Gujarat Reclaim Rubber (now GRP Ltd)

One of most important insight i have found on GRP vs Tinna in Tinna’s Q4 concall

Question:

Hi, sir, could you help understand about MRP on reclaimed rubber usage in tyres, so, do the
applications vary or is that MRP can contribute to higher replacement potential.

Answer:

See MRP and reclaim both are having the different applications so MRP is picking up, reclaim
is More degenerated. It does not add the added advantage to the rubber compounds it is just
a cost saving option for the user whereas the micronized rubber powder MRP is a semi
enforcing filler. So, this is basically helps in the cost saving as well as it also gives the stable
parameters technical parameters to the tyre producer. 

GRP is primarily in Rubber Reclaim segment:

No mention of MRP in its investor presentations, Concalls or annual reports.

Tinna on other hand is among one of only MRP producers in the world (from tinnas Q1fy23 concall):

He also explains what the diference between CRM & MRP is. MRP is just a finer/smaller version of CRM. CRM are large rubber chunks.

^ The one on extreme right (above 120 MESH) is MRP.

Expectedly they would not bond or dissolve easily with bitumen or other rubber of the tyre (he explains that here: The Tyre Recycling Podcast | Episode #24 | Business Witness: Gaurav Sekhri – YouTube).
This is why MRP is a superior product (easier & more structural integration with virgin rubber or bitumen).

Tinna did 10000 ton of MRP in FY22. Source: Tinna Rubber & Infrastructure Ltd. – Valorem CXO Meet – YouTube
That is roughly 20% of their volume output (must be higher % of value output).

Could be part of the reason why GRP has not been able to grow its topline is it possible that MRP usage increase is causal or correlated with CRM usage plateauing?

Disclaimer: invested in tinna, studying GRP as well for competitor analysis