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?
A. At Maxxis, the employee’s safety has been prioritised over the business targets. There was a shutdown for a brief period. To ensure the workforce's well-being, we have been strictly conducting employee health check-ups including RT-PCR tests, compulsory vaccinations for all the staff. Also, we have been following all government protocols of social distancing, limited workforce, operating in shifts and other safety measures for our employees. The manufacturing unit operates under the guidelines drawn by the Ministry of Home Affairs and the Gujarat State Government. Currently, employees are working in shifts with a full capacity workforce. We intend to augment production as the situation in the country improves and as the demand unfolds. Also with 20K tyres, the current capacity of our plant, we are more or less able to sustain it even in this crisis period.
With Maxxis’ technological prowess and a global legacy of over 50 years, we plan to realise our vision of capturing at least 15 per cent of India’s tyre market by 2023. We are committed to the Government’s ‘Make in India’ initiative and our robust manufacturing facility with new-age technology will harness Maxxis group’s production excellence. We are also very keen to set up a new facility for the production of four-wheeler tyres. However, we are currently evaluating the market situation and will navigate our strategy as per the future conditions.
Q. What is the near and medium to long term sectoral outlook for the key segments you operate in? Has the outlook been redefined with the threat of recurring waves of the pandemic looming large on Q2FY2022?
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