Table of content
Tolins Tyres Introduction
Tolins Tyres, founded in 1982 by the late K P Varkey, started as a small-scale tread rubber manufacturing unit in Mattoor Kalady1. Over the years, it has grown into a leading manufacturer in the tyre industry, specializing in a diverse range of products including tyres for two and three-wheelers, light commercial vehicles (LCVs), and agricultural vehicles.
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Brief about Tolins Tyres
Summary of the business of Tolins Tyres
Tolins Tyres is a company present in both verticals – manufacturing of new tyres and tread rubber. We are primarily engaged in manufacturing of bias tyres for vehicles (including LCV, agricultural and two/three-wheeler vehicles) and precured tread rubber. We also manufacture ancillary products like bonding gum, vulcanizing solution, tyre flaps and tubes.
Tolins Tyres History
Company was incorporated in the name and style of ‘Tolins Tyres Private Limited’ and a certificate of incorporation was issued on July 10, 2003 by the Registrar of Companies, Kerala. Subsequently, upon the conversion of Company into a public limited company, pursuant a special resolution passed by our Shareholders on January 1, 2024, the name of Company was changed to ‘Tolins Tyres Limited’ and a fresh certificate of incorporation dated January 26, 2024 was issued by the Registrar of Companies, Ernakulam, Kerala.
Year | Activity |
2003 | Incorporated as a private limited company |
2005 | Commencement of precured tread rubber production |
2007 | First Capexil Export Award received from Government of India |
2008 | Executed Company’s first direct export order bill of lading |
2008 | Started manufacturing tyres for light commercial vehicles |
2011 | Company accredited by Standards Organisation of Nigeria (SONCAP) – A product certification for exporting to Nigeria |
2012 | Received certificate from U.S. Department of Transportation for meeting requirements of its federal system standards |
2015 | Started manufacturing of tyres for two/three wheelers |
2016 | Secured Bureau of Indian Standards Certification for two & three-wheeler |
2017 | Secured Bureau of Indian Standards Certification for light commercial vehicle tyres |
2018 | Started sales depot in Pune (Maharashtra) |
2019 | Started sales depot in Kerala |
2021 | Started sales depot in Vijayawada (Andhra Pradesh), Delhi, Raipur (Chhattisgarh) and Guwahati (Assam) |
2020- 2022 | Acquired plant & machinery in tranches to expand capacity of TTL Facility |
Integrated the acquired machinery with the existing TTL Facility to increase the manufacturing capacity to 5,000 tyres/day | |
2023 | Acquired two wholly owned subsidiaries, namely Tolin Rubbers Private Limited having its registered office in Kerala, Kalady and Tolins Tyres LLC (One Person) having its registered office in Ras- Al – Khaimah, UAE vide respective share purchase agreements |
Geographical penetration of our products to Middle East & Africa Region | |
Received E 32 certification mark from Road Traffic Safety Directorate, Europe for meeting its safety and performance standards | |
Conversion from private limited to public limited company and consequent change of name from ‘Tolins Tyres Private Limited’ to ‘Tolins Tyres Limited’ |
Tolins Tyres Promoters & Board of Directors
- Promoters are Dr. Kalamparambil Varkey Tolin and Jerin Tolin.
Tolins Tyres Board of directors
Name | Designation |
Dr. Kalamparambil Varkey Tolin | Chairman and Managing Director |
Sankarakrishnan Ramalingam | Whole Time Director |
Jerin Tolin | Non-Executive & Non-Independent Director |
Joseph P M | Independent Director |
Sankar Parameswara Panicker | Independent Director |
Cris Anna Sojan | Independent Director |
Tolins Tyres Share Holding pattern
Name of the Shareholders | % of Holding |
Promoters | |
Dr. Kalamparambil Varkey Tolin | 44.01% |
Jerin Tolin | 39.3% |
Sub Total | 83.31% |
Promoter Group | |
Jose Thomas | 8.47% |
Annie Varkey | 0.23% |
Cyrus Tolin | 0.23% |
Chris Tolin | 0.23% |
Toja Rani | 0.17% |
Sub Total | 9.33% |
Public | 7.36% |
Tolins Tyres Strength
- Diversified Product Range and Customised Product Offering
- Quality of Products
- Long standing relationship with large OEMs and dealer network in India and our Depots
- Integrated manufacturing operations coupled with in-house products and process design capabilities which offer scale, flexibility and comprehensive solutions
- Locational Advantage
- Research and development and product development capabilities
- Experienced and Dedicated Management Team
- Track record of growth and financial performance
Tolins Tyres Strategies
- Optimisation of our Capacity Utilisation
- Expanding Reach of Domestic Markets
- Expand our Product Range by introducing new products and product range
- Penetrate into New Geographies through an Increase in Exports
- Strengthen Relationships with our Existing Customers and Expand Customer Base
- Continue to Improve Operational Efficiencies through Economies of Scale, Supply Chain Rationalization, technology enhancements and effective Resource Planning
- Improve Efficiencies with Technology Enablement
- Pursue Inorganic Growth through Selective Acquisitions
- Broad Description of our Products Offerings
Industry Outlook
Overview of the tyre industry in India
The growing turnover of the Indian tyre industry in recent years can be attributed to increasing demand for vehicles, rising disposable incomes, increasing premiumisation of vehicles and tyres, the industry venturing into the luxury segment, growth in exports and reduction in import of tyres. The turnover has doubled in a decade from Rs 46,000 crore in fiscal 2013 to Rs 90,000 crore in fiscal 2023.
The domestic tyre industry is dominated by major players such as Apollo Tyres, Balakrishna Industries, Bridgestone, Ceat, JK Tyres, MRF and TVS Srichakra. These companies account for more than 80% of the tyre market in terms of revenue.
Global companies such as Michelin, Bridgestone, Goodyear and Maxxis have set up their manufacturing units in India. However, their share in the overall Indian tyre market continues to be low with customers being price sensitive.
Tyre exports
Tyre exports from India have seen flat growth this year. The global economy’s challenges from recessionary conditions, rising interest rates, political upheaval, and a weakening of external demand impacted the growth momentum of Indian tyre exports.
CRISIL MI&A forecasts overall tyre exports to increase by 7-9% in fiscal 2029, with the two-wheeler tyre segment leading the growth. Indian two-wheeler OEMs’ strong market presence in African and Latin American countries, along with the enhanced reputation of Indian tyre brands, will support this expansion. However, exports in other segments are likely to decline due to decreased demand from advanced economies in Europe and America.
India’s tyre exports declined to Rs 23,075 crore in fiscal 2024 from Rs 23,125 crore in fiscal 2023.
In fiscal 2024, the top export markets for Indian tyres were the US, Germany, Brazil, Italy, UAE, France, Philippines, Netherland, UK, Bangladesh, and Canada. The US continues to be the largest market for Indian tyres, accounting for 18% of the total tyres exported from the country during the year.
The competitive performance and affordability of Indian tyres, combined with the global shift towards diversifying supply chains away from China, have positively impacted export growth. The establishment of manufacturing units by Indian OEMs abroad is also boosting the acceptance of Indian tyres in international markets. Moreover, increased investments in technology and innovation are expected to further solidify the position of Indian tyre manufacturers globally.
Region-wise tyre exports from India (Rs Lakhs)
Region | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 |
Europe | 3,74,585 | 4,25,153 | 4,00,776 | 5,15,249 | 7,73,320 | 7,53,342 | 7,92,730 |
North America | 1,65,130 | 2,18,533 | 2,33,893 | 2,73,402 | 4,37,837 | 5,65,085 | 4,85,033 |
Asia | 2,44,286 | 2,71,070 | 2,58,630 | 2,35,257 | 3,18,347 | 3,20,104 | 3,27,817 |
Latin America | 1,03,433 | 1,05,548 | 1,11,330 | 1,16,090 | 2,20,146 | 2,59,008 | 2,48,394 |
Middle East | 1,09,376 | 1,26,367 | 1,42,978 | 1,26,369 | 1,74,598 | 2,22,016 | 2,30,164 |
Africa | 96,783 | 1,12,892 | 1,13,018 | 1,12,771 | 1,54,885 | 1,49,469 | 1,72,481 |
Others | 24,365 | 29,324 | 23,749 | 30,935 | 38,783 | 43,469 | 50,675 |
Radial Truck & Bus (TBR) Tyre
The moderation in CV tyre exports owing low demand from European market in fiscal 2024 expected to ease in fiscal 2025. The subdued demand in major economies owing to global slowdown has resulted in moderated growth in MHCV tyre exports. In fiscal 2025, in the overall exports growth is expected to be higher than fiscal 2024 owing to anticipated loosening monetary policies across the globe and subsequent increase in demand.
Motorcycle Tyre Exports
Motorcycle tyre exports from India overall grew by 41% during fiscal 2024 and had declined by 16% in fiscal 2023. The moderate growth is due to subdued demand from low-income nations such as Bangladesh and Nepal amidst global recession fears.
Agriculture (Tractor Front, Rear & Trailer) Tyre Exports
Farm/agricultural tyre exports also witnessed a decline of 3% in fiscal 2024 and a decline of ~17% on-year in fiscal 2023 led by decreased demand from Europe and US. USA and some of the European countries account for the largest share in Farm/Agri tyre exports from India.
Tyre imports
Tyre imports are declining on the back of government regulations that favour domestic players.
The tyre Imports in India went up by 19% in FY24. The rise in imports comes on the back of 15% growth in the previous year. Tyres over Rs 2500 crore landed in India during the period benefiting from low rates of duty under FTAs signed by the country.
In fiscal 2023, tyres worth Rs 2,131 crore were imported into the country. In volume as well as value terms, PCR tyres accounted for the largest share.
OTR/ Industrial tyres account for the largest share in overall tyre imports in India in value terms. The share of both PCR and TBR came down in fiscal 2024 while that of Motorcycle tyres went up in comparison to the previous year.
Commercial vehicles
The truck and bus tyre segment continues its downward trajectory with 83% decline in tyre imports in fiscal 2024 compared to 47% decline in fiscal 2023. The rate of decline in commercial tyre imports almost doubled in fiscal 2023 due to the imposition of heavy ADD. In the TBR segment, share of imports from China reduced from 89% in fiscal 2018 to 0.7% in fiscal 2023, share of imports from Thailand and Vietnam increased from almost negligible in 2018 to 73% and 10%, respectively, in fiscal 2023.
Passenger Car (PCR) Tyres
The passenger vehicle tyre imports declined by 24% in fiscal 2024 compared to ~54% in fiscal 2023. In fiscal 2022, it recorded an optical growth of 39% in PCRs due to demand for cheaper tyres with a reviving economy. Thailand continues to account for the largest share in PCR tyre imports in India followed by Germany.
Motorcycle Tyres Imports
Motorcycle tyre imports remained at stable levels i.e., 17% in fiscal 2023 and fiscal 2024. Thailand continues to be the major exporter of motorcycle tyres to India followed by China.
Agriculture (Tractor Front, Rear & Trailer) Tyre Imports
The overall tractor tyre imports continue to witness a decline for the fifth continuous fiscal due to heavy imports restrictions. As in fiscal 2024, China continues to be the largest source of Farm/Agri tyres import in India.
Radialisation in tyre industry
With the improvement of road infrastructure and launch of multi-axle vehicles, the radialisation in truck & bus tyres has gained momentum, the usage of radial tyres in Heavy Commercial Vehicle segment is likely to reach 65-70% in the next few years. Presently, in LCV segment, the radialisation levels are around 40-45%.
The radialisation in passenger vehicles segment is around 99%. In 2W and 3W, more than 90% of the tyres are bias and the radialisation levels are low as compared to other segments.
Outlook for tyre industry
The domestic tyre industry is expected to expand in the coming years owing to higher demand for vehicles. The sector’s planned spending is aimed at adding manufacturing capacity, modernisation, technology upgrade and research and development (R&D).
With the automobile sector growing, demand for replacement tyres is also increasing.
Moreover, increasing acceptance of Indian tyres in the overseas markets is leading to a sharp growth in tyre exports from India to destinations such as the US and Europe.
The creation of high-speed corridors and the government’s infrastructure efforts will lead to an increase in the use of radial tyres. The shift towards radialisation will provide a further growth opportunity for the industry. The incorporation of Industry 4.0 and automation in the tyre industry is also expected to improve productivity and quality.
Indian tyre industry is expected to grow by 4-6% in fiscal 2025, owing to improvement in replacement demand amidst a muted growth in OEM segment. The replacement segment which covers 68% of overall tyre production by tonnage, is projected to grow 5-7% while OEM segment is projected to grow by 1-3%. The slow growth in OEM demand is attributable to the expected decline in commercial vehicle sales which account for ~50% of overall tyre sales by tonnage.
The commercial vehicle (CV) sales for fiscal year 2025 are expected to decline marginally by (2)-0%. Light Commercial vehicles (LCVs) are projected to grow by 0-2% aided by volume up for replacement, while Medium and Heavy Commercial Vehicles (MHCV) sales are projected to decline by (4)-2% on account of the high tonnage sold in MHCVs over the preceding years. Passenger vehicle sales are projected to register a moderate growth of 5-7% after recording 3 years of high sales.
Growth in the replacement sector will be majorly led by revival in rural market which is predominantly dependent on farm incomes which remained subdued in the previous fiscal owing to erratic monsoon which led to lower crop yields. However, with normal monsoon prediction and healthy reservoir levels, the tyre sales which got postponed previously are expected to materialise this fiscal. Additional factors including the ongoing healthy economic scenario, softening inflation coupled with improvement in income sentiments, improving industrial activity, along with the government’s emphasis on infrastructure development, mining, and road construction is expected to boost tyre sales in fiscal 2025.
Strong presence of Indian two-wheeler OEMs in African and Latin American nations along with better brand image of Indian tyre OEMs to aid increased exports of two-wheeler tyres. Slowdown in exports is expected in other segments owing to weak demand from advanced economies in Europe and America.
Two-wheeler tyres: Review and outlook
Improving urban sentiments owing to a pick-up in overall public mobility, with resumption of work-from-office and physical classes in educational institutions, and positive rural sentiment backed by an anticipated normal monsoon, are expected to support two-wheeler sales this fiscal.
Three-wheeler tyres: Review and outlook
The need for cost-effective and efficient modes of transportation remains strong, thereby driving the demand for tyres. A larger number of operational three-wheelers would result in a higher demand for replacement tyres. The government regulations related to vehicle maintenance and safety can influence the demand for replacement tyres as they are required to adhere to certain standards.
Passenger vehicle tyres: Review and outlook
Passenger vehicle sales are expected to be driven by the expansion in the addressable market, urbanisation, low penetration, modest increase in the cost of acquisition and fast-paced infrastructure development. We also expect automobile manufacturers to focus on rural markets and expand their distribution network in semi-urban and rural areas.
The passenger vehicle sales are projected to grow by 5-7% in fiscal 2025 over a strong base created by 3 consecutive years of healthy growth. Rise in income levels along with increase in finance penetration coupled good traction in newly launched UV models is expected to bode well for the industry.
Better financial conditions, the launch of higher-end utility vehicle models by OEMs and improving demand sentiments are expected to drive 5-7% growth in fiscal 2025. Additionally, the high sales in the PV segment in fiscal 2022 are expected to result in higher tire sales in fiscals 2025 and 2026.
Commercial vehicle tyres: Review and outlook
The tyre demand from OEMs catering to the MHCV segment is projected to decline by 4-6% in fiscal 2025 due to a projected decline in the Medium and Heavy Commercial Vehicle (MHCV) sales segment by 2-4% in fiscal 2025. The projected higher decline in sales in higher tonnage vehicles is expected to lead to a larger decline in tyre sales in fiscal 2025. The decline in the volume up for replacement and the oversupply of tonnage in the system will hinder the volume growth. The higher tonnage available in the system is restricting volume growth in the current fiscal as the trend towards higher tonnage vehicles is expected to continue implying tonnage growth will be in line with GDP but volumes will be limited.
Tyre demand from OEMs catering to the LCV segment is projected to decline by 8-10% in fiscal 2025. Though overall LCV sales are estimated to grow by 0-2% due to increase in sales of LCVs and pickups by 2-4%, the ULCV segments which have higher tyre sizes is estimated to decline by 35-40% due to subdued volumes up for ULCV replacements which peaked in fiscal 2023.
Tractor tyres: Review and outlook
OEM tractor tyre demand is projected to record an 3-5% growth in fiscal 2025 on account of higher tractor purchases which are estimated to grow by 4-6. Subdued rural sentiments due to erratic rainfall and high input costs have led to a decline in farmer sentiments.
Tyre demand from the tractor segment is expected to be stable in the long run as the government has set a target to augment farm incomes, provides direct income support to farmers and owing to improvement in land productivity through issuance of soil health cards. The government’s renewed thrust on enhancing irrigation intensity is expected to support tractor growth and increase mechanisation. Tractor manufacturers have started offering rental services via mobile applications, which will also prop up demand for tractors in the long term.
Key competitors
Overview of the treads industry in India
The treads industry in India is a thriving sector that caters to the growing demand for tyres in the country. Driven by factors such as increasing vehicle ownership, improvement in road infrastructure and rising disposable income, the industry is expected to witness steady growth in the coming years.
In addition to the major players, there are several small and medium-sized enterprises (SMEs) that operate in the industry. These SMEs play a vital role in meeting the demand for specialised treads and cater to niche markets.
Key growth drivers in India
- Cost efficiency: Retreading tyres are more cost-effective than buying new ones, which helps reduce operating expenses of commercial vehicle operators
- Technological advancements: Technological and procedural developments in retreading have enhanced the longevity and functionality of retreaded tyres, increasing their consumer appeal
- Environmental awareness: Retreading is a sustainable practice, as it helps reduce the environmental impact of tyre disposal and the need for new tyre production
- Government regulations: The expansion of the retreading sector can be fuelled by laws such as ELT (Extended Life of Tyres) which place limitations on the disposal of old tyres
- Collaboration with tyre manufacturers: Partnerships between retreaders and tyre manufacturers can lead to the development of high-quality retreaded tyres
- Expansion of commercial vehicle fleet: Retreaded tyres are mostly used by commercial vehicles, which are prevalent in India and contribute to the expansion of the business
- Infrastructure development: Tyre longevity can be increased and the need for retreading services can rise with improved road infrastructure.
Retreading
Retreading is the process of replacing the worn tread on a tyre with a new one. This can be done multiple times, depending on the condition of the tyre casing. Retreading is a more cost-effective and sustainable option than purchasing a new tyre.
The following are the main retreading trends in India across all vehicle segments:
- Commercial vehicles: In India, buses and trucks that are used for business purposes are the main consumers of retreaded tyres. This is because retreading significantly reduces tyre costs for fleet operators.
- Passenger vehicles: Retreading is also gaining popularity in India among drivers of passenger vehicles. This is brought on by the rising price of new tyres and the growing understanding of the advantages of retreading for the environment.
Functionality of Bias tyres and retread tyres
Due to their simpler construction, bias tyres are typically less expensive to manufacture than radial tyres. This makes them a budget-friendly option for certain applications. The strong sidewalls of bias tyres allow them to handle heavier loads compared to radial tyres of the same size. This is why they are often used in trucks, trailers, and agricultural equipment. The flexible carcasses and construction provide better grip on loose surfaces like sand, mud, and gravel. This makes them popular for off-road vehicles and agricultural equipment. The strong sidewalls offer increased resistance to punctures and sidewall damage, making bias tyres suitable for applications where road hazards are common.
Retreads extend the usable life of a tyre by replacing the worn-out tread with a new layer of rubber. This can significantly reduce the need for new tyre purchases. Retread tyres are typically much cheaper than new tyres, making them an attractive option for cost-conscious businesses and individuals. Retreads are often used for specific applications where durability and load capacity are paramount, such as in trucks, buses, and agricultural vehicles.
Over the past 25 years, the retreading business in India has undergone significant changes. Beginning with the conventional hot-cure method, the market evolved embracing the precure retread method and establishing the standard for the initial wave of modernisation.
Majority of the Indian retreading industry is still unorganised. With the advent of the established players, the industry has seen advancements in R&D which resulted in the introduction of new tread compounds and bonding materials. The new materials have improved the performance and durability of retreaded tyres.
Retreaders have adopted modern quality control procedures, such as statistical process control and failure analysis, which has helped reduce the number of defects in retreaded tyres. The growing awareness about the benefits of retreading, such as cost savings and environmental benefits, is boosting demand for retreaded tyres.
Thus, with a strong backing of technology-oriented processes and increase in arrival of new and established players, the domestic retreading industry is estimated to be valued about Rs 6,300-7,000 crore as of fiscal 2024. It is expected to increase to Rs 8,700-9,600 crore by fiscal 2029 at a CAGR of 6-8% between these fiscals, majorly supported by increasing customer awareness about the benefits of retreading.
Threats and Challenges
- Demand Side Challenges
- Slowdown in economic activities impacting buying decision.
- Above or below normal monsoons
- Impact of changing interest rates scenario
- Increase in vehicle cost of ownership
- Inherent cyclicity of Commercial vehicle segment
- Competitive pricing for tread rubber and retreading from unorganized players
- Commoditisation of tread rubber
- Supply side challenges
- Raw Material Availability and Cost (i) Cost management; (ii) Supply Chain disruption.
- Skilled Labor Shortage
- Technological Obsolescence
- Policy and Regulatory challenges
- Changes in tax and duties regime
- Environmental Regulations
Tolins Tyres Business Data
Tolins Tyres Verticals
- Tyres
- Light Commercial Vehicle Tyres(LCV)
- Off Road/Agriculture Tyres (OTR)
- Two-wheeler & Three-wheeler Tyres
- Tyre Tubes & Tyre Flaps
- Tread Rubber
- Precured Tread Rubber (PCTR)
- Conventional Tread Rubber
- Bonding Gum
- Vulcanising Solution
- Rope Rubber& Others
Tolins Tyres Market Share
(₹ in million unless otherwise stated)
Product Category | Company Revenue | Indian Market Size | Global Market Size | Company Market Share in India (%) | Company Market Share Globally (%) |
Tyres | 551.22 | 900,000 | 19,476,400 | 0.06% | 0.00% |
Retread Tyres | 1,720.96 | 63,000 | 940,240 | 2.73% | 0.18% |
Tolins Tyres Product wise break-up
(₹ in million unless otherwise stated)
Vertical | 2024 | 2023 | 2022 | |||
Amount | (%) | Amount | (%) | Amount | (%) | |
Tyres | 551.22 | 24.26% | 247.92 | 20.97% | 194.02 | 17.11% |
Tread Rubber | 1,720.96 | 75.74% | 934.54 | 79.03% | 939.63 | 82.89% |
Tolins Tyres Revenue contribution from Geography presence
(₹ in million unless otherwise stated)
Description | 2024 | 2023 | 2022 | |||
Amount | (%) | Amount | (%) | Amount | (%) | |
Exports | 122.3 | 5.38% | 139.61 | 11.81% | 158.37 | 13.97% |
Domestic | 2,149.88 | 94.62% | 1,042.85 | 88.19% | 975.28 | 86.03% |
(₹ in million unless otherwise stated)
Description | 2024 | 2023 | 2022 | |||
Amount | (%) | Amount | (%) | Amount | (%) | |
Dealers / Distributors | 1,631.72 | 71.81% | 268.58 | 22.71% | 161.28 | 14.23% |
Depot | 265.75 | 11.70% | 525.35 | 44.43% | 568.15 | 50.12% |
Van Sales | 115.9 | 5.10% | 113.86 | 9.63% | 96.98 | 8.56% |
OEM | 114.99 | 5.06% | 117 | 9.89% | 110.9 | 9.78% |
Exports | 122.3 | 5.38% | 139.61 | 11.81% | 158.37 | 13.97% |
State Transport Corporations | 21.52 | 0.95% | 18.06 | 1.53% | 37.96 | 3.35% |
Tolins Tyres Breakup of Export Income:
(₹ in million unless otherwise stated)
Description | 2024 | 2023 | 2022 | |||
Amount | (%) | Amount | (%) | Amount | (%) | |
Asia Pacific | 0.5 | 0.41% | 0.67 | 0.48% | 4.62 | 2.92% |
MEA | 117.02 | 90.91% | 135.52 | 97.07% | 140.52 | 88.73% |
Europe | 4.45 | 8.43% | – | 0.00% | 13.23 | 8.35% |
US & Canada | 0.33 | 0.27% | 3.42 | 2.45% | – | 0.00% |
Tolins Tyres Customer dependency
(₹ in million unless otherwise stated)
Customer Concentration | 2024 | 2023 | 2022 | |||
Amount | (%) | Amount | (%) | Amount | (%) | |
Top 3 Customers | 767.23 | 33.77% | 153.47 | 12.98% | 142.09 | 12.53% |
Customer 1 | 378.49 | 16.66% | 70.15 | 5.93% | 59.93 | 5.29% |
Customer 2 | 316.95 | 13.95% | 56.12 | 4.75% | 52.17 | 4.60% |
Customer 3 | 71.79 | 3.16% | 27.21 | 2.30% | 29.99 | 2.65% |
Top 10 Customers | 1534.463 | 42.69% | 285.92 | 24.18% | 304.16 | 26.83% |
Tolins Tyres Supplier dependency
(₹ in million unless otherwise stated)
Supplier Concentration | 2024 | 2023 | 2022 | |||
Amount | % of Sales | Amount | % of Sales | Amount | % of Sales | |
Top 3 Supplier | 1,207.42 | 60.00% | 853.38 | 78.29% | 814.52 | 79.07% |
Supplier 1 | 585.09 | 29.07% | 708.77 | 65.02% | 753 | 73.10% |
Supplier 2 | 379.35 | 18.85% | 101.64 | 9.32% | 31.02 | 3.01% |
Supplier 3 | 242.98 | 12.07% | 42.97 | 3.94% | 30.5 | 2.96% |
Top 10 Suppliers | 1,972.54 | 98.02% | 1,006.49 | 92.33% | 924.63 | 89.76% |
Tolins Tyres Machinery/Plants/Factory
- Two units in Mattoor, Kalady, Kerala, India12.
- One unit in Al Hamra Industrial Zone, Ras Al Khaimah, UAE
Tolins Tyres Capacity Utilisation
Year | Installed capacity | Actual Production | Capacity Utilization% |
Name of the Product: Tyre | (Numbers) | (Numbers) | |
FY 2023-24 | 1,508,400 | 477,861 | 31.68% |
FY 2022-23 | 1,508,400 | 254,686 | 16.88% |
FY 2021-22 | 300,000 | 226,861 | 75.62% |
Year | Installed capacity | Actual Production | Capacity Utilization% |
Name of the Product: PCTR | (Tonnes) | (Tonnes) | |
FY 2023-24 | 11,286 | 5,397 | 47.82% |
FY 2022-23 | 11,286 | 2,708 | 24.00% |
FY 2021-22 | 11,286 | 3,118 | 27.62% |
Year | Installed capacity | Actual Production | Capacity Utilization% |
Name of the Product: Bonding Gum | (Tonnes) | (Tonnes) | |
FY 2023-24 | 2,100 | 504 | 24.00% |
FY 2022-23 | 2,100 | 236 | 11.24% |
FY 2021-22 | 2,100 | 299 | 14.22% |
Year | Installed capacity | Actual Production | Capacity Utilization% |
Name of the Product: Flap | (Numbers) | (Numbers) | |
FY 2023-24 | 432,000 | 181,626 | 42.04% |
FY 2022-23 | 432,000 | 34,928 | 8.09% |
FY 2021-22 | 432,000 | 69,192 | 16.02% |
Competition
The structure of the domestic tractor industry has remained largely steady over the years. Mahindra & Mahindra (M&M) continued to lead with 41.2% market share and Tractors and Farm Equipment Ltd (TAFE) remained a distant second with 18% market share as of fiscal 2023. A strong pan-India network reach, strategic location of manufacturing facilities, good brand equity and a comprehensive product range from <20 horsepower (hp) to >50 hp have been the major factors behind M&M’s consistent dominance of the industry.
Tolins Tyres Peer companies comparison
(₹ in million unless otherwise stated)
Name of the company | Face Value per Equity Share (₹) | Total revenue from operations | EPS (₹) | NAV (₹ per share) | P/E Ratio | RoNW (%) | Closing price on August 23, 2024 (₹ per share) | PAT Margin (%) | |
Basic | Diluted | ||||||||
Tolins Tyres Limited | 5 | 2,272.18 | 9.52 | 9.52 | 36.8 | [·]# | 25.87% | [·]# | 11.45% |
Listed Peer Companies | |||||||||
Indag Rubber Limited | 2 | 2,511.85 | 6.15 | 6.15 | 87.46 | 39.94 | 6.79% | 245.65 | 6.20% |
Vamshi Rubber Limited | 10 | 774.21 | 1.87 | 1.87 | 32.54 | 27.94 | 4.46% | 52.25 | 0.79% |
TVS Srichakra Limited | 10 | 29,260.00 | 140.98 | 140.98 | 1451.55 | 33.76 | 9.70% | 4,759.00 | 3.68% |
GRP Ltd | 10 | 4,613.79 | 169.78 | 169.78 | 1250.57 | 24.07 | 13.58% | 4,085.80 | 4.91% |
Elgi Rubber Company Limited | 1 | 3,864.45 | 2.33 | 2.33 | 37.91 | 45.12 | 6.15% | 105.14 | 3.02% |
(₹ in million unless otherwise stated)
Key Performance Indicators | Tolins Tyre Limited | Indag Rubber Limited | Vamshi Rubber Limited | TVS Srichakra Limited | GRP Ltd | Elgi Rubber Company Limited | ||||||||||||
2024 | 2023 | 2022 | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | 2024 | 2023 | 2022 | |
Revenue from Operations | 2,272.18 | 1,182.46 | 1,133.65 | 2,511.85 | 2,438.55 | 1,669.25 | 774.21 | 799.4 | 700.13 | 29,260.00 | 29,849.70 | 25,282.00 | 4,613.79 | 4,510.00 | 3,884.24 | 3,864.45 | 3,944.97 | 3,895.79 |
Gross Profit | 630.74 | 236.82 | 184.62 | 818.51 | 695.27 | 467.66 | 243.96 | 207.63 | 209.42 | 13,159.50 | 12,165.90 | 7,898.30 | 2,520.94 | 2,416.64 | 2,063.78 | 2,078.36 | 2,086.11 | 1,943.09 |
Gross Margin (%) | 27.76% | 20.03% | 16.29% | 32.59% | 28.51% | 28.02% | 31.51% | 25.97% | 29.91% | 44.97% | 40.76% | 31.24% | 54.64% | 53.58% | 53.13% | 53.78% | 52.88% | 49.88% |
EBITDA | 463.74 | 122.61 | 60.9 | 165.7 | 136.39 | 8.06 | 32.59 | 26.34 | 30.28 | 2,968.10 | 2,289.30 | 1,668.40 | 507.2 | 247.88 | 231.99 | 248.71 | 419.21 | 54.53 |
EBITDA Margin (%) | 20.41% | 10.37% | 5.37% | 6.60% | 5.59% | 0.48% | 4.21% | 3.30% | 4.32% | 10.14% | 7.67% | 6.60% | 10.99% | 5.50% | 5.97% | 6.44% | 10.63% | 1.40% |
PAT | 260.06 | 49.92 | 6.31 | 155.83 | 132.37 | 25.92 | 6.11 | 0.93 | 0.29 | 1,077.60 | 778.2 | 433.2 | 226.37 | 139.48 | 57.61 | 116.61 | 67.5 | -163.53 |
PAT Margin (%) | 11.45% | 4.22% | 0.56% | 6.20% | 5.43% | 1.55% | 0.79% | 0.12% | 0.04% | 3.68% | 2.61% | 1.71% | 4.91% | 3.09% | 1.48% | 3.02% | 1.71% | -4.20% |
Return on Equity (%) | 25.87% | 25.70% | 5.83% | 6.79% | 6.25% | 1.25% | 4.46% | 0.72% | 0.23% | 9.70% | 7.53% | 4.46% | 13.58% | 9.46% | 4.23% | 6.15% | 3.67% | -9.54% |
Return on Capital Employed (%) | 36.08% | 31.49% | 14.80% | 4.42% | 4.12% | -1.64% | 13.40% | 10.99% | 9.77% | 11.11% | 9.06% | 5.59% | 16.74% | 6.25% | 5.58% | 4.73% | 1.76% | -9.30% |
Debt-Equity Ratio | 0.78 | 2.42 | 4.51 | – | – | – | 1.35 | 1.59 | 1.82 | 0.75 | 0.64 | 0.63 | 0.68 | 0.6 | 0.73 | 1.61 | 1.47 | 1.44 |
Tolins Tyres Subsidiary companies
- Tolin Rubbers Private Limited – Wholly owned Indian subsidiary
- Tolins Tyres LLC (One Person) – Wholly owned foreign subsidiary
Tolins Tyres Group companies
- Toja Tyre and Treads Private Limited
- TPF Bharath Private Limited (formerly known as ‘Tolins Pure Foods Private Limited’)
- Uniglobe Foods Private Limited
- Uniglobe Economic Park Private Limited
- Quality Mix India Private Limited
- Peejay Rubber Industries Private Limited
- Tolins Technologies Private Limited
- Tolins Tread India Private Limited
- Tolins World School Private Limited
- Safeboat Trip Private Limited
- Kalco Mart Private Limited
- Chris Hotels India Private Limited
Tolins Tyres SWOT ANALYSIS
- Strengths
- Established Brand: With over four decades in the industry, Tolins Tyres has built a strong brand reputation.
- Diverse Product Range: Offers a wide variety of tyres for different vehicles, including two-wheelers, three-wheelers, LCVs, and agricultural vehicles.
- Global Presence: Exports to over 40 countries, showcasing a strong international market presence.
- Quality Assurance: Known for high-quality products and stringent quality control measures.
- Strong Dealer Network: Extensive dealer network and partnerships with OEMs enhance market reach.
- Weaknesses
- Dependence on Raw Material Prices: Fluctuations in raw material prices can impact profitability.
- Limited Market Share in Premium Segments: May have limited presence in the premium tyre segment compared to larger competitors.
- Geographical Concentration: Manufacturing units are concentrated in specific regions, which could pose risks in case of regional disruptions.
- Opportunities
- Expansion in Emerging Markets: Growing automotive markets in developing countries present significant growth opportunities.
- Technological Advancements: Investing in R&D for advanced tyre technologies can open new market segments.
- Sustainability Trends: Increasing demand for eco-friendly and sustainable products can be leveraged.
- Diversification: Expanding into related product lines or services can reduce dependency on core products.
- Threats
- Intense Competition: Facing stiff competition from both domestic and international tyre manufacturers.
- Economic Fluctuations: Economic downturns can affect consumer spending on new vehicles and replacement tyres.
- Regulatory Changes: Changes in environmental and safety regulations can impact manufacturing processes and costs.
- Supply Chain Disruptions: Global supply chain issues, such as those caused by pandemics or geopolitical tensions, can affect production and distribution.
Tolins Tyres Business risk factors
- The tyre manufacturing industry is encountering difficulties because of limited suppliers for key raw materials such as natural rubber and carbon black. Further, Tolins Tyres do not have any long-term contracts with suppliers and engage them by way of placing purchase orders. Volatility in the prices and availability of raw materials or any failure by our suppliers to make timely delivery of raw materials or breakdown of our relationship with such suppliers could have an adverse effect on our business, financial condition and results of operations.
- Tolins Tyres is dependent on automotive original equipment manufacturer (“OEM”) customers for the sale of a significant portion of our agricultural tyres.
- Tolins Tyres business is significantly dependent on our Manufacturing Facilities in India and abroad. entire infrastructure, facility and business operations are currently concentrated in Kalady, Kerala and Ras Al Khaimah, UAE. Any disruption in manufacturing at, or temporary or permanent shutdown of, our Manufacturing Facilities, may materially and adversely affect our business, prospects, financial condition and results of operations.
- Tolins Tyres derive a portion of revenue from the sale of bias tyres, which may result in pricing pressure that could adversely affect profitability.
- A significant portion of tyre products are sold to dealers & distributors. We do not enter into contractual agreements with our distributors and dealers and any failure to maintain the relationship with these dealers & distributors or find competent replacements could affect the sales of our products.
- The sale of our products is concentrated majorly in Kerala. In Fiscal 2024 (on a consolidated basis) and in Fiscal 2023 and 2022 (on a standalone basis), our revenue from sale of products in Kerala accounted for 46.71%, 66.91%, and 63.33% of our revenue from operations, respectively. Any adverse developments affecting our operations in such region, could have an adverse impact on our business, financial condition, results of operations and cash flows.
- As on March 31, 2024, we sourced 29.07% of our total requirement of rubber compounds, from Tolin Rubbers Private Limited (“TRPL”), our wholly owned Indian subsidiary. Our dependence on our Subsidiaries exposes us to significant operational and financial risks.
Tolins Tyres Financials
Tolins Tyres Key Financial Ratios
Particulars | 31st March 2024 | 31st March 2023 | 31st March 2022 |
Current Ratio | 1.43 | 1.25 | 1.07 |
Debt Equity Ratio | 0.78 | 2.42 | 4.51 |
Debt Service Coverage Ratio | 2.12 | 1.43 | 1.01 |
Return on Equity Ratio | 0.26 | 0.26 | 0.06 |
Inventory Turnover Ratio | 0.37 | 0.3 | 0.19 |
Trade Receivable Turnover Ratio | 3.55 | 4.96 | 3.08 |
Trade Payables Turnover Ratio | 5.94 | 8.24 | 2.66 |
Net capital Turnover Ratio | 4.72 | 9.19 | 22.78 |
Net profit ratio | 11.45% | 4.22% | 0.56% |
Return on Capital employed | 36.08% | 31.49% | 14.80% |
Tolins Tyres Key Performance Indicators
(₹ in million unless otherwise stated)
Key Performance Indicators | 2024 | 2023 | 2022 |
Revenue from Operations | 2,272.18 | 1,182.46 | 1,133.65 |
Gross Profit | 630.74 | 236.82 | 184.62 |
Gross Margin (%) | 27.76% | 20.03% | 16.29% |
EBITDA | 463.74 | 122.61 | 60.9 |
EBITDA Margin (%) | 20.41% | 10.37% | 5.37% |
PAT | 260.06 | 49.92 | 6.31 |
PAT Margin (%) | 11.45% | 4.22% | 0.56% |
Return on Equity (%) | 25.87% | 25.70% | 5.83% |
Return on Capital Employed (%) | 36.08% | 31.49% | 14.80% |
Debt-Equity Ratio | 0.78 | 2.42 | 4.51 |
Tolins Tyres Assets & Liabilities
(All amounts are in ₹ million, unless otherwise stated)
Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
ASSETS | |||
non-current assets | 619.57 | 197.69 | 210.11 |
current assets | 1,596.41 | 640.55 | 781.31 |
TOTAL ASSETS | 2,215.98 | 838.24 | 991.42 |
EQUITY AND LIABILITIES | |||
equity | 1,005.33 | 194.23 | 108.25 |
non-current liabilities | 95.53 | 132.1 | 151.63 |
current liabilities | 1,115.12 | 511.91 | 731.54 |
TOTAL EQUITY AND LIABILITIES | 2,215.98 | 838.24 | 991.42 |
Tolins Tyres Profit & Loss
(All amounts are in ₹ million, unless otherwise stated)
Matrix | 2024 | 2023 | 2022 |
Revenue from Operations | 2,272.18 | 1,182.46 | 1,133.65 |
Gross Profit | 630.74 | 236.82 | 184.62 |
Gross Margin (%) | 27.76% | 20.03% | 16.29% |
EBITDA | 463.74 | 122.61 | 60.9 |
EBITDA Margin (%) | 20.41% | 10.37% | 5.37% |
PAT | 260.06 | 49.92 | 6.31 |
PAT Margin (%) | 11.45% | 4.22% | 0.56% |
Tolins Tyres Cash Flow
(All amounts are in ₹ million)
Description | 2024 | 2023 | 2022 |
Net Cash flow (used) in / generated from Operating Activities | -35.9 | 18.15 | 25.3 |
Net Cash flow (used) in / generated from Investing Activities | -541.26 | 0.28 | -25.67 |
Cash Flow (used) in / generated from Financing Activities | 577.14 | -19.35 | 1.04 |
Net increase/(decrease) in cash and cash equivalents | -0.02 | -0.92 | 0.67 |
Tolins Tyres Capital structure
(All amounts are in ₹ million, unless otherwise stated)
Particulars | March 31, 2024 |
Total borrowings | |
Non-current borrowings | 88.04 |
Current Borrowings | 699.68 |
Debt | 787.72 |
Equity | |
Equity Share capital | 153.30 |
Other equity | 852.03 |
Total Equity | 1,005.33 |
Debt equity ratio | 0.78 |
Non-current borrowings/ Total Equity | 0.09 |
IPO Details
Tolins Tyres IPO Details
Feature | Details |
---|---|
IPO Type | Initial Public Offering (IPO) |
Issue Size | ₹230 crore |
Price Band | ₹215 – ₹226 per share |
Face Value | ₹5 per share |
Fresh Issue | ₹200 crore |
Offer for Sale | ₹30 crore |
Listing Exchanges | BSE, NSE |
Open Date | September 9, 2024 |
Close Date | September 11, 2024 |
Listing Date | September 16, 2024 (tentative) |
Object of the issue
Particulars | Estimated Amount (₹ in million) |
Repayment and / or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by our Company | 699.69 |
Augmentation of long-term working capital requirements of our Company | 750.00 |
Investment in our wholly owned subsidiary, Tolin Rubbers Private Limited to repay and/ or prepay, in full, certain of its short term and long-term borrowings and augmentation of its working capital requirements | 231.54 |
General corporate purposes | [●] |
Litigation involved
Gray Market Premium
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