INTRODUCTION

The General Tyre and Rubber Company of Pakistan Limited (Gentipak) is Pakistans premier industry. It was established in 1963 by General Tire USA and has been in production since 1964. Gentipak has a Technical Services Agreement (TSA) with CONTINENTAL AG (Germanys largest tyre manufacturer) which enables it to produce tyres of GENERAL brand and provides the latest technology for production of tyres based on Continentals, R&D. The Plant and the Offices, are located in suburb of Karachi. Initial production capacity was only 120,000 tyres per annum but is now around 2,000,000 tyres per annum. Our plant is constantly upgraded and is equipped with the most modern technology in tyre manufacturing.

Vision
To be the leader in tyre technology by building the Companys image through quality improvement, competitive prices, customers satisfaction and meeting social obligations.

Mission

To offer quality products at competitive prices to our customers. To endeavor to be the market leader by enhancing market share, consistently improving efficiency and the quality of our products. To improve performance in all operating areas, so that profitability increases thereby ensuring growth for the company and increasing return to the stakeholders. To create a conductive working environment leading to enhanced productivity, job satisfaction and personal development of our employees. To discharge its obligation to society and environment by contributing to social welfare and adopting environmental friendly practices and processes.

CORPORATE PROFILE. THE GENERAL TYRE AND RUBBER COMPANY OF PAKISTAN LTD.

Gentipak is a public limited listed company with majority shares held by Bibojee Services Ltd., Pak Kuwait Investment Company (Pvt) Ltd. and National Investment Trust. CONTINENTAL AG (Germanys # 1 tyre manufacturer) is also Companys share holders, providing Gentipak all the technology needed for production under a long term Technical Service Agreement (TSA) as well. It also allows Gentipak to use it's international brand name General. The awareness of the GENERAL brand name is very high. Recently, Gentipak has also launched a new line of passenger car tyres of latest European designs under the brand name EURO. All the radial tyres are tubeless and steel belted and have a full cap ply for safety and durability. Gentipak produces radial tyres for passenger cars and light trucks in rim sizes ranging from 12 to 16. It also produces bias (cross ply) tyres for light trucks, trucks/buses and farm (agricultural) tractors. Gentipak is the major supplier of tyres to the local automotive and tractor assembly plants. It has contracts to supply 15 radial passenger car tyres to Toyota and Honda approved after stringent testing by their principal companies in Japan. Beside above, Gentipak is also supplying tyres to Pak Suzuki Motor Company, Hino Pak, Ghandhara Industries, Ghandhara Nissan, Al-Ghazi Tractors, Millat Tractors and others. Gentipak is also exporting tyres to few neighbouring and Middle East countries. It is currently exploring other markets as well for export. Gentipak employs directly and indirectly approx. 1800 persons all over the country. It has offices in three other cities of Pakistan besides having its Head Offices in Karachi. It is selling its products in the replacement (after) market through a network of more than 100 dealers and has a backup in the shape of sales and technical force covering the entire territory. All tyres produced by Gentipak are marketed after stringent testing and quality assurance and backed up by a comprehensive after sales warranty.

SOME OF OUR CUSTOMERS

ADAM MOTOR COMPANY LTD. D.S.U. 10 Pakistan Steel Industrial Estate, Bin Qasim Karachi, 021 201750781. AL-GHAZI TRACTORS LTD. 11th Floor, NIC Building Abbasi Shaheed Road Karachi, 021 5680822, 5660815.

HINO PAK MOTORS LTD. D-2, S.I.T.E. Manghopir Road Karachi, 75700 021 2563028.

DEWAN FAROOQUE MOTORS LTD. Dewan Centre, 3-A Lalazar Beach Hotel Road Karachi, 74000 111-313-786.

GHANDHARA INDUSTRIES LTD. (N.M.L) (Formerly NATIONAL MOTORS LTD) Hub Chowki, S.I.T.E Karachi, 021 2560090.

GHANDHARA NISSAN LTD. Ghandhara House 109/2 Clifton, P.O.Box No. 3812 Karachi, KARACHI-6 021 5683756.

HONDA ATLAS CARS (PVT) LTD. 43 KM Multan Road Manga Mandi Lahore, 425877711.

INDUS MOTOR COMPANY LTD. NWZ / P-1 Port Qasim Industrial Estate Karachi, 021 4750041-8.

MILLAT TRACTORS LTD. Sheikhpura Road Shahdara Lahore, 427924166.

MASTER MOTOR CORPORATION LTD. S-30, S.I.T.E. Mauripur Road Karachi, 75750 021 2571982.

PAK SUZUKI MOTOR CO.LTD. DSU-13, Pak.Steel Industrial Estate Bin Qasim Karachi, 021 4750788.

NEXUS AUTOMOTIVE (PVT) LTD. 48-D, Block 6 P.E.C.H.S Karachi, 021 4311975-8.

SIND ENGINEERING (PVT.) LTD. 16, Dockyard Road West Wharf, P.O.Box No. 5262 Karachi, 74000 021 2202721-5.

SIGMA MOTORS. HEAD OFFICE 28,KHAGHAN ROAD 1-B,Street 55,F-8/4 Islamabad, 051 2262803.

EVIDENCE:

General Tyres to start manufacturing bike tyres

By Farhan Zaheer Published: March 16, 2012

KARACHI: General Tyres, the leading tyre manufacturer of Pakistan, is investing Rs500 million in expanding its production facility and has started manufacturing tyres for CNG rickshaws. It also plans to bring motorcycle tyres into the market by the end of the fiscal year in June.

Despite unfavourable business conditions, General Tyres has been gradually investing in its manufacturing facilities, Chief Executive Mohammad Shahid Hussain said while talking to The Express Tribune on the sidelines of a press conference on Thursday. Today, business conditions are better and are improving with every passing month. Speaking to the media, Hussain said the company wanted to capitalise on the fast growing market of compressed natural gas (CNG) rickshaws and motorcycles in the country. This year, Pakistan is expected to produce 1.8 million units of motorcycles while 140,000 CNG rickshaws are already on roads. Fortunately, there is no smuggling problem in the motorcycle tyre category, he pointed out. Replying to a question on opening of trade with India, Hussain said Pakistan should raise the issue of non-tariff barriers with the Indian government, which create hurdles in the way of exports. On the other hand, our market is open for Indian exporters owing to relatively less intrusive laws and restrictions. Hussain pointed to the problem of under-invoicing and smuggling of tyres, which have severely hit the domestic manufacturers. Though the government has tightened up on smuggling and under -invoicing, still there is much room for improvement, he said, adding billions of rupees could be saved by improving the customs clearance system. If the cost of a Chinese tyre was around $240-$245, some traders were importing the same by declaring a value of $130-$140, causing severe losses to the national exchequer. And, then they gave all taxes on this lower import price, he said. Pakistan imports some 60% of tyres from China. Tax evasion actually helps tyre importers to sell these at low prices, making it almost impossible for us to compete with them, Hussain added. He, however, believed that Pakistan had the potential to be a big tyre exporter, provided the government created a level playing field for the manufacturers and controlled under-invoicing and smuggling. General Tyres manufactures tyres for cars, light trucks and tractors. Some 60% of its tyres are sold to the original equipment manufacturers (OEMs) carmakers in the country. The company also exports its products to Afghanistan, Yemen and Syria and is exploring new export markets. Published in The Express Tribune, March 16th, 2012.

STATEMENT: General Tyre and Rubber Company (GTR) will invest approximately
Rs500 million this year in new motorcycle tyre production and balancing modernization and renovation (BMR).

EVIDENCE:

General Tyre to invest Rs500m

From the Newspaper | DAWN.COM | 7th March, 2012 0

GTR Chief Executive Shahid Hussain told Dawn that the investment this year would be double than last year. The company will manufacture two- wheeler tyres due to its huge market, with 16-17 per cent growth in bike production every year. He added that trial production of two wheeler tyres will commence in the last quarter of 2012. He, however, said that the companys overall production of various kinds of tyres may see a slight growth to 1.6 million tyres by the end of current fiscal year as compared to 1.50 million tyres produced in 2010-2011. The company has the capacity to produce 2.25 million tyres per annum. He said that a sharp drop in tractor production made an adverse impact on tractor tyre production target otherwise companys overall production of tyres should have reached 1.7-1.8 million tyres in the current fiscal year. He added that the company maintained direct and indirect employment of 1,800 despite tractor industry crisis. Now farm machinery making industry is on a recovery path after cut in GST rate to five from 16 per cent. The company, he said, exported tyres worth Rs105 million in the last seven months of the current fiscal year to Syria, Afghanistan and Yemen mainly. The companys total tyres exports stood at Rs126.5 million during 2010 2011 to the same countries. Efforts are underway to capture new global markets and talks are underway with buyers of many countries for cars, light trucks and tractors tyres, he added. The company has also introduced a new tyre, named Chief for CNG rickshaws after successful road tests. This new tyre saves up to 20 per cent of gas as against currently competing tyres due to its special customised design and rolling resistance, he said, adding that despite CNG crisis, the CNG rickshaw production will carry on.Pak-Suzuki Motor Company had also discontinued booking of Mehran, Alto and Bolan (CNG variants) from middle of February and the company used to produce 80 per cent CNG fitted vehicles in total production.Shahid did not see any negative impact on tyre industry and said tyres supply orders from Pak Suzuki had been going at normal pace.