Taking Measured Steps For Growth

In an upfront interaction, Chu Tsang Chih (Kurachi), Director, Maxxis India speaks to Ashish Bhatia on the company taking measured steps for growth.

- Ashish Bhatia

Q. How did the company fare in the last fiscal on key metrics including inventory turnover and the operating profit? How did the pandemic-induced factors drive the direction that business took?

A. Maxxis had achieved the highest Original Equipment (OE) sales after the pandemic with an average sale of over 2.4 lakh tyres. Despite the Covid-19 pandemic, the company had sufficient supply and storage of raw material capacity to consider Original Equipment Manufacturer (OEM) orders smoothly due to the effective forecast methodology.

Q. To what extent have you recovered from the negatives of the pandemic marred financial year and do you see green shoots for business development and continuity?

A. India is facing the heat of the most unprecedented crisis with the second wave of the Covid-19 pandemic. The automobile industry is going through a tough phase due to restricted production as inventories need to be cleared up first, resulting in a slowdown in the tyre industry in India as well. However, as unlock has begun, the auto sector hopes to bounce back soon. As personal mobility would become the preferred mode for a majority of the commuters, we see green shoots for development of the OEM sector.

Also, with the pick-up in the vaccination drive, we are quite optimistic and hopeful for sustainable growth. I feel a planned and concerted action, both on an immediate and medium to long term basis will ensure a quick and sustained recovery and we are following the same for a swift recovery at our end.

Q. Where do the plant utilisation levels stand post the second wave of the pandemic? Are you still as firm on commissioning new plants and going ahead with the earmarked investments?