At a time when the automobile sector is
facing the heat of slowdown and thus affecting the ancillary industries such as
automotive components, Steelbird International, automotive component and tyre
manufacturer, plans to increase its footprints in the market, focusing more on
the diverse markets and take advantage of the US-China trade war. The company
aims to reach 30,000 retail touchpoints for tyres to 30,000 from the current
3,000 by FY21.
"We are working aggressively towards
becoming one of the top five tyre manufacturers in the country by 2023,"
said Manav Kapur, Executive Director, Steelbird International.
"The industry has to increase its
exports to untapped markets and give competition to Chinese products in
international markets. Indian products are preferred by many clients outside
India and we should find the ways through which we can give competition to
Chinese in pricing factors also. In international market we are facing cost
competition from China but then there are markets where Indian products are
preferred over others such as Latin America. Good business is already being
done in markets of North America and Europe. The industry should focus more on
markets that already have a good perception of Indian products," said Kapur.
Kapur feels that the presence in other
markets will have the industry tackle the heat of the slowdown in the
automobile sector. Giving the example of his own company, he said, "Steelbird
saw a 25 per cent year-on-year dip in auto parts segment in the first quarter
of this fiscal, but we garnered an overall double-digit growth owing to exports
and after-sales segments. Our strategy to focusing on diverse markets has
helped us contain the impact of slowdown when the industry is reeling under its
It is currently growing at a CAGR of 22.7
per cent and the company is also working aggressively to augment its exports
and garner around one-third of its revenue from that segment in three or four
years, up from the current 10 per cent. Steelbird International already exports
to Latin American countries, Germany, Japan, Sri Lanka and Bangladesh, among