Local besides Foreign Direct Investment (FDI) can be attracted especially in tyre manufacturing by improving supply of basic utilities like electricity and gas to industry and improvement in law and order situation of the country, an official of General Tyre and Rubber Company (GTR) said.
He said besides these issues, some tariff anomalies and smuggling were major impediments to growth of local industries.
Heavy smuggling of tyres into Pakistan has scared away foreign investors, while India is taking advantage of this situation by offering them incentives, which is why global tyre manufacturing players are strengthening their existence in Indian market, he added.
The official said if government was desperate for foreign investment, then it should curb smuggling as mounting volumes of smuggled goods, specially tyres were hurting tyre industry.
Moreover, for encouragement of local industries government should devise a policy for all government departments
to purchase locally made products only.
GTR Company’s primary objective is to produce tyres of international quality standards for all types of automotive vehicles and to help government to save millions of dollars in foreign exchange through import substitution.
The Company besides paying hundreds of millions of rupees in taxes every year, (Rs 235 million in 2013-14) also earns foreign exchange through its exports. It is a 51-year old ISO 9001 certified Company that produces both radial and bias tyres.
On technology GTR is using latest equipment of American, German, English and Chinese origin for production as well as a well-equipped laboratory for testing its products.
GTR’s raw materials are imported from sources approved by Continental AG. Yet each batch is furt
her checked in our laboratory, he added.
GTR has 1,800 experienced people on its payroll including engineers trained in Germany, USA, Japan and other developed countries.
Continental AG, fourth largest tyre manufacturer in the world has 10% stake in GTR and representation on board of directors.
It supplies all required technology, audits the Company annually and provides training to our engineers and other technical executives, he added.
GTR produces tyres for passenger cars, light and heavy trucks, farm tractors, rickshaws and motorcycles. General tyre produces 38 sizes in 27 designs.
These sizes cover over 75% of the sizes being imported and in demand in local market. GTR has 23% share in a market where more than 100 brands are available.
Its main customers are vehicle assembly plants, Army, government institutions and replacement or aftermarket. General tyres are also being exported to Afghanistan, Syria and Bangladesh.