Tolins Tyres Limited (TTL) has announced a strategic expansion of its operations in Western India with the launch of a new depot in Gujarat. The facility is set to commence operations on December 1, 2025, marking a significant step in the company's growth strategy and its commitment to enhancing its presence in high-potential markets.

Key Highlights of the Expansion

• New customer acquisition
• Reduced lead times | | Market Significance | High-potential region with previously limited TTL presence |

Strategic Implications

The new depot in Gujarat represents a calculated move by Tolins Tyres to strengthen its foothold in Western India. This expansion is expected to yield several benefits:

1. Market Penetration: The facility will enable TTL to tap into previously underserved territories in Gujarat, a state known for its robust industrial and agricultural sectors.

2. Customer Acquisition: By establishing a local presence, TTL aims to attract new customers in the region, potentially increasing its market share.

3. Operational Efficiency: The depot is expected to significantly reduce lead times, improving the company's ability to meet customer demands promptly.

4. Product Accessibility: Both retread and tyre products will be more readily available to customers in Gujarat and surrounding areas.

Strengthening Distribution Network

This new depot adds to Tolins Tyres' existing manufacturing, distribution, and service network across India. The strategic location of the facility underscores the company's commitment to enhancing its distribution capabilities and improving overall service quality.

Looking Ahead

The expansion into Gujarat signals Tolins Tyres' confidence in the growth potential of the Western Indian market. As the company continues to extend its reach, it may impact its market position and financial performance in the coming years.

Investors and industry observers will likely keep a close watch on Tolins Tyres' performance in this new market, as it could provide insights into the company's expansion strategy and its ability to capitalize on emerging opportunities in the dynamic Indian tyre market.

Tolins Tyres , a leading manufacturer of tyre retreading products and tyres, has announced an ambitious growth strategy focusing on export-led expansion and manufacturing capacity enhancement. The company aims to achieve over 25% year-on-year growth through a series of strategic initiatives.

Export-Led Growth Strategy

Tolins Tyres is pursuing a robust export-led growth strategy with a new product range in off-road and industrial tyres. The company is targeting global markets through distribution partnerships, positioning itself for significant business expansion. This move is expected to diversify the company's revenue streams and reduce dependence on domestic markets.

Manufacturing Capacity Expansion

To support its growth plans, Tolins Tyres is expanding its manufacturing capacity in Kerala. This expansion is crucial for meeting the anticipated increase in demand, both domestically and internationally. The company currently operates three manufacturing facilities spread across an area of 221,214 square feet – two in Kalady, Kerala, and one in Ras Al Khaimah, UAE.

Focus on Research and Development

Tolins Tyres is intensifying its R&D efforts, particularly in developing high-performance retread compounds. This focus on innovation is expected to enhance the company's product offerings and maintain its competitive edge in the market.

Financial Performance

Despite facing challenges in the second quarter, Tolins Tyres has shown resilience in its financial performance:

While the company experienced a slight increase in revenue, there was a decline in profitability metrics compared to the same period last year. This could be attributed to various factors, including market conditions and expansion-related expenses.

Management Commentary

Dr. KV Tolin, Chairman and Managing Director of Tolins Tyres, commented on the company's performance and outlook: "Despite a challenging Q2, we achieved year-on-year growth in the first half, driven by robust demand across our retread and new tyre product lines. The recent GST reduction on tractor and farm tyres from 18% to 5% has improved market sentiment and sparked a rebound in order inquiries."

He added, "We have launched a new line of tractor rear tyres, which will start contributing from Q3 onward and is expected to be a key growth lever in the agricultural segment. Our strategic initiatives are also bearing fruit on the customer front, with new institutional customers and expanded territories diversifying our revenue streams."

Industry Outlook

The tyre industry in India is poised for growth, with positive outlooks across various vehicle segments:

• The domestic two-wheeler vehicle market is expected to reach 25-27 million units by FY29.
• Passenger vehicle domestic demand is projected to grow to 5.7 million units by FY29.
• The commercial vehicle segment is forecasted to reach 1,150-1,270 thousand units by FY29.
• Tractor industry sales are expected to increase by 4-6% between fiscals 2024 to 2029.

These industry trends provide a favorable backdrop for Tolins Tyres' growth aspirations.

Conclusion

Tolins Tyres' focus on export expansion, capacity enhancement, and R&D positions the company well to capitalize on the growing domestic and international tyre markets. While short-term challenges persist, the company's strategic initiatives and the positive industry outlook suggest potential for achieving its ambitious growth targets in the coming years.