RETREADING TYRE MARKET IN

INDIA

Tyre Re-treading Industry:

Overview

After fuel efficiency it is the tyres that matter most to an operator.

Re-treading is safe, efficient and environmental friendly
Re-treading a tyre costs only one third of the cost of the new tire
A new tire consumes nearly 22 gallons of oil whereas the re-treaded tire
consumes only 7 gallons of oil. Most of the oil is found in the tire casing. A
fleet on an average which consumes 50 tires/ year can save around 750
gallons of oil a year.
Re-treading one tire saves 20 litres of crude oil
Re-treaded tire provides nearly 80% of the mileage of the new tire
The re-treading market in India is approximately $1 billion (Rs. 6000 crores).

Re-treading Business
As companies across tyre industry have raised prices owing to higher input costs,
there could be increase in demand for re-treading by customers which could
affect demand in replacement market going forward.
Re-treading can be done 2-3 times depending upon the tyre conditions and gives
a new life to tyre at almost 25% of the new tyre costs.
Sharp increase in re-treading had an impact on tyre demand from replacement
markets.
The Indian tyre re-treading industry is at present nearly 10% of total turnover of
the tyre industry
Major segments where re-treading is used is in CV and off the road(OTR) industry.
Tyre manufacturers like MRF, JK tyres and some tyre companies operating through
franchise route are the organized players in this segment.

Re-treading Business
A heavy commercial vehicle tyre has the ability to get re-treaded 2-3 times in India.
Re-treading can not be done if the tyre already has been over used to an extent that
the fabric is damaged or exposed.
With tyres being one of the primary costs for commercial fleet operators re-treading
helps increase the life of tyres and reduce the operating costs for the companies.
The increasing prices of tyres is expected to result in increased re-treading especially
in Indian Medium and Heavy Commercial Vehicles.
Continuous improvement in roads infrastructure and strict overloading restrictions
are expected to improve tyre life and also increase number of times tyres can be retreaded.
Re-treading is highly popular in south India unlike north India where the transporters
overload their trucks and buying a new tyre is the best option for them.

Re-treading Business
The re-treading market demands in
India can be better illustrated through
the pie-chart as shown.
It can be clearly seen the
Replacement market acquires a chunk
of the Sale Segment.

Types of Re-treading
Conventional process(hot cure process): an un-vulcanized rubber strip is
applied on the buffed casing of the tyre. This strip takes the pattern of the
mould during the process of vulcanization.
Precure process(cold cure process): a tread strip, where the pattern is
already pressed and precured is applied to the casing. It is bonded to the
casing by means of a thin layer of specially compounded uncured rubber
which is vulcanized by the application of heat, pressure and time.
Currently in India the re-treading process is divided between these two
processes in equal ratios.

Re-treading : Raw Materials &

Consumables Required
Tread Rubber
Cushion Gum
Envelope
Black Vulcanizing Cement
Curing bag
Flap

Cost Analysis
Cost to re-tread one nylon tyre = Rs. 4,500.00
Cost to re-tread one radial tyre = Rs. 4,800.00
Net profit from tyre re-treading one tyre = Rs. 1,000 to Rs. 1,500 (depending
on indirect expenses)

Various Players In India

Manipal got its first Apollo re-treading zone(ARZ) in 2015. The high re-tread
potential in the coastal Karnataka prompted this development.
Pioneering radial tyre technology, Michelin Tyres has introduced a new
Michelin certified Recamic tyre re-treading centre in Hyderabad in order to
ensure top quality re-tread solutions for the truck and bus operators in the
region.
MRF Pretreads is claimed to be the most advanced pre-cured re-treading
system in India, and perfected over years of experience starting 1970.
Re-treading market in India also has companies like Indag Rubber,
Tyresoles, Tolins Tyre and Midas.
A large chunk of re-treading franchises in India are family run enterprises,
and employ hot as well as cold re-treading technology.

Conclusion: Re-treading of tyres

is catching up in India
Re-treading of tyres in the commercial vehicle segment is poised for growth.
However re-treading has not made much impact in two-wheeler and
passenger car segments.
The biggest driver for growth:
the rising use of radial truck and bus tyres.
the rise in multi-axle trucks, road infrastructure and highway connectivity.
increased operational savings.

A re-treaded tyre costs around 30 per cent less than a new tyre
At the other end, a re-treaded tyre performs up to 80 per cent of a new tyre
under similar operating conditions. It is the value for money a re-treaded
tyre offers, which has made it a favourite of a transporter.

references
www.gmwpl.com
http://commercialvehicle.in/