Neeraj Kanwar, Vice Chairman & Managing Director of Apollo Tyres says, “In the month of January, we have seen a cost push of nearly 15-20% coming in terms of oil produce and natural rubber both are our 100% consumption for our raw materials and what we have done internally is we have taken a 5% price increase for our tyres and volumes as you said are heavy, we are looking at 45-50% growth in all types of tyres and products.”
He says natural rubber today is at Rs 130-135 per kg. “This we have been taking in as an industry. Natural rubber today we are allowed to import at duties of 20% whereas the finished products is coming in at 7%. We have taken it up as an industry with the government because there is and inverted duty structure where 7% you can get the final product.”
Kanwar says the government needs to take a look at this issue. “We hope that in the new Budget that the Finance Ministry looks at us and tries to reduce this duty of natural rubber or thereby increasing the final produce from 7 to 20% that is what we are hoping in the budget comes through this time.”
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