Indag Rubber is a tyre retreading company that calls itself “the only alternative to new tyres” - it makes the materials that give a worn truck or bus tyre a second life at roughly a third of the cost of buying new. It was born in 1978 when founder Nand Lal Khemka brought cold-process retreading to India for the first time through a joint venture with Bandag Inc., the American global leader, and became a fully promoter-controlled Indian enterprise after the venture ended in 2006. The recurring approach is to sell not just rubber but a full ecosystem - materials, technical know-how, and on-ground support - to a network of thousands of independent retreaders who then serve fleet owners across the country. # Business segments Two engines at different stages - a tyre-retreading materials cash cow built over four decades, and a power-electronics subsidiary still in its first commercial orders - each drawing on the same promoter group’s industrial DNA. ## 1. Tyre retreading materials: the core business that supplies India’s retreaders **Indag makes the full kit a retreader needs - tread rubber, bonding gum, cement, and envelopes - and sells it through 300 dealers to over 3,000 retread shops, backed by a fleet-consultancy service that competitors do not match.** - **One factory, one full kit** - the plant at Nalagarh, Himachal Pradesh, on a 95-year government lease, produces precured tread rubber at 20,000 metric tonnes a year, cushion gum at 5,000 tonnes, spray cement at 2,200 kilolitres, and heat-resistant envelopes, so a retreader can buy every consumable from a single supplier. - **Sold to retreaders, not to fleets** - the direct customers are the 3,000-plus independent retreading shops across India who apply Indag’s materials to worn tyre casings; the end-users are fleet owners running tankers, trailers, buses, and e-commerce trucks who care about cost-per-kilometre, and Indag’s fleet engineers help those owners squeeze more mileage out of every retreaded tyre. - **A loyalty loop that locks in demand** - the “Indag Ke Sitare” programme connects directly to over 3,000 retreaders who between them handle more than 40,000 fleets, making it the only loyalty programme in the industry and giving Indag visibility into end-demand that a pure materials supplier would lack. - **Premium pricing through service, not just product** - the company commands a slight price premium because it bundles technical consultancy, on-ground audits, and training for “Indag Certified Retreaders,” and it operates in more discerning fleet segments where unit margins are higher. - **An environmental pitch that is also an economic one** - every retreaded tyre saves 57 litres of oil, 44 kg of rubber, and about 136 kg of CO₂ versus manufacturing a new tyre, while giving the fleet owner roughly 70% of a new tyre’s life for about 30% of the price; that dual argument is the engine of demand in a market where formalisation and waste-tyre regulations are pushing out unorganised players. ## 2. Millenium Manufacturing Systems: a green-energy bet in power electronics **A 51%-owned subsidiary that makes power conversion systems for battery energy storage, targeting export clients who want to de-risk supply chains away from China - still in its first commercial orders.** - **Built, not bought** - in July 2023, Indag approved a 51% stake for a committed Rs. 11.1 crores in Indergy Power Systems Private Limited, and in May 2026 approved a further strategic investment in its subsidiary Millenium Manufacturing Systems Private Limited. - **A China-plus-one play** - the subsidiary explicitly aims to serve clients in the US, Europe, and Japan who want power-electronics manufacturing outside China, positioning itself as India’s leading power electronics company for the energy transition across generation, grid, and transport. - **Still pre-scale** - turnover was Rs. 26.48 lakh in FY26 and the unit recorded a loss in its first year; Indag has backed it with a Rs. 20 crore corporate guarantee to Kotak Mahindra Bank for working capital, secured against land and building. - **Shared promoter DNA** - the remaining 49% is held equally by Elcom Innovations and Sun Renewables, both entities under common promoter control, meaning the venture draws on the Khemka Group’s wider industrial and renewable-energy experience rather than starting cold. # Group structure and partners **A promoter-controlled, virtually debt-free listed company with a single operating subsidiary, a leased-out MRO property, and a history of exiting non-core ventures.** - **Listed parent, family-controlled** - Indag Rubber has been listed on the Bombay Stock Exchange since 1984, with the Khemka Group as promoter and founder Nand Lal Khemka as Chairman and Managing Director; the eight-member board includes four independent directors. - **An MRO centre leased to a related party** - the company built a maintenance-and-repair centre at Bhiwadi, Rajasthan, at a cost of Rs. 22.6 crore and leased it to Elcom Systems Private Limited, a fellow Khemka Group entity, on a 9.5-year lease with a 12% rent escalation every three years, turning idle land into a steady related-party income stream. - **Treasury portfolio, no standalone debt** - the company holds quoted equities, REIT funds, mutual funds, tax-free bonds, and corporate bonds as part of treasury management, and carries no borrowings at the standalone level beyond an unused Rs. 4 crore cash credit line from banks and lease liabilities.