### **Company Overview** Indag Rubber Limited (IRL), established in 1978 as a joint venture between the Khemka Group and Bandag Inc. (USA), is a leading Indian player in the **tyre retreading industry**. After the dissolution of the Bandag JV in 2006, the Khemka Group assumed full control, and the company has since grown into a trusted name in organized retreading, pioneering **cold retreading technology** in India. Listed on the Bombay Stock Exchange (BSE) since 1984, IRL is recognized as a technological innovator and sustainability advocate in the commercial tyre sector. In recent years, Indag has diversified into the **green energy space**, establishing **Millennium Manufacturing Systems Pvt. Ltd.**, a joint venture focused on power electronics for renewable energy and battery storage systems, signaling a strategic shift toward future growth beyond traditional manufacturing. --- ### **Core Business: Tyre Retreading** #### **Product Portfolio & Manufacturing Capacity** - **Annual Capacity**: - **Precured Tread Rubber (PTR)**: 20,000 metric tons, serving M&HCVs, LCVs, passenger vehicles, and off-road applications. - **Un-vulcanized Rubber Strip Gum**: 5,000 metric tons/year with strong bonding and fast curing properties. - **Universal Spray Cement**: 2,200 kiloliters/year in three variants for oxidation protection and durable bonding. - **Retreading Envelopes**: High productivity, low cost-per-cure solutions. - Products are engineered for diverse conditions—highways, hilly terrains, mining, and off-road—enhancing tyre life and retreading efficiency. #### **Technology & R&D** - Operates a **state-of-the-art R&D facility in Nalagarh, Himachal Pradesh**, established post-pandemic to accelerate innovation. - Conducts **fundamental research** in collaboration with chemical suppliers, carbon black, and synthetic rubber manufacturers to develop **advanced rubber compounds** and proprietary tread recipes. - Continuous innovation pipeline; recent launch of **"Win Master"** at Bharat Mobility (Jan 2025) exemplifies outcomes of R&D investment. #### **Sustainability & Market Drivers** - Retreaded tyres reduce **material use by 70%**, conserving 57 liters of oil, 44 kg of rubber, and preventing 136 kg of CO₂ emissions per tyre. - Industry inclusion in **Extended Producer Responsibility (EPR) schemes** supports long-term growth. - Rising costs of fuel, new tyres, and driver wages are increasing adoption of retreaded tyres by fleet operators. --- ### **Market Presence & Distribution Network** - **Pan-India Distribution Infrastructure**: - **300+ dealers** - **3,000+ retreaders** (largest organized network) - **15–16 strategically located depots** - **50+ trained on-ground personnel** (sales executives, technical, and fleet engineers) - Operates the **only loyalty program in the retreading industry**, linking directly with 3,000+ retreaders managing over **40,000 commercial vehicle fleets**. - Focus on strengthening relationships through training, audits, and technical support. --- ### **Strategic Initiatives & Growth Drivers** - **Growth through Market Penetration**: - Expansion in open-market sales, state road transport corporations (SRTC), and direct partnerships with fleet owners. - Deepening presence in existing markets and entry into **export markets** (Middle East, Africa, Eastern Europe). - **Brand Building**: - Promotion of **"Indag"** and **"Zoma"** (international brand) as symbols of quality and cost-efficiency. - Emphasis on **lowest cost per kilometer (CPKM)** as a key value proposition. --- ### **Diversification into Green Energy: Millennium Manufacturing Systems** - **Joint Venture** with ELCom Innovations and SUN New Energy Capital. - **Facility**: Advanced manufacturing base in **Mohali, Punjab**, aligned with **Make in India** and global supply chain resilience goals. - **Focus**: Manufacturing of **Power Conversion Systems (PCS)** for **Battery Energy Storage Systems (BESS)** and renewable energy applications. - **Objective**: - Become **India’s leading power electronics manufacturer**. - Serve global clients in the **U.S., Europe, and Japan**, de-risking supply chains in green energy. - Target **1 GW manufacturing capacity**, with plans for volume production from **FY26**. - Certified in Q1 FY25; **first deliveries completed in Q2 FY25**, with ramp-up progressing. - Engaged in **contract manufacturing for a global BESS market leader**, offering strong revenue potential. --- ### **Financial & Operational Performance** - **FY2023**: Strong recovery—**46% revenue growth** due to stable replacement tyre demand. - **FY2024-FY2025**: Growth moderated, with **9.1% decline in FY2025**, followed by a **19% YoY drop in Q1 FY2026**—driven by reduced sales in STC business and broader market challenges. - Despite standalone operations being constrained by **competition from unorganized players**, future growth is expected to be driven significantly by **Millennium’s ramp-up**. - **No debt on balance sheet**; strong focus on **operational efficiency, margin protection, and cost-saving initiatives**. --- ### **Awards & Recognition** - Recognized as one of **Forbes Asia’s Best ‘Under a Billion’ Companies (2016)**. - Received **Inc 500 Certificate of Excellence (2012 and 2013)**. - Consistently acknowledged for innovation, sustainability, and market leadership.