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.

Following are some of the best-selling products:   • Maxxplore (M6239/M6240)- Maxxplore is specially designed to cater to riders’ needs having craved for exploration of off-road conditions without compromising speed. It has been built with state-of-the-art advanced rubber compound technology that offers higher strength and outstanding performance in dry/wet conditions. The aggressive big blocks are meant for long-lasting grip without compromising on rider’s safety. Its deep grooves offer better water channelling with excellent performance on the wet surface. Overall, this tyre is suitable for sports commuters having excellent grip, ensuring a comfortable ride with superior safety.                                                                                                                • M6182- M6182 is perfect for both serious off-roading and city driving. Its powerful directional semi-lug pattern gives great stability whether you are riding in a straight line or attempting a challenging sharp-corner-stunt. This tyre is suited for all weather conditions, be it dry or wet, patchy, or smooth land.  • M6304- The M6304 is designed for serious off-roaders. Its large tread blocks with deep grooves give more stability, better water channelling and outstanding durability. This tyre is perfect for all geographical and weather conditions and suited for long off-roading drives.  • M6000/M6000R- The M6000/M6000R is science in design. Its reinforced sidewall strength and computerised tread pattern give rear wheels a whole new definition. Created to challenge wet and dry roads with better speed handling and unwavering stability, the M6000/R takes the joy of riding to a whole new level. • M6301- The M6301 is designed to take the rough with the wet. Its special Lug pattern treads, with effective water dispersal abilities, manoeuvre wet roads with panache. Take a dry road, and its large tread blocks come into play, giving high surface contact and the stability and power every rider seeks. • M6305- The M6305 has a special nylon-ply construction design. Its deep tread grooves give better water channelling and great traction on any kind of off-roading terrain. In short, it's durable, stable and dependable.

 (TT)

 

Eurogrip Tyres, the leading tyre manufacturer in India, showcased its premium two-wheeler tyres at the 17th edition of Feria 2 Ruedas (F2R) International Motorcycle exhibition held at Plaza Mayor, Medellin, Colombia. The dates of this high-profile business event in South America's two-wheeler sector are 15–18 May 2025.

For more than 17 years, the Feria de las 2 Ruedas (F2R) has been the leading motorcycle industry event in Latin America. The expo, which takes place every year in Medellín, Colombia, is a vibrant venue for commerce, innovation and growth in the motorcycling sector. Additionally, it gives aficionados the chance to investigate the most recent developments and trends in the industry. The company showcased its premium lineup at exhibit N24 in the Tented Pavillion, which included a range of sport touring, off-road and trail tyres. High-performance versions including the Roadhound, Protorq Extreme, Trailhound STR, Climber, Bee Connect, Terrabite DB+ and Badhshah LX were on display.

P Madhavan, Executive Vice-President – Marketing & Sales, TVS Srichakra Ltd, said, “Eurogrip is focused to deliver innovative products for the global markets. Latin America is a priority market for us, and F2R Expo is a promising platform to engage with our target audience. We are looking forward to interesting business opportunities arising from this expo. Such specialised industry tradeshows add exceptional value to our quest in becoming a leading global tyre brand delivering world class tyre technology.”

Denka Company Limited announced it would record an extraordinary loss of approximately 16.1 billion yen (£85.8 million) as an impairment on manufacturing facilities at its US subsidiary. It will indefinitely suspend chloroprene rubber production at the Louisiana plant.

The Japanese chemical manufacturer, which holds a 70 percent stake in Denka Performance Elastomer LLC (DPE), cited mounting operational challenges, including unexpectedly high costs for pollution control equipment and declining production volumes at the American facility.

“DPE has faced significant cost, production and other challenges at its facility in the United States,” the company said in a statement. “Rising costs are attributable to, among other factors, identification, design, purchase, installation, and operation of pollution control equipment to reduce chloroprene emissions that DPE did not anticipate being required when it acquired the facility from E.I. DuPont de Nemours and Company.”

The subsidiary was established in December 2014 and acquired the chloroprene rubber business from DuPont in November 2015. The Louisiana facility was intended to serve as a second manufacturing site in North America, complementing Denka’s Omi Plant in Itoigawa, Niigata, Japan.

However, according to the company statement, DPE has struggled with multiple operational issues, including “rising energy costs and a shortage of qualified staff necessary to operate new pollution control equipment and implement other emission reduction measures. “

Production volumes have declined partly due to “operational restrictions arising from the pollution reduction measures and unscheduled plant outages associated with supply chain disruptions and severe weather events,” Denka said.

The company noted that these challenges, combined with changes in the global economic environment for chloroprene rubber, have pressured profitability, making near-term improvement difficult.

Denka confirmed that DPE employs 250 people as of December 2024 and will not restart its chloroprene rubber manufacturing facilities following a regular maintenance shutdown. Instead, “all options for the business, including a potential sale of the business or its assets, will be considered,” the statement said.

The company emphasised that “no decision regarding a permanent closure of the facility has been made at this time.”

Customers will continue to be supplied from current inventories and production at the company’s Omi Plant in Japan.

DPE is 70 percent owned by Denka USA LLC, a wholly owned subsidiary of Denka Company Limited, and 30 percent by Diana Elastomers, Inc., a subsidiary of Mitsui & Co., Ltd.

Yokohama Rubber reported a 56.9 percent year-on-year decline in profit attributable to owners for the first quarter of 2025, despite posting a 9.0 percent increase in sales revenue.

The Japanese tyre maker recorded a profit of 8.53 billion yen for the three months ended 31 March, down from 19.8 billion yen in the same period last year. Business profit fell 3.2 percent to 24.07 billion yen, while sales revenue rose to 275.12 billion yen.

The company maintained its full-year forecast, projecting an 11.4 percent increase in sales revenue to 1.22 trillion yen and an 8.8 percent rise in profit to 81.5 billion yen for the fiscal year ending 31 December 2025.

Yokohama Rubber attributed the profit decline to one-time costs related to its February acquisition of Goodyear’s off-the-road (OTR) tyre business, which it purchased for approximately 143 billion yen.

“Profit from existing businesses was strong,” the company said in its earnings statement. “In addition to increased sales volume for the company’s consumer tyres, mainly in overseas markets, and continued expansion of sales of high-value-added ADVAN, GEOLANDAR, and Winter tyres as well as high-inch tyres, profit was boosted by the MB segment’s MIX improvements and structural reforms.”

The tyre segment, which accounts for 91percent of the group’s consolidated sales revenue, saw a 10.4 percent increase in sales to 250.32 billion yen. Original equipment tyre sales were higher year-on-year, driven by “strong sales in Japan of vehicle models equipped with YOKOHAMA tyres and expansion of shipments for Chinese automakers’ new energy vehicles,” the company said.

Replacement tyre sales also increased, supported by higher sales of summer and winter tyres in Japan, increased sales of high-inch tyres in Europe, and stepped-up sales efforts in Asia.

The MB (Multiple Businesses) segment, which represents 8.4 percent of total sales, experienced a 3.2 percent revenue decline to 23.02 billion yen. This was attributed to lower demand from construction machinery makers in Japan and automakers in North America.

The company described an “upbeat” business sentiment in Japan for the quarter, noting that “a steady recovery in inbound demand and increasing orders for construction and logistics projects compensated for weak consumption by domestic households curbing spending in response to rising prices of consumer goods.”

Overseas, the company observed rising inflation concerns weighing on consumer spending in the United States, while in Europe, “manufacturing industries are rebounding and corporate business sentiment is improving.” In China, personal consumption was boosted by the Spring Festival holiday, but high US tariffs “reduced China’s exports and created uncertainty about the future that is weakening industrial activity.”

Swedish speciality chemicals firm Nynas reported solid financial results for 2024, posting an Adjusted EBITDA of 1,333 million Swedish kronor, marginally higher than the 1,316 million kronor recorded in 2023.

The company, which specialises in naphthenic speciality oils and bitumen products, attributed its performance to operational efficiency and commercial success in its niche markets.

“We are delighted with the progress made during 2024, evidencing our right-sized cost base and a more targeted commercial and manufacturing footprint. We have redefined our strategic direction, positioning Nynas as a speciality chemicals company, enabling the energy transition and setting our course for 2035,” Nynas CEO Eric Gosse said in a statement.

The firm highlighted strong cash generation from operations, which it said would support planned investments and longer-term growth initiatives. Nynas also mentioned the ongoing transformation of its Harburg site with plans to monetise the asset eventually.

All three of the company’s production facilities maintained high operational reliability between 95 percent and 99 percent. The Nynäshamn refinery achieved a notable milestone: in May 2024, it set a new monthly production record for naphthenic speciality oils at 42,000 tonnes.

Strategic pivot towards sustainability

Nynas outlined a strategic shift focused on higher-margin speciality materials with sustainable characteristics. The company aims to strengthen its position in European markets through innovation and sustainability initiatives.

“Nynas is uniquely positioned to contribute to the energy transition. Our strategy reflects our purpose to advance a more sustainable society, and our product development pipeline is fully aligned with this goal," Gosse added.

In 2024, the company received an EcoVadis Gold rating, placing it in the top 5 percent of globally rated businesses for sustainability performance.

With consecutive years of strong financial performance, Nynas indicated it continues to monitor debt capital markets to optimise its capital structure “at the appropriate time potentially”.

The Swedish chemicals producer noted that, having ceased operations in the United States in 2022, it remains largely insulated from recent global trade tensions surrounding US import tariffs. The company imports only minimal feedstock from America, shielding it from potential cross-border trade disputes.