March Towards Self Reliance

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  • June 23, 2020
March Towards Self Reliance

If the phrase was heavy, the package was heavier still. As big as Rs 20-lakh crore (with thirteen zeroes) package was announced by the Government for a self-reliant India. The package intends to help the country tide over the all-round economic disruption caused by the raging Covid-19 outbreak and a series of lock-downs. Besides the economic stimulus package which is 10% of India's GDP, PM also made a pitch for promoting local businesses.

As was the plan, the next few days witnessed Finance Minister Nirmala Sitharaman unveiling a slew of measures with the intention to help the Indian economy recover from the adverse impact of the coronavirus crisis. While the jury is still out about the direct stimulus of the economic package for the corporate sector, certain transformational and structural reforms have been introduced across several key areas, which certainly hold the potential to rebuild the Indian economy and pave the way for a sustained economic revival.

These include radical reforms in agricultural sector, redefinition of the micro, medium and small enterprises (MSMEs), key steps to revitalise the power sector, liberalisation of the coal and mining sectors and raising of the foreign direct investment (FDI) limit in defence manufacturing. These reform measures tried to address key pain points of the economy and to contribute towards enhancing India’s global competitiveness at a time when the world stands at a critical turning point.

However, what exactly Aatma Nirbhar means has been a subject of intense debate. Two leading lights that have been at the helm of affairs of Indian industry have shed appropriate light to make it sound cogent.

Amitabh Kant, the celebrated CEO of NITI Aayog made it very clear when he said Aatma Nirbhar Bharat is all about making India self-reliant to take the global competition head-on by achieving cost competitiveness through size and scale, quality and cutting edge technologies.

Achieving such lofty ideals is easier said than done and necessitate whole lot of policy enablers many of which have been cited by Kant himself including the need to provide industries with regular and cheap supply of power to boost competitiveness, identifying large land banks and equipping them with infrastructure, easing labour laws, timely land acquisition, environmental & other clearances and easy credit.

Some measures need special mention for instance efficiencies in the logistics sector - India’s port turnaround time is around 60 hours against that of China’s 20 hours and Korea’s 12 hours.

Union Minister for Commerce & Industry Mr Piyush Goyal hit the nail on the head when at Digital Summit organised by CII, he stated (through video conferencing of course) that Aatma Nirbhar Bharat was not just about greater self-reliance but also engaging with the world from a position of strength. India should be seen as a dependable partner and reliable friend in the world market, particularly when the global supply chains are undergoing a rejig, he stated. He specifically mentioned that India had a huge opportunity to promote indigenous production in the auto component sector.

And that brings us to India’s tyre sector which has been a less celebrated manufacturing success stories. As has been communicated earlier, a big chunk, nearly 20% of the domestic tyre production is exported to over 100 countries in the world. And these include discerning ones such as US and European countries. India has potential to increase exports of tyres significantly since domestic capacity is ahead of the demand curve. The quality of Indian made tyres is well established and that’s an added advantage when it comes to exports.

There is little doubt that Covid-19 has pressed the reset button and is likely to lead to a change in the world order. Perhaps that thought spurred the PM to state “Today it is the need of the hour that India should play a big role in the global supply chains”.

Tyre Industry is well aligned with the Government in its stated mission. However as shown by China, it is important to encourage domestic value addition by minimizing the raw material uncertainty and uncompetitive prices. For a sector like Tyre Industry, that will be true Aatma Nirbharta.

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    LANXESS Successfully Lists EUR 500 Million Bond On Luxembourg Stock Exchange

    LANXESS Successfully Lists EUR 500 Million Bond On Luxembourg Stock Exchange

    LANXESS, a specialty chemicals company, has successfully placed a six-year-tenor euro benchmark bond with a coupon of 0.0 percent in the European capital market.
    The company, with about 14,800 employees in 33 countries, will use the funds to finance the planned acquisition of IFF, a US-based chemical company involved in microbial control.

    The new bond is listed on the Luxembourg Stock Exchange in denominations of EUR 1,000.

    Michael Pontzen, CFO, LANXESS, said, “We have secured the first step of financing already quickly after the announcement of the acquisition of IFF Microbial Control and are happy about the very receptive reaction of the capital market to our offering.” (TT)

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      Goodyear Launches RT-3B Retread For OTR Tyres

      Goodyear Launches RT-3B Retread For OTR Tyres

      Goodyear has launched its new RT-3B bead-to-bead tread in US and Canada in sizes 20.5R25 and 23.5R25 for off-the-road (OTR) tyres.

      The new retread provides all-around performance for loaders and graders. Joining the existing lineup of premium off-the-road Goodyear tyres, the retread provides up to 60 percent savings compared to a new tyre.

      Used extensively in gruelling OTR applications, retreading helps extend the life of tyres while delivering high traction and minimal tread wear. Additionally, retreading promotes sustainability by reducing unnecessary waste.

      The new Goodyear RT-3B is cured in a mould and press method to generate low heat through long hours of usage via its 115-level tread depth. Strongly cut-resistant in nature, the centerline lugs and open shoulder provides optimal traction.

      Loic Ravasio, General Manager, Global and Americas OTR, Goodyear, said, “We are always focused on delivering high value and low cost of ownership to our OTR customers. The RT-3B is a substantial addition to our retread portfolio providing another great option for operators to help drive efficiency, reduce costs and protect the environment.” (TT)

       

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        Anshuman Singhania is new MD of JK Tyre

        Anshuman Singhania is new MD of JK Tyre

        Anshuman Singhania, Dy. Managing Director of JK Tyre, has been appointed managing director of the company, effective October 21,2020.

        Anshuman Singhania joined the Company as an Executive and over the years has been deeply involved in various activities of the Company in different positions, said the company.

        Singhania is also Vice Chairman of ATMA

        He is a graduate from Oxford Brookes University, UK and an alumnus of London Business School. As a young leader, he started his career from the shop floor as an apprentice and has held several positions in Planning, Production, Product Development, Quality Control, Stores & Purchase, Finance as well as Sales & Marketing. Being a techno-savvy person, he has played a key role in implementing the latest technologies in the manufacturing process at JK Tyre.

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          Yokohama Off-Highway Tires Breaks Ground for its Andhra Pradesh, India Plant

          BluSmart raises INR 2 billion in pre-Series B Round

          Yokohama Off-Highway Tires recently held the groundbreaking and foundation stone unveiling ceremony of its new plant at Atchutapuram, Visakhapatnam - Andhra Pradesh, India.

          In the online event, Masataka Yamaishi , President & Chairman of the Board, Yokohama Rubber Co., Ltd broke the ground to commence construction work.

          Yamaishi San unveiled the Foundation Stone virtually in the presence of Atao Kishi San: Chairman - ATC Tires Pvt. Ltd. and Managing Officer - The Yokohama Rubber Co., Ltd., Nitin Mantri – CEO and Anil Gupta – COO and the leadership team at Yokohama Off-Highway Tires.

          The new plant will have a daily production capacity of 55 tons (rubber weight), with planned capital investment totalling US$165 million. The plant, which will be the company’s third plant in India, will manufacture its three brands ALLIANCE, GALAXY and PRIMEX brand tyres.

           Yokohama Off-Highway Tires currently has two tyre plants in India—the Dahej Plant in Gujarat and the Tirunelveli Plant in Tamil Nadu.

           

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