Hyderabad, India based retreader Fortune Tires is moving-ahead with an expansion project involving the opening of a new retreading plant to cater to the mining sector in the East Indian state of Odisha.
Fortune Looks for Expansion in Mining Sector
“We are hiking our mining tyre capacity by starting a new site in the mining region of Jharsuguda,” informed Vijaypal Reddy, Managing Director, Fortune Tires. The dedicated site, which was scheduled to open at the end of February, will have the capacity to produce 450 tyres per month.
The Telangana based company says it is expanding in Jharsuguda to service the mining companies, largely also from Telangana, who are setting up there. “We have an almost two-decade old association with these mining companies, and since they are expanding in Jharsuguda, around 50 per cent of the business is assured,” said Reddy. The partially mono-railed site will retread mining tyres by the precured process in a seven-tyre autoclave. Equipment is being supplied from the retreading machinery hub Coimbatore.
According to Reddy, the expansion in Odisha had originally been planned for 2019 but had already been delayed by more than year. Fortune Tires already has two operational sites in Hyderabad (Telangana) and Singruali (Uttar Pradesh) respectively. The Hyderabad plant opened in 2013 and was retreading around 1,300 tyres per month before the pandemic. Meanwhile, the Singrauli facility, opened in 2016, has a capacity of 500 tyres per month but currently retreads around 250 in a month.
Fortune Tire has a long-standing relationship with Vamshi Rubber (also based in Hyderabad). The company, owned by Vijaypal Reddy, became the first franchisee of Vamshi Rubber, and indeed two Vamshi directors held a stake in the company between 2013-19, although the company is now once again wholly owned by Reddy.
Fortune Tire has plans to focus on OTR and mining tyres once the country comes out of the pandemic and the economy moves at the pre-pandemic levels. Also, all future expansion is expected be in mining tyres as coal mining is expected to show growth in the region in the coming years, opening significant opportunities in retreading for the mining sector.
“Currently, we are retreading 1,500 tyres each month in both plants together, and the idea is to operate the plants to capacity and achieve production volume of 5,000 tyres per month from the all three plants in the next 2-3 years,” said Reddy.