 "Marangoni and GRP officials at the launch of the JV")
Italy-based tyre retreading company Marangoni Group has entered into a joint venture with GRP Ltd, one of the leading rubber recycling companies in India, for tyre retreading of commercial vehicles in the country. Retreading is a process which involves extending the life of a worn tyre simply by replacing the tread rubber.
Marangoni, which develops technologies and equipment for the production of new and retreaded tyres, is a market leader in the supply of truck tyre retreading technologies and materials with operations around the world with an annual global turnover of about Euro 350 million.
The JV will aim to leverage the strengths of the two partners - Marangoni as a retreading technology specialist and GRP’s expertise in rubber recycling and understanding of the Indian market. The JV will provide retreading solution to the Indian commercial vehicle fleets that will help them extend the life of their tyres and lower their operational costs.
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“The evolution of the Indian market provides Marangoni a great opportunity to expand its global footprint. We have been studying the market for some years now and believe that the time is opportune to bring our global concept to the country. The expanding road network and the wide acceptance of radials by fast professionalising fleets give us the confidence that together with GRP, we can establish a solid presence in India,” said Massimo De Alessandri, CEO, Marangoni Group.
Radial tyres at present account for 30-35% of the total tyre industry. Radialisation is estimated to double in the next 4-5 years, thus offering a big opportunity for tyre retreaders in the country. India’s retreading market is estimated at $ 700 million with organised sector accounting for 50 percent share. With rise in radialisation, the share of organised sector is expected to increase in coming years.
“From our experience in tyre recycling, we believe that the growing pace of radialisation is an opportunity to bring a world class-retreading concept to Indian fleets. We did not need to look beyond Marangoni for this,” said Harsh Gandhi, executive director, GRP Ltd.
The JV intends to establish a pan India franchisee network of retreading stores to take its concept to commercial vehicle fleets. On November 23, 2015, the JV inaugurated its first flagship store at Indore, which has a large trucking centre and the level of radialisation is more than 50 percent (much higher than the national rate) currently.
In subsequent months, the Marangoni-GRP JV expects to attract entrepreneurs looking to invest in the automotive tyre sector, independent retreaders desiring to upgrade their existing stores to make them future-proof in a fast changing market and GRP’s suppliers of end-of-life tyres.
