January 26, 2021

Off-highway tyre maker Alliance Tire to take a position Rs 1,240 crore in third plant at Visakhapatnam

MUMBAI: Off-highway tyre-maker Alliance Tire Group (ATG), owned by the Japanese main Yokohama Group, is organising its third plant within the nation in Visakhapatnam with an funding of $ 165 million (round Rs 1,240 crore). The proposed $ 165-million plant will add over 20,000 tonnes each 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, informed on Sunday.

ATG has one plant at Dahej in Gujarat with an annual capability of 1.Three 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 45,000-tonne plant in Israel as properly the place it has its important R&D centre as properly. The TN facility additionally has an R&D centre.

These two crops produce all of the three key off-highway tyre manufacturers of ATG-Alliance for agricultural equipment, Galaxy for development & industrial equipment, and Primex for forestry equipment and over 90 per cent of the manufacturing is exported to over 120 nations.

When requested about such a capital funding amid one of many worst recessions within the historical past, Mantri stated they have been in search of 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 properly globally. Solely development is down.”

Requested any plan to enter passenger automobiles/ industrial automobiles tyres, Mantri stated “ATG is an off-highway model and can stay so. However now we have made an exception with our Dahej facility the place we make radial tyers for heavy automobiles. The brand new plant can even be for off-highway tyres solely.”

Yokohama has because the acquisition of ATG in 2016 invested over $ 200 million in India to this point, he stated.

Requested about India’s contribution to the group’s whole manufacturing and $ 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 four per cent market share within the nation.

He stated whereas the off-highway phase was rising below 5 per cent, due to inexpensive pricing they’ve been clipping at 10 per cent each year for the previous a few years and hopes to proceed with this progress fee.

The privately held ATG provides 3,000 kinds of tyres globally together with within the US and Europe and has under-5 per cent international market share.

The brand new plant, with a day by day capability of 55 tonne (rubber weight) will come up within the particular tasks zone at Atchutapuram industrial park close to the Visakhapatnam port.

The Yokohama Group has eight off-highway tyre crops throughout 4 nations – Japan, India, Israel and Vietnam.

The six-decade-old ATG makes a speciality of design, improvement, manufacturing and advertising of agriculture, forestry, development, 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 family, in partnership with Warburg Pincus acquired the Israel agency then referred to as Alliance Tire Firm and started India manufacturing in 2009.

In 2014, Warburg offered its stake to KKR. In July 2016, ATG was acquired by The Yokohama Rubber Firm of Japan for about $ 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.