According to the Central Pollution Control Board (CPCB), India generates approximately 1.3 million tonne of used tyres annually. Amid this, REGRIP Tyres, a Gurugram-based startup, is pioneering solutions by using high-grade rubber to create refurbished tyres. Operating through a network of over 12 dealers across eight states with 16+ retreading facilities, REGRIP recycles approximately 100,000 tyres annually, preventing up to 20,000 metric tonne of CO₂ emissions, while reengineering over 8,500 tyres for reuse. Tushar Sulhaka, Founder, tells us more.What inspired you to start REGRIP, and how did your journey from a CA aspirant to an entrepreneur in the tyre recycling industry unfold?I founded REGRIP in July 2021, but the idea first took shape during my tenure as head of sales at a tyre service management company. Through extensive interactions with transporters across the country, I identified a major gap. While the focus was always on new tyres, no one was addressing the challenges faced by transporters regarding affordability and sustainability.During the COVID-19 pandemic, tyre prices surged by 25 per cent, making cost a pressing concern. At the same time, I realised that the tyre industry was countercyclical; its demand remained stable regardless of economic fluctuations since tyres are essential for logistics, which forms the backbone of India's infrastructure. In fact, roads handle 85 per cent of the country's passenger traffic and over 60 per cent of its freight movement.The most striking revelation was the environmental impact. About 1.5 billion tyres are discarded globally every year, with 80 per cent ending up in landfills. Tyres are non-biodegradable and their complex chemical composition prevents decomposition even after a century. Recycling costs are also prohibitively high. Given that 70 per cent of the tyre industry’s revenue comes from commercial vehicles, where tyre consumption is significantly higher than in passenger cars, I saw a business opportunity that also aligned with sustainability.From a personal perspective, launching REGRIP was a bold decision. I resigned from my job on the day of my wedding and no one except my wife knew I was unemployed. Three days later, I launched REGRIP, giving myself a year to make it work. If it failed, I had no hesitation in returning to a corporate role.How does REGRIP’s business model work?We operate on a two-pronged approach.Re-engineered tyres: We refurbish used tyres to create REGRIP tyres, providing an affordable, sustainable alternative to new ones. These tyres are available at 50 per cent of the cost of new tyres while offering almost 80 per cent of their lifespan. The refurbishment process involves reapplying a fresh layer of rubber, ensuring reliability. To make our tyres easily accessible, we partnered with the same tyre dealers who traditionally sell new tyres, eliminating the need for customers to search elsewhere. By integrating REGRIP tyres into existing dealer networks, we made sustainable alternatives a convenient choice for fleet operators and transporters.Recycling non-reusable tyres: For tyres that cannot be refurbished, we recycle them into crumb rubber, a fine powder used in new tyre manufacturing, gym tiles, shoe soles and other rubber-based products. Additionally, we are India's largest scrap collector, with our collection centres spanning 22 cities and four recycling units, ensuring a steady supply of raw materials for re-engineering and recycling.What is REGRIP’s revenue model concerning re-engineered and recycled tyres?Initially, our revenue was entirely dependent on selling re-engineered tyres. However, over time, we developed a more sustainable and profitable model, with 80 per cent of our revenue now coming from recycling scrap materials. Since its inception, REGRIP has experienced a remarkable 200 per cent year-on-year growth, doubling its revenue annually. This rapid expansion underscores the increasing acceptance of re-engineered tyres.How did REGRIP secure its initial funding?Eight months after launching REGRIP, I had the opportunity to appear on a reality funding show called The Horses' Stable, which aired before Shark Tank was introduced in India. There, I met Mahavir Pratap Sharma, now the Chairman of TiE, who became our first investor. I also met Suniel Shetty, the host of the show, who took a keen interest in the business. After months of discussions, Suniel Shetty decided to invest in REGRIP as well.Our first funding round secured Rs 20 million from Mahavir Pratap Sharma and Suniel Shetty, both of whom hold equity in the business. In our most recent funding round, we raised a total of $ 1.5 million, allocated towards technology development and expanding our recycling network. We are also backed by the Rajasthan government, the Indian Institute of Management - Ahmedabad, and the Ministry of Electronics and Information Technology (MeitY).What kind of technology is used for tyre assessment?We have developed a machine learning-based application to streamline the tyre inspection process. When we procure old tyres, we need to determine whether they can be re-engineered or if they must be recycled. Our system evaluates tyres based on 31 key parameters across four critical sections of crown area, sidewalls bead area and inner crown. The machine learning algorithm continuously learns from past assessments, improving accuracy over time. When a tyre is scanned, the application instantly evaluates its condition and determines whether it is fit for re-engineering or should be recycled. This technology has significantly enhanced efficiency, minimised human error and ensured optimal utilisation of tyres in our operations.What challenges did you face on your journey?Breaking into the tyre dealership market was a major challenge. Dealers are the most influential players in the commercial tyre industry, with 80 per cent of sales driven by their recommendations. As REGRIP was a new brand, convincing them to stock our tyres required time and persistence. However, we overcame this hurdle by offering better margins than traditional tyre manufacturers and building trust gradually.Another significant challenge was the collection of discarded tyres. Used tyres are often left at local repair shops and gathering them efficiently proved to be a logistical challenge. To address this, we established India's largest tyre collection network, ensuring a steady supply of used tyres for re-engineering and recycling.What are REGRIP's future plans, particularly in terms of technology and expansion?We have introduced two groundbreaking technologies to further our impact.EPRxchange: India’s first trading platform for extended producer responsibility (EPR) credits. This platform connects producers and recyclers, enabling tyre manufacturers to purchase EPR credits from recyclers like us to meet government-mandated recycling targets. REGRIP acts as the backbone of this platform, ensuring transparency and earning a success fee on every transaction.TyreBook: An ERP-based tyre management system designed for transporters with large vehicle fleets. Tyres are a significant investment and their lifespan varies based on usage conditions. A tyre expected to last 100,000 km but failing at 60,000 km results in financial losses, while one lasting beyond its expected lifespan provides added value. TyreBook enables transporters to track and manage tyre performance, optimising usage at no extra cost.What is your vision for REGRIP in coming years?Our vision is to establish REGRIP as Asia’s largest tyre recycling brand. We aim to achieve this by expanding our recycling network, investing in innovative technologies, and strengthening our presence in India. By making sustainable alternatives more accessible, we hope to revolutionise the tyre industry while reducing its environmental footprint.