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.

Comments (0)

ADD COMMENT

Link Copied!

Citira, a Sweden-based company specialising in circular tyre management, has announced the acquisition of Lidingö Bilcenter, a well-established service point located on the island of Lidingö east of Stockholm. The transaction represents a strategic move to broaden Citira’s service network across the Stockholm metropolitan area, incorporating another essential facility into its growing portfolio.

Originally founded in 1995, Lidingö Bilcenter has cultivated a durable reputation within the local community over several decades. Since assuming ownership in 2016, Niclas Lind has reinforced the business’s standing through attentive, personalised service, ensuring consistent customer loyalty. Its advantageous position in one of Stockholm’s suburbs makes it a critical hub for passenger car maintenance in the region.

Under the new arrangement, the workshop will retain its existing personnel and operate from its current location while gaining access to Citira’s broader resources and logistical network to facilitate future expansion. Furthermore, Lind will assume a co-ownership role within Citira, solidifying the partnership beyond the initial transaction.

Urban Tibbelin, Head of Sweden at Citira, said, "We are thrilled to have Niclas and his team on board. They have built something with real staying power on Lidingö, with the kind of customer loyalty that is hard to earn. We look forward to having their quality service now come to the benefit of our customers and to supporting the continued development of the business on Lidingö.”

Niclas Lind of Lidingö Bilcenter said, "Joining Citira is the right next step for the business. Becoming part of a strong group means we can further strengthen both our service and product range, without changing what our customers value most. You will still meet the same team, in the same place, with the same commitment to quality, now with the added strength and support of Citira behind us. We look forward to this new journey together.”

Comments (0)

ADD COMMENT

Link Copied!

China's Zenith Group has formalised an agreement with the Egyptian Government to establish a manufacturing facility for automotive tyre components within the Sokhna Industrial Zone, a key part of the Suez Canal Economic Zone (SCZone). The project represents an investment of USD 300 million and is set to occupy a 320,000-square-metre site inside the TEDA Egypt industrial development area, reports Forbes Middle East.

Egyptian Prime Minister Mostafa Madbouly attended the signing ceremony, highlighting the initiative as a cornerstone of the state's broader strategy to bolster local manufacturing and draw advanced industrial investment. The new plant is projected to produce 120,000 metric tonnes of steel cord and 50,000 metric tonnes of bead wire annually while generating around 1,000 direct employment opportunities for the local workforce.

SCZone Chairman Walid Gamal El-Dien emphasised that the project aligns with the authority's objectives to attract heavy industries and enhance high-value manufacturing. The facility is expected to deepen industrial integration with existing tire producers in the zone, fostering a comprehensive production chain. By localising the production of essential steel wire, the project aims to diminish import reliance and strengthen supply chain resilience for Egypt's automotive and rubber sectors.

Significantly, approximately 30 percent of the plant's output is earmarked for export to the Middle East, Europe and the Americas. This development is part of a larger investment surge within the SCZone, which encompasses over 461 square kilometres. During the first quarter of the 2025-26 fiscal year, the zone attracted 80 new ventures worth more than USD 5.1 billion, surpassing the total from the entire previous fiscal year and underscoring the region's growing industrial momentum.

Comments (0)

ADD COMMENT

Link Copied!

The Tire Industry Project (TIP) has expanded its international network with the addition of the Thailand Automotive Tyre Manufacturers Association (TATMA) as its ninth Affiliate Member. This strategic integration marks a significant enlargement of TIP’s operational footprint into Southeast Asia, a critical hub for global tyre production.

Affiliate Members play a vital role in advancing TIP’s core objective of identifying and addressing pressing environmental, social and governance challenges throughout the tyre lifecycle. By contributing crucial regional intelligence, these members bolster TIP’s capacity to observe and interpret evolving industry dynamics, particularly within the burgeoning Southeast Asian market.

The inclusion of TATMA is particularly strategic given Thailand’s status as the second-largest tyre exporter worldwide. The nation is currently fostering a circular economy framework across its tyre sector, presenting substantial opportunities for collaborative research with TIP. This partnership will facilitate a vital exchange of expertise, especially concerning end-of-life tyre management and sustainable circularity practices, while TATMA also oversees local trade, quality standards and environmental compliance.

TIP’s affiliate network comprises trade associations selected for their regional economic impact and ESG relevance. This coalition includes representatives from Australia, India, United Kingdom, Europe, Japan, Korea, Canada and United States, collectively ensuring a comprehensive global perspective on tyre industry sustainability.

Larisa Kryachkova, Executive Director, TIP, said, “We are pleased to welcome TATMA to our network. The tyre trade associations’ local insights inform our global sustainability-related activities. Through our expanding and diverse membership, we are strengthening our shared vision of a sustainable tyre value chain.”

Keeratisuda Khakhong, Secretary General, TATMA, said, “We recognise TIP as the global platform for addressing key ESG challenges facing the tyre industry, particularly in the areas of tyre and road wear particles, ELT and sustainable raw materials. Through this partnership, we look forward to active knowledge exchange, sharing best practices and engaging with global affiliates to support the tyre industry towards a more sustainable future.”

Comments (0)

ADD COMMENT

Link Copied!

RuLa-BRW, a partner in the AZuR network, has introduced the Berliner BUS400 Premium HL EV, a hot-retreaded tyre engineered specifically for the operational realities of electric city buses. The launch addresses a critical facet of the mobility transition, shifting focus from powertrain emissions to the sustainability of vehicle components. This new offering expands upon the established Berliner BUS400 profile, targeting the distinct mechanical stresses imposed by battery-electric public transport.

Electric buses present unique challenges for tyre design, including substantial weight increases from traction batteries, elevated starting torque and the relentless stop-and-go cycles inherent to urban routes. These factors place considerably greater strain on tyres compared to those used in conventional diesel or gas-powered buses. The BUS400 Premium HL EV has been developed to withstand these rigorous conditions while maintaining performance and safety standards.

The tyre features a robust carcass construction paired with a specialised rubber compound formulated for electric bus traffic, according to RuLa-BRW. This combination is designed to deliver extended mileage, consistent driving stability and cost-effective operation within demanding city environments. The development underscores a commitment to the circular economy, demonstrating how modern retreading techniques can repurpose premium tyre casings multiple times, significantly prolonging their useful life and conserving raw materials.

For public transport operators, the synergy of electromobility and tyre retreading offers tangible operational and environmental benefits. The new tyre enables fleets to reduce new tyre purchases while maximising the service life of existing casings, complementing the zero-emission operation of their vehicles. This innovation highlights that the mobility revolution extends beyond drive systems to encompass the full lifecycle of components, reinforcing the retreading industry’s role in sustainable transport solutions.

Comments (0)

ADD COMMENT

Link Copied!