tinna rubber infrastructure ltd Management discussions


Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January.

Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term. War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies-1.8 and 2.8 percentage points higher than projected last January. Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential. Policy makers will need to balance the need to support the recovery while safeguarding price stability and fiscal sustainability and to continue efforts toward promoting growth-enhancing reform and Spillovers from contracting global growth and balance sheet stress in the financial sector will also adversely impact economic activity, despite some support from fiscal stimulus and continued monetary policy easing.

The Indian economy has grown, braving the covid pandemic and the ongoing Russia-Ukraine conflict that led to global inflation. However, the road ahead will not be a rosy one for the government as the cloud of price rises is looming large. The economic growth of India slowed to the lowest in the financial year 2021-22 during the January to March period or the fourth quarter. This pulled down the gross domestic product (GDP) growth in the full fiscal 2021-22 to 8.7 per cent, according to the data released by the National Statistical Office (NSO).

The GDP growth for quarter 1 of FY2021-22 (April-June) was at 20.3 per cent, for quarter 2 (July-September) at 8.5 per cent, for quarter 3 (October-December) at 5.4 per cent, and quarter 4 (January to March this year) at 4.1 per cent.

Indias economy will grow 7.5% in fiscal year (FY) 2022 and 8% in FY2023, supported by increased public investment in infrastructure and a pickup in private investment, the Asian Development Bank (ADB) forecasts.


As natural resources are limited, recycling has gained attention worldwide. Now companies are articulating a vision of using greater portion of recycled material in their products and formulations. The rubber industry is not an exception to this. End of life tyres are an important source of recycled rubber worldwide and its status has changed from waste to resource. The reclaim rubber industry has been developed around this reality.

A show-case project of benefits of circular economy. Actively promotes re-use of products derived from ELTs into new tyres, conveyor belts, road construction etc.

Tinna Rubber and Infrastructure Limited (TRIL) is a pioneer in manufacturing of crumb rubber modifier (CRM) for bitumen and almost 100K lane kms has been laid in India with CRMB and our CRM.TRIL has set an example in the industry by converting Waste to Wealth, by aggressively promoting the concept of recycling of Truck/ Bus, Radial (TBR) tyres for reuse in new tyres, conveyor belts, road construction etc.

TRIL is the only Company present in rubber based products for both road Bitumen and non road industry and Manufacture value added products from the steel reconditioning also Integrated at the back end as well, to ensure regular flow of ELTs from Middle East, Africa and Europe.

TRIL is a leading player in the field of Crumb Rubber and Bituminous products and the Company has captured a substantial market share by maintaining high quality, reliability and customer satisfaction. TRIL has established Pan India presence with manufacturing facilities located at strategic centers and near to hubs of industrial activity to produce Crumb Rubber powder from end of life (waste)tyres. Crumb Rubber Powder, which acts as a substitute to natural rubber. TRIL has already installed most modern additional lines for manufacturing of Reclaim and High Tensile Reclaim in its plants, located at Panipat (Haryana) and Wada (Maharashtra) and has successfully introduced high quality Hi Tensile Ultrafine Reclaim Rubber &Ultrafine Tyre Crumb. TRILs Hi Tencile Ultrafine Reclaim rubber is preferred choice by the Tyre industry, Conveyor belt industry and Rubber moulded products.


As a rubber compounder/ recycler of waste tyres your Company is playing a vital role in caring for environment by using waste tyres, which is otherwise a serious environmental and health hazard. TRILs eco friendly recycling of tyres involves the following process:

a) Procurement of waste tyres from around the world and process them in an environment friendly manner, without generating any waste and pollution.

b) TRILs R &D team has developed various value added products from waste tyres having following innovative applications:

- High Tensile Crumb: for rubber compounds, for use in rubber industry including tyres.

- Crumb Rubber Modifier: for blending with Bitumen to make rubberized bitumen.

- Reclaim Rubber : as a raw material for rubber product industry.

- Hi Carbon Solid Steel Shots: for shot blasting, surface preparation applications.

- Hi Carbon Steel Scrap: for melting and reuse.

The Company has developed and commercialized its products viz. Hi Carbon Steel Abrasives and Reclaim Rubber/ Ultra Fine Crumb Rubber, Detailed figures of product wise sales are given in Notes on Financial Statements.

In earlier years Crumb Rubber Modifier (CRM) and other road related products having application in the infrastructure sector has been the mainstay of the Companys sales mix, your Company has consciously reduced its dependence on this sector.


Improving market dynamics in Tyre recycling with framing of new regulations is bound to boost the prospects of organised players in the Tyre recycling business. For instance, the government has proposed new rules for waste Tyre management that will make it mandatory for manufacturers and dealers to collect used batteries against the new ones they sell. The proposed rules under ERP puts the responsibility of collection & use of waste Tyres and safe transport to only registered recyclers, while ensuring that the environment is not harmed during its transportation. Moreover, the Extended Producer Responsibility (EPR) laws, which require the manufacturer of a product to be responsible for its ultimate recycling, reuse or disposal, has become a significant waste management approach in recent years in the efforts to increase recycling and landfill diversion rates. We believe a new policy is in the works which will mandate use of Modified Bitumen in making new roads. This will create accelerated demand for our product Modified Bitumen and Crumb Rubber Modifier.

The Company has a strong market presence and immense corporate trust reposed by its customers. The Companys customer base includes prestigious customers like SEMPERTRANS, MRF, APOLLO, TVS

Srichakra, CEAT, JK TYRES and like Indian Oil Corporation Ltd., Hindustan Colas Ltd., Manglore Refinery and Petrochemicals Ltd. ,BalakrishnaTyres Ltd., Alliance Tire Group (Yokohama), Ralsontyres, DCM Engineering Products, Hyundai Construction Equipment (India) Pvt. Ltd., Mahindra CIE Automotive Ltd., Rico Auto Industries Ltd., Neosym Industries Ltd., Zenith Industrial Rubber Products Pvt. Ltd., IJM (India) Infrastructure Ltd. Further we are pleased to report that Your Companys efforts have resulted in successful execution of export contract for supply of products to Thailand, Turkey and Sri Lanka. We expect to see rise in Companys Export during the year 2020-21 and your Company is exploring opportunity for export in European market.



International Commitment to Sustainable Management of Natural Resources

In 2015, all members of the United Nations adopted the 2030 agenda for sustainable development, at the heart of which were 17 SDGs (Sustainable Development Goals) and 169 targets.

An important SDG relates to INNOVATION AND INFRASTRUCTURE, to Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. It aims at promoting increased resource- use, efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

It is targeted that by 2030, to upgrade infrastructure and retro fit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

By recycling and reusing rubber and Plastic in the most efficient manner possible, we will be a step closer to achieving the Sustainable Development Goals (SDGs) related to material reuse, sustainable development and resource efficiency. These indicators are:

• By 2030, achieve sustainable management and efficient use of natural resources.

• By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.

Good connectivity is a fundamental requirement for industrialization and development. Indias initiative to

build sustainable roads and use rubber waste with bitumen (CRMB- crumb rubber modified bitumen) is a positive indicator.

CRMB is an environmental friendly product as it helps in disposing off the used/ discarded tires in an environmental friendly way and at the same time enhances the properties of bitumen which is used for making durable and long lasting roads.

A study was conducted by "The Institute for Environmental Research and Education" and they found that: "The upstream carbon footprint for the production of asphalt is 840 kg CO2e per metric ton. In comparison, the carbon footprint for recycling tires is 124 kg CO2e per metric ton. This reuse of rubber tires in roads is clearly highly favourable from a climate change perspective."

In India the state of Uttar Pradesh is extensively using waste material as most of their prestigious road projects are being made using waste rubber (CRMB). Taking the lead IRC is also advocating the use of waste material in roads.

IIT Tirupati did an Advanced Testing on the sample which was Blended with Waste Rubber, Waste Plastic and Additives and the results indicate that the product comprising of waste plastic, waste rubber and additives meets the American standards of PG grading and properties equivalent to High Performance Polymer Modified Bitumen (PMB) as per Indian standards. It is also found that plastic alone cannot be blended with bitumen.

It has also been found that Rubber recovered from ELTs is a good substitute for Natural rubber, Synthetic Rubber and Bitumen in many applications.

Overall, Indias score in the index - which evaluates how the country and its regions have been performing on social, economic and environmental parameters has improved by six points, suggesting slight progress. "The composite score for India improved, from 60 in 2019-20 to 66 in 2021-22. This indicates that the country overall has progressed forward in its journey towards achieving the SDGs," as per the report titled SDG India Index 2021-22.

• India currently produces 6 50,000 tyres and discards 2,75,000 tyres every day.India generates over 1 million tons of ELTS each year.It is estimated that 60% of waste tyres generated in India are disposed through illegal dumping.There are opportunities to increase market penetration by launching innovative rubber related products and to fill the gaps.

• We recycle over 2000 truck/bus tires every day. Thats almost 8,00,000 tires annually. These tyres would otherwise go into landfills or burnt causing harm to environment.

The CRMB is being used in the construction of roads as has been specified in the revised specifications. Apart from the advantages like durability, better riding quality, strength, there is the environmental benefit as has been reported in a number of reports across the world. One such report by The Institute of Scrap Recycling Industries Inc. ( ISRI), USA is being attached for reference (only the relevant pages- full report is available on request).

As per the report The Carbon footprint for production of asphalt is 840 KG CO2per MT. In comparison the carbon footprint for recycling tires is 124 KG CO2 per MT

The reuse of tires in roads is highly favourable and can be seen from the below illustration:

Sale of CRMB (an average of 10% of rubber is used in making CRMB) IN 2021-22 was 1,00,000 MT or approx. 5000 lane Kms were constructed using waste rubber in bitumen.

By using recycled rubber in asphalt, there is a saving of

71,60,000 KG or approx. 8.9% of Carbon Footprints

• There are opportunities to reduce costs, with increased efficiency and economies of scale.

• The Company is engaging in the petro chemical refinery business to enhance its footprint, for marketing Bitumen modifier.

• There is strong export demand for Crumb Rubber and Reclaim Rubber Compound and the same is being actively explored, besides the existing exports.


• End of life / Waste tyres are among the most problematic source of waste in the world. Incorrect disposal of old tyres can create all kinds of environmental and health hazards.

• It is estimated that by recycling a kilo of rubber translates into saving 2 kilograms of greenhouse gases (INAE 2015). If not recycled, tyres are an enormous global problem because of their nonbiodegradability, flammability and chemical composition.

• Cost of the debtcontinue to be the key issue. Any increase in the interest rate will have negative impact on the profitability of the Company.

• Foreign Exchange fluctuation may affect the Company adversely, as we import our major raw material viz. waste tyres.

• Invent of other better alternative product, in a fast changing global environment.

• Any increase in taxes and change in Government policies may have negative impact on the Company.


• Your Company follows a proactive risk management policy aimed at protecting its employees, assets and the environment, while at the same time ensuring growth and continuity of its business. Regular updates are made available to the Directors of the Company in Board Meetings. Key risks identified by your Company are as under:

• Any economic slowdown may adversely impact the business. Last year Covid-19 a natural calamity is a prime example.

• Tyres are highly inflammable and your Companys property and stock are subject to risk of loss due to fire and flood and these are mitigated with insurance and fire detecting and firefighting equipments and proper security personnel. Regular training program for employees are being organised by the Company relating to fire control.

• Any change in Government policies may adversely affect the demand/profitability of the product.

• Technology obsolescence is an inherent business risk in a fast changing world and speed of change and adaptability is crucial for survival of the business.

• The domestic, regional and global macro-economic environment, directly influences the demand of the bitumen modifier.


A system of internal control, commensurate with the size

and nature of its business, forms an integral part of the Companys corporate governance policies.

The Company has a proper and adequate system of internal control commensurate with the size and nature of its business. Some of the significant features of internal control systems include:

• Ensuring compliance with laws, regulations, standards and internal procedures and systems.

• De-risking the Companys assets/resources and protecting them from any loss.

• Ensuring the accounting systems integrity proper and authorised recording and reporting of all transactions.

• Preparing and monitoring of annual budgets for all operating and service functions.

• Ensuring the reliability of all financial and operational information.

• Forming an Audit committee of the Board of Directors.

• The Audit Committee regularly reviews audit plans, significant audit findings, controls and compliance with accounting standards and so on.

• Continuous up-gradation of IT Systems.


The details of the financial performance of the Company are appearing in the Balance Sheet, Profit & Loss

Statements and other financial statements forming part of this Annual Report. For financial highlights please refer heading FINANCIAL RESULTS of Directors Report.


The Company firmly believes that Human Resource is the key driver for the success of any organization. The Companys human resources policies are carefully structured to meet the aspirations of the employees as well as the organization. These policies are implanted through training and other developmental programs. These policies encourage continuous learnings and innovations. Your Company has a dedicated team of 721 employees as on 31st March, 2022 as compared to 642 employees as on 31st March, 2021. The Company continues to have cordial industrial relations.


Investors are cautioned that statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand / supply and price conditions in the domestic and overseas market in which the Company operates, risks inherent in the Companys growth strategy, change in Government regulations, tax laws and other statutes and other incidental factors.