Apollo back in race to acquire South Korea’s Kumho Tire as China’s Qingdao calls off deal_Apollo back in race to acquire South Korea’s Kumho Tire as China's Qingdao calls off deal

Apollo back in race to acquire South Korea’s Kumho Tire as China’s Qingdao calls off deal

May 30, 2024

Institutional companies have started raising funds for the tire project, which is expected to have an initial cost of Rs 1 billion.

KOCHI: Nadu, the new two and three wheeler tire factory of Integrated Rubber Farming Manufacturers Corporation (IRFPC), formed by the State Rubber Planters, has been acquired and is located in Erode, Tamil and is scheduled to start production.

C John, member of Ajit’s team of technical and financial experts The company hopes to start production at the end of 2019 after completing the acquisition process in 2019. “We plan to expand from 2,000 tires per day to 5,000 tires per day,” he said

The company started raising funds for the tire project at an estimated initial cost of 10 Rubber growers from all over the country Rs. crore issued shares of face value 10 of 10 rubber growers Rs. crore. The minimum amount to become a member is Rs 10,000 but to get voting rights, the grower must have 10 voting rights Rs 10,000 in shares.

John says there is a provision that allows farmers to form a group with 10,000 shares each and nominate one of them to vote. Andreas Hermes Academe (AHA) It is a German based NGO that works closely with grower groups around the world to express this desire. In cooperation with IRFPC.

Ajit John said the tire project proposal comes at a time when rubber prices have been steadily falling since 2012 Since that year, hitting growers. He said, “Unless we add to the value chain, we will not save it.” He said the concept of Farmer Production Companies (FPCs) was revised by the Government of India in 2013, which facilitated the formation of these companies, which would be run by professional managers.

The companies have decided to produce two and three wheel tires, which account for 51% of the total tire production. The growth rate is 12-13% as compared to the industry’s growth rate of 5-6%. The market is more regional. Unlike the passenger car tire segment, the demand in the replacement tire market is not brand sensitive. In addition, technology acquisition is easier and investment size is smaller compared to other segments.