Tinna Rubber And Infrastructure Limited has announced a major contract win, securing an order worth ₹75.79 crores from Indian Oil Corporation Limited (IOCL). This significant business development positions the company as a key supplier in the rubber modification sector.

Contract Details

The comprehensive supply agreement encompasses several key parameters that highlight the scope and importance of this partnership:

Strategic Significance

The order involves supplying Crumb Rubber Modifier to IOCL's Crumb Rubber Modified Bitumen (CRMB) plants situated in two strategic locations. The Haldia facility in West Bengal and the Mathura plant in Uttar Pradesh represent important production centers for IOCL's bitumen operations.

Crumb Rubber Modified Bitumen is an enhanced road construction material that incorporates recycled rubber, improving the durability and performance of road surfaces. This technology aligns with sustainable infrastructure development practices while enhancing road quality.

Business Impact

This substantial order strengthens Tinna Rubber And Infrastructure Limited's market position in the specialized rubber modification sector. The two-year contract duration provides revenue visibility and establishes a long-term partnership with one of India's premier oil and gas companies.

The contract demonstrates the company's capability to meet the stringent quality and supply requirements of major industrial clients, potentially opening doors for similar partnerships in the infrastructure and energy sectors.

Tinna Rubber and Infrastructure Limited has strengthened its foothold in the Middle East market by injecting additional capital into its wholly owned subsidiary in Oman. The company has contributed OMR 24,750 (approximately ₹58.00 lakhs) as equity share capital to Global Recycle LLC, its Omani subsidiary.

Strategic Expansion

This move underscores Tinna Rubber's commitment to expanding its operations in the Gulf Cooperation Council (GCC) region. The investment aligns with the company's strategy to enhance its presence in international markets and capitalize on the growing demand for recycled rubber products in the Middle East.

Oman Operations

Tinna Rubber's Oman subsidiary has been showing promising performance:

• Operating at 85% capacity utilization
• Expected to contribute approximately ₹30.00 crores to the company's top line in a steady state
• 40% of the output is now sold within the GCC region

Challenges and Solutions

While the Oman operation faced some challenges due to increased raw material prices, the company has taken proactive steps to address this issue:

• Secured consent to import end-of-life tires into Oman
• This measure is expected to help in margin recovery in the second half of the fiscal year

Future Outlook

Gaurav Sekhri, Joint Managing Director of Tinna Rubber, commented on the company's international strategy: "With the plant in Oman and our upcoming plant in Saudi Arabia, we are well-positioned to service the local rubber industry within GCC, parts of Africa, and potentially bring surplus to India if commercially viable."

The company's focus on the GCC market is part of its broader Vision 2028, which aims to:

• Expand from 6 to 10 locations
• Achieve a revenue CAGR of over 25% to reach ₹1,000.00 crores by FY '28
• Increase profitability by over 33%
• Sustain EBITDA margins above 18%
• Achieve a Return on Capital Employed (ROCE) of 30%

This additional investment in the Oman subsidiary is a step towards realizing these ambitious goals and strengthening Tinna Rubber's position in the global recycled rubber market.