About the company: Indag Rubber was founded by the Khemka Group in 1978 as a JV with Bandag group. The JV ended in 2006 with the promoters buying the stake. The company is in the business of retreading tyres (87%), mainly for Commercial Vehicles in the domestic market. Retreading is a technology where old tyres are made serviceable by removing worn out/damaged treads and replacing it with new treads. Indag has an ~9% market share (2nd largest) in an industry worth an estimated ~31bn p.a. 40-45% of the market is unorganized. Indag recently expanded its capacity (plant in Himachal Pradesh) from 13,800 MT to 20,000 tonnes, at a cost of Rs70mn. Rationale of Retreading: 1. 30-50% of the cost of a new tyre with nearly an equivalent life2.Tested...