What is your take on the two-wheeler tyre market in India, considering the current situation?

India is facing the heat of the most unprecedented crisis with the second wave of the COVID-19 pandemic. The automobile industry is witnessing a slump, resulting in a slowdown in the two-wheeler tyre market in India. However, the two wheeler demand in India remains strong in the long term, and we believe the current harsh time will pass soon. We are certain that once the lockdowns are lifted, two-wheelers could become the preferred mode of transportation for many, certainly which will be a boom for the two-wheeler tyre market.

Tyre companies are facing challenges on the manufacturing front due to restrictions being infused by the pandemic situation. How has the company aligned its manufacturing activities to the current situation and is taking care of its employees?

At Maxxis, the employee’s safety has been prioritised over business targets. There was a shutdown for a brief period. To ensure workforce well-being, we have been strictly conducting employee Health check-ups, including RT-PCR tests and compulsory vaccinations for all the staff. Also, we have always been following all government protocols of social distancing, limited workforce, operating in shifts and other safety measures for our employees. 

The manufacturing unit operates under the guidelines drawn by the Ministry of Home Affairs and Gujarat State Government. Currently, employees are working in shifts with full capacity workforce. We intend to augment production as per market demand and the lockdown situation in the country.

Management is also proactively sharing e-mailers with employees, channel partners on safety measures and positive quotes to spread the positive environment. 

Could you highlight the role of digitisation of Maxxis India’s plant in Gujarat and how is it helping in today’s time?

Maxxis lays excellent emphasis on digitisation. It gives us greater control and visibility into each step of the complex manufacturing process, reducing cost and waste and improving overall efficiency.

How does the company see Industry 4.0?

Industry 4.0 will be the key game changer for the Indian manufacturing sector. Industry 4.0 refers to leveraging cyber -physical domains in association with the latest technologies like AI, IoT, Cloud computing, AR, 3D printing, etc., to enhance productivity. Industry 4.0 is already influencing sectors like manufacturing, supply chain management, construction, shipping etc., and shall impact all the aspects of our day-to-day activities. It is truly considered to be a disruptive technology.

Maxxis has always worked extremely hard to implement this strategy into hardware (technology, equipment and machinery in our newly built facilities worldwide) and software (the production, management and quality methods that operate those facilities).

What about sustainability in manufacturing at the plant? 

As a socially responsible corporate, Maxxis has been continually assessing the environmental impact of its activities, products and services that forms the basis of its ‘Global Environmental Policy. 

Our Sanand facility boasts of one of the most effective water stewardship programmes in India. Its efficient Effluent Treatment Plant (ETP) and Sewage Treatment Plant (STP) have accorded the plant its status of a ‘Zero Liquid Discharge’ facility. It discharges no liquid effluent into the surface water, effectively eliminating the environmental pollution associated with treatment. The process also uses wastewater treatment, recycling, and reuse, thereby contributing to water conservation through a reduced freshwater intake. 

The manufacturing unit also has a unique peripheral trench for water conservation. It collects and stores rainwater and further discharges it into the ground through 22 recharge stations rather than completely running off.

On average, Maxxis India recycles around 2,000 cubic metres of water every month, and the residual water after recycling is further used for plantation and cleaning purposes. The increasing groundwater draft caters to its domestic and industrial requirements, rendering most of the unconfined aquifer zone dry.

Following are some of the measures for collection, storage, Handling, and disposal of waste at our Sanand unit:

• We have the Effluent treatment plants (ETP) and Sewage treatment plants (STP) in our facility to treat our wastewater. After treatment of wastewater – Sludge is generated from both plants. Considering the 3’R, we use the entire STP sludge for our in-house gardening purpose. And the sludge of ETP plant – we use to keep it in a scrap yard for getting dry and then we send it to TSDF (Transport Storage Disposal Facility) “Pollution control board’s Authorised waste management companies for landfilling.

• We also have a sound constructed facility of 1800sq.mt for collection, segregation, and storage of all type of waste.

• We are not only focusing on the safe disposal of Hazardous waste; being an ISO 14001 (Environmental Management System) certified Tyre manufacturer company, it’s our moral responsibility to ensure “End use” or “life-cycle prospective” of our products. We are only selling out the Tyres & other Rubber related to waste to Gujarat Pollution Control Board “Authorised Recyclers”. 

We have always been following consistently ethical standards for recycling to encourage a green environment.

How are you preparing for producing and marketing premium tyres?

Maxxis believes that quality speaks for everything, especially for the premium tyres market; no marketing or promotion activities can subdue how a user concludes the experience of using a premium product. We tapped into the market with Hornet 2.0 project with Honda Motorcycles and Scooters India last year by supplying the Extramaxx (M6233/M6234) series. Extramaxx tyres use the world’s strongest Aramid Fibre, and the dual compound technology minimises rolling resistance while improving stability and tyre life. We have also plan to launch extension sizes for the Extramaxx series to cover all significant sports motorcycles running on Indian roads. We will soon launch more tyre series to cover different road applications for the cruising/touring market segment in the coming months.

How is the company widening the partnership with OEMs?

Maxxis has formidable strength in the OEMs market, where our quality and technology enable us to serve our OEM partners better. We have partnered with some of the world largest two-wheeler manufacturers- Hero Moto Corp, Honda Motorcycles and Scooter India Limited, Yamaha Motor India and Suzuki Motorcycles. We are fast expanding our portfolio as per new trends and market demand. 

Will Maxxis India open to cater to the Electric two-wheeler market, which is small but a fast-growing segment?

Maxxis Tyres stand for our steady commitment towards innovation, catering to the future mobility trends across segments. Last year, we launched the M922F, a special edge for tyre designs for electric two-wheelers. The new M922F tyres are built with specialised compound technology, which helped us in producing lighter tyres. This lighter weight in turn reduces energy consumption by five to ten per cent, enhancing the range of an electric two-wheeler.

We are one of the best EV 2W tyre manufacturers globally as we supply tyres to Gogoro in Taiwan and Niu in China; both are the pioneers in EV 2W globally. 

The company plans to have five more plants. Could you elaborate on how will they be technically advanced and cater to future demand?

We are one of the fastest-growing tyre companies in India with a long-term vision to achieve a 15 percent market share by 2026 and set up five manufacturing plants. Owning to the current pandemic situation in the country and keeping in mind the well-being of the employees, the complete utilisation of the existing plant capacity has been put on hold. 

We are evaluating the current market situation and will navigate our strategy as per the future condition.

What are the expansion plans for 2021 – 2022.

On the product front, Maxxis India has various line-up of tyres for sports bike with different applications for road and weather conditions which we will introduce in a very short time. We are evaluating the space of market for more product introduction. Currently, our portfolio covers 82% of market’s users’ scenario and we plan to raise it more than 90% this year.  

Also, The company made an investment of over $400 million in its Sanand plant in Gujarat. We currently employ workforce of 600+ people and are committed to extend manpower to 2000 within five years. Currently, we have used half of the land (106 acres) we got from the Gujarat government for the planned 60,000 units’ capacity. Owing to COVID-19 pandemic, we are carefully evaluating the situation this year and will take appropriate steps to realise our future plans, in the time to come. We have penetrated across all 29 states and eight Union Territories of India and opened an exclusive retail store in Goa to meet the growing demands of our customers.

We are working on new alignments and partnerships with new set of OEMs for the two-wheeler market as well as working on expanding our portfolio for the replacement market.

 (TT)

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The Rubber Board of India has announced a financial assistance scheme for SC Community rubber growers to support the purchase of rubber rollers for sheet processing in 2025. Eligible applicants can receive a subsidy of INR 40,000 or 80percent of the machine's cost, whichever amount is lower.

Interested growers must submit their applications online via the 'ServicePlus' portal on the Rubber Board's website by 31 October 2025. All required documents should be uploaded with the application. For further details, individuals can contact Rubber Board Regional Offices, Field Stations or the Board's Call Centre.

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Sailun Group has achieved a significant sustainability milestone, earning an ‘A’ rating from Morgan Stanley Capital International (MSCI) in its latest Environmental, Social and Governance (ESG) evaluation. This prestigious upgrade from a ‘BB’ rating makes Sailun the first tyre manufacturer in China to receive this high grade from the globally recognised index provider.

The MSCI ESG assessment is a comprehensive international framework that analyses corporate performance across environmental impact, social responsibility and governance standards. It is a critical tool used by institutional investors worldwide to guide decision-making.

This upgraded rating signifies strong international acknowledgment of Sailun's dedicated efforts in key areas, including product quality and safety, robust corporate governance, progressive employee management and its environmental initiatives. This achievement not only underscores Sailun Group's commitment to sustainable operations but also solidifies its position as a global leader with influential ESG practices.

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Tirupati Tyres Ltd reported a surge in annual profit for the year ended March 2025 and said it plans to diversify into new businesses, including gold mining, real estate and agriculture, as part of its expansion strategy.

The Mumbai-based company said profit after tax jumped to INR 9.96 million in fiscal 2025 from INR 884,000 a year earlier, on total income of INR 118.1 million compared with 4.1 million rupees.

“The company has diversified its scope of operations and altered its main objects to include new lines of business, inter alia, gold mining, real estate, and agriculture,” the board said in its annual report. It added that steps were being initiated to change the company’s name to reflect its broadened focus.

“In line with this strategic shift and to ensure that the corporate identity of the company is aligned with its broadened business focus and long term vision, the company now intends to change its name to more appropriately reflect its revised business activities and future direction. Necessary steps in this regard are being initiated in compliance with applicable laws and regulations,” said the company.

The board also sought shareholder approval to raise the ceiling for loans, guarantees and investments in securities to as much as INR 5 billion, and to allow foreign portfolio investors to own up to 49 percent of its equity capital.

Tirupati Tyres said the move was aimed at strengthening its capital structure and funding long-term strategic growth. A rights issue was proposed earlier in the year but was later withdrawn due to a lack of subscription.

The company has not declared a dividend for the year, citing the need to conserve cash to support expansion.

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Indian tyre retreader unveils automation strategy, launches new products despite 50% profit drop

Indian tyre retreading company Indag Rubber Limited is doubling down on digital transformation and research investments as it seeks to counter margin pressure from soaring raw material costs that halve annual profits.

The Delhi-based firm reported a profit after tax of INR 84.1 million for fiscal 2025, down 49.8 percent from INR 167.5 million, but outlined ambitious expansion plans centred on automation and product innovation during its annual general meeting.

“We are indeed in the era of digitalisation, automation, and AI,” Vijay Shrinivas, CEO of the company, said, announcing a complete automation of the mixing process at its Himachal Pradesh plant to eliminate human intervention and enhance consistency.

The company has invested in a state-of-the-art R&D facility established after the COVID period, which has already yielded results with the launch of Win Master, a new retreading product unveiled at Bharat Mobility in January 2025.

“This product is a direct outcome of our R&D initiatives and offers exceptional performance—delivering approximately 80 percent to 90 percent of the life of a new tyre,” the CEO said, adding its effectiveness had been demonstrated across several fleet operators.

Digital Infrastructure Overhaul

Indag has undertaken a comprehensive digital transformation over the past three years, transitioning from traditional ERP systems to SAP while implementing Salesforce.com for customer relationship management and automated compliance tools.

The company is targeting a 100 percent paperless environment at its plant level. It has partnered with e-Fleets to monitor real-time performance of approximately 6,000 tyres used by large fleet customers, generating valuable cost-per-kilometre data.

“This initiative has enabled Indag to collect valuable data on tyre performance... allowing the Company to effectively demonstrate the benefits of retreading to fleet owners and operators,” the company said.

Network Expansion Strategy

The company is aggressively expanding its retreader network across India, having connected with over 3,000 retreaders under loyalty programmes compared to its previous base. It operates 15 depots nationwide with plans to enhance reach and penetration further.

“Our company’s primary objective is to engage with these operators, educate them on cost-saving opportunities and demonstrate measurable benefits,” the CEO explained, targeting large fleet owners facing rising fuel, toll and operational costs.

Operational Excellence Drive

Beyond digitisation, Indag has improved operational efficiency by reducing its working capital cycle from 120 days to 70 days over five years, significantly better than the industry average of 100-110 days. The company achieved this through strict forecasting, improved vendor negotiations and reducing Days Sales Outstanding from 70 to 35 days.

Market Positioning

The investment strategy comes as India’s fragmented retreading industry faces consolidation pressure. About 11 million tyres are retreaded annually by over 10,000 retreaders, down from 13,000 previously, compared to the United States where just 650 retreaders process 16 million tyres.

“GST and demonetisation have really helped our industry to consolidate and formalise,” the CEO said, noting customers increasingly demand formal invoicing and standardised practices.

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