Tolins Tyres IPO Capital To Aid In Debt Reduction, Says MD R Sanakarakrishnan
The company has allocated approximately Rs 85 crore to clear these liabilities.
A key component of the capital raised by the initial public offering of Tolins Tyres Ltd. was the reduction of debt across its parent company and subsidiary, said Managing Director R Sanakarakrishnan. The company has allocated approximately Rs 85 crore to clear these liabilities.
An amount of Rs 75 crore is being augmented for additional working capital requirement of the company, based on estimated targeted growth for the company in ensuing years, he said.
Founded 42 years ago, Tolins is one of the leading players in the Indian tyres segment, said Sanakarakrishnan. By 2003, Tolins Tyres expanded its operations into tyre manufacturing.
"Today, Tolins Tyres operates in two primary verticals: manufacture of new tyres and tread rubber. The company has emerged as a leading player in the tread rubber market," he said, underscoring its industry prominence.
A major highlight of 2023 was the acquisition of the Rado Tyres unit from Ceat Ltd. in Kerala, said Sanakarakrishnan, stating that this acquisition has ramped up Tolins Tyres' production capacity from 1,000 to 5,000 tyres per day, marking a significant expansion of its manufacturing capabilities.
The operational focus remains predominantly on tread rubber, which constitutes 75% of its business, with new tyres making up the remaining 25%, he said.
Tolins Tyres has consolidated its operations by bringing two standalone companies under the promoter holding. This includes Tolin Rubber Pvt.
