Ludhiana, Sept. 20: The closely-held, family-owned Rs 300-crore Metro Group, which is primarily in the business of making tyres, may get itself listed on the bourses in two years.
Rummy Chhabra, group managing director of Metro Tyres and Metro Ortem, said, “We are likely to get listed as a company in two years depending on our expansion plans”
“The expansion plans will focus on our core competency of tyre-making,” Chhabra added.
Metro Tyres’ contribution to the turnover of the group is more than Rs 250 crore. The rest comes from Ortem, which makes home appliances, with the most popular product being ceiling fans.
Metro Tyres had tied up with Continental AG of Germany last year and the first lot of ‘Continental’ motorcycles were ready for rollout next month, the company announced here today.
The company has four production units in Ludhiana, which make tyres and tubes for cycles and now production is in full swing to hit the two-wheeler market as well.
“The tyre market for motorcycles, scooters and mopeds is about Rs 1000 crore, of which motorcycle tyres make up 75 per cent. The market for motorcycle tyres is steadily growing at the rate of 15 per cent. We want to grab 5 per cent of the market for motorcycle tyres within a year,” Chhabra said.
“The cycle market is growing very slowly at about 5 per cent,” he said.
About 90 per cent of the motorcycle and scooter tyre market is dominated by MRF, TVS and Falcon. Chhabra said his products, which will sport the Continental-Metro co-branding tag, will be competitively priced and also comes with a 20 per cent higher efficiency level.
The company will soon unleash a publicity campaign for the new tyres. Ogilvy and Mather (&M) has bagged the account. Other agencies which were considered were HTA and Lintas.