Off-highway tyre-maker Alliance Tire Group (ATG), owned by the Japanese main Yokohama Group, is organising its third plant in the nation in Visakhapatnam with an funding of USD 165 million (round Rs 1,240 crore).
The proposed USD 165-million plant will add over 20,000 tonnes every year (55 tonne per day rubber weight) capability to the two.3-lakh-tonne annual manufacturing from two India crops and might be commissioned by the primary quarter of 2023. The plant will generate round over 600 new jobs, including to its 5,500-strong headcount, Nitin Mantri, chairman of Yokohama India and director of ATG, instructed PTI on Sunday.
ATG has one plant at Dahej in Gujarat with an annual capability of 1.3 lakh tonne (360 tonne per day) and one other at Tirunelveli in Tamil Nadu with an annual capability of 1 lakh tonne. The group has a forty five,000-tonne plant in Israel as nicely the place it has its principal R&D centre as nicely. The TN facility additionally has an R&D centre.
These two crops produce all of the three key off-highway tyre manufacturers of ATGAlliance for agricultural equipment, Galaxy for building & industrial equipment, and Primex for forestry equipment and over 90 per cent of the manufacturing is exported to over 120 international locations.
When requested about such a capital funding amid one of many worst recessions in the historical past, Mantri stated they have been searching for an acceptable location for the third plant for nearly three years now and had recognized Vizag earlier than the pandemic broke out.
From a requirement aspect we see the most effective farming seasons forward right here and forestry can also be doing nicely globally. Only building is down.
Asked any plan to enter passenger automobiles/ business automobiles tyres, Mantri stated “ATG is an off-highway model and can stay so. But we’ve got made an exception with our Dahej facility the place we make radial tyers for heavy automobiles. The new plant will even be for off-highway tyres solely.
Yokohama has for the reason that acquisition of ATG in 2016 invested over USD 200 million in India up to now, he stated.
Asked about India’s contribution to the group’s whole manufacturing and USD 650 million income (in 2019), he stated the nation contributes 50 per cent every to each.
With over 90 per cent of its India output exported, Mantri stated the main focus stays exports and farm phase is the one one the place it has round 4 per cent market share in the nation.
He stated whereas the off-highway phase was rising below 5 per cent, thanks to inexpensive pricing they’ve been clipping at 10 per cent every year for the previous a few years and hopes to proceed with this progress rate.
The privately held ATG provides 3,000 kinds of tyres globally together with in the US and Europe and has under-5 per cent world market share.
The new plant, with a every day capability of 55 tonne (rubber weight) will come up in the particular tasks zone at Atchutapuram industrial park close to the Visakhapatnam port.
The Yokohama Group has eight off-highway tyre crops throughout 4 international locations — Japan, India, Israel and Vietnam.
The six-decade-old ATG specializes in design, improvement, manufacturing and advertising of agriculture, forestry, building, industrial, earthmoving, mining and port tyres serving 120 markets throughout all of the continents below the Alliance, Galaxy and Primex manufacturers.
ATG’s India connection started in 2007 when the Mahansaria household, in partnership with Warburg Pincus acquired the Israel agency then generally known as Alliance Tire Company and commenced India manufacturing in 2009.
In 2014, Warburg bought its stake to KKR. In July 2016, ATG was acquired by The Yokohama Rubber Company of Japan for about USD 1.1 billion.
Domestically ATG competes with the Mumbai-based Balkrishna Industries that sells below the BKT label –a firm that was based by Yogesh Mahansaria.
(Only the headline and film of this report might have been reworked by the Business Standard employees; the remainder of the content material is auto-generated from a syndicated feed.)