General Tyre has rebounded and is trying to recoup the losses it incurred due to covid-19, announced the CEO of the company.
“The company is steadily on the road to recovery after the covid-19 global shutdown. The plant was shut down for nearly 75 days before resuming operations in June,” said Hussain Kuli Khan CEO General Tyre.
He added that the company caters to four segments namely Original Equipment Manufacturers (OEM’s); Replacement Market (RM); Institutions; and Export.
“During the last year Replacement market sales kept the company going. This segment strengthened because of the steps by the government to curb smuggling and covid-19 impacting the supply of under-invoiced imported tyres,” he added.
Similarly, he added, the OEM sales have started picking up after a lack luster year while the institutional / army tender sales have also increased, as they are giving preference to indigenous products which are of good quality and price competitive too.
“The exports of the company have also grown significantly in the last couple of years with a hope to continue the trend this year as well. The major destination is Afghanistan,” said the CEO.
It is to be noted that at the end of first quarter of the current financial year the net sales of the company were Rs 3.2 billion (up by 42% against the same period last year).
The company reported profit after tax as Rs 126 million (up by 6.9 times) and the exports for the same period earned the company Rs. 29.3 million (32% increase).
“The company has contributed Rs 13.5 billion to the national exchequer during the last five years in the form of duties and taxes. Also, the company over the last five years has invested Rs 4.7 billion in BMR,” he said.
He added that this year the major addition is the application of joint less cap ply in the radial tyres for more stable road contact and soft ride.
“This has also improved ride (safe ride during high speed) and handling of tyres while it reduces fuel consumptions due to less rolling resistance.
“This new feature in the tyres has extended tyre life due to less heat generation by the tires,” said the CEO.
In equipment category, he added, the company has added a new steelastic machine for making steel belts for radial tyres.
“Also, automatic tyre sorting and conveying system to take tyres from curing to the warehouse via inspection and uniformity has also been introduced.
“Besides, the company has state-of-the-art radial tyre building machines along with hydraulic tyre curing presses for radial tyre curing.
“Moreover, there are automatic cutting and splicing machines to cut body plies of radial tyres,” he added.
Talking about the joint ventures of Chinese tyre companies to set up plants in Pakistan, the CEO said this is a welcome sign.
“The government has to introduce certain measures to keep them while these steps will also benefit the existing tyre manufacturers,” he said.
He added that the government should ensure that a certain percentage of the raw materials for the industry is manufactured locally as currently over 90 percent of the raw material is imported.
“Secondly, the government has to continue in its efforts to abolish smuggling and under invoicing of tyres,” suggested the CEO.