Business Daily from THE HINDU group of publications
Monday, Aug 13, 2007
ePaper
Business Daily from THE HINDU group of publications Monday, Aug 13, 2007 ePaper |
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Corporate
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Outlook States - Kerala Eastern Treads hopes to cash in on sectoral growth
Our Bureau Kochi, Aug. 12 Eastern Treads, belonging to Eastern Group, is all set to scale new heights of growth taking support from robustness in transport and automobile sectors. The company, which has won the State Productivity Council award recently, has already laid out a road map for its future growth by scaling up its capacity. Mr Navas Meeran, Director of the Eastern Group, said that the tyre re-treading sector is exhibiting tremendous potential due to exponential growth in road infrastructure sector. He pointed out that transporters are increasingly turning to re-treading with betterment of highways in the country. A new tyre costs around Rs7,000-7,500 while re-treading will extend its life substantially at Rs1,200-1,500. He said that the market in India for re-treading is as big as the market for new tyres as every new tyre is a potential source for re-treading. Good potential
In terms of value, re-treading market would be small due to cost differences but in volume, the potential is as big a new tyre market, he added. The company has already started yielding positive results in the area of profitability and the promoters have infused additional funds of around Rs 2 crore for modernisation and capacity expansion. Eastern Tread is part of the Rs 208-crore Eastern Group having diversified business interests such as curry powder, spices, rubberised coir mattresses, packaged drinking water, apparels etc. The US-based private equity firm New Vernon Private Ltd has recently invested $10 million in Eastern Condiments, the flagship company of the group.
More Stories on : Outlook | Tyres | Kerala
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