Tyres
The story of a Rs 1,788 crore fine: Tyre makers, cartelisation and calculation errors
The Supreme Court of India has asked the Competition Commission of India (CCI) for a response regarding an appeal filed by MRF Ltd, one of the companies fined in a case related to alleged cartelisation and price manipulation in the tyre industry. The case, which began over a decade ago, saw the CCI impose penalties on several tyre companies in 2018. However, the National Company Law Appellate Tribunal overturned the order in December 2022 and directed the CCI to pass a fresh order, citing errors in calculation and the need to save the domestic tyre industry.
Fine on tyre companies: Supreme Court seeks CCI's reply on MRF plea
The CCI had, in August 2018, imposed penalties totalling more than ₹1,788 crore on the tyre companies and also asked them to cease and desist from indulging in unfair business practices.
India imposes anti dumping duty on flat based steel wheels from China
India has imposed anti dumping duty on flat base steel wheels from China. The duty is based on the recommendation by the Directorate General of Trade Remedies.
Dalmia Bharat draws closer to taking over Birla Tyres
Dalmia Bharat group is set to acquire Birla Tyres after creditors approved their resolution plan. The plan proposes partial repayment of ₹1,100 crore of bank loans of the BK Birla group company. The resolution offer made by Dalmia Bharat Refractories was cleared by over 75% of creditors of Birla Tyres.
Dalmia Group submits revised debt resolution plan for Birla Tyres
A person familiar with the new plan told ET that group companies of Dalmia Bharat have offered to repay about ₹300 crore of the outstanding loans of Birla Tyres. This is said to be three times their original offer to creditors. Birla Tyres competes in the commercial vehicle and two-wheeler tyres segments.
CEAT lines up Rs 750 cr capex for FY24
CEAT Ltd has planned a capex of approximately INR750 crore for the current fiscal year, primarily aimed at increasing its production capacity of agri-radial tyres at the Ambernath plant in Maharashtra, according to CEO Arnab Banerjee. CEAT expects higher volumes supplied to original equipment manufacturers in Q3 and Q4 of this fiscal year, as the company is switching to bigger rim sizes with automaker approvals anticipated soon. The rural replacement market, where CEAT experienced significant growth in the first quarter, may take another two quarters for demand to recover.
Demand for bigger cars accelerates sales of wider tyres
The demand for wider tires with larger diameters of 18-22 inches has increased since 2020 as the popularity of SUV and MPV vehicles in the passenger vehicle market has risen. In contrast, tires with smaller diameters have experienced rapid decline. Despite the fact that wider tires negatively impact fuel efficiency, the buying criteria of consumers have changed, with greater emphasis on design, technology, and performance than fuel efficiency.
Michelin names Shantanu Deshpande as India MD
French tyre major Michelin on Monday said it has appointed Shantanu Deshpande as Managing Director of its Indian operations. He will be based out of Pune. Across his 23-year tenure with Michelin, Deshpande held various leadership roles in sales and marketing, both in India and in other geographies such as North America, Africa, Middle East and Asia, the company said in a statement.
Yokohama to invest Rs 671 crore to bolster passenger tyre capacity in India
Yokohama Rubber Company plans to invest INR6.71bn ($80m) to expand its annual production capacity of passenger car tyres in India through Yokohama India, boosting the existing line in Visakhapatnam. The added production line is expected to start operating in Q4 2024 and will focus on manufacturing 22-inch passenger car tyres. The company's yearly production capacity has grown significantly, from 700,000 tyres in 2014 to 1.53 million in 2019 and 1.96 million in 2021. Additionally, Yokohama recently opened its 51st store in Tamil Nadu, serving as a comprehensive showplace for its product range.
Bridgestone looks to expand retail footprint in India
"Bridgestone India has been increasing its market penetration over the last few years. In 2022, we increased our retail footprint by 11%, expanding to an additional 218 towns. This year we are looking to increase our overall retail network by 20-25%," Bridgestone India Managing Director Stefano Sanchini told PTI in an interaction.
Apollo Tyres expects double-digit revenue growth in FY24
When asked about the possibility of tyre price reduction with the raw material cost coming down, Sharma said,"...given the uncertainties in the environment and given that inflation is still not moderated, the scenario of price reductions to my mind looks remote but finally, they're always governed by competitive intensity. Going forward, he said Apollo Tyres would continue to focus on "technology driven" premium positioning of its products across categories.
Apollo Tyres bets on service model, premiumisation to maintain margins
Apollo Tyres is launching a subscription service called Avolve that promises to cut down the tyre costs of truck fleets by 10-15% through more efficient tyre management. The company is looking to bring in revenues upwards of Rs 500 crore through this brand-agnostic platform by FY28.
CEAT's international biz, replacement market to see better times ahead: Vice Chairman Anant Goenka
Tyre manufacturer, CEAT, is optimistic about the future of its international business and replacement market, with Vice Chairman, Anant Goenka, predicting "double digit plus margins" as raw material prices settle. CEAT has had to endure the impact of the currency devaluations of developing countries, a recessionary global marketplace, and geopolitical tensions such as the Russia-Ukraine conflict.
Dalmia Bharat, Ruia Co in fray for Birla Tyres
The RP, who admitted ₹1,128 crore in claims from financial creditors, received over two dozen expressions of interest. It includes Ceat, Bain-Piramal backed India Resurgent Fund, Jindal Steel & Power, a Naveen Jindal company, Bommidala Enterprises, Purnendu Chatterjee-promoted MCPI and Himadri Speciality Chemicals. Birla Tyres manufactures tyres for commercial vehicles, farm vehicles, heavy earth-moving machinery, motorcycles, and three-wheelers. It was demerged from its parent entity - Kesoram - into a standalone tyre manufacturing company in 2019.
CEAT sees 25% revenues coming from exports
As part of a plan to accelerate exports, the RPG Group company plans to enter PCR and truck & bus radial (TBR) segment of the US market by the end of 2023-24, the company's newly-appointed MD & CEO Arnab Banerjee told ET.
Michelin may soon produce passenger vehicle tyres in India
Michelin is reportedly considering the local production of passenger vehicle tyres in India. This move could help the French firm improve operations in the country, which have suffered due to import restrictions introduced in 2020. Presently, Michelin only sells premium, limited-quantity, larger-sized tyres for performance-based models. Florent Menegaux, Michelin CEO, said the company saw India as a great developing market with fast-developing infrastructure.
