Tinna Rubber & Infrastructure Ltd Management Discussions

1. ECONOMIC OVERVIEW

Global Economic Overview

The global tyre recycling industry has become an integral part of the circular economy, driven by increasing environmental regulations, rising vehicle ownership, and growing demand for sustainable raw materials. Globally, an estimated 1 billion End-of-Life Tyres (ELTs) are generated every year, with some recent industry estimates suggesting this figure could reach 1.8-2.0 billion tyres annually (around 26 million tonnes) as vehicle ownership continues to increase, particularly in emerging economies. These ELTs represent a significant secondary resource containing recoverable rubber, steel, carbon black, and hydrocarbons that can be reintroduced into industrial value chains.

The economic significance of tyre recycling continues to expand. The global tyre recycling market is projected to be valued at approx. USD 9-10 billion by the end of the decade, growing at a compound annual growth rate (CAGR) of approximately 3.5-5%, driven by stricter environmental regulations and increased demand for recycled materials. India remains one of the fastest-growing tyre recycling markets globally, with the domestic industry projected to reach approximately USD 743.8 million by 2030, expanding at a 4.1% CAGR and outpacing the global average.

Developed economies have established mature ELT management systems supported by landfill bans, Extended Producer Responsibility (EPR) schemes, and mandatory collection targets. The European Union recovers nearly all generated ELTs through material recycling, energy recovery, and retreading, while countries such as the United States, Japan, Canada, and Australia have developed organised collection and recycling networks that minimise illegal disposal and maximise resource recovery. These regulatory frameworks have encouraged private investment in advanced recycling technologies and strengthened markets for recycled tyre-derived products.

In Europes ELT market, around 3.5 million tonnes of ELTs are generated annually. Approximately 90% are collected. However, only a limited proportion is recycled back into new tyres, highlighting opportunities for higher-value circular applications. Globally, over 26 million tonnes of tyre material become available every year for recovery. Improving recycling efficiency can substantially reduce demand for imported natural rubber, virgin carbon black, and petroleum-based feedstocks while supporting national circular economy and climate goals. More than 30 countries have implemented Extended Producer Responsibility (EPR) or producer-funded tyre stewardship schemes, including members of the European Union, the United Kingdom, Canada, Australia, Japan, and South Korea, demonstrating the growing global shift towards circular management of waste tyres.

Technological innovation is transforming the industrys economics. Traditional recycling focused primarily on producing crumb rubber for relatively low-value applications such as playground surfaces and road construction. Today, advanced technologies including pyrolysis, devulcanisation, and high-efficiency mechanical recycling enable the recovery of recovered carbon black (rCB), pyrolysis oil, recovered steel, and synthetic gases, significantly increasing value recovery from waste tyres. These materials are increasingly being used as substitutes for virgin raw materials in tyre manufacturing, plastics, chemicals, construction, and energy-intensive industries, thereby reducing production costs and carbon emissions.

Recovered carbon black (rCB) has emerged as one of the fastest-growing segments of the tyre recycling industry. Major global tyre manufacturers are incorporating rCB into their sustainability strategies to reduce dependence on virgin carbon black, whose production is energy-intensive and carbon-intensive. Similarly, pyrolysis oil is gaining commercial importance as an alternative feedstock for refineries and the petrochemical industry, while recovered steel continues to provide an additional revenue stream for recyclers. These developments are improving the commercial viability of modern tyre recycling facilities and attracting investments in advanced processing technologies.

Beyond environmental benefits, the tyre recycling industry contributes significantly to economic development by creating employment across collection, transportation, processing, manufacturing, equipment supply, and research and development. It also supports resource security by reducing dependence on imported virgin raw materials such as natural rubber, carbon black, and petroleum-derived chemicals. As governments pursue net-zero commitments and industries adopt circular economy principles, demand for recycled tyre materials is expected to increase steadily.

Despite this positive outlook, several challenges remain. High capital investment requirements, fluctuating prices of virgin raw materials, inconsistent quality standards for recycled products, and limited market acceptance of secondary materials continue to constrain growth. In many developing countries, weak collection systems, informal recycling activities, and inadequate regulatory enforcement further limit resource recovery and reduce environmental performance. Nevertheless, increasing policy support, technological innovation, mandatory recycled-content requirements, and corporate sustainability commitments are expected to drive long-term expansion of the global tyre recycling industry, positioning it as a strategic resource recovery sector rather than merely a waste management activity.

The global tyre recycling industry is expected to witness sustained growth over the next decade, driven by increasing generation of End-of-Life Tyres (ELTs), stricter environmental regulations, rapid technological advancements, and growing demand for sustainable materials. The transition towards a circular economy, coupled with global commitments to achieve net-zero emissions, is transforming tyre recycling from a waste management activity into a strategic resource recovery industry.

Indian Economic Review

Infrastructure stands at a pivotal juncture in managing the rapidly growing volume of End-of-Life Tyres (ELTs), driven by the expansion of its automobile sector and rising tyre consumption. As tyres typically last only about one-fifth the lifespan of a vehicle, the increasing vehicle population has resulted in a significant rise in waste tyre generation. With tyre production projected to more than double over the next decade, establishing an efficient and sustainable

ELT management system has become an environmental, economic, and strategic priority.

Indias tyre industry plays a significant role in the global market, ranking seventh in global tyre production with approximately 3% of global output. The sector has consistently grown at around 10% annually and is expected to more than double its revenue by FY2032, driven by increasing vehicle ownership, sustained infrastructure investment, and a robust replacement market. Consequently, the industrys contribution to Indias manufacturing GDP, employment, exports, and tax revenues is also projected to increase. However, rising dependence on imported raw materials and volatility in natural rubber prices continue to pose challenges to long-term competitiveness, highlighting the need to strengthen domestic resource recovery through tyre recycling.

Improper disposal and technologically inferior recycling of ELTs contribute to environmental pollution while resulting in the loss of valuable materials such as rubber, steel, and carbon black. Since tyres are inherently rich in recoverable resources, ineffective recycling represents a missed opportunity for resource efficiency, circularity, and domestic value creation. Modern recycling technologies can recover high-value products such as recovered carbon black (rCB), pyrolysis oil, steel, and synthetic gases, reducing dependence on imported raw materials while supporting the development of a circular economy.

The recycling of ELTs presents a significant opportunity to advance Indias circular economy objectives, reduce landfill waste, improve resource security, generate green employment, and develop domestic markets for sustainable materials. Recycled tyre materials have a wide range of applications, including road construction, rubber flooring, automotive components, industrial products, construction materials, and landscaping products. Growing demand for sustainable materials further strengthens the economic potential of the recycling sector.

Despite these opportunities, Indias ELT recycling ecosystem remains fragmented and faces significant structural challenges. The sector continues to face challenges arising from limited traceability, inconsistent quality standards, suboptimal value recovery, and the predominance of informal recycling operations.. Although the Extended Producer Responsibility (EPR) framework has established an important regulatory foundation, its effectiveness is constrained by inconsistencies in the weightage methodology, ambiguity in the valuation of different recycled products, and limited integration of informal stakeholders into the formal compliance system. Furthermore, the adoption of high-value recycled products remains constrained by the absence of uniform quality standards, procurement mandates, and end-use specifications, leading to downcycling and lower value realisation..

Formalising the ELT recycling ecosystem is therefore essential to improve environmental compliance, increase resource recovery, and strengthen the effectiveness of the EPR regime. Integrating all stakeholders across the ELT value chain—including informal recyclers and retread- ers—into the formal regulatory framework will enhance traceability and accountability. Digital platforms such as the Udyam Assist Platform can facilitate the formalisation of unauthorised recyclers, while targeted financial assistance and one-time waivers of outstanding environmental liabilities may support infrastructure upgrades, subject to future compliance.

2. INDUSTRY STRUCTURE AND DEVELOPMENT

India is poised to become one of the fastest-growing tyre recycling markets globally, supported by the rapid expansion of the automobile sector, rising generation of End- of-Life Tyres (ELTs), increasing regulatory oversight, and growing emphasis on circular economy practices. The implementation of the Extended Producer Responsibility (EPR) framework for waste tyres has established a structured ecosystem for collection, recycling, and resource recovery, accelerating the formalisation of the sector and fostering investments in advanced recycling technologies..

The long-term outlook is further strengthened by the continued growth of Indias tyre and automotive industries. India is the worlds seventh-largest tyre producer, and the domestic tyre industry is expected to more than double its revenue by FY2032, driven by rising vehicle ownership, expanding road infrastructure, and a large replacement tyre market. This growth will significantly increase the availability of ELTs, ensuring a steady supply of feedstock for the recycling industry and supporting economies of scale. As tyre production and consumption increase, the recycling sector will play an increasingly important role in recovering valuable materials, reducing waste, and improving resource security.

The implementation of the Waste Tyre EPR framework is expected to accelerate the formalisation of the recycling ecosystem. The EPR mechanism creates financial incentives for authorised recyclers through tradable EPR certificates, encouraging investments in capacity expansion, technology upgradation, and environmentally sound recycling practices. It also promotes the integration of informal recycling activities into the formal economy, thereby improving traceability, environmental compliance, and material recovery.

India is also witnessing increasing investments in advanced recycling technologies such as continuous pyrolysis, devulcanisation, and micronisation. These technologies enable the recovery of high-value products including recovered carbon black (rCB), pyrolysis oil, reclaimed rubber, steel, and speciality chemicals. As domestic manufacturers increasingly seek sustainable raw materials to meet Environmental, Social and Governance (ESG) commitments and reduce import dependence, demand for these recycled products is expected to grow substantially.

Several structural trends are expected to shape the future of the industry:

Transition towards high-value material recovery

The industry is moving away from low-value applications such as tyre-derived fuel towards recovery of premium products including recovered carbon black (rCB), reclaimed rubber, pyrolysis oil, recovered steel, and speciality chemicals. These materials are increasingly being used by tyre manufacturers, chemical producers, and construction industries as substitutes for virgin raw materials, improving both economic returns and resource efficiency.

Growing investment in advanced recycling technologies

Continuous pyrolysis, devulcanisation, micronisation, and chemical recycling technologies are improving recovery efficiencies, reducing emissions, and increasing the commercial viability of tyre recycling plants. Global tyre manufacturers are also investing in advanced recycling facilities to secure sustainable feedstocks and reduce their carbon footprint. For example, Michelin, in partnership with Enviro and Antin, is establishing commercial tyre recycling plants in Europe to recover high-quality carbon black and oil from ELTs.

Increasing demand from infrastructure and construction sectors

The construction industry is emerging as the largest consumer of recycled tyre products. Applications such as rubberised asphalt, sports surfaces, playground flooring, railway components, sound barriers, and civil engineering materials are expanding due to their durability, noise reduction, and environmental benefits. In 2024, the building and construction sector accounted for over 42% of global tyre recycling market revenue, making it the largest end- use segment.

Carbon Emission Reduction

Producing recovered carbon black (rCB) can reduce greenhouse gas emissions by up to 80-90% compared with manufacturing virgin carbon black, making it an important decarbonisation pathway for the tyre and rubber industries.

TINNA RUBBER AND INFRASTRUCTURE LIMITED

Established in 1987, Tinna Rubber and Infrastructure Limited (TRIL) is a leading player in Indias tyre recycling industry. The company processes end-of-life tyres into high-value products such as crumb rubber, micronized rubber powder, and reclaimed steel, which are utilized in road construction and various rubber applications. With a strong focus on sustainability, Tinna specializes in manufacturing recycled rubber products while also offering infrastructure development services to serve diverse industrial sectors.

From a Tyre Recycler to Circular Materials Powerhouse, we have one of the most diverse product portfolios globally, among companies using waste tyre as a feedstock. Being one of the largest recyclers of ELT in India, its differentiated business model enables the transformation of ELT into a diverse range of products with applications across multiple end-user industries.

With a strong focus on sustainability, our Company specializes in manufacturing recycled rubber products. With a legacy spanning over 35 years and a pan-India presence, we are an integrated manufacturer with end-to-end capabilities to produce a wide array of products such as Crumb Rubber Powder (CRP), Micronized Rubber Powder (MRP) and high tensile Reclaim Rubber.

TRIL stands out as the only company in India manufacturing rubber-based products for both road bitumen and non-road industries. Our manufacturing footprint consists of eight Manufacturing Facilities, with five being in India and one in Oman, one in South Africa and in the process of establishing manufacturing facilities in Saudi Arabia. We serve various marquee customers in India and globally, including reputed companies in the tyre manufacturing, infrastructure, industrial, consumer and steel segments across the countries worldwide, including Mexico, China, Argentina, Brazil, Bangladesh, Nepal, Thailand, Sri Lanka and Middle East GCC.

Business Model

TRIL has developed an integrated circular economy business model that maximises value recovery from End-of- Life Tyres (ELTs). The Company transforms waste tyres into a diverse portfolio of sustainable products serving the infrastructure, industrial, consumer, steel and polymer industries. By combining advanced recycling technologies with value-added downstream processing, Tinna is able to generate multiple revenue streams while contributing to resource efficiency and environmental sustainability.

The Companys operations span the entire value chain— from procurement and processing of ELTs to manufacturing specialised recycled rubber products and supplying them to customers across domestic and international markets. This integrated approach enables greater control over quality, operational efficiency and product innovation.

Competitive Strengths

Integrated Circular Economy Platform

Unlike conventional recyclers that primarily produce crumb rubber, Tinna has established an integrated platform focused on maximising resource recovery through value-added products. The Company continues to expand its portfolio by incorporating advanced recycling technologies and developing new applications for recycled materials.

Diversified Product Portfolio

The Company offers one of the widest product portfolios in the tyre recycling industry, serving multiple end-use sectors including roads, tyres, industrial rubber products, sports infrastructure, steel abrasives and polymer composites. This diversified business model reduces dependence on any single industry while creating opportunities for sustainable long-term growth.

Strong Manufacturing Footprint

Tinna operates manufacturing facilities across India and international markets, providing proximity to customers and diversified sourcing capabilities. The Companys expanding processing capacity and continuous investments in technology support operational scalability and improved manufacturing efficiencies.

Technology-led Operations

Continuous investments in advanced recycling technologies, process optimisation and product development have enabled the Company to enhance recovery efficiencies, improve product quality and expand into higher-value applications. The commissioning of recovered carbon black (rCB) and tyre pyrolysis oil (TPO) facilities further strengthens the Companys integrated recycling ecosystem.

Growing Global Presence

The Company has established relationships with customers across multiple international markets and continues to strengthen its export franchise. Increasing global demand for sustainable raw materials and recycled products provides significant opportunities for further expansion.

3. OPERATIONAL PERFORMANCE

Operational excellence remains a key pillar of the Companys growth strategy. During FY26, Tinna continued to improve manufacturing efficiencies through higher capacity utilisation, better raw material flexibility, enhanced process optimisation and increased production of value-added products.

The Company also continued to optimise its product mix by increasing the share of specialised products with superior margins and stronger customer demand. Investments in technology and advanced recycling capabilities have enabled efficient processing of different categories of End-of- Life Tyres while improving overall recovery rates and manufacturing economics.

These initiatives have strengthened operational resilience and positioned the Company to capitalise on growing domestic and international demand for sustainable recycled materials.

The Indian Tyre crushing capacity increased by 9% to 185.000 TPA in FY26 compared to 170,000 TPA in FY25. Tyre crushing volumes increased by 13% in FY26 to 155.000 TPA due to an increase in capacity and utilization. Crumb rubber production witnessed an increase of 15%; a higher proportion of crumb rubber was utilized for value addition towards MRP, RR, and Crumb Rubber Modifier in FY26. FY26 Production volumes recorded strong YoY growth, with MRP increasing by 34%, RR by 19%, and CRM by 50%.

A. Infrastructure Segment

Infrastructure segment contribution reduced to 38% in FY26, reflecting a conscious decision to expand margins and curtail the sales of commoditized and thin margin products.

Revenue focused on value-added products and margin enhancement.

Revenue declined marginally by 7%, reflecting the strategic shift towards higher value-added offerings.

Despite challenges arising from the early monsoon, geopolitical uncertainties, and limited bitumen availability, the infrastructure segment demonstrated resilience.

Emulsion sales recorded an 8% growth in volumes.

B. Industrial Segment

Revenue contribution from the industrial segment increased from 26% in FY25 to 30% in FY26, reflecting strong demand for recycled rubber materials driven by the sustainability and ESG commitments of tyre manufacturers.

Achieved a strong 20% YoY growth in revenue.

Delivered robust 30% YoY growth in export volumes despite global economic headwinds, supported by a healthy order pipeline.

Micronized Rubber Powder (MRP) and Reclaimed Rubber (RR) volumes increased by 28% and 21%, respectively.

Rising raw material costs and increasing focus on ESG goals within the tyre manufacturing industry continue to drive demand in the industrial segment

C. Steel Segment

The Steel segment contributed 20% of total revenue in FY26, remaining consistent with its contribution in FY25.

Revenue remained stable on a YoY basis, while volumes recorded an 8% growth. Revenue growth was lower than volume growth due to volatility in steel prices, which showed a downward trend.

Steel abrasive sales maintained steady performance during the year.

Appointed as the Exclusive Authorized Distributor for Zibo TAA Metal Technology Co., Ltd., China for steel abrasives distribution across India.

The steel abrasives business is expected to achieve ~30% volume growth in FY27.

D. Consumer Segment

The Consumer segment maintained a stable contribution of 8% to total revenue in FY26, in line with FY25.

Revenue grew by 23% despite a marginal decline in volumes, reflecting the impact of price corrections.

Strong growth potential in the consumer segment, supported by the global rubber turf market projected to reach ~USD 13.7 billion by 2033 at an estimated 8-9% CAGR, with India emerging as one of the fastest-growing markets globally

Sales to the consumer segment will remain a key focus area

E. Polymer Composites and Masterbatch segment

The Polymer Composite & Masterbatch (PCMB) business has demonstrated strong growth, with revenue contribution rising from 1% in FY25 to 4% in FY26 and is expected to reach 8-10% in FY27.

The PCMB business is currently operating at 40% capacity utilization.

Commissioned a PP recycled compounding facility in FY26, supplying around 200 MT per month, strengthening its role in the recycled polymer value chain and supporting customers sustainability and EPR goals.

The Company expanded its PCMB capacity to 18,000 MTPA through a new facility near Panipat, which was commissioned in Q1 FY27.

Sustainability & Circular Economy

Sustainability forms the foundation of Tinnas business model. By converting End-of-Life Tyres (ELTs) into valuable secondary raw materials, the Company contributes to reducing landfill waste, conserving natural resources and advancing the transition towards a circular economy.

The Companys integrated recycling operations enable the recovery of rubber, steel, recovered carbon black (rCB), tyre pyrolysis oil (TPO) and other value-added products, reducing dependence on virgin raw materials while lowering the environmental footprint of downstream industries.

During FY26, the Company significantly strengthened its sustainability initiatives by more than tripling its installed solar power capacity from 1.23 MW to 4.48 MW, while also increasing renewable power procurement through third-party arrangements. As a result, nearly 50% of the Companys power requirement is expected to be met through renewable energy from FY27 onwards, improving energy efficiency, reducing carbon emissions and enhancing long-term cost competitiveness. These initiatives generated cost savings of approximately Rs.2.76 crore during FY26, demonstrating that sustainability continues to create tangible economic value alongside environmental benefits.

The Company also continued to invest in advanced recycling technologies, process optimisation and resource re-covery capabilities, enabling efficient processing of all categories of End-of-Life Tyres. These initiatives strengthen operational resilience, support long-term ESG objectives and reinforce Tinnas position as a leading circular economy solutions provider catering to the growing demand for sustainable materials.

Innovation & Technology

Innovation continues to drive the Companys long-term competitiveness. Tinna remains focused on developing advanced recycling solutions, improving recovery efficiencies and expanding applications for recycled materials across multiple industries. TRIL has allocated Rs. 5 Cr. to R&D for FY27.

The commissioning of recovered carbon black and tyre pyrolysis oil facilities represents an important milestone in enhancing value recovery from End-of-Life Tyres. The Company also continues to invest in product development, process optimisation and technology upgradation to strengthen its competitive positioning in an evolving circular economy ecosystem.

Vision 2029 represents Tinna Rubbers strategic roadmap to accelerate its transformation into a globally recognised integrated circular materials company while delivering sustainable and profitable growth. By FY2029, the Company aims to expand its global manufacturing footprint from 8 locations to 10 locations and nearly double its revenue to Rs.1,000 crore. The roadmap targets a 3-year revenue CAGR of over 25%, profit growth CAGR of over 33%, EBITDA margins exceeding 18%, and Return on Capital Employed (ROCE) of over 30%.

These aspirations will be supported by disciplined capital allocation, continuous investments in advanced recycling technologies, expansion of value-added products, strengthening of global markets, and an unwavering focus on shareholder value creation and strong corporate governance. Vision 2029 underscores the Companys commitment to creating a globally competitive, technology-driven and sustainability-led circular materials platform that consistently delivers superior shareholder value.

4. Outlook

Outlook of the end-of-life tyre recycling Indias waste tyre management ecosystem is estimated to handle millions of tonnes of ELTs annually, creating substantial opportunities for material recovery and secondary raw material production. Under the Waste Tyre Extended Producer Responsibility (EPR) framework, cumulative EPR obligations during 2022-2025 were approximately 6.20 million tonnes, demonstrating the scale of regulated tyre waste management requirements. During the same period, EPR certificates generated included approximately 6.64 million tonnes for domestic tyres and 2.56 million tonnes for imported tyres. The Central Pollution Control Board (CPCB) waste tyre EPR portal provides a digital mechanism for tracking producers, recyclers, and EPR certificates. As per CPCB dashboard data, the system has registered hundreds of stakeholders, including tyre producers, recyclers, and retreaders, indicating progressive formalisation of the sector.

The EPR framework has resulted in increasing participation of authorised recyclers. CPCB data indicates that the waste tyre EPR system has registered more than 500 recyclers, with significant processing capacity being brought under the formal compliance framework. As of March 2026, registered tyre recyclers under Indias EPR ecosystem had processed approximately 12.23 lakh tonnes of waste tyres, with around 11.69 lakh tonnes of EPR certificates generated, highlighting increasing formal recycling activity.

The future growth of Indias tyre recycling industry is expected to be driven by higher-value recovery technologies. Several high-growth segments are expected to drive the future expansion of the tyre recycling industry. Recovered carbon black (rCB) is projected to be one of the fastest-growing markets, supported by increasing demand from tyre manufacturers seeking lower-carbon alternatives to virgin carbon black. Pyrolysis products, including pyrolysis oil, syngas, and recovered steel, are also gaining importance as the adoption of advanced pyrolysis technologies improves resource recovery and creates additional revenue streams. Reclaimed rubber presents significant opportunities to reduce reliance on virgin rubber while promoting material circularity and sustainable manufacturing practices. Furthermore, the use of recycled tyre materials in rubberised asphalt and construction applications is expected to expand with growing infrastructure development, providing a large-scale and sustainable outlet for recycled rubber products.

By FY2030, Indias tyre recycling industry is highly promising, with the potential to process nearly 4 million tonnes of end-of-life tyres (ELTs) annually through formal recycling channels. This expansion is expected to position the industry as a major domestic supplier of secondary raw materials, including recovered carbon black (rCB), pyrolysis oil, syngas, and recovered steel, supporting the transition toward a circular economy. Increased production of these recycled materials will help reduce dependence on imported carbon black, natural rubber derivatives, and petroleum-based feedstocks, strengthening resource security and improving sustainability. Furthermore, the growth of the sector will encourage the development of a well-integrated circular economy ecosystem involving recyclers, retreaders, technology providers, logistics operators, and downstream manufacturers, thereby fostering innovation, economic growth, and green employment opportunities.

Overall, the outlook for the tyre recycling industry remains highly positive. As governments, industries, and consumers increasingly prioritise sustainability, the sector is expected to evolve into a critical pillar of the circular economy by recovering valuable secondary raw materials, reducing greenhouse gas emissions, supporting green manufacturing, and creating new opportunities for investment, innovation, and employment. Modern recycling technologies can recover most of these materials, significantly reducing dependence on virgin resources. Tyres are among the most successfully recovered consumer products globally, with recovery rates substantially higher than plastics and many other waste streams.

Outlook of the Polymer Composites and Masterbatches

Indias polymer composites and masterbatch industry is expected to witness sustained growth over the next decade, supported by rapid industrialisation, infrastructure development, automotive electrification, increasing demand for lightweight materials, and the expansion of plastics processing industries. The shift towards high-performance, sustainable, and application-specific polymers is creating significant opportunities for manufacturers of polymer composites, functional additives, and masterbatches.

Indias advanced polymer composites market was valued at approximately USD 151.5 million in 2024 and is projected to reach USD 208.3 million by 2030, growing at a CAGR of around 5.5% during 2025-2030. Growth is being driven by increasing adoption of lightweight composite materials in aerospace, automotive, renewable energy, construction, and industrial applications.

The Indian masterbatch market is also expanding steadily. The market was valued at approximately USD 364.7 million in 2024 and is projected to reach USD 460.1 million by 2030, registering a CAGR of about 4.15% during 2025-2030. Rising demand from packaging, automotive, construction, consumer goods, and agriculture sectors remains a key growth driver and reflects continued expansion of plastics conversion and specialty polymer applications.

Outlook of Recovered Carbon Black (rCB) Industry in India

Indias recovered carbon black (rCB) industry is at an early but high-growth stage, supported by the rapid expansion of the tyre recycling sector, increasing focus on circular economy practices, and growing demand from tyre manufacturers and rubber processors for sustainable alternatives to virgin carbon black. With India generating a large volume of End-of-Life Tyres (ELTs) annually and implementing a structured Extended Producer Responsibility (EPR) framework for waste tyres, rCB is emerging as one of the most promising high-value products from tyre recycling.

Recovered carbon black is expected to be one of the fastest-growing segments within the tyre recycling value chain. Globally, the rCB market is projected to expand significantly, with estimates indicating growth to approximately USD 706 million by 2030, representing a CAGR of around 16.4%. The growth is being driven by increasing demand for sustainable carbon materials in tyres, rubber products, plastics, coatings, and inks. The Indian tyre recycling market itself is projected to grow of approximately USD 743.8 million by 2030, with carbon black identified as one of the fastest-growing product segments.

Indias rCB market is expected to benefit from significant growth opportunities driven by the increasing availability of waste tyres as a reliable source of feedstock. Technological advancements, particularly the growing adoption of pyrolysis-based recycling processes, are improving resource recovery and creating higher-value recycled products. In addition, rising demand from tyre manufacturers for lower-carbon raw materials is expanding the market for recycled rubber and recovered carbon black. Furthermore, stronger government policies promoting resource recovery, circular economy practices, and the use of recycled content are expected to support industry growth and encourage greater investment in tyre recycling.

By 2030, rCB is expected to become a strategic circular material in Indias rubber and polymer ecosystem. Greater utilization of recovered carbon black can reduce dependence on imported virgin carbon black, strengthening domestic supply chains and improving resource security. The substitution of recycled materials for virgin raw materials also lowers the carbon intensity of tyre manufacturing, supporting sustainability and climate goals. In addition, improved recovery technologies and higher-value recycled products can enhance the economic viability of tyre recycling operations. These developments contribute to the establishment of more sustainable and resilient material supply chains while creating new employment opportunities in green manufacturing, recycling, and circular economy industries.

5. OPPORTUNITIES AND THREATS Opportunities

The major opportunities in tyre recycling are increasing waste tyre volumes, government support, demand for sustainable materials, advanced recycling technologies, recovered carbon black markets, and partnerships with tyre manufacturers. Businesses that combine efficient collection systems with high-value recycled products can capture significant growth potential.

Growth Drivers

The main growth drivers for the tyre recycling industry are increasing waste tyre generation, government regulations, circular economy initiatives, demand for recycled materials, technological innovation, sustainability commitments, and growth in automotive and infrastructure sectors.

Threats

The biggest strategic threats to tyre recycling are high operating costs, uncertain markets for recycled products, regulatory pressure, technology limitations, supply-chain challenges, and competition from cheaper disposal alternatives. Companies that invest in efficient technology, strong collection networks, and diversified recycled product markets are better positioned to manage these risks.

6. RISKS AND CONCERNS

The major risks in the tyre recycling industry include high investment requirements, uncertain raw material supply, regulatory pressures, safety and environmental concerns, technology challenges, fluctuating recycled product markets, and competition from alternative waste management methods. Effective collection systems, advanced technology, regulatory compliance, and strong market partnerships are essential to manage these risks.

The West Asia war is likely to create short-term cost pressure for tyre recyclers because of higher energy and transport costs. However, in the medium to long term, it may strengthen the tyre recycling industry by making recycled materials more attractive compared with petroleum-based virgin materials and by accelerating circular economy adoption

India is well positioned to emerge as a global hub for tyre recycling due to its rapidly expanding automobile sector, abundant availability of ELTs, competitive manufacturing costs, and the implementation of the Extended Producer Responsibility framework. Strengthening formal recycling infrastructure, improving traceability, adopting advanced recycling technologies, and creating markets for high-value recycled products can significantly enhance domestic value addition while reducing dependence on imported natural rubber, carbon black, and petroleum-based feedstocks.

Despite of several positive prospects, several challenges remain. The industry continues to face issues related to the informal recycling sector, inconsistent quality standards, limited market acceptance of recycled materials, high capital investment requirements for advanced recycling technologies, and volatility in prices of virgin raw materials. Addressing these constraints through supportive policies, standardisation, fiscal incentives, research and development, and stronger enforcement of environmental regulations will be essential to unlocking the full economic and environmental potential of tyre recycling.

7. Financial Performance Viz-A-Viz Operational Performance

The detailed financial performance of the Company is appearing in the Balance Sheet, Profit & Loss Statements and other financial statements forming part of this Annual Report. For financial highlights, please refer to the heading FINANCIAL RESULTS of the Directors Report and AUDITED FINANCIAL STATEMENTS section of this report.

The financial statements are being prepared pursuant to the applicable prescribed accounting standards as amended from time to time. The Company have adequate internal control systems and has implemented a robust internal control system that is commensurate with the size and nature of its business.

8. Significant changes as compared to previous financial year on the financial ratios

1. Debt Equity Ratio (in times): stood 0.44 as against 0.78 year on year basis, showing an improvement of 44% due to QIP funding.

2. Debt Service Coverage Ratio (in percentage): stood 1.73 as against 3.09 year on year basis, showing an improvement of 44% due to QIP funding.

3. Trade Receivable Turnover Ratio (in times): stood 10.15 as against 14.23 year on year basis, showing an improvement of 29% due to due to change in customer payment terms.

4. Trade Payable Turnover Ratio (in times): stood 5.51 as against 7.82 year on year basis, showing an improvement of 30% due to due to change in vendor payment terms.

5. Net Capital Turnover Ratio (in times): stood 20.28% as against 31.90% year-on-year basis, showing an improvement of 36% due to increase in working capital.

9. Human Resources and Industrial Relations

TRIL recognizes the importance of its human resources in driving its success. The company has implemented policies that foster continuous learning and innovation and an amicable relationship with employees. As of March 31, 2026, TRIL had a dedicated team of 1,037 employees, maintaining strong industrial relations.