hi,
to add to this, as per the company, to set up a similar plant overseas in USA / Europe will cost 2-2.5x. Their cost of operations and therefore cost of end products would be that much higher, and conversely, their ROE/ROCEs and payback periods would be that much lesser.
Regarding an Indian company setting up this plant, it is very much possible. To some extent, the company currently has the advantage of low cost of plant and machinery, which is developed in house. But whether any other company can also do the same? Yes, its possible. Will they also take 5-7 years to develop the process efficiency? Maybe they may be able to do it faster. We need to monitor this and find answers.
rCB is used as a part substitute in making VCB, which continues to remain a crude derived product. Will it make business sense for a tyre manufacturer to make VCB? We only have Balkrishna Tyre’s case study. None of the other tyre manufacturers have gone into this backward integration.
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