In a candid conversation with Power Drive, Mr. Parag Satpute, Managing Director, Bridgestone India spoke about the present challenges being faced by the tyre industry, the recently inaugurated expansion plan in their Indore plant and how telematics will change the demand pattern in the tyre market.
PD: How has Bridgestone been affected by the recent slump in the auto industry?
PS: The industry we operate in is cyclical in nature, therefore there are ups and downs. The auto sector has been affected and consequently, our business with them has been impacted. Our strong presence in the aftermarket has stood us in good stead during this time. We have also used this opportunity to introduce new products and solutions bringing value to our consumers. But with mid-term to long-term opportunities to grow, we believe India is a growth market.
PD: What are the challenges faced by the tyre industry as a whole?
PS: The Indian automotive sector is cyclic in nature. A cyclic downturn combined with weak consumer sentiments results in auto manufacturers reassessing their demand for tyres. This in turn does impact tyre industry. Radialization is one of the major challenge in the Indian tyre industry today that I see. While passenger car consumers have predominately taken to radial tyres, the switch in the commercial vehicles is somewhat slow. The challenge lies in convincing the commercial vehicle consumer the cost benefits of switching to radials. The tyre industry is also facing challenges due to high raw material prices especially the rising cost of the main ingredient, natural rubber. Another major concern is Chinese tyre manufacturers dumping tyres in India which affects the whole Indian tyre industry. Although the government has imposed anti-dumping duty, these cheap tyres are now making their way through illegal or illicit imports which is a cause for concern.
PD: Bridgestone India has inaugurated the expansion in its Indore plant earlier this year. To what extent is the capacity being utilised at present?
PS: Earlier in July this year, we announced about the capacity expansion at our plant in Madhya Pradesh. With this expansion, the capacity of the plant will go up to over 20,000 tyres a day by 2020. This will enable Bridgestone India to produce the entire Bridgestone India’s range of radial tyres serving the passenger car segment.
PD: Tell us how telematics will revolutionise the tyre market?
PS: For fleets, fuel is the major operating cost. Fuel consumption is largely driven by the condition of tyres as well. Telematics will help on this front as this technology will monitor tyre parameters like pressure, tread depth and temperatures. These directly impact fuel consumption and thereby impact fleet economics. Telematics will therefore change the demand patterns in the tyre market.
PD: Share with us the latest innovation at Bridgestone that will ensure superior products and improved performance of your tyres?
PS: We have a product called Ecopia which is a fuel efficient tyre. By moving from a standard tyre to Ecopia tyre the car or truck driver can save upto 7 -10 percent of fuel. We continue to work on next generation of fuel efficient tyres as well high technology tyres that offer durability, performance and safety.
PD: Tell us about Bridgestone’s association with the upcoming Olympics Games.
PS: Bridgestone is one of the thirteen companies globally who are top Olympic sponsors and the only one headquartered in Tokyo. This is a very significant commitment from our side as it’s a long term partnership. Our reason for this association is that we believe strongly that the ideals and values of the Olympic moment matches with Bridgestone’s values. We are trying to inspire people who come across Bridgestone through ‘Chase Your Dreams’. In each country where Bridgestone is present, we have formed what we call Team Bridgestone. In India, we have a set of five athletes namely Lalita Babar, PV Sindhu, Sakshi Malik, Mary Kom and Srikanth Kidambi who are members of team Bridgestone. By leveraging their popularity we want to inspire people to chase their dreams in all walks of life including in sports.
Power Drive 