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started at Trichy in 2011, retreads around 200 tyres per month. “Most of the plants have their machinery supplied by the Coimbatore based Rajmahal,” Venkateswaran added.
Meanwhile the company is planning a foray into OTR retreading soon. “We are starting an OTR retreading facility at the Hosur plant from May this year. Initially, we will begin with 100 tyres per month and double the volume by the end of 2012,” Venketeswaran said. Rajam’s four existing plants and the upcoming one use JK Tread manufactured by the tyre major JK Tyres at its Rajasthan based unit. “Currently, we are buying around 11 tonnes per month, with the another plant coming up at Sankari, our demand is likely to rise to around 15 tonnes per month,” claimed Venkateswarn.
It is interesting to know that the company will open a Tyre Care Centre with JK Tyres from the second week of June. “The centre will provide complete wheel care such as wheel alignment, wheel balancing, nitrogen gas filling, truck wheel removal etc.,” he explained. The Tyre Care Centre would be an exclusive radial truck tyre centre selling the JK Tyres truck range. The company has been in the transport business for the last 28 years and has nine transport branches in the southern states. It’s a blue-chip company in the transport business and clients include Bharat Heavy Electrical Limited, ACC Ltd, Madras Cements Ltd, India Cements Ltd. Dalmia Cements Ltd, TamilNadu Newsprint & Papers Ltd etc. It operates fleets under the titles Rajam Transports and Sarvanan Transports.
It has a large clientele from the transport sector but even then it is
facing a lot of challenges in operating the retreading plants. Fierce competition in pricing and long credit practices are the major issues Rajam is having to deal with but despite that it is consistently growing. “We are not doing cash- and-carry business as 50 – 75 per cent of our business is on a 30 day credit. The rest of it is on 60 day credit,” Venkateswaran complained. With the opening of the fifth plant in May, the company will be focusing on running the plants to their full capacity and on the consolidation of their retreading business. “We have no plans to open more retreading plants in near future,” he stressed.
Indian Aviation's MRO Business Set to Soar
India's aviation maintenance, repair and overhaul (MRO) business is set to rise as a result of the government's plan to slash high custom duties on aircraft parts, tyres and other equipment.
Finance Minister Pranab Mukherjee in the Finance Bill 2012-13 has proposed to provide full custom duty exemption to new, retreaded tyres as well as testing equipment for aircraft which will be imported by third-party MRO units.