Tolins Launches New Tractor Tyres, Director Ramalingam Aims To Expand New Business
Tolins plans to use its network of over 1,200 dealers across India to ensure wide availability and accessibility for farmers.
Tolins Tyres has expanded its agricultural product lineup with the launch of heavy-duty tractor rear tyres, complementing its existing range of tractor trailer tyres, front tyres, and tiller tyres.
Whole Time Director Sankarakrishnan Ramalingam said that this move provides a comprehensive tyre solution for tractors, covering both front and rear needs.
The new tractor rear tyres will hit the market in late September, just in time for the 2025 harvest season. Tolins plans to use its network of over 1,200 dealers across India to ensure wide availability and accessibility for farmers. This strategic expansion is expected to drive substantial growth for the company by tapping into a new market segment in agriculture.
Currently, retreading materials like precured tread rubber account for approximately 60-65% of the company's revenue, with new tyres making up the remaining 35-40%.
The management aims to change this ratio to a 50-50 or even a 45-55 split in favour of new tyres over the next few years. The key growth drivers for this segment are tyres for agricultural vehicles, Light Commercial Vehicles (LCVs), and 2/3 wheelers. The company recently expanded its range of agricultural tyres and is not yet present in the passenger four-wheeler market.
This strategic pivot is supported by a significant capacity expansion in 2023, when the company acquired a plant in Kochi, increasing its production capacity from 100 to 5,000 new tyres per day. With the funds raised from its recent IPO, Tolins Tyres expects to reach 70-80% capacity utilisation within the next two to three years, capitalising on what Ramalingam describes as a favourable "manufacturer's market."
Tolins Tyres IPO in 2024
In 2024, the initial public offer of Tolins Tyres got fully subscribed within hours of opening of bidding and ended the first day with an overall over-subscription of 1.80 times. The initial share sale received bids for 1,34,50,866 shares against 74,88,372 shares on offer, according to NSE data. The Retail Individual Investors' portion was booked 3.16 times while the quota for non-institutional investors got subscribed 83%. The Qualified Institutional Buyers (QIBs) part got subscribed 12%.
Tolins Tyres is a leading player in the tyre and treads industry and exports its products to 40 countries, including the west Asia, East Africa, Jordan, Kenya and Egypt.
