Viaz Tyres Limited is an Ahmedabad-based automotive component manufacturer specializing in the production of **butyl rubber tubes** and specialized tyre products. Established in **2018** and listed on the **NSE Emerge** platform in **2023**, the company is currently undergoing a strategic transition from a tube-centric manufacturer to a comprehensive global provider of tyres and automotive lubricants. --- ### **Core Product Portfolio and Revenue Streams** The company operates a hybrid manufacturing model that integrates skilled manpower with automated production lines. Its business is categorized into two primary operational streams: * **Manufacturing & Ancillary Sales:** * **Butyl Inner Tubes:** The flagship product, manufactured for bicycles, two/three-wheelers, passenger vehicles, and heavy-load industrial vehicles. * **Specialized Tubes:** Production of **Off-the-Road (OTR)** and **Animal Driven Vehicle (ADV)** tubes. * **Automotive Lubricants:** Sale of **white-labeled** engine oil and grease to provide a comprehensive vehicle solution portfolio. * **Trading & Job Work:** * **Exclusive Distributorship:** Trading of tyres through an exclusive partnership with **Maxxis Rubbers Private Limited** (Turkey), commenced in **FY 2022-23**. * **Bicycle Tyres:** Sale of tyres manufactured on a job-work basis. --- ### **Manufacturing Infrastructure and Scalability** Viaz Tyres operates from a centralized hub in Gujarat, which has been significantly expanded to support its transition into full-scale tyre production. | Feature | Details | | :--- | :--- | | **Primary Plant Location** | Nandasan, near Ahmedabad, Gujarat | | **Current Plant Area** | **1.5 lakh square feet** | | **Expansion Land Bank** | **1.4 lakh square feet** (Acquired for scaling tyre production) | | **Installed Tube Capacity** | **7,00,000 tubes per month** (**1.56 Crore annually**) | | **Automation Level** | Fully automated bottling and packaging lines | *Note: Operations at the Nandasan plant recently resumed following a temporary disruption caused by a fire in December 2025; the company is currently processing **insurance claims** for the assessed loss of **Rs. 3.49 Crore**.* --- ### **Strategic Pivot: The "India-to-Global" Expansion** Viaz is aggressively pursuing a share of the global tyre market, projected to reach **$160 billion by 2028**. The strategy focuses on high-growth emerging markets and specialized segments. * **International Hub (UAE):** In May 2024, the company incorporated **Autobots Trading FZC LLC** (90% stake) in Dubai to manage all international business development and trading of automobile accessories. * **African OEM Strategy:** Secured a strategic tie-up with an **OEM in Uganda** for tyre and tube manufacturing and trading, serving as a blueprint for further continental expansion. * **Target Segments:** * **ATV Tyres:** Targeting the global **All-Terrain Vehicle** market, projected to reach **$978 million by 2031** (**7.43% CAGR**). * **Replacement Market:** Capitalizing on India’s expanding road networks and rising vehicle ownership to drive domestic demand. * **Global Footprint:** Currently exports to **10+ markets** (including USA, Romania, and Colombia) with active interest from **30 additional countries** such as Saudi Arabia, Egypt, and Tanzania. --- ### **Capital Structure and Fund Raising** To fund its transition into full-scale tyre manufacturing and international expansion, the company has initiated a major capital-raising exercise. | Instrument | Quantity | Price per Unit | Aggregate Value | | :--- | :--- | :--- | :--- | | **Equity Shares** (Nov 2025) | **11,86,000** | **Rs. 70** | **Rs. 8.30 Crore** | | **Convertible Warrants** (Nov 2025) | **35,11,000** | **Rs. 70** | **Rs. 24.58 Crore** | | **Total Target Capital** | - | - | **Up to Rs. 59.08 Crore** | * **Authorised Capital:** Increased from **Rs. 12.51 Crore** to **Rs. 25.00 Crore**. * **Promoter Confidence:** Key management, including the MD and CFO, have committed to subscribing to over **34.6 lakh** securities. * **Warrant Terms:** Holders pay **25%** upfront, with the remaining **75%** payable upon conversion within **18 months**. --- ### **Financial Health and Debt Profile** The company has successfully transitioned its debt profile, moving from commercial bank term loans to specialized institutional financing. **Comparative Borrowing Position (₹ in Lakhs)** | Particulars | Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | | :--- | :--- | :--- | :--- | | **Secured Term Loans (Banks)** | **-** | **214.30** | **216.00** | | **Secured Term Loans (SIDBI)** | **100.00** | **-** | **-** | | **Net Long-Term Borrowings** | **81.44** | **214.30** | **216.00** | * **Project Financing:** Current borrowings from **SIDBI** are specifically tied to a **400 KW Grid-Connected Rooftop Solar Power Plant**. * **Working Capital:** Maintains a **Cash Credit** facility of **₹11.39 Crore** with the **State Bank of India**. * **Collateral:** Debt is secured by **100% hypothecation** of current assets and personal guarantees from five key promoters. --- ### **Risk Assessment and Mitigation** Investors should consider the following factors that may impact the company's performance: * **Operational Vulnerabilities:** The company relies entirely on **third-party logistics**, exposing it to risks of pilferage and rising shipping costs. The recent **fire incident (Dec 2025)** highlighted the potential for localized operational disruptions. * **Market Competition:** The industry is fragmented with **no significant entry barriers**. Viaz faces price-based competition from both global giants and small domestic players. * **Geopolitical & Macro Risks:** As an export-oriented business, Viaz is "hugely dependent" on international relations, crude oil price fluctuations, and shipping vessel availability in war zones. * **Concentration & Governance:** * Revenue is dependent on a **limited number of customers**. * The company engages in **Material Related Party Transactions**, including the purchase of assets from the Managing Director. * **Raw Material Sensitivity:** Profitability is highly sensitive to the volatility of global rubber prices and a reliance on imported high-grade materials.