Tolins Tyres subsidiary Terra Rubber Private Limited has commenced construction of a reclaimed rubber manufacturing facility in Palakkad, Kerala. The announcement was made on August 24, 2026.

Plant construction details

The new facility marks a significant step in expanding the group's rubber processing capabilities. Reclaimed rubber manufacturing involves processing used rubber materials for reuse in industrial and tyre applications, positioning Terra Rubber within the circular economy segment of the rubber industry.

The Palakkad location places the facility in Kerala, a region with established rubber industry infrastructure, which may support the subsidiary's operational requirements for sourcing and processing rubber materials.

Operational strategy and value creation

The facility will utilise scrap tyres and other rubber waste, including rubber compound waste, as key raw materials. Through a controlled devulcanisation process, the facility will recover usable rubber and convert it into reclaimed rubber. This material can be incorporated into suitable rubber compounds as a substitute for a portion of virgin rubber, depending on product specifications and performance requirements.

This initiative supports backward integration, raw-material efficiency and circular manufacturing. It enables the Tolins Group to participate further upstream in the rubber value chain by converting end-of-life tyres and rubber waste into a value-added raw material.

EPR certificate opportunity

The facility provides Terra Rubber with an opportunity to participate in India's Extended Producer Responsibility (EPR) framework for waste tyres. Under the CPCB's waste tyre EPR framework, registered recyclers can generate EPR certificates against eligible quantities of waste tyres recycled and corresponding eligible recycled products, including reclaimed rubber.

Subject to applicable CPCB registration, certification and regulatory requirements, Terra Rubber will have the potential to generate and transfer EPR certificates to tyre producers to help fulfil their EPR obligations. This creates an additional revenue opportunity alongside the sale of reclaimed rubber.

Key development details

The following highlights the key details of this development:

Dr. KV Tolin, Promoter, Chairman and Managing Director, Tolins Tyres, stated that the groundbreaking marks an important milestone in building a more integrated and sustainable rubber ecosystem. He noted that the initiative combines the sale of reclaimed rubber with the potential generation of EPR certificates to create multiple avenues of value from the recycling of waste tyres.

Tolins Tyres Limited’s wholly owned subsidiary, Terra Rubber Private Limited, has entered into a Purchase Agreement with Cochin Reclaim and Rubbers Private Limited to acquire plant and machinery for capacity expansion and backward integration. The agreement was executed on July 1, 2026, and involves the purchase of identified assets from Cochin Reclaim, an unrelated third party, on an “as-is, where-is” basis. This strategic move aims to enhance Terra Rubber's operational capabilities through the acquisition of necessary equipment.

The transaction does not constitute a related party transaction, as neither Terra Rubber nor Tolins Tyres holds any shareholding in Cochin Reclaim. The deal was negotiated and concluded on an arm's length basis. The acquisition is considered a routine purchase of plant and machinery in the ordinary course of business and does not impact the management or control of Tolins Tyres.

Under the terms of the agreement, Terra Rubber is required to remove the machinery from Cochin Reclaim’s premises within sixty days from the date of the agreement at its own cost. The title to each item of machinery will pass to Terra Rubber only upon full payment of its allocated value and its physical removal from the seller's premises. No material restriction or liability has been imposed upon the company or its subsidiary under this agreement.

The disclosures regarding the agreement were submitted to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Umesh M, Company Secretary and Compliance Officer of Tolins Tyres, confirmed that the agreement has not been rescinded, amended, or altered as of the date of the intimation.

Key Agreement Details