"We are focused on the replacement market"

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we had added to our existing capacities, you will see enhanced market shares in the coming years.

You pioneered the concept of branded showrooms with CEAT Shoppe but in the past five years you’ve had to shut many of these stores. Any plans to revitalise that distribution route?

Contrary to perception, CEAT Shoppe turnover has crossed Rs 100 crore, riding on a 60%-plus growth rate last year. And, yes, we were indeed the pioneers in building a branded retail presence in the industry. We currently have about 75 stores in the country and this number has been constant for the past five years or so. With this logo change and other business strategies, we expect to embark on an expansion mode and double the turnover in the next two years.

Apollo and JK have begun foraying into the re-treading market? What are your plans?

We are evaluating various business models. If we do enter this market, it would be more as a service add-on.

How serious is the threat from cheap imports from countries like China?

Chinese imports have been around for many years now—both in bias and radial technologies. Customers have more choice now. Like we export heavily, in a globalised world we cannot wish away imports into the country. So we cannot consider any competition as threat. It helps us as an organisation to push ourselves forward and, as a result, the customer gains.

After four years, Modirubber has come out of the BIFR fold. Will that add to your woes?

Modi’s production will add to the supply side. I feel that quality Indian tyres will push out inferior Chinese tyres from the market to a certain extent. Second, the replacement market is expanding at a healthy clip. OEM (original equipment manufacturer) demand is expected to recover. CEAT is nicely hedged with an export network in 110 countries. We export at a healthy profit. More competition will push everyone to be more innovative and customers will benefit.

Why is radialisation proceeding so slow in the commercial market? What are the major barriers in its way?