AgencyMaxxis sets 15% revenue goal.

NEW DELHI: Taiwanese tire giant Magis Group is investing heavily in India with plans to set up five plants as the company expects it to play a major role in the Indian tire market. An official said, “We aim to become a top five tire brand in the world by 2025.”

The company is currently the world’s ninth-largest tire brand with 2019 sales of about $4 billion. India and Indonesia will play an important role in achieving the goal by 2025.

The company is investing $4.41 billion in its first manufacturing plant in Sanand, Gujarat, with the goal of increasing production of two-wheelers to $60,000 vehicles as part of the first phase of the project’s expansion, which currently produces tires at 20,000 vehicles per day. Increase. The number of items has increased to 20,000 per day Individuals.

“Magis aims to be one of the top five companies in the world within the next five years. We have made great strides in East and Southeast Asia and have a significant presence in the European and American markets.”

“Our next two major international markets will be Indonesia,” said Wu Binglin, Marketing Director of Magis India.” . “India will play a key role in achieving the group’s annual target by 2025.” “We estimate that a small percentage of Indian market sales can help us achieve this goal. Going forward, the minimum requirement to achieve this target is 4-5 production units. ‘

Asked about the investment and timeline for setting up these plants, he said, “We will start discussions soon.”

Further, he said that the investment in the new plants will be less than the investment in Sanand’s first plant, where the company has invested in process machinery such as mixing, vulcanizing and calendering and “ultra-high-capacity machines”. ‘6 supply to 7 lines’

“The follow-on plant will try to optimize between investment and utilizing the existing capacity at Sanand. Currently, Magis India’s Sanand plant is supplying two-wheel tires to Honda, Hero MotoCorp, Yamaha and Suzuki, Mahindra Mahindra and Tata Motors, Maruti Suzuki, Jeep.

Commenting on the expansion of the Sanand plant, Mr. Lu said, “We are using half of the land (106 acres) purchased from the Gujarat government for our planned 60,000 production capacity. The remaining half of the land is still in use. ” “The decision to invest in additional capacity for 60,000 two-wheelers depends on investing in the production of four-wheeler tires.”

Magis aims to capture 15% of the Indian two-wheeler tire market by 2023.

If the company achieves its 15 percent market share target, “we will be utilizing the full capacity of our Gujarat plant to some extent,” Land said.

In the four-wheeler segment, the group’s targets and expectations for India 2025 are focused on the two-wheeler and four-wheeler tire segments, he said. “But in terms of volume, two-wheeler tires are definitely better than four-wheeler tires in India.” “The business is more profitable.”

Asked about growth prospects for 2020, Lew said that despite the downturn in the automotive industry, Magis expects to continue the growth momentum from last year as it will be able to increase its share of business into original equipment manufacturers (OEMs).

“Considering the high percentage of our existing partners, and the fact that we are looking at multiple programs with OE (original equipment) partners at the same time, we believe we can still achieve rapid growth. ‘ He said. /blood