Marangoni ready for “next phase of development” in India
With its acquisition of all remaining shares in the Marangoni GRP joint venture expected to be completed by mid-July, Marangoni Group is now looking forward to “embarking on its solo journey in India,” a region it considers a “fast-emerging key market in the retreading sector.”
Marangoni acquired GRP Ltd.’s 50 per cent stake in the joint venture through its wholly-owned subsidiary, Leader Rubber Company (SA) Prop. Ltd, South Africa. GRP reports receiving 710,000 euros for the sale of its shareholding.
Commenting on the transaction, Vittorio Marangoni, president of Marangoni Group, reaffirmed Marangoni’s focus in India as the “most growing country in its global expansion plans.” The company says it has established a premium and unique position in the Indian truck tyre market, particularly amongst “quality conscious fleets through its chain of franchisee partners in Gujarat, Maharashtra, Kerala, Tamil Nadu and Telangana, with its flagship Ringtread product. Acknowledging the “key milestones” that the joint venture has achieved over the last few years, Marangoni states that it now intends to “deepen and accelerate its business in India with this acquisition.”
Establishing a potent portfolio
Brett Sproson, managing director of Leader Rubber Company, looks favourably upon the progress the company and its franchisees have made in establishing the Marangoni brand in India, and believes the market-dominating position that Leader enjoys in Africa has great synergy with the Indian market. Leader Rubber’s deep experience in flat treads will add to the Indian team’s focus on Ringtread – all towards establishing a “potent product portfolio” to cater to more fleets and applications. Sproson, who has travelled to India in the past, hopes to travel again soon to renew his association with the country.
According to Hemant Kaul, chief executive officer of Marangoni in India, the company’s path forwards is clear, with a focus on “supporting our franchisees in growing their business and margins in their markets.” He thanks each franchisee partner for their patience and support during COVID-19 and subsequent period and assures them that several new initiatives are “ready to roll out in quick succession.”
Kaul believes the recent and growing trend of fleets seeking high-quality retreading solutions amongst “galloping” tyre prices is here to stay and provides Marangoni with a unique opportunity to increase its market share. He notes that in recent months, several of Marangoni’s customers have displayed a strong desire to significantly increase their retread to new tyre ratio to shield their business from rising costs.