Tinna Rubber & Infrastructure Ltd Management Discussions.

The Indian economy witnessed a slowdown during FY 201920 and the growth inGDP is at 4.2% as compared to 6.1% in FY 2018-19.

(Source: Press note by National Statistical Office dated May 29,2020).

As per National Statistical office, gross value added (GVA) at Basic Prices for FY 2019-20 from Manufacturing sector is estimated to grow by 0.3% as compared to growth of 8.6% in 2018-19. According to World Bank, Indias GDP growth in FY 2020-21 is projected to contract sharply by negative 3.2% which is likely to be the lowest in many decades as the impact of COVID-19 pandemic materializes. Stringent measures to restrict the spread of the virus, which heavily curtail activity, will contribute to the contraction of economic growth. 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.

To improve the economic situation, government took measures to revamp the financial sector by increasing credit outflows by the banks and Non-Banking Financial Companies (NBFC)s, reducing stress in real estate sector and manufacturing sector.


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 modem 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 ecofriendly 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: formelting 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 inNote 23, inNotes 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.


We hope that during the year 2020-21, Various initiative and new reforms of government is going to be implemented as envisaged by the Govt of India this year. Your company also introduced new technologies and two specialized grades of Emulsion such as Micro Surfacing, Recycling grades Emulsion and Eco-Friendly cold mix emulsion for rural road and we hope that Your Company will witness accelerate growth from road sector. 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.


• 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 C02 per MT. In comparison the carbon footprint for recycling tires is 124 KG C02per MT

The reuse of tires inroads 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 2019-20 was 1,00,000 MT or approx. 5000 lane Kms were constructed using waste rubber in bitumen.

Bitumen in above-90,000 MT

Carbon Footprint@840 KG = 75,600,000

Recycled Rubber in above 10,000 MT CarbonFootprint@ 124 KG = 12,40,000

Total Carbon Footprint ( KG) = 76,840,000

If roads were constructed using 100% ofbitumen thenCarbon

Footprint would be 1,00,000 t@ 840 = 84,000,000

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 non-biodegradability, flammability and chemical composition.

• Cost of the debt continue to be the key issue. Any increase in the interest rate will have negative impact on the profitability ofthe 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. This 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 ofthe 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 ofthe 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 696 employees as on 31st March, 2020 as compared to 815 employees as on 31stMarch, 2019. 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.