Over the last one decade, the automobile industry has gone through a series of structural changes that have driven automobile sales and in turn OEM demand for tyres. The growth in the replacement demand has also been propelled by a healthy rise in automobile sales during the last 8-10 years, which has led to a considerable increase in the overall population of vehicles on the road. Though there are several players in the field, including global majors with their presence in India’s fastest growing tyre market, TVS Tyres is one of the few companies that has been consistently growing, thanks to its innovation and high product quality. Backed by the TVS trusted brand and loyalty, the company has been able to perform very well in all the segments, namely OE, replacement and exports.
Mr. R. Naresh, Executive Vice Chairman, and Ms. Shobhana Ramachandhran, Managing Director, TVS Tyres, have led the company to great heights, not only by making the company a leader in two-wheeler tyres in the country, but also by expanding the network of rubber companies in Madurai with TVS Rubber, TVS Novotema and Firestone TVS, being top players in their segments of products – an expanding rubber horizon, in the Temple City.
R. Natarajan, Managing Editor & Publisher, MOTORINDIA, caught up with Mr. P. Vijayaraghavan, Director, TVS Tyres, in an exclusive interview when he highlighted the significant milestones of TVS Tyres and also spoke on the other three companies.
How would you describe your feeling today on the growth of TVS Tyres?
In the Indian tyre industry, which is more than 75 years old, TVS Srichakra, the youngest tyre company in the country, has become a leader in two & three-wheeler tyres and has also earned a name in more than 80 countries with its off-road tyre programme which is well appreciated by customers, giving a sense of pride and happiness.
What has been your company’s biggest achievement till date and what is your USP?
Being present in most vehicle models in India, No.1 position in rural India in aftermarket, highest OEM share, TPM Excellence and Consistency Award for Operational Excellence, and the India Manufacturing Excellence Award twice from Frost & Sullivan, as well as becoming the largest motorcycle tyre manufacturer in India – these have been the biggest achievements.
USP is our having 220 SKUs in two and three-wheeler tyres and ability to develop tyres for different models, suiting various terrains.
How was 2013-14 and what is the company’s goal in this financial year?
In spite of a difficult business scenario, we did show a good growth, touching a turnover of around Rs. 1,700 crores in 2013-14 and targeting a bigger increase in this financial year.
With the slowdown in the auto industry, has the company witnessed steep fall in demand for tyres?
Yes. Slowdown in the auto industry has brought down the growth of two-wheeler manufacturers from double-digit to 7% in 2013-14 and hence lower demand for tyres. However, our share in a few OEMs have increased, with the development of tyres for newer models. But we did well in the aftermarket with a good growth over earlier years, launching around 15 tyres during the year with special features, giving a big thrust in the market.
What has been driving your growth in the industry?
Our expertise and ability to get into all the two & three-wheeler vehicle manufacturers, improving our share with them over the years, through Innovation, Delivery, Quality and Service, resulting in highest market share with the OEMs, expanding aftermarket sales with good channel of distribution and increasing exports with the introduction of a newer family of tyres reaching around 80 countries have all helped the growth.
Can you speak about the good and strong relationship the company enjoys with all the two-wheeler manufacturers in India?
As a specialist and focused on two-wheeler tyres right from the inception, over the years, we have built up a very strong relationship with all the leading two-wheeler manufacturers in the country. Our strength lies in the strong in-house R&D, testing & design capabilities, our teams working closely with the respective OEM partners to bring out top quality tyre products customized to suit specific brand and variant fits. We also have the practice of subjecting the finished tyres to tough terrain test at our own test tracts in the Madurai plant and our test riders covering long distances every day.
What is your network base of selling your products. How many dealership outlets are there in India?
We sell directly to OEMs and have warehouses near the OEMs, for keeping stocks. As regards the aftermarket, we sell to distributors mostly in the South, who in turn sell to dealers / spareparts counters. In the North and West, we have our own depots and re-distribution stockists. We have more than 3,000 dealers across the country.
What are your expansion plans?
We have been consistently expanding our volumes, both in the mother plant in Madurai and the plant at Rudrapur. We have been adding capacities in both these facilities rather carefully, seeing the market conditions, but at the same time as a proactive measure to the growing volumes, both in OEM and aftermarket segments. We will be turning out higher numbers in 2014-15 as compared to last year.
Can you elaborate on your aftermarket initiatives?
We have created a stable and strong customer base in the two-wheeler aftermarket, where we have a strong nation-wide set-up of distributors, dealers and stockists, not only in urban or semi-urban but in rural areas too. TVS Srichakra carries out strong ground activities to ensure that we are connected to the customers, mechanics, dealers, etc., carry out regular campaigns / educative workshop which has ensured that TVS Tyres stay as a preferred Tyre Brand among consumers. Our recent TV commercial & ad campaigns have been so well received and appreciated.
Can you throw some light on your off-road tyre business?
In early 1990s, we started this programme to broaden the product portfolio offering and also cater to the niche market across the globe. We have made rapid strides in this segment, where we have enlarged our programme from industrial tyres, skid steer tyres, farm and implement tyres to multi-purpose tyres, flotation tyres, motorgrader tyres, compactor tyres and tractor industrial tyres, and recently launched our Agri Radial tyres branded as ‘EUROGRIP’, serving Europe, the US, Middle East, South America, Australia and other countries.
It is a pleasure to share with you the activities and products of our other three rubber companies in Madurai, which are growing consistently well.
‘A Rubber Town’ in the Temple City
TVS Rubber
Sundaram Industries’ Rubber Division, branded as TVS Rubber, is a leading manufacturer of rubber products for automotive and industrial applications. TVS Rubber manufactures molded rubber products for vehicle manufacturers, system manufacturers and various other industries, including Defence, electrical, electronic, mining, thermal, white goods etc.
TVS Rubber is a global player in rubber products, serving the OEM and aftermarket in the US, Europe and other countries on JIT basis. With excellent infrastructure in manufacturing, R&D and product testing, it closely works with the whole family of rubbers, meeting the growing and exacting demands of industries using compression, vacuum, transfer and injection moulding techniques. It has won the TPM Special Award for Operational Excellence.
The company product offerings include anti-vibration products, mountings & suspension bushings, bellows and boots, dust covers, diaphragms, grommets, gaskets, radiator gaskets, oil seals, defence tank, wheel rubberization, roller rubberization, conveyor repair materials, etc.
Firestone TVS
Firestone TVS (FSTVS) is a joint venture between Firestone Industrial Products Company LLC USA and Sundaram Industries with a state-of-the-art manufacturing facility in Madurai. The company manufactures and markets a range of technologically advanced air springs to cater to the needs of markets in India, Sri Lanka, Bhutan, Bangladesh and Nepal. It has a wide range of air springs that meet the needs of large commercial vehicle manufacturers, Indian Railways, air suspension system manufacturers and the Defence sector.
The company has established a wide distributor network across the country to meet the ever-growing demand of the aftermarket distribution channel.
Firestone is a pioneer in air spring technology with a glorious past and FSTVS continuously strives to bring to its customers the latest in air spring technology and offers its advanced design of air springs that provide a better cushioning effect and superior riding comfort to the end-users.
Its product offerings include air springs for rail coaches, utility vehicles, light commercial vehicles, trucks & buses, trailers, seat system and other industrial applications.
TVS Novotema
TVS Novotema is a joint venture between Sundaram Industries and Novotema of Italy that started its commercial production in July 2009. Its state-of-the-art modern factory in Madurai manufactures highly critical safety rubber products for both auto and non-auto industry, using specialized polymers, NBR, HNBR, Polyacrylic, CR, EPDM, FKM, FFKM, Silicone, etc.
TVS Novotema specializes in rubber components for brakes, fuel injection systems, turbo chargers, power steering, air actuators, engine cooling systems, water distribution, various critical white goods applications and industrial applications. It offers precision O-rings, lip seals, wiper seals, cut gaskets, U-rings, frames, grommets, non-reinforced membranes, silicone parts, etc.