This Indian tyre manufacturer is a leader in the specialty tyre segment which includes off the road (OTR) vehicles such construction vehicles and agricultural vehicles.
Image: company website
It supplies tyres to all heavy vehicle manufacturers such as John Deere, JCB and CNH Industrial. It earns 90% of its revenues from exports it caters to mostly the replacement tyre market in Europe and North America (Europe accounts for 53% of all geographical sales).
It earns 62% of its total sales from agriculture sector and 34% from the Off the road (OTR) segment. It was founded in 1987 and it is headquartered in Mumbai. It has 4 manufacturing sites located in Aurangabad, Dombivali (Mumbai), Bhiwadi and Chopanki. A 5th unit is coming up in Bhuj, Gujarat which will increase the total capacity to 300,000 MT per year. It is located to port and it has a captive power plant that will lead to cost savings and higher operating efficiencies as a result of easy access to raw material and markets. It will also manufacture tyres for large mining equipment to improve profit margins.
It will also optimize its product mix of agricultural tyres and industrial and OTR tyres to penetrate the larger OTR tyre market. Also the current market trend is towards the radial tyres, the Bhuj plant will allow it take advantage of this trend.
Its competitive advantage compared to global players relies on the availability of low cost of labor in India and in-house mould facility that increases the conversion cycle of tyres. Future growth is expected to result from entering into new markets and better utilization of manufacturing plants. Export markets are very important for the company. It generated more than 85% of its revenue through exports.