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The majority of the capex -- Rs 530 crore-- will go into the passenger car radial (PCR) capacity expansion.
The demand is likely to be driven by segments such as replacement, commercial and passenger vehicles (CVs and PVs), along with exports, the credit ratings agency said, adding that credit profiles of tyre makers are expected to remain "stable".
NCLT has ordered the initiation of insolvency proceedings against Birla Tyres Ltd in a case filed by multi-business chemicals firm SRF Ltd, an operational creditor of the BK Birla group firm. SRF had claimed a default in payment of Rs 15.84 crore, which includes a principal of Rs 10.06 crore and interest of 5.78 crore, for the supply of Tyre Cord Fabric as of July 8, 2021.
Commenting on the initiative, JK Tyre & Industries Manufacturing Director Anil Makkar said, "We are strictly monitoring our water usage through the installation of water metres at key points in our manufacturing units, and constantly aiming to improve the water efficiency of our operations, along with reducing our use of groundwater".
The tubeless truck and bus tyre Multi Energy is manufactured and designed by Michelin in India and offers robust fuel savings, longevity with multiple re-treads and safety on Indian terrain, said the company. This 4-star rated tyre promises up to 8% more fuel saving.
Tyre industry revenues (consolidated for ICRA's sample of tyre manufacturers) continue to breach record high levels supported by a growth in domestic demand and exports and increased realisations, ICRA Assistant Vice President and Sector Head Nithya Debbadi said.
The duty was imposed by the central government on September 18 2017. It would expire on September 17, 2022. The duty is aimed at ensuring fair trade practices and creating a level-playing field for domestic producers with regard to foreign producers and exporters.
The raids were being conducted by the Competition Commission of India (CCI) officers across multiple cities, the sources said. Apollo and Continental did not immediately respond to a request for comment, while calls and messages to Ceat spokespersons went unanswered.
JK Tyre & Industries on Thursday said it has come up with the country's first puncture guard technology in tyres for four-wheelers. The technology, with specially engineered self-healing elastomer inner coat, applied inside the tyres through an automated process, heals the punctures.
"The CrossContact AX6 tyres are designed specifically keeping in mind the various conditions found both on-road and off-road. The tyres are highly suitable for markets like India, which feature various geographies, road conditions, and growing SUV demand," Continental India MD Samir Gupta stated.
The fair trade regulator has also imposed a penalty on the Automotive Tyre Manufacturers Association (ATMA) for indulging in cartelisation by acting in concert to increase the prices of cross-ply/bias tyres variants sold by each of them in the replacement market and to limit and control production and supply in the said market.
International demand is robust and the company has a huge opportunity to grow overseas, managing director Anant Goenka told ET in a recent interview. "We can more than double our sales in Europe over a period of 2-3 years." He added: "There is an antidumping duty on Chinese tyres in the US and Europe. That's why we are very optimistic about international business."
Ceat reported a loss in the December-quarter because of high input costs that it could not completely pass on to consumers. Tyre makers rely on commodities like rubber, crude and steel, which account for up to 60% of their costs. Prices of these commodities have soared as much as 40% on average compared to the same period last year, Goenka said.
While the stable demand from replacement and export segments support industry revenues, earnings have been affected by elevated input prices, ICRA said in a statement. "ICRA maintains its (volume) demand growth estimates of 13-15 per cent year-on-year (Y-o-Y) for FY2022 and 7-9 per cent (CAGR between FY2022-25) for the Indian tyre industry," it added.
In a crucial judgment, Madras high court has paved the way for Competition Commission of India (CCI) to pass an order against major tyre manufacturers, whom it has been investigating for anti-market activities like price parallelism and cartelisation since 2014-15.
A Memorandum of Understanding was signed between Rubber Board and ATMA on March 1. Participating tyre companies together transferred Rs 12 crore to the account set up by Rubber Board on May 20 and funds provided by the tyre companies are being used for procuring planting materials to commence planting.
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