Ralco to launch jeep, tractor tyres

Ludhiana-based Ram Lubhaya and Sons Limited, manufactures of Ralco Tyres, plans to launch jeep, tractor front and animal-driven vehicle (ADV) tyres in the next six months.

Launching tyres for two and three-wheelers and light commercial vehicles (LCV) in the Andhra Pradesh market, G S Passi, deputy general manager (marketing), said: "The tyre industry is expected to grow faster in the next couple of years and that is why the company is exploring new markets."

According to him, the motorcycle tyre segment "� which saw sales of 1.37 crore tyres in 2002-03 "� is expected to go up by around four crore per year over the next eight years. Similarly, in the LCV segment the tyre sales, which were 18.1 lakh in 2002-03, are expected to go up to around 26 lakh tyres over the next eight years.

Passi said the company had a well-distributed network comprising 32 branches and 13 consignee agents across the country. The company has three branches and a network of 150 dealers in Andhra Pradesh.

For the financial year ended March 31, 2004 the company recorded a turnover of Rs 5 crore and expects to cross the Rs 10-crore mark in the current financial year. Passi said that the company was expecting the state to contribute around 20-30 per cent of the total turnover.

The company which at present produces around one lakh tyres and tubes per month would increase the production capacity to around 1.5 lakh tyres a month.

The company supplies tyres to Hero Motors and is talks with couple of other original equipment manufactures (OEMS) for the supply of tyres.

Ram Lubhaya and Sons Limited, which is promoted by the Rs 300 crore Ralson India Limited, started the production of two and three-wheeler and light commercial vehicle tyres two years ago.