Birla Tyres to bundle life cover with products — Ties up with ICICI Lombard  ( June '6,2003, HBL)

BIRLA Tyres, part of the diversified Rs 20,000-crore B.K. Birla group, has drawn up expansion plans which would entail creation of additional capacity to strengthen its domestic base, expand its export portfolio and make it a global outsourcing centre.

The company has come up with an innovative brand building exercise that seeks to bundle insurance package for drivers when they buy tyres.

Addressing a press conference, the Vice-President, Marketing, Birla Tyres, Mr Ajai Uppal, said that the company was working at 100 per cent capacity and has garnered total revenues of Rs 644 crore last fiscal. While we had added 15 per cent additional manufacturing capacity last year, we now feel the need to add further capacity to our manufacturing base at Balasore in Orissa.

Kicking off `Jug Jug Jiyo' offer, which the company claims is a novel scheme wherein Birla Tyres has tied up with ICICI Lombard General Insurance Co, to offer Rs 2 lakh insurance benefit to the driver of truck on purchase of every pair of truck tyres. The scheme formally starts on June 14 and policy coverage is valid for one year from the purchase of tyres.

"When a driver is travelling over treacherous terrains, tricky roads and unknown areas, there is nothing to ensure his safety. We spoke to many drivers across the country and tried to find out about their fears on the road. The biggest fear they have is leaving their families helpless if they meet with a fatal accident. Therefore, we have specially designed this scheme to attract the buyers of tyres for trucks and buses," Mr Uppal explained.

"In spite of being a relatively late entrant to the tyre business, we have managed to garner a market share of about 10 per cent. We expect to expand this share. However, we are currently working at 100 per cent capacity. The only way we can do so is to expand our plant capacity. We have already expanded the facility last year and are in the process of considering further expansion of the manufacturing plant," Mr Uppal said.

As is the case with several industries, you may soon see a situation where fleet owners may outsource the entire tyre management to a company. About 14,500 buses in Kolkata have outsourced their tyre requirement. Though this is crude and not the most ideal outsourced model, yet this is something that could become a common practice, Mr Uppal explained.

Apart from providing us marketing thrust, we expect Jug Jug Jiyo to enable us to strengthen our brand and create loyalty among our customers. We will take this campaign in a focussed manner to various parts of the country. The reason we launched in Hyderabad is this has organised unions who are willing to provide a platform for us to communicate our message to our target groups, Mr Uppal said.