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Off-highway Tyre Manufacturer ATG Set To Expand In India

Alliance Tyre Group ATG

Alliance Tyre Group (ATG) plans to increase its market share in India by 25% in the next 5 years.

ATG Off-highway Tyre Manufacturer

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Hadera, Israel based Alliance Tyre Group (ATG), an off-road highway tyre manufacturer is now looking to increase its market share in India by 25% in the coming 5 years. In July 2016, ATG was completely acquired by Japanese tyre major Yokohama and currently exports nearly 1.4 lakh tonne capacity from its two plants in India, Dahej (Gujarat) and Tirunelveli (Tamil Nadu) to United States of America and Europe serving over 3% of the USD 1.5 billion domestic market.

To fulfil their growth plans, ATG is looking to forge alliance with tractor original equipment manufacturers (OEMs) during the period of next one year. As the agricultural sector in India has a lot of potential which is still untapped, and to exploit this potential ATG has plans to increase its production capacity in the country.

As per Angelo Noronha, President – APAC, the Middle East & Africa, they don’t have the exact stats on market share in India. But, presently it is somewhere around 4% of the total market which is worth about USD 1.5 billion. He also added that they are looking to increase the market share to approx. 25% during the course of next 5 years. Achieving this will make India the third largest market for ATG in the future.

Mr. Noronha further added that ATG has already developed 60 products for India and 40 more products are under development stage, which once released, will cater to the demands of the fast-growing domestic agriculture sector. He said, ATG is present in over 120 markets and spends around 3-4% of its USD 600 million turnover on R&D annually. In terms of revenue generation, Europe and USA contribute about 80% for ATG and the remaining comes from the rest of the world.

Over the past 9 years, ATG has invested approx. USD 400 million in India, setting up two plants: an 80,000 tonne plant in Tirunelveli (2009) and a 60,000 tonne facility in Dahej (2013). Apart from these, they have one facility in Israel also. Mr. Noronha said that these plants are already running over 90% of their capacity and will soon get saturated. So, by 2019, they will have an expansion plan ready in both brown and Greenfield. And for the next 5 years, ATG is looking to invest more in capacity expansion.

ATG came into existence after the Alliance of Israel and Galaxy of the US came together under the ownership of KKR & Co. Inc. (KKR). Then subsequently in 2009, KKR was acquired by Yokohama Rubber Company of Japan. Since then, ATG has grown from a USD 80 million company to USD 600 million by the end of 2017, thereby making it the fifth largest off-highway tyre maker in the world. In India, ATG has 350 agri-sectors dealers that span over 20 states and 70 dealers for construction tyres in 22 states.

Ankit verma

Author: Ankit verma

My need for speed began at a very early age and I realised this as soon as I got my first bicycle at the age of 8. When all the other kids would break downhill I would pedal harder just to go faster and enjoy the thrill. Adding to my interest for speed, I grew engrossed in the working mechanics

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