Indian rubber recycling company, GRP and Itallian tyre retreader Marangoni have entered into a joint venture agreement for commercial vehicle tyre retreading in India.
26 Nov 2015 | 7760 Views | By Shourya Harwani
Indian rubber recycling company, GRP and Itallian tyre retreader Marangoni have entered into a joint venture agreement for commercial vehicle tyre retreading in India.
With plans to leverage the strengths of the two partners, the JV aims to popularise the use of retreaded tyres among Indian commercial vehicle fleets. ...
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Indian rubber recycling company, GRP and Itallian tyre retreader Marangoni have entered into a joint venture agreement for commercial vehicle tyre retreading in India.
With plans to leverage the strengths of the two partners, the JV aims to popularise the use of retreaded tyres among Indian commercial vehicle fleets. The estimated initial investment in the JV would be Rs 2 crore to be contributed equally by both the partners.
The JV intends to establish a pan-India franchisee network of retreading stores to take its concept to commercial vehicle fleets.
In terms of products, Marangoni and GRP will offer three varieties of retreaded tyres starting from the high quality Ringtread, the medium quality Kontur, and the affordable Unitread.
Since the most important aspect of retreading is availability of good quality radial tyres, the JV is targeting parts of the country with high levels of radicalisation. In line with this strategy, the JV inaugurated its first flagship store at Indore on November 23. Indore was chosen as the first location since it is a large trucking centre and the level of radialisation there is more than 50% - much higher than the national rate of around 36% currently. The two companies are looking at a hub-and-spoke model for maximum coverage.
In subsequent months, the 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.
Speaking on the occasion, Harsh Gandhi, executive director, GRP, said, “Our relationship with Marangoni as a supplier to them is more than a decade old and has been built on principles of mutual trust and respect. 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”.
Massimo De Alessandri - CEO, Marangoni Group added, “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.”