Elgi Rubber to Exit Netherlands Ops—Strategic Realignment Underway

Elgi Rubber Co. Ltd., a key player in the rubber processing and retreading sector, has announced plans to sell or liquidate its subsidiaries in the Netherlands, signaling a strategic shift in its global footprint. While the company has not disclosed the specific entities or financial impact, the move is part of a broader effort to streamline operations and focus on core markets.

 

The decision comes amid a challenging year for Elgi Rubber, with its stock down nearly 57% in the past six months and EBITDA for FY25 at ₹22.5 crore, reflecting margin pressures. The company’s international operations, particularly in Europe, have faced headwinds due to rising input costs and regulatory complexities.

 

Analysts view the exit as a cost-optimization strategy that could improve capital allocation and operational efficiency. Elgi Rubber continues to maintain a strong presence in India and other Asian markets, with a focus on sustainable rubber solutions and retreading technologies.

 

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Source: ET Money – Elgi Rubber Company Profile