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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.

Continental’s dedication to comprehensive environmental and social responsibility has been formally recognised with the 2025 Kalmar Sustainability Award. The honour was conferred at Kalmar’s Supplier Day event in Szczecin, Poland, following a rigorous independent evaluation.

Continental distinguished itself by earning the highest score on Kalmar’s supplier sustainability scorecard, which measures performance in critical areas like responsible sourcing, data transparency, hazardous substance compliance and active participation in sustainability initiatives.

This partnership is operationalised through Continental’s role as the premium supplier of V.ply and radial tyres for Kalmar’s port logistics vehicles, which include reach stackers, terminal tractors and container handlers. The collaboration is strengthened by a shared vision for a carbon-neutral future. Continental implements this vision by focusing on the entire tyre lifecycle, from employing energy-efficient production and sustainable materials to designing long-lasting products like the TerminalMaster tyre.

Digital tools such as ContiConnect further this mission by optimising tyre pressure and health, which reduces fuel consumption and extends tyre life, thereby minimising the overall environmental footprint. This award celebrates a synergistic alliance built on a mutual commitment to innovation and superior quality standards.

Christian Berner, Global Key Account Manager for Port Operations at Continental, said, “We are honoured to receive this award from Kalmar, a valued customer with whom we have enjoyed a strong partnership for more than 15 years. This award is a testament to our shared values: a strong commitment to sustainability and lifecycle responsibility as demonstrated in our yearly sustainability report.”

In a unique cultural partnership, Goodyear and American rapper Ice Cube are collaborating throughout the year to celebrate his classic hits, including a notable lyric from his 1993 single: Even saw the lights of the Goodyear Blimp and it read, 'Ice Cube's a Pimp'. The campaign connects the 100th anniversary of the Goodyear Blimp with Ice Cube's Truth to Power: 4 Decades of Attitude tour.

The collaboration officially launched on 24th August with a blimp flyover at the BIG3 Championship basketball finals in Orlando, a league founded by the artist. This continues the airship's storied tradition of appearing at major events. The partnership will extend to select concerts on Ice Cube's upcoming tour. Attendees in cities including Denver, San Diego, Los Angeles and Cleveland will experience the iconic Goodyear Blimp both in the sky above the venues and through integrated elements inside the arenas, offering fans a distinctive concert experience. This initiative brings to life the classic lyric, merging music history with a century of aviation legacy.

Ice Cube said, "From the beginning, I always thought you had to dream big if you really wanted to make it big. The idea of the Goodyear Blimp championing my name was a metaphor for the sky being the limit, yet here we are with Goodyear as a partner and the blimp flying in the Orlando skies, saying, 'Ice Cube's a Pimp!'. I'm honoured to have Goodyear sponsoring my Truth to Power tour, where we will take people through a musical journey over my four-decade career."

Doug Grassian, Vice President – Global External Communications, Social Media and Partnerships, Goodyear, said, "When Ice Cube referenced the Goodyear Blimp in his iconic song, it became part of music history and made a cultural impact. Aligning together for his upcoming tour feels like we are bringing that lyric to life, both literally and figuratively, for fans across generations."

In an unfortunate incident, a fire broke out at Contec’s tyre facility in Szczecin during the night of 23-24 August. The company confirms that all 10 employees on site were safely evacuated thanks to the effective response of emergency services, with no injuries reported. While the situation is now under control, the incident resulted in significant material damage and a complete halt to production operations.

The company has expressed profound disappointment at the damage to an installation that had operated safely for over a decade. The timing is especially difficult given recent operational achievements. As an independent entity, Contec had successfully been converting 85 percent of end-of-life tyres into circular raw materials for new tyre production. This process had established a key part of the circular ecosystem within tyre manufacturing, making the current interruption to this sustainable work particularly challenging. The company is now assessing the full impact of the event.

Krzysztof Wróblewski, CEO and CTO, Contec, said, “Our full attention is now focused on our team, ensuring their well-being, our clients to help them find solutions, as well as assessing the situation and our post-incident operations. I would like to express my sincere gratitude for the incredible support and concern we have received. Your kindness means a great deal to us during this challenging time. We are aware that this is a difficult situation not only for our company and shareholders but for the entire industry. We will provide updates regarding any impact on our operations on an individual basis as more information becomes available. Furthermore, we are committed to sharing our findings with others in the industry, as we believe that increasing safety standards benefits everyone.”

The Automotive Tyre Manufacturers’ Association (ATMA) has received a historic Special Recognition Award from UK-based tyre safety charity, TyreSafe. This marks the first time the organisation has presented an international award, highlighting the global resonance of ATMA’s extensive efforts in promoting tyre safety across India.

TyreSafe’s award specifically commended ATMA for its profound dedication and highly innovative approach. The association’s multifaceted initiatives have successfully educated over 20,000 participants and conducted inspections on more than 30,000 tyres. A cornerstone of this effort has been the Ideathons programme, which engages youth to develop creative concepts and inspire future road safety advocates, aligning perfectly with TyreSafe’s global vision for safer roads.

This recognition follows years of expansive activity by ATMA and its technical arm, the Indian Tyre Technical Advisory Committee (ITTAC). Their nationwide outreach has included over 200 safety activations, such as roadside clinics, inspection zones at petrol pumps and workshops for schools and universities. They have forged significant institutional partnerships, providing comprehensive training for over 1,000 tanker drivers in collaboration with Indian Oil Corporation and working with various state transport departments.

Campaigns on major expressways have involved inspecting thousands of vehicles and distributing safety materials, while continuous education is provided through webinars, social media and publications. Supported by its member companies, including Apollo, Bridgestone, CEAT, JK Tyre and MRF, ATMA remains dedicated to scaling this crucial outreach. The association continues to urge all stakeholders – from vehicle users to policymakers – to join this vital movement, reinforcing that tyres are not just components but essential life-safety systems.

Arun Mammen, Chairman, ATMA, said, “We are immensely proud that TyreSafe has recognised ATMA’s work in tyre safety. This award underscores our commitment to elevating public awareness and encouraging responsible tyre maintenance through engagement with motorists and institutional partnerships. Our journey continues with the shared vision of making roads safer across India.”

Sudershan Gusain, Head – Tyre Safety Awareness, ATMA/ITTAC, said, “This recognition by TyreSafe validates our extensive grassroots efforts: from petrol pump tyre clinics and university workshops to Ideathons and expressway campaigns. Educating over 20,000 people and inspecting 30,000 tyres is just the beginning. We will keep amplifying our message: proper tyre maintenance is crucial not just for vehicle performance but for saving lives.”