The Hindu Business Line : Usha Martin, Gustav Wolf venture to make tyre bead

Usha Martin India and Gustav Wolf of Germany, who have jointly set up a 2,400 tonnes per annum (tpa) capacity steel cord manufacturing facility at Ranchi, have decided to diversify into the manufacture of tyre bead.

A 30,000 tpa capacity tyre bead manufacturing facility will be set up at Ranchi in two phases at an estimated investment of Rs 40 crore.

Usha Martin Ltd and Gustav Wolf have a joint venture that is engaged in the manufacture of wire rope in Dubai. The two partners' 50:50 joint venture in India, Gustav Wolf Speciality Cord Ltd, manufactures 2,400 tpa steel cord for belt reinforcement at a manufacturing facility that has been set up at Ranchi. The steel cord manufacturing capacity at the plant will be augmented to 3,600 tpa. The proposed 30,000 tpa tyre bead manufacturing facility will be set up with Gustav Wolf's product know-how and process technology, according to Dr P. Bhattacharya, Joint Managing Director of Usha Martin Ltd.

Addressing newspersons here on Friday, Dr Bhattacharya said the first phase of the tyre bead project with 15,000 tpa capacity would be commissioned in the next 18-24 months. The second phase of the project, wherein another 15,000 tpa capacity would be added, would be ready within 24 months thereafter. The product manufactured would predominantly meet the growing demand for tyre bead in the domestic market.

According to him, the size of the Indian market for tyre bead was estimated to be around 72,000 tpa. This demand is currently being met from domestic players and low-cost Chinese suppliers.

More Stories on : Diversification | Steel | Tyres

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