India’s tyre industry is bracing for a tough fiscal year, weighed down by sluggish demand, volatile raw material prices and muted export growth. Revenue is forecast to expand just 7-8 percent – supported by modest price hikes and a marginal rise in volumes – marking a second straight year of single-digit growth. However, operating margins are set to contract sharply as natural rubber prices remain elevated despite recent moderation. In a wide-ranging discussion, Anuj Sethi, Senior Director at CRISIL Ratings, unpacks the factors shaping the sector, from price pressures and replacement demand to global headwinds and evolving trade dynamics.

How would you characterise the current fiscal year for the Indian tyre industry, considering its challenges and opportunities?

With volume expected to grow just by about 3-4 percent due to sluggish demand, overall revenue growth will remain in single digit for the second straight year, this fiscal. On the other hand, high raw material prices, especially of natural rubber, rose sharply over the past 12 months and have only recently begun to moderate. To a moderate extent, tyre manufacturers are increasing tyre prices in the replacement market to offset the impact of higher input prices, albeit operating profitability will still be impacted this fiscal.

The report mentions 7-8 percent revenue growth this fiscal year, supported by a 3-4 percent increase in realisations and volume. What specific factors could push growth beyond this forecast, and what risks might undercut it?

While realisation growth due to price hikes being undertaken by tyre manufacturers is a certain given sharp increase in natural rubber prices, higher than projected volume growth could take the growth higher than expected. With about 2/3rd of the domestic demand

coming from replacement segment, and it being the primary volume driver, any significant decline in that demand can impact the growth forecast other way.

Given that replacement demand is the primary volume driver, how do you assess the longevity of this demand surge in the context of evolving consumer preferences and vehicle usage patterns?

The replacement demand is expected to sustain over the medium term driven by the strong automotive sales achieved in previous fiscals.

With operating profitability projected to drop 300 basis points, what contingency measures are tyre makers considering beyond gradual price increases to mitigate this impact?

The price of natural rubber, which constitutes about half of the raw materials, continued to surge sharply in the first half of fiscal 2025. However, ability to pass on this increase is limited due to modest volume growth. Small price hikes and continued focus at improving operating efficiencies on an ongoing basis is another way to offset the impact to some extent.

Natural rubber prices have been highly volatile, reaching record highs and then falling to around INR 170 per kg. What is your outlook for natural rubber prices in the near to medium term, and what factors will likely influence their movement?

The sharp rise in natural rubber prices is due to a global shortage caused by inclement weather in major producing countries such as Thailand and Vietnam, which account for about half of the global production. Going forward, increase in supply with improving hectarage and slowdown in global economies is likely to drive correction in international rubber prices. In the last couple of months, some moderation in natural rubber prices has happened.

China has a surplus in crude oil-derived raw materials, including carbon black and other chemicals. Do you anticipate this surplus impacting global prices for these commodities, and how might Indian tyre makers benefit or face challenges as a result?

Share of natural rubber in tyre manufacturing is 47 percent, while carbon black accounts for ~20-22 percent. Should carbon black prices remain under control, it will benefit domestic tyre manufacturers.

Export growth is expected to remain muted at 2-3 percent. How does the current geopolitical climate, including sanctions or trade restrictions, further complicate Indian tyre makers’ access to markets in North America and Europe?

Export growth is expected to remain sluggish due to challenging business conditions in US and Europe. However, certain segments like off-the-road tyres are beginning to see better prospects as stocks with dealers are moderating. This could help players with presence in the off-the road- tyre segment.

Exports to key markets such as North America and Europe are under pressure due to economic challenges and unviable operating costs, leading to plant shutdowns in regions like US, Europe and Israel. Is the Indian tyre industry at risk of facing similar challenges, or does it have structural advantages that mitigate these risks?

Indian players are better placed compared to some of the western peers due to comparatively lower cost of operations, though operating profitability has come under pressure this fiscal because of higher imported rubber prices. Also, Indian players have flexibility to supply in small batch sizes unlike Chinese peers, and hence this also works to their advantage, more prominently in higher margin segments such as off-the road tyres.

Have tyre makers explored new international markets or alternative trade routes to counter supply chain disruptions and higher freight costs?

Not really; to circumvent the difficult environment around the Suez Canal, vessels are going around the Cape of Good Hope, adding 2-3 weeks and additional freight cost on exports. Some of the costs are being shared with the customers.

The report references Extended Producer Responsibility (EPR) regulations. How significant is the financial and operational burden of compliance for tyre makers, and what progress has been made in addressing this?

Adoption of EPR regulations is not expected to have a very sizeable impact on profitability, though it will lead to investments in strengthening processes and in technology.

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The Indian Rubber Institute (IRI), a non-profit professional body focussing on the tyre and rubber industry, has officially announced its flagship biennial conference, ‘IRI-CON’26’. Scheduled to take place on 30th and 31st January 2026 at the Hotel Sayaji in Vadodara, Gujarat, the event serves as a critical junction for technocrats, researchers, and industry leaders to navigate the sector's rapidly evolving technological and sustainability priorities.

The choice of Vadodara as the host city underscores Gujarat’s status as a formidable powerhouse for elastomers and rubber manufacturing. The region serves as a strategic base for global and domestic tyre giants, including Apollo Tyres, CEAT, BKT, MRF and JK Tyre & Industries, while hosting a robust network of suppliers specialising in carbon black, silica, textiles and rubber chemicals.

Against this backdrop, the conference theme – ‘Unlocking the Potential of Sustainable Developments in Rubber and Allied Industries’ – reflects an urgent industry-wide commitment to resource efficiency, circular economy principles and responsible manufacturing.

High-Profile Inauguration and Strategic Vision

The conference will commence with a high-powered inaugural session dedicated to global trends and strategic updates. This session features a line-up of some of the most influential figures in the Indian rubber ecosystem. Dr Sujith Nair, Chairman, IRI Gujarat and VP R&D, CEAT, will deliver the welcome speech.

V K Misra, Chairman of IRI and representative of JK Tyres & Industries, will open the proceedings with a vision for the institute’s role in future-proofing the industry. He will be joined by Vasantagesan, IRS, Executive Director of the Rubber Board and Dr R Mukhopadhyay, who will provide a comprehensive overview of global sustainability trends.

Further technical leadership will be provided by Renji Issac, Chairman of ITTAC and representative of CEAT and P K Mohamed, Emeritus Chairman of IRI. The academic foundation of the event is bolstered by the presence of Prof. Dr Kinshuk Naskar from IIT Kharagpur – the institute's long-term partner for technical certification – and Prof. Dr Sabu Thomas of MG University, ensuring a seamless bridge between cutting-edge research and industrial application.

Innovations in Green Chemistry and Circularity

The event will also dive deep into technical breakthroughs that are reshaping the tyre value chain. A significant focus will be placed on ‘Green Tyres’ and the reduction of environmental footprints. Key presentations will feature Bekaert Industries discussing advanced cord solutions for weight reduction, and CEAT showcasing the CIRCL90, a sustainable passenger car tyre.

The shift toward a circular economy is a recurring theme throughout the technical sessions. Epsilon Carbon and Rathi Group India (Capital Carbon) will present on the integration of recovered carbon black (rCB) and the importance of ASTM standards in ensuring market momentum for recycled materials. Meanwhile, Brisil Green Silica and Tata Chemicals are set to discuss the revolutionary transition of producing sustainable silica from agricultural waste, a move that highlights the industry's move away from traditional, energy-intensive sourcing.

A Collaborative Ecosystem

The conference serves as a global stage for a diverse array of companies, including Arlanxeo India, which will present eco-friendly elastomer solutions and Finorchem, focusing on enhancing compound performance through phenolic resin-silica coupling. Other notable participants include LANXESS, TUV Rheinland and TTRC, covering everything from bio-based additives to water-based vulcanising cements and rigorous certification standards.

As regulatory pressures and environmental expectations continue to intensify, IRI-CON’26 stands as a timely and vital forum. By aligning manufacturers, R&D specialists, and academia, the event is positioned to chart a sustainable growth pathway for India’s tyre and rubber ecosystem, ensuring it remains competitive on the global stage while meeting the highest standards of environmental stewardship.

The event will also celebrate the next generation of industry talent with a Best Student Presentation Award Ceremony on the final day.

All-in-all the event is a must-attend for industry professionals, R&D specialists and academics in the tyre and rubber industry. To register click here

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As 2026 begins, Fornnax enters a decisive phase of its growth, seeking to scale its operations globally after years of investment in engineering, innovation and sustainable recycling.

“Our 2026 strategy is driven by four key priorities,” said Jignesh Kundaria, Director and Chief Executive of Fornnax.

The first priority is global expansion. The company plans to strengthen its presence in Europe, Australia and the Gulf Cooperation Council, while continuing to grow in existing markets. By aligning closely with local regulations and customer requirements, Fornnax aims to position itself as a long-term partner for advanced recycling solutions.

A central milestone will be export-led global installations. In 2026, the company plans to commission Europe’s highest-capacity shredding line, a project intended to reinforce its focus on high-capacity recycling systems.

The second priority is product innovation and technology leadership. Innovation, the company says, underpins its ambition to become a global leader in recycling technology by 2030. The focus remains on solutions that are efficient, reliable and environmentally responsible.

Building on more than a decade in tyre recycling, Fornnax has expanded into additional applications including municipal solid waste, e-waste, cable and aluminium recycling. Several large projects are scheduled to become operational this year, including the installation of India’s largest e-waste and cable recycling line and the commissioning of a high-capacity municipal solid waste RDF recycling line.

“Sustainable growth must be scalable and profitable,” Kundaria said. In 2026, Fornnax expects to complete phase one of its capacity expansion with the establishment of what it describes as the world’s largest shredding equipment manufacturing facility. The 23-acre site is scheduled for completion in July 2026 and is intended to expand production capacity and support global deliveries.

Alongside manufacturing expansion, the company plans further efficiency gains across its supply chain and service operations, while strengthening its service network in India, Australia and Europe to improve response times and customer support.

The final priority is people and culture. “People remain the foundation of Fornnax’s success. We will continue to invest in talent, leadership development, and a culture built on ownership, collaboration, and continuous improvement,” Kundaria said.

With sustainability positioned as a core principle, the company says its objective is to grow while supporting the circular economy and contributing to a cleaner future. Management describes 2026 as a defining year, shaped by global installations, diversified recycling applications and manufacturing expansion.

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PCBL Chemical Limited said it has appointed Sanjay Prabhakar Ghawghawe as Chief Manufacturing Operations and Executive Director, with effect from 5 January 2026.

In its disclosure, PCBL said that Ghawghawe’s appointment is on a full-time basis and does not carry a fixed term.

Ghawghawe brings about 29 years of industry experience, including roles at Owens Brockway, Hindustan Unilever, Reliance Petro Marketing, Asian Paints and Avery Dennison (India). His most recent position was Chief Manufacturing Operations at Pidilite Industries.

He holds a bachelor’s degree in mechanical engineering from Nagpur University and a postgraduate diploma in business management from the Institute of Business Management and Research, Pune University. The company said there are no relationships between Ghawghawe and the directors of PCBL.

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CarbonX has announced that Daniela Sordi, its Chief Technology Officer and co-founder, has been appointed a Fellow of the Netherlands Academy of Engineering, the country’s leading body representing excellence in engineering, technology and applied scientific innovation.

Sordi is one of 15 experts selected for the Fellowship, which recognises engineers who have demonstrated significant impact in their fields and who contribute to major societal transitions.

Sordi is internationally recognised for her work on advanced three-dimensional structured carbon materials designed to improve lithium-ion battery performance. She has more than 17 years of experience across research and industry, translating chemistry and materials science into manufacturing technologies.

At CarbonX, she has led the development of battery materials that the company says charge faster, last longer and are up to five times more sustainable than conventional synthetic graphite. Under her technical leadership, the company has secured funding from the European Innovation Council Accelerator and advanced efforts to strengthen Europe’s autonomy in energy-storage materials.

“Daniela’s appointment to the NAE is an outstanding recognition of her ability to bridge groundbreaking science with high-impact industrial innovation,” said Rutger van Raalten, chief executive of CarbonX. “Her work lies at the core of our mission to enable cleaner, more efficient, and more sustainable energy technologies on a global scale.”

The appointment also highlights Ms Sordi’s role as a visible advocate for engineering careers, particularly for women entering deep technology and advanced materials. Her career is frequently cited as an example for students pursuing technical and innovation-led professions.

The Netherlands Academy of Engineering brings together senior engineers from academia, industry and applied research. Its members contribute to national and international innovation agendas and advise on technological responses to challenges such as climate, energy, health and digitalisation.

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