, as rising raw material costs squeezed margins.

For the nine-month period ending 31 December 2024, Apollo Tyres recorded a three percent revenue increase, closing at 197 billion. Net profit for the period fell 32 percent to INR 9.37 billion, compared to INR 13. 68 billion in 9M FY24.

Operating profit for Q3 FY25 stood at INR 9.47 billion, down from INR 12.08 billion a year earlier, reflecting higher input costs. The nine-month operating profit also declined, closing at INR 2734  billion, compared to INR 34.19 billion in 9M FY24.

“Under tough market conditions, we have been able to perform well in the key passenger and commercial vehicle replacement segments in India,” said Onkar Kanwar, Chairman of Apollo Tyres. “This performance was somewhat negated by the sluggish OE segment. Europe too, has performed in line with the market. While the third quarter witnessed an increase in raw material prices, impacting our margins, we see a flattish trend in the current quarter.”