The Plastics and Rubber Institute of Sri Lanka, and the Sri Lanka Association of Manufacturers and Exporters of Rubber Products, together with the assistance of the Export Development Board, conducted a two- day virtual workshop on Advanced Technology/Smart Manufacturing For The Rubber Product Industry In Sri Lanka, in December 2020. Despite the fact that the country was just raising its head from the deleterious aftermath of the first and second waves of Covid -19, the participation was beyond all expectations, thus indicating the weightage placed in keeping abreast of modern trends and moving with times by the industry community and the professionals and I presume that this is the current trend throughout the world.

As a member of the organising committee of the event and more as a hands-on person of the technologists of the not so modern generation, I realised that I was a curious and a rather passive observer of the currently fast unfolding industry scenario. The array of topics presented by local as well as overseas experts on their respective specialties was impressive. They covered Smart Energy Monitoring, IOT Built Industry Automation, Big Data Processing and applications, Conditioned based Monitoring for Maintenance, 3D/4D Printing, Virtual Product Design and Testing, Finite Element Analysis, and Product Failure Analysis.

It made me guessing with fascination, how much the information utilisation scenario in the manufacturing industry has metamorphosed during the past few decades since the times of two great discoveries/inventions, of Charles Babbage and Arthur. C. Clarke, that paved way for the evolution of the Information and Communications revolution. Charles Babbage (1791-1871) was an extraordinarily talented scientist, mathematician, economist and engineer. He is best known today - as he was in his lifetime - for inventing two types of cogwheel calculating machines, the forerunners of the modern computers. It was Arthur C. Clarke. after the crest of World War II, from his base in Stratford-On-Avon, England, as a young officer in the Royal Air Force, who dabbled in science fiction writing, floated the idea of global communications satellites in a 1945 letter to the publication Wireless World. It will be of interest to learn that the latter made Sri Lanka his second home and contributed in no small way to the development of ICT and astronomy in our country during the sixties and seventies.

As I gathered, with my rather limited knowledge of ICT, that the common features, of the modern-day innovations are generating a vast amount of real time data on all key aspects of the value chain, and interfacing between the value adding activities. Automation and reducing the dependability on the human factor has been another significant trend. Another key driver has been the necessity for reliability, agility and robustness in delivering products and services to the customer in the ever-changing customer preferences, which are again fueled willfully through product promotion and creation of new needs through massive adverting campaigns and mass communications. Companies are increasingly embracing the innovative technologies, to enable business growth, wealth accumulation, contribution to the national economies, which has helped in achieving improved quality of life, particularly in the traditionally termed developed countries.

Right through his anthropogenic evolution, Homo Sapiens or the “thinking man” has been characterised by the use of his brain to find easier and faster ways of doing things, which was an absolutely vital advantage for his survival in the primitive hostile environment. Commencing with use of stone tools, discovery of fire, and iron, this trend has continued throughout the history of mankind. During the more recent period of the last three centuries, which culminated in the Industry 4.0, some key landmarks, which reflect the quest of the mankind to better lives, through increased and efficient resource utilisation can be identified.

Revolutions

This process began in Britain in the 18th century and from there spread to other parts of the world. Although used earlier by French writers, the term Industrial Revolution was first popularised by the English economic historian Arnold Toynbee (1852–83) to describe Britain's economic development from 1760 to 1840. The first industrial revolution came with the advent of mechanisation, steam power and water power. This was followed by second industrial revolution which revolved around mass production and assembly lines using electricity. Henry Ford’s conveyor belt system was put into motion in December 1^st of 1913 in his Detroit manufacturing plant. Fully mechanised, or partially mechanised, assembly lines allowed Ford to offer a vehicle for a working family. One of his goals was to have a car that every family could own.

The car that every family would soon come to own was the Model T. His manufacturing plants would go on to produce over 15 million Model Ts and this is due almost entirely to his assembly line. In order to achieve a production of the Model T at such a high rate, he needed to break down the process of assembling the car to make it as efficient as possible to produce, while still being financially accessible.

The third industrial revolution came with electronics, IT systems and automation, which led to the fourth industrial revolution that is associated with cyber- physical systems. Some of the principles of which were the topics of the December Workshop. Generally speaking, Industry 4.0 describes the growing trend towards automation and data exchange in technology and processes within the manufacturing industry, including:

•  The internet of things (IoT)
• The industrial internet of things (IIoT)
• Cyber-physical systems (CPS)
• Smart manufacture
•  Smart factories
• Cloud computing
• Cognitive computing
• Artificial intelligence

This automation creates a manufacturing system whereby machines in factories are augmented with wireless connectivity and sensors to monitor and visualise an entire production process and make autonomous decisions. Wireless connectivity and the augmentation of machines will be greatly advanced with the full roll out of 5G

The fourth industrial revolution also relates to digital technologies that can create virtual versions of real-world installations, processes and applications. These can then be robustly tested to make cost-effective decentralised decisions. In short, this should allow for digital transformation and  for automated and autonomous manufacturing with joined-up systems that can cooperate with each other.

Black spots

It can thus be unanimously agreed that the emerging technologies have already resulted in tremendous benefits for mankind and that they have vast future potential in changing the entire human civilisation. While appreciating and accepting the usefulness of the technologies, I cannot refrain from contemplating on the black spots in the white cloth. The disadvantages of the digital technologies have been well documented throughout the world and some of these, include, data security, digital media manipulation, job insecurity, over reliance on gadgets, addiction, depersonalization, and social alienation, and stress related physical and mental illnesses and the list is not exhaustive. Diminishing of the human touch is considered by many, as a matter of grave concern, and its effect on the personal, ethical, family and social has already begun to reveal its dark side.

As an adaptive measure of the new normal mentality that followed the Covid-19 pandemic, “Social Distancing” intruded our day to day activates over the past one and half years. However, on thinking reflectively, it will be evident that Social Distancing actually had its beginnings in the first three industrial revolutions, while it got aggravated in the recent years. Dilemmas and debatable questions as to whether  dehumanisation is still progressing and what will be the outcome, if the current rate of rapid technology trend continues? These will become key challenges for the sociologists and sociopsychologists and the modern HR specialists. Prioritising automation and sub optimisation of the human resource, in the disguise of improving operational efficiency, as a business strategy of maintaining sustainability, could turn out to be short lived.

Over dependence on technology at the expense of losing the much-required human touch and interpersonal relationships, can be witnessed in many of the day-to-day activities, such as internet or online banking, bill payments, buying at super markets, home deliveries, and on-line webinars. I have personal experience of the short comings of on-line lecturing for students and on virtual workshops, which can only be utilised as a stop gap measure. As a person of the “old generation,” I find it an exhilarating experience to walk to the local bank, greet good morning to the staff, and having a friendly chat with the familiar cashier, while getting my transaction done. Some may equate such practices to lack of time management and productivity. Human interaction of this kind holds a special position in countries such as India and Sri Lanka, which has rich religious and cultural heritages, and adopting the new technologies as a panacea for improving all the aspects of efficiency and productivity in an effort be stay competitive can only be a short-term strategy.

It was Robert Frost, the American poet (1874-1963), who once philosophically remarked, “don’t ever take fence down, until you know why it was put up”

Obsolescence due to ineffective use or total non -use which we witness with machinery and equipment, may be applicable to the humans as well. It is said that the human body has about one hundred, vestigial organs, including the appendix, which have become nonfunctional, during the evolutionary process as a result on non-use and obsolescence. (TT)

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The U.S. Tire Manufacturers Association (USTMA) has welcomed the National Highway Traffic Safety Administration's (NHTSA) announcement of a negotiated rulemaking aimed at modernising federal tyre testing standards. The association has long pushed for this update, arguing that current rules are outdated.

According to USTMA President and CEO Anne Forristall Luke, modern standards lead to safer roads, and the group praised Administrator Morrison for advancing the effort. Luke noted that testing designed for 1960s-era tyres reveals little about today's products and blocks Americans from accessing advanced technology available elsewhere. Aligning standards with modern tyre technology would give drivers access to the highest-performing tyres, and USTMA members are ready to contribute their engineering expertise to the process.

​“Modern standards make for safer roads. USTMA applauds Administrator Morrison for taking on work the tyre industry has urged for years: bringing federal tyre standards in line with the tyres Americans drive on today. Outdated tyre testing standards designed for the tyres of the 1960s tell us nothing about whether today’s tyres are safe. In fact, those outdated standards prevent American drivers from accessing the latest technology currently available in much of the rest of the world. Bringing our standards into line with modern tyre technology will ensure Americans have access to the highest performing tyres made today. USTMA’s members look forward to contributing their engineering expertise to the process,” ​said the USTMA President and CEO.

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Pirelli wrapped up the 2026 FIA European Rally Championship (ERC) season at Rally Fafe by securing its second consecutive Tyre Manufacturers' title, with two of its drivers finishing in the overall top three. Teemu Suninen had already clinched the drivers' crown in Wales with a round to spare, while Andrea Mabellini completed the standings in third aboard a Lancia Ypsilon Rally2 HF Integrale. Both frontrunners relied exclusively on Pirelli tyres throughout the campaign.

The Italian manufacturer's full range proved competitive across widely varying conditions, from the P Zero asphalt specifications to the new Scorpion AT gravel tyres, which made their European championship debut this season. These products were engineered to handle the high temperatures and abrasive roads of Rome, the slippery asphalt of Poland and the Czech Republic and the traction and braking demands of Scandinavia's fast gravel stages.

Suninen anchored his title-winning season with victory in Poland and second-place finishes in Rome, at the Barum Rally and at Rali Ceredigion. Additional points came from crews contesting selected rounds, including Mikko Heikkilä's win in Scandinavia, Roberto Daprà's triumph in Rome and Giandomenico Basso's podium at the Spanish season opener. Across the year, Pirelli-equipped crews won 45 of 101 special stages, a 45 percent share, comprising 32 of 68 asphalt stages (47 percent) and 13 of 33 gravel stages (39 percent).

The Scorpion AT represented 2026's principal technical innovation, introducing the championship's only asymmetric, non-directional tread pattern alongside upgraded compounds to boost traction and braking. Heikkilä's Rally Scandinavia victory on the tyre's debut, using both soft and supersoft compounds, immediately validated its competitiveness. On asphalt, P Zero development centred on optimising compounds for the season's varied temperatures, abrasiveness and grip levels.

Terenzio Testoni, Rally Activity Manager, said, “This season rewards the work of our drivers and the entire team, as well as a clear technical commitment: to keep developing the range even when our products are already competitive. With the Scorpion AT, we introduced a new tread pattern and improved compounds; with the P Zero, we focused on compound development. The results came on both surfaces and in very different conditions. Suninen converted his speed into a title through a remarkably solid and consistent season, while Mabellini and the crews contesting individual rounds made a vital contribution to our success in the manufacturers’ standings.”

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Radar Tires has secured a multi-year tie-up with the Maharlika Pilipinas Basketball League (MPBL), taking on the role of Official Partner. The signing took place in General Santos City, at the residence of MPBL founder and boxing great Emmanuel ‘Manny’ Pacquiao. Both organisations frame the deal around a shared belief that sport can redirect young lives and deliver lasting benefits to society.

Pacquiao launched the MPBL in 2018 to steer Filipino youth towards a positive path through basketball, one that cultivates character and opens doors. His own rise from modest roots informed a league built on the nation's basketball fervour, giving players from every province a stage to be seen and rewarded. Homegrown athletes now use the MPBL as a national showcase and a route to a livelihood, while the home-and-away schedule carries live games into provincial communities. Games air on free-to-air television, and Pacquiao describes the league as his way of repaying the society that raised him.

Radar Tires carries a similar outlook, with community give-back woven into its identity since inception. Across roughly 20 years, the brand has funded efforts including 15 years of backing for the Breast Cancer Research Foundation, support for emerging golfers via the Singapore Golf Association, and backing for athletes in tennis, off-road racing and other disciplines globally. Radar holds that financial limits should never block exceptional talent, and the MPBL deal puts that principle into practice in a basketball-loving nation.

The Philippines ranks among Radar's most important Asia-Pacific markets, and the company says Filipino drivers and dealers have responded warmly over the past decade. The tie-up opens with the rest of the Season 8 Playoffs and Finals before rolling into Season 9. As exclusive tyre sponsor, Radar receives full category exclusivity plus exposure across broadcast, livestream, digital and on-court channels. With 28 teams slated for roughly 400 games in 2027, the brand expects to reach neighbourhoods nationwide. The agreement joins Radar's wider global sports commitments, including Cricket South Africa, the Singapore Golf Association, the Texas Rangers, Michael Clarke and independent tennis and golf athletes.

Pacquiao said, "In basketball, just like in life, we go further when we move forward together. Through our partnership with Radar Tires, we share a common mission – to support Filipino talent, strengthen our communities and give our athletes the opportunity to chase their dreams. Because when we invest in sports, we invest in the future of our Filipino youth.”

G S Sareen, President and CEO, Omni United, said, "Giving back to the community has always been in our DNA. It is who we are at Radar Tires, and it is a commitment we have carried across every country we operate in. The Philippines holds a special place in our hearts. For over 17 years, Filipino drivers and dealers have welcomed our brand, and this partnership is our way of coming closer to them and the communities they call home. In the MPBL, we saw far more than a basketball league. Across eight seasons, Manny Pacquiao and his team have built something truly remarkable: a grassroots league that uplifts young Filipinos and their communities through sport, guides young people towards a positive path and gives rising talent the chance to be seen. Their mission reflects the very beliefs that guide us, and that shared purpose is what makes this partnership so meaningful. We have full faith in Manny Pacquiao's vision and in the MPBL's commitment to the next generation, and we are proud to stand alongside this exceptional league as it continues to grow."

Joe Ramos, Chief Executive Officer, MPBL, said, "The MPBL was built to bring basketball closer to Filipinos across the country. Partnerships like this help us continue that mission while creating more opportunities for our teams, players and communities. We welcome Radar Tires to the MPBL family and look forward to growing together.”

Emmer Oreta, MPBL Commissioner, said, "Radar Tires coming on board reflects the growing commercial appeal of the MPBL. Partnerships of this scale strengthen the league and create greater value for our fans and partners as we move toward Season 9.”

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India’s tyre maker reports record quarterly revenue but warns of weaker demand growth and rising input costs

CEAT will raise tyre prices further in the coming quarter as surging raw material costs threaten to undermine profitability, even as strong demand helped the Indian manufacturer deliver record quarterly revenue.

The company expects raw material costs to rise by a further 3–3.5 percent in the three months to December, following increases of 8–9 percent in the previous quarter and about 15 percent in the first quarter of the financial year. The cumulative increase since the end of March is expected to reach about 27 percent by December, management said recently.

Arnab Banerjee, Managing Director And Chief Executive, said CEAT would continue to raise prices across product categories in the coming quarter to recover higher input costs. The company would also pursue further increases in international markets, where pricing adjustments have lagged those in India.

“We need price increase and we will go for price increase,” Banerjee told analysts on the company’s second-quarter earnings call.

Consolidated revenue rose 26.2 percent year on year to INR 47.62 billion in the three months to September, the highest quarterly figure in the company’s history. Volume growth contributed about 40 percent of the increase, with the remainder coming from higher prices and a shift towards more expensive products.

But consolidated earnings before interest, tax, depreciation and amortisation fell 4 percent from a year earlier to INR 4.52 billion, leaving an EBITDA margin of 9.5 percent, down from a year earlier despite improving sequentially. Net profit dropped to INR 1.12 billion from INR 1.86 billion.

CEAT’s standalone EBITDA margin improved to 10.1 percent from the previous quarter, but remained well below the level recorded a year earlier as higher raw material costs worked through the business.

Price rises face a test

CEAT has increased prices by about 12–13 percent in the replacement market since the start of the financial year, and by 14–15 percent for original equipment manufacturers, which supply tyres directly to vehicle makers. Further increases are planned throughout the third quarter, with export prices to be adjusted selectively according to local competition.

Banerjee said the company’s standalone gross margin was about 33.5–33.6 percent in the first half, against a preferred range of 41–42 percent. A further increase in raw material costs in the coming quarter would add to the pressure.

The timing of price rises matters. Chief Financial Officer Kumar Subbiah said there was typically a lag of about three months before increases were fully reflected in the company’s results, particularly in the original equipment segment.

Management expects margins to remain closer to current levels in the third quarter, provided planned price increases are implemented. It declined to offer a firm forecast before those adjustments had taken effect.

CEAT’s pricing strategy is complicated by the difference between domestic and international markets. Export demand has recovered, particularly in Africa and Latin America, but the company has been slower to pass on higher costs overseas because it competes with both premium European manufacturers and lower-priced Chinese brands.

CEAT positions its products at prices about 15–25 per cent below leading European brands. Banerjee said the company would pursue smaller, more frequent price increases in individual countries rather than attempt simultaneous increases across all markets. He added that the international business remained more profitable at both gross margin and EBITDA levels than the domestic business.

The pressure on margins has been compounded by rising freight costs and disruption to shipping schedules.

Crude oil, which averaged about USD 84–85 a barrel at the beginning of the second quarter, subsequently rose to around USD 100 and was hovering near USD 105 at the time of the call. Natural rubber prices on the Singapore Commodity Exchange climbed from about USD 2,200 a tonne to USD 2,600, while domestic prices reached approximately INR 285 a kilogram, a more than 20-year high, according to Subbiah.

CEAT imports roughly two-thirds of its natural rubber and buys the remainder locally. The narrowing gap between international and domestic prices has reduced the advantage of sourcing from overseas, while longer transit times have increased the need to hold imported inventory.

Two-wheelers provide a demand buffer

Demand has so far proved resilient to higher prices, with replacement sales benefiting from the continued strength of India’s two-wheeler market and rural consumption.

CEAT expects replacement demand for two-wheeler tyres to grow at a double-digit rate in the second half of the financial year. Commercial vehicle replacement demand is forecast to rise at a mid-single-digit pace, while passenger car tyres are expected to grow at a low-single-digit rate. Farm-related demand is likely to remain subdued.

The outlook is less buoyant than the recent growth figures suggest. Management warned that demand could moderate in the third quarter because of a higher base of comparison, the potential effects of El Niño and a recent increase in the Reserve Bank of India’s repo rate.

Original equipment demand remains strong across vehicle categories, although year-on-year growth may ease as the comparison becomes more demanding.

CEAT said replacement demand had not suffered a material slowdown despite the price rises. A slight moderation in volumes during the quarter was partly attributable to production bottlenecks in some categories in July and August, alongside normal seasonal weakness after the summer months.

The company also said dealer inventories were not unusually high, arguing that any significant stock build-up would have become apparent by now.

CAMSO integration offers longer-term growth

Beyond the immediate pressure on costs, CEAT is counting on the integration of CAMSO, its off-highway tyre business, to expand its international reach and improve earnings over the next two years.

About 85 percent of CAMSO’s customers had transferred to CEAT by the end of September, with the remainder expected to move across by the end of November. The business is generating customer billings of about $10mn a month, management said, with revenue recognised by CEAT expected to increase as the transfer is completed.

The next stage is the installation of upstream equipment at CAMSO’s Sri Lankan plant, giving CEAT control over more of the production process, from raw material procurement to customer servicing. The work remains broadly on schedule, although completion could slip from the end of the current financial year into the first quarter of the next.

CEAT expects CAMSO’s volumes in the second half to increase by 20–25 per cent compared with the first half. The business should approach break-even or turn EBITDA-positive during the second half of the current financial year, with margins improving further in 2027-28. Management expects the acquisition to become earnings-per-share accretive at group level by 2028-29.

The company has established local entities in the US, Canada, UK, France, Germany and Poland to serve customers directly rather than exporting from Sri Lanka. Utilisation at the Sri Lankan plant remains below 50 per cent, leaving room to increase production as the business expands.

The integration will require further investment. CEAT expects to spend an additional INR1 billion–INR 1.5 billion on CAMSO’s upstream equipment during the current financial year, on top of about INR 14 billion planned for standalone capital expenditure. A further USD 44 million acquisition-related payment is due around the end of August 2028.

Expansion

 CEAT is investing in domestic manufacturing capacity at the same time as it absorbs CAMSO and manages higher working capital requirements.

The company spent INR 4.93 billion on standalone capital expenditure in the second quarter. This included more than INR 1.2 billion at its Nagpur plant to increase two-wheeler tyre capacity from 80,000 to 100,000 tyres a day, and about INR 2.8 billion at Chennai to expand truck and bus radial and passenger car tyre production.

Management said utilisation remained high in two-wheeler and truck and bus tyre categories, making the expansion necessary to meet expected demand.

International business accounted for about 20 per cent of standalone revenue and 24 per cent of consolidated revenue in the second quarter. CEAT wants to increase the international contribution to 33 per cent of total business within five years.

The company is also seeking to move upmarket. Sales of premium passenger car tyres, defined as those with rim sizes of 17 inches and above, grew at a mid-30s rate year to date. Its premium two-wheeler portfolio grew at a high mid-teens rate.

CEAT said it held a 25 percent share of the original equipment market for electric passenger cars and utility vehicles, and more than 30 percent in electric two-wheelers. It is also expanding the use of artificial intelligence in sales, manufacturing, finance and supply-chain management.

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