Tolins Tyres Rises 3.78% After Launching New Subsidiary ‘Terra Rubber’ for Green Recycling Expansion
By Shishta Dutta | Published at: Jul 9, 2025 03:40 PM IST
Kochi, July 9, 2025 – Tolins Tyres Limited (NSE: TOLINS | BSE: 544254) has announced the formation of a new wholly-owned subsidiary, Terra Rubber Private Limited. They are engaged in the process of expanding into sustainable rubber recycling through backwards integration.
Strategic Expansion into Eco-Friendly Rubber Processing
Tolins Tyres’ board has approved the incorporation of Terra Rubber, which will focus on processing and recycling scrap tyres and rubber products through environmentally sustainable methods. The subsidiary will also manufacture reclaim rubber, crumb rubber, pyrolysis oil, carbon black, and other by-products, opening a new revenue vertical while reinforcing the company’s raw material supply chain.
The initiative supports cost optimisation, compliance with environmental mandates, and aligns with Tolins Tyres’ broader sustainability roadmap.
Investment & Structure Overview
| Particulars | Details |
|---|---|
| Subsidiary Name | Terra Rubber Private Limited |
| Structure | Wholly Owned Subsidiary (100%) |
| Authorized Capital | ₹1,00,000 |
| Shares Acquired | 10,000 equity shares of ₹10 each |
| Consideration Type | Cash |
| Timeline for Incorporation | Within 120 days |
| Registered Office | Kalady, Ernakulam, Kerala |
Purpose Behind the Move
- Backward Integration: Powdered rubber produced in-house will reduce dependency on external vendors.
- Green Compliance: Supports Extended Producer Responsibility (EPR) in accordance with sustainability norms.
- Business Diversification: Strengthens Tolins’ presence in the circular rubber economy.
“This initiative will help ensure high-quality recycled rubber that meets Tolins standards, while expanding our footprint in a future-ready segment,” the company said.
Stock Market Reaction
| Metric | Value |
|---|---|
| Share Price (↑) | ₹170.65 |
| % Gain | +3.78% |
| Day’s High / Low | ₹173.55 / ₹166.00 |
| Previous Close | ₹164.43 |
| Volume Traded | 1.82 lakh shares |
| Market Capitalisation | ₹674.22 crore |
| VWAP | ₹170.69 |
Outlook
Tolins Tyres’ launch of Terra Rubber marks a strategic move into green recycling, which will enhance sustainability, lower raw material costs, and generate new revenue opportunities through backwards integration in the rubber processing process.
About the Company
Tolins Tyres Limited, based in Kerala, is a tyre manufacturer catering to two-wheeler, commercial, and off-road segments. Listed on NSE and BSE in September 2024, the company is part of the NIFTY IPO Index and continues to pursue innovations in tyre technology and material sustainability.
The latest expansion into rubber recycling through Terra Rubber reflects Tolins’ intent to build a resilient, eco-conscious supply chain while capturing value across the tyre lifecycle.
REF: https://nsearchives.nseindia.com/corporate/tolins_08072025204446_WOS_INTIMATION.pdf
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