Can you give us a brief background of Bandag?

Bandag is a brand of Bandag Inc, USA. It was incorporated in 1957 by the founder Roy Carver. Carver got the rights to the tyre retreading process in Germany from Bernard A Nowak, the inventor for the US. In 1960, Bandag got the world rights for the process. In the last 53 years, Bandag with its extensive R&D has developed the process into a fine art. In June 2007, Bridgestone Americas purchased the company for $10.5bn. Since then the worldwide operations have been segregated commercially and legally. Currently, MEA franchisees of Bandag System are commercially aligned with Bridgestone MEA. By 2011 a complete alignment will be completed. We plan to promote the brand in the region and increase the number of franchisees. Towell Auto Centre is opening a retreading factory in Oman.

What kind of a dealer network does the company have across the globe and in the GCC?

Bandag system is franchised on a non-exclusive basis across the world. It has operations in over 95 countries with 900 plus franchisees who produce 10mn retreads a year for the truck and bus segment all over the world. We already have four Bandag system franchisees in the region -- one in UAE, two in Saudi Arabia and one in Kuwait.

What advantages does retreading of tyres bring to companies and fleet owners?

Bandag retreading is mainly for commercial tyres like trucks and buses. Retread tyres give 80-90 per cent of the performance of new tyres. Retreading helps in recycling used tyres, which helps not just fleet owners and companies but the society at large. By reusing a new tyre, one can save waste, fossil fuel and steel. Apart from helping them to reduce the total cost of tyres, retreading also makes a major environmental contribution in terms of the more effective utilisation of natural resources which in turn helps to ensure a healthy environment for current and future generations.

Do you see potential in Oman’s market? If so, how do you plan to build your business in the Sultanate?

Our market feasibility analysis and study has shown us latent demand for a good retread service in the Oman market. The retread market in Oman is around 16 per cent. In developed markets like the US and Europe this market is as high as 40 to 60 per cent. If Oman grows into a sophisticated and mature market then it would go upto those levels. So the market has the potential to triple. While we promote retreads independently, we also propose to offer the unique convenience to fleets of Oman to get their new tyre and retread requirements from a single source. Towell Auto Centre has a number of retail outlets that can be a one-stop-shop for transporters and their convenience.

Do you think that retreading of tyres may eat into your market share as customers may delay buying new tyres?

That is a possibility, but we want to grow our business by acquiring new customers and we see this as a partnership rather than a threat.