Indian tread manufacturers are increasingly focusing on overseas markets to counter domestic headwinds. Telangana-based Vamshi Rubber Limited has seen a significant rise in export shipments, with international trade now accounting for 25% of the company’s total annual turnover.
Export Market Proving Strong for India
“The export turnover surged by 5% from 2022-23 to 2023-24, and increased by a further 12% from 2023-24 to 2024-25,” confirmed Gopinath K, General Manager (Exports) at Vamshi Rubber Limited. This growth follows market-specific efforts initiated in 2015, which led to the company being awarded 1 Star Export House status by the Government of India in 2023.
Vamshi Rubber Limited is expanding its footprint in markets including Turkey, Armenia, Saudi Arabia, Kenya, Tanzania, and the USA. The company is also currently in discussions with prospective customers across Africa.
The company remains optimistic that this growth will continue, supported by the development of tread compounds engineered for specific market applications and price points.
“We have scaled up overseas shipments since 2022, despite the market disruptions caused by the pandemic,” Gopinath stated. However, he noted that geopolitical instability, specifically the Russia–Ukraine conflict and tensions in West Asia, continues to impact international business.
Global volatility has led to severe fluctuations in raw material prices, while some African markets face a shortage of US dollars, impacting payment cycles.
Logistics costs remain a significant hurdle. Shippers face more stringent conditions for collecting empty containers at dry ports than in the pre-pandemic period. Furthermore, a transition in rail freight billing has led to shippers’ costs increasing by 40% to 50%.
Shipping lines have also introduced stricter ocean tariffs and weight restrictions. These hurdles are compounded by extended transit times. “Shipments from Mumbai to Turkey that previously took 30 days now take up to 60 days,” Gopinath explained. “This translates into higher inventory costs for importers and slower business cycles for shippers.”
Vamshi Rubber Limited is currently preparing for a changing regulatory landscape, including new tariffs in the USA and upcoming European regulations such as the Carbon Border Adjustment Mechanism (CBAM) and the European Union Deforestation Regulation (EUDR). Gopinath noted that while compliance is essential, it will increase the cost base.
Gopinath believes the retreading industry should be classified as a priority sector, receiving more favourable treatment regarding raw material imports to compete with proactive nations like China. He concluded that a more organised industry, focused on achieving multiple retreads per casing, would significantly reduce operating costs for truck and bus operators globally.
