Date:23/08/2006 URL: http://www.thehindu.com/2006/08/23/stories/2006082302681800.htm

Business

Goodyear to set up brand stores

Enters into exclusive tie-ups with companies for supply of car accessories

Investment will be Rs. 50 crore
Shops will be owned by the dealers

One-stop solution for all car needs

— PHOTO: KAMAL NARANG

RETAIL ROLL-OUT: Antonio Capellini (centre), Managing Director, Goodyear India, at a press conference in New Delhi on Tuesday.

NEW DELHI: Goodyear India Ltd (GIL) on Tuesday said it would set up 300 international and multi-brand format, exclusive shop-in-shop outlets in the country by 2008, at an investment of over Rs. 50 crore.

"Worldwide we have exclusive Goodyear stores, and it is only in India that we are introducing the shop-in-shop format for the first time to match the customers' needs. These stores provide a one-stop solution for all car needs,'' Goodyear India Managing Director Antonio Capellini told reporters here. The company will set up 50 shop-in-shop format branded stores by the end of this year, with 250 more by 2008.

The first six stores will be opened in Chennai on August 24, followed by 12-15 stores in the northern, southern and western regions and three to five stores in the eastern region.

These shops will be owned by the dealers, while Goodyear will finance the maintenance and the promotional aspect. Besides selling Goodyear products, the outlets will display products of other brands to provide customers with a larger choice pool.

The company, which manufactures and markets radial and bias tyres for most applications, has two manufacturing facilities in India, at Aurangabad and Ballabgarh. "At present we sell 4,500 car radials a day only at our Aurangabad unit and have begun expansion to touch 10,000 units a day by 2008 at a cost of Rs. 80 crore. In the next two months, we will add another 450 units,'' Goodyear Sales and Marketing Director K Mahesh said.

The Ballabgarh facility does not cater to the passenger car segment and is only for the farm tyres and commercial segment.

"Our global market share in terms of the units we sell is 20-22 per cent. In India, our car passenger sales market share is 15 per cent which we plan to ramp up to 18 per cent by the end of the year. Our commercial segment market share stands at 4-5 per cent,'' Mr Mahesh said.Goodyear had also entered into exclusive tie-ups with various companies for the supply of car accessories that would be sold in these outlets, Mr Mahesh said. — UNI