According to a new study by Report Ocean, the rubber processing chemicals market size is expected to reach USD 7.97 billion by 2028. That’s very close to Finorchem’s vision of being in the lead in chemical supplies to the tyre industry by 2030. We talk to the rubber processing chemicals manufacturer about the Acmechem-Merchem merger, how India can be at the forefront of the tyre industry and how quality speaks for everything.

In spite of Covid, tyre companies have come up with a lot of investments; green field projects are taking place and expansion has been happening. For the next 10 years, tyre organisations are talking about the growth of the domestic industry, which was seven to eight percent earlier. Plus, we can’t forget about the export market and another industry along with the tyre sector – the automobile sector. Along with the rubber industry, rubber chemical consumption will also grow.

One such company that believes it is in the right place at the moment, with all that’s going on across the world and because of the pandemic and the Russia-Ukraine war, is Finorchem, a leading manufacturer of rubber processing chemicals in the APAC region. Speaking in this context, Kishor Katkar, Director – Sales & Technical Services, Finorchem, says, “The supply chain is disturbed, and with the Acmechem and Merchem merger, we now have a wide range of rubber chemicals. We are ready to support the rubber industry with sustainable quality products from the rubber plant.”

The Acmechem-Merchem merger
Further sharing information on the Acmechem and Merchem merger, Rishabh Holani, Director, Finorchem, asserts that Acmechem is originally into a lot of speciality rubber chemicals and Merchem was more into mainstream rubber chemicals. “So the merger was a perfect fit in the synergy for us as we were already in the chemical field with specialised products,” he points out and goes on, “But with the merger with Merchem and the new entity named Finorchem, we have also entered mainstream rubber chemicals, catering to a wider range of customers that are using these mainstream chemicals. Hence, this fits well within our portfolio which didn’t exist. So it has opened up a lot of opportunities for our company, in both India and the world.”

So, is it true that the future is of collaborations and mergers? We can’t help asking, to which Holani answers with a yes. He further explains, “That’s because a lot of consolidation is happening across the industries. So it was a good synergistic move for us to get involved in mergers.”

Why R&D is important
Finorchem is paying rapt attention to how it is flourishing in its R&D department. Dr Raj B Durairaj, Director of R&D, Finorchem, has been in the R&D of the chemical industry for at least 45 years and joined Finorchem about three months ago. “I have been involved with a lot of R&D activities in the last 45 years. So my products developed in the US and China are well known throughout the world,” Dr Durairaj tells us.

                       Rishabh Holani, Director, Finorchem
  

He further goes on to enlighten us that his concept is that any growth of a company depends on the strength of the R&D. “Hence, we want to put the infrastructure in such a way that our R&D can develop not only in the final product but from scratch,” he shares and continues, “We want to produce our own raw material so that we can develop the final product that is of high quality for our customers’ needs. If we do that, then we don’t need to depend on countries like China, or even Europe. With our knowledge in the chemical and rubber industry, we can develop advanced technologies. Right now, we are planning to develop advanced technologies in order to meet the challenges of the tyre industry, like rolling resistance, wet grip and dry grip. And those concepts are put in our developments.”

The company’s vision
It is just the beginning, definitely. Finorchem’s vision is that by 2030 it will be the dominant player in India, not only to supply raw materials for the Indian tyre industry but around the globe. So it is the right time where the company is putting its infrastructure in the manufacturing sector, R&D and the pilot plant facilities. With this, it plans on being at the forefront of chemical supplies to the tyre industry by 2030.

China’s impact on the tyre industry
Speaking of lands like China and Europe, China is still struggling with Covid and so is its tyre industry. China plays a huge role in the rubber chemical space; 70 percent of the supply comes from China, and it has impacted the whole industry because of the lockdowns that have taken place, Holani mentions. “However, we have made strategic moves in delinking ourselves from China and have strategically sourced our raw material partners and suppliers from different regions, whether it be India, the US, Europe or Japan,” he tells us.

Therefore, Finorchem was much more insulated from this entire tyre chaos that was taking place in China. This has helped the company in expanding its range while China was facing these difficult times.

However, the cost element needs to be taken into account. Today’s market situations are very volatile, and in some situations, China is much more expensive when even compared to countries like Europe or the US. Hence, the cost factor depends on situation to situation.

Shedding more light on this, Katkar elaborates, “We are talking about the China plus one policy, which even Japan is talking about. They have shifted their manufacturing base, so our tyre industry, as well as non-tyre industries, has really understood that over-dependence on China is going to fail miserably in the supply chain issue. With that, Finorchem is in the right position to supply locally, with quality and an economical product.”

Putting across his view, Holani adds, “In today’s industry, price is not the only factor. In fact, supply security has become a major question for every tyre industry and they are working towards the security of raw materials for themselves. This also happens to be one of the learnings from the Covid pandemic, which is why people are not going today for prices alone – they are making more strategic moves while selecting their raw materials supplier.”

                       Dr Raj B Durairaj, Director of R&D, Finorchem

 
How India is at an advantage
While China was a major exporter of tyres to the US, this developed market is also looking for a sustainable second source, and India is the best second source, Katkar informs us. “We are already exporting 30 percent, which will eventually increase. Therefore, it is not only the raw material; if the industry wants to export, it will obviously require the raw material and rubber chemical, which is a major factor,” he avers.

Katkar goes on to mention that the major production of off-road tyres was in China. But now we see India bucking up, too. That’s because these are not very huge in volume and are specialised. “India can take up a major role after China,” he says and adds, “Initially, we were talking about quality tyres. But our tyre industry has really come up well to match European legislations, the tyre labelling etc. so that they can export passenger cars as well as truck tyres. And when talking about exports in the automobile industry, our tyres will also go well with OEMs.”

Reaching the hotshots
Finorchem already has a presence of almost 20-30 percent in the export market and is looking to grow that further in light of the problems present in China. “Everybody is looking at India as an alternate option in the China plus one policy, and we are definitely going to encash on that opportunity. The entire world is our market now, and we are certainly trying to make an impact in the global space,” Holani puts across.

Katkar further remarks that global tyre companies are already there in India in terms of footprint. So when they use Finorchem’s products locally and when the approval comes (which are global approvals), it automatically makes Finorchem flexible to supply to their global plant as well.

However, the bottom line is that foreign companies, like Michelin, are quality-conscious companies. Dr Durairaj states that their company’s goal is that if they can develop a quality product, with a high- performance product and the infrastructure that they are building in their R&D, then they can develop the chemical, test it, take it to the big players and convince them that, technically, theirs is a technologically driven company. Therefore, convincing them will definitely lead to their using it.

Giving an example, Dr Durairaj pronounces, “My product that I invented in the US is well known globally. The product has set the benchmark for all the tyre industries across the globe. Likewise, I want to do the same at Finorchem – developing a new chemical, which we have already started working on. For example, carbon black coupling agent is a new concept for our company. But we have already started developing that kind of a chemical. Every tyre industry is looking for that kind of a chemical so that it improves the magic triangle in the tyre. Likewise, if the chemical works, then not only can we get the patents to protect Indian technology, but at the same time, we can convince the big tyre players like Bridgestone, Michelin etc. to try to consider our chemicals in their tyre foundations. Thus, quality speaks for everything, which is our goal.

Going a little deeper, Katkar tells us, “The global organisations usually take a little time. Once they know that a company gives quality, they don’t go for just one quality product; they talk about the quality system. Once they are convinced that the company is a quality system, they may take a little time for the approval. But once the approval comes, it is through. In fact, we are already supplying to Goodyear and Continental that come under the first six in company ratings globally.”

Challenges to deal with
With every vision and strategy, the share of challenges is inevitable. Holani says that for Finorchem, the challenges are what everyone is facing. For example, there’s supply security. Like we know, China controls almost 70 percent of the market, and sourcing raw materials from other strategic sources can be very challenging, which is due to the supply and logistics constraints that the company has seen due to Covid.

“But I think that Covid has really prepared us for seeing the worst and how we can channel ourselves even in these difficult phases. So not only us but the entire industry is prepared to meet these challenges,” Holani further expresses and adds, “It won’t happen overnight, of course. It will take a lot of time, maybe decades. Thus, we are working in that direction, especially in the direction of Atmanirbhar Bharat. We are trying to develop raw materials in-house, go local and become self-sufficient.”

Room to manoeuvre
The Covid pandemic, despite the losses it brought to the world, taught it a lot, too, including the tyre and other industries associated with it. While going global is important, being significant locally is as pivotal. It’s important that the Indian tyre and rubber chemicals industries spot the prospects various scenarios in the world bring them and strategise accordingly. Where cost alone won’t play a crucial role, the truly effective factor that will vanguard the industry is quality. And that comes with being opportune, investing in R&D and being judicious about making available exactly what the customer is looking for.

 

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BKT Tyres has launched a nationwide campaign featuring Ranveer Singh to mark its entry into India’s on-highway consumer tyre segment, a market dominated by established domestic and global players.

The television-led multimedia campaign, titled “Elevate Your Drive,” introduces the company’s consumer positioning as it expands beyond its traditional strength in off-highway tyres used in agriculture, construction and industrial applications.

The campaign is built around the idea that ambition often stalls due to uncertainty and that confidence can help individuals push forward. BKT seeks to align its brand with that narrative, positioning its tyres as enabling progress and reliability for everyday drivers.

In the campaign film, Singh appears as himself, delivering a voiceover that links stories of people striving to move from ordinary circumstances to higher aspirations. The narrative focuses on ambition and forward momentum, themes the company hopes will resonate with India’s growing base of vehicle owners.

The campaign also introduces a new sonic identity for BKT, aimed at strengthening brand recall across television, digital and other multimedia platforms.

The move comes as BKT broadens its presence in the domestic market and targets growth in India’s on-highway tyre segment, which includes products for two-wheelers and commercial vehicles. The marketing push signals the company’s intent to build consumer recognition as it diversifies beyond its core off-highway tyre business.

Commenting on the launch, Mahesh Koppad, Chief Marketing Officer - India, BKT, said, “With ‘Elevate Your Drive’, we are positioning BKT Tyres for Indian consumers and our channel partners with a clear and meaningful purpose. Mobility, for us, is about empowering progress in a market where consumers seek reliability, performance, and meaning from the brands they choose. Our consumers expressed how journeys are about moving ahead in life, yet uncertainties often hold us back. At BKT Tyres, our ambition is to enable every Indian vehicle owner’s desire to move forward with confidence. Our commitment is to build an enduring brand and deliver best‑in‑class products that uphold the performance, trust, and innovation that is synonymous with BKT globally. ‘Elevate Your Drive’ isn’t just a campaign line, it is the guiding principle shaping our consumer‑focused initiatives. The campaign will be deployed through a high‑reach media mix to maximize awareness and drive strong early adoption.”

Avik Chattopadhyay, Co-founder, Expereal added, “The best way for an Off‑highway specialist brand to enter the consumer segment is to adopt a deeply customer‑centric approach to purpose, promise, and positioning. BKT Tyres aims to enhance every vehicle owner’s progress and driving delight by building an ecosystem that empowers individuals to move forward with confidence.”

Commenting on the same Creative Chairman Infectious Ramanuj Shastry said, “The journey from good to better is one that never ends. While for some, victory is the ultimate destination, for the truly great, it is but a pitstop. BKT Tyres makes sure that when the human spirit is raring to keep going further, the roads don’t hold it back.”

The campaign was conceptualised and executed by Infectious Advertising, which crafted a compelling human story around BKT Tyres’ engineering strength. The film was produced in collaboration with Mangata Films and Prachar Communications, bringing the campaign’s vision to life, while Expereal co-created the brand strategy for India.

Watch the entire video @ https://youtu.be/GwdnMogVAbc?si=ca0MIRoh3WOjqSE1

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Hankook Tire, the official tyre supplier to the FIA World Rally Championship (WRC), has confirmed that the 2026 WRC Safari Rally Kenya is scheduled for 12 to 15 March 2026 near Naivasha. This event is recognised as one of the most punishing off-road challenges in the series, set against the backdrop of the demanding African savanna. For this rally, Hankook introduced the new Dynapro R213 soft gravel tyre, featuring an optimised compound for better low-temperature flexibility and superior grip on wet surfaces, while its adaptable structure ensures consistent durability under severe conditions.

Departing from its customary Nairobi start, this year’s competition will concentrate entirely on the harsh gravel terrain surrounding Lake Naivasha in the Great Rift Valley. Drivers will need to quickly adjust to newly designed, high-intensity stages and refine their race tactics from the very beginning. Spanning four days, the rally consists of 20 Special Stages covering roughly 350.52 kilometres. Competitors will encounter a treacherous mix of deep sand, sharp rocks, expansive savanna sections and the infamous fine ‘fesh-fesh’ dust, all compounded by swiftly shifting weather. In this unpredictable environment, tyre resilience, grip and handling stability are paramount to performance.

The Safari Rally consistently draws significant global motorsport attention. Since its return to the WRC calendar in 2021, the Toyota GAZOO Racing World Rally Team has achieved five consecutive victories at this event. Nevertheless, strong challenges are anticipated from both the Hyundai Shell Mobis World Rally Team and the M-Sport Ford World Rally Team, promising a fierce contest for the win.

Since taking over as the exclusive tyre supplier for all WRC classes in 2025, Hankook has leveraged data from its involvement in over 70 global motorsport championships. The company applies these race-proven insights to advance its ultra-high-performance tyre technology, continually reinforcing its leadership in the field.

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The Board of Scandinavian Enviro Systems AB (Enviro) has resolved to file for bankruptcy for its fully owned subsidiary, Tyre Recycling in Sweden AB. A formal petition has been submitted to the District Court of Gothenburg to initiate the process. This action forms part of the broader company reorganisation currently underway for the parent company and is specifically intended to improve Enviro’s liquidity and support its long-term profitability.

The subsidiary in question operated a recycling facility in Åsensbruk, which was instrumental in validating both the company’s technological processes and the products derived from them. Having successfully fulfilled this developmental role, the facility’s ongoing operations are no longer strategically essential. Given that the site has not been financially viable, the Board determined that filing for bankruptcy for the subsidiary was the necessary course of action.

This decision is projected to negatively impact Enviro’s financial results through an impairment charge of approximately SEK 84 million (approximately USD 9.14 million). Despite this measure, Enviro’s core operations in Gothenburg will continue without disruption, running in parallel with other initiatives being implemented under the reorganisation framework. It is important to note that the company reorganisation applies exclusively to the parent company, Scandinavian Enviro Systems AB, and not to its subsidiaries.

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The Yokohama Rubber Company has confirmed a renewed partnership with KONDO RACING for the 2026 motorsport season, marked by a shared pursuit of victory in the highly competitive SP9 class at the Nürburgring 24-Hour Race. The team will campaign a Ferrari 296 GT3 EVO, equipped with Yokohama’s ADVAN racing tyres, across both the Nürburgring 24-Hour Race (ADAC RAVENOL 24h Nürburgring) and the Nürburgring Langstrecken-Serie (NLS).

This collaboration brings together a proven combination. KONDO RACING, under the leadership of Masahiko Kondo, has consistently demonstrated its capability on the global stage, competing in elite series such as SUPER GT and SUPER FORMULA in Japan, as well as enduring the rigors of Le Mans. Their history with Yokohama at the Nürburgring includes a notable ninth-place overall finish in 2019. More recently, the team showed formidable pace in 2025, securing second place in the qualifying race and remaining a contender among the frontrunners throughout the final event. This performance provides a strong foundation for their 2026 campaign, where the objective is a class victory.

KONDO RACING Director Masahiko Kondo

Yokohama Rubber’s commitment to the Nürburgring extends beyond its partnership with KONDO RACING. The company will continue to provide its high-performance tyre technology to multiple leading teams competing in the NLS and the 24-hour race. The overarching goal is to secure another overall championship, leveraging the reliability and handling precision of its tyres to conquer one of the world’s most demanding circuits. This renewed agreement reinforces a longstanding relationship built on shared success in both domestic Japanese competitions and gruelling international endurance events.

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