The production per month varies between 90,000 to 91,000 truck tyres for all the three plants at Meerut, Modinagar and Modipuram in Uttar Pradesh. The company recorded a profit of over Rs 2 crore in January alone, after registering a profit of Rs 2.38 crore during the first quarter October to December 1998. The company is revamping the tyres for the light commercial vehicle (LCV) range and has already launched a new range for heavy commercial vehicles (HCVs).

New products for the LCV range are expected to be launched in May-June this year. The company has launched a newsize for the LCV range which is based on customer demand - 8.25.16 as against the 7.50.16. The 8.25 size is popular in markets abroad. MRL is reaping the benefits of the 14 products which were launched last year. These products were identified in 1997 and cover the whole segment, Gupta said. Of this, six were already there, while eight products had to be developed. "MRL's discussions with Continental to set up a plant jointly for radial tyres are on," he said. "Whenever both the partners feel that such a venture would be viable, they will go ahead with the planned investments for the green field plant," he stated.

Modi Rubber is not planning any cut in manpower. It had laid off 500-odd employees in 1996 and a VRS was also offered in the subsequent year. Around 85 per cent of the company's turnover comes from sales to commercial vehicles and the balance from exports. The sales for commercial vehicles come from the replacement market. It has increased its marketshare from 12 per cent to 14 per cent in theOctober to December 1998.

Modi Rubber feels that it would take some time to build awareness for its products, after which sales are expected to go up substantially. "Dealers are getting to know the company's products," Gupta said. The company recorded a higher turnover of Rs 229.82 crore for the quarter ended December 1998 as against Rs 204 crore for the previous quarter.