Environmental

Key Performance Indicators

for Tire Manufacturing
2009-2019
Tire Industry Project
2020
1
The data presented in this report was collected by Deloitte, on
behalf of the World Business Council for Sustainable
Development (WBCSD) Tire Industry Project (TIP).

2
Contents

Introduction 4
State of Play: Policies, Strategies and Targets 5
Key Performance Indicators
Summary of absolute KPIs 7
Summary of intensity KPIs 8
Energy 9
Energy – focus on the energy mix 11
CO2 emissions 12
Water intake 14
ISO 14001 compliance 16
Company examples 18
Discover more 19
Appendix
Methodological note 21
Contact 23

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Introduction
Formed in 2005, the Tire Industry Project (TIP) serves as a already published, the latest, in 2019, covered the period 2009-2018.
global, voluntary, CEO-led initiative, undertaken by 11 leading 2019 data was collected in early 2020 to provide this updated report.
tire companies* with an aim to anticipate, identify, analyze and
address the potential human health and environmental impacts This report on environmental KPIs aims to present an up-to-date
associated with tire development, use and management vision of the evolution of the sector’s environmental performance for
through end of life. its tire manufacturing operations by disclosing both absolute and
intensity KPIs, during the years of 2009-2019.
TIP member companies operate under the umbrella of the World
Business Council for Sustainable Development (WBCSD) and work This report provides a general overview of the performance
together to improve understanding of these challenges and develop development of the TIP member companies. The qualitative
potential solutions for a more sustainable future. information reported is not exhaustive and the implementation of
measures can vary both between and within companies.
The tire industry leaders recognize that there are both opportunities
and challenges associated with tire manufacturing and sustainable For detailed, company-specific information, please consult publicly
development. available company reports.

Over the past five years, WBCSD has commissioned an

independent third party (Deloitte) to identify environmental key *Members of the WBCSD Tire Industry Project
performance indicators (KPIs) that measure operational impacts of • Bridgestone Corporation • Kumho Tire Company Inc.
the tire industry related to manufacturing operations (energy • Continental AG • Manufacture Française des
consumption, CO2 emissions, water intake and ISO 14001 • Cooper Tire & Rubber Company Pneumatiques Michelin
• The Goodyear Tire & Rubber • Pirelli Tyre S.p.A.
certification) by means of interviews with TIP members to define a Company • Sumitomo Rubber Industries, Ltd.
common methodological framework for the collection and • Hankook Tire & Technology Co., • Toyo Tire Corporation
compilation of data. Three sectorial performance reports were Ltd. • The Yokohama Rubber Co., Ltd.
4
State of play: Policies, Strategies and Targets
Based on publicly available data and information provided to Deloitte by each member company, all TIP member companies have taken
steps to reduce the environmental impact of their manufacturing operations.

Policies Targets

All TIP companies reported that environmental issues are Quantitative targets are recognized as leading factors of
considered at a high level across all operations in varying degrees of improvement and are expected, if not required, by external
implementation and integration. As such, two types of policies stakeholders. Most TIP companies have set targets on energy,
emerge: carbon and water topics. While they vary in scope, targets were
previously fixed for an average period of 10 years and for the
1. Global policies, that are generally concerned with both majority will end in 2020. As this period comes to an end and the
environmental and safety issues and tend to describe results are encouraging, new targets have been set by most TIP
overarching principles but do not include quantitative insights member companies (see targets for each topic in the different
into corporate strategy. These policies are mostly part of sections below). The establishment and delivery of specific
broader company-level strategies based on the United roadmaps is important for the companies to achieve these targets
Nations’ Sustainable Development Goals (SDGs) as a basis and for the continued improvement of performance indicators in the
for international sustainability guidelines. These strategies can coming years.
encompass broader operations, including for e.g. the supply
chain, the sourcing of natural rubber, and the product’s end-of-
Governance
life.
Environmental topics are typically discussed at the highest level
2. Independent policies that target specific environmental topics
within member companies: Presidents or CEOs (depending on the
(i.e. water, waste, greenhouse gas (GHG) emissions, energy)
organization) are included in the councils or committees discussing
with more detailed roadmaps.
the issue and defining the strategies of most members.
5
Key Performance Indicators

6
Summary of absolute KPIs
This graph illustrates the overall evolution of the different manufacturing Absolute environmental indicators
environmental KPIs compared to the variations of the production level. (manufacturing) (2009 value = 100%)
The production level strongly increased at the beginning of the period
and peaked in 2011. A slight decrease in production levels between
2018 and 2019 follows a period of sustained growth that started in %
2012.

Globally, the absolute KPIs followed the same trends as the production %
level through 2013: it is particularly visible in 2019, where a decrease of
all absolute indicators is noticeable. However, from 2014, while energy %
consumption continuously followed the production’s variations, CO2
emissions began to slightly decrease, and water intake significantly
decreased.
%
The sector’s CO2 emissions are strongly correlated with its energy
consumption until 2014, showing the absence of any major change in
terms of energy sources used or carbon mix over the studied period.
From 2014 onwards, TIP members began to dissociate the CO2
2
emissions from the energy consumption. The increased use of
renewable energy will continue to drive this trend. This result is due to
an improvement (decrease) of the countries’ emission factors where the
companies operate and from a change in TIP companies’ energy mix.

Exact data for all years and all indicators is presented on slide 22. 7
Summary of intensity KPIs
Environmental Intensity indicators
The analysis of intensity* KPIs (ratio of the absolute indicator by unit of (manufacturing) (2009 value = 100%)
production) enables the comparison of the performance without the
interference possibly caused by important production variations. %

The production levels decreased by 0.5% from 2018 to 2019 for the first
time since 2012, despite the increasing number of sites in the reporting
scope. The growing number of sites and the decrease in the total
production amount reflects a decrease in the production per site.

The number of sites covered by the sectorial reporting is the highest

observed over the studied period. There were 210 sites under the
reporting scope in 2010 compared to 241 in 2019. %
81.4 %
All intensity indicators decreased during the reporting period 2009-2017.
It is interesting to note that energy and CO2 KPIs slightly increased %
between 2017 and 2019 after a continuous decrease over the past 5
years. In 2019, the intensive indicators slightly increased whereas
production decreased. This can be explained either by additional less-
efficient production sites integrated in the reporting in 2019, or by
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additional new more efficient but not at full capacity sites in the reporting
scope.

Despite the 0.5% decrease on average in absolute values, the intensity *Unit of energy, water withdrawal or CO2 emission per unit of production.
KPIs slightly increased from 2018 to 2019.
Exact data for all years and all indicators is presented on slide 22. 8
Energy
Energy intensity
GJ/ton

Total energy consumption (manufacturing)

Total energy consumption on the manufacturing sites increased

(PJ NCV) Peta Joules Net Calorific Value

significantly between 2009 and 2010 (+11%) and appeared to have
stabilized after this date until 2018 (+4%). The total amount of
energy consumed remains constant in 2019 as compared to 2018
levels, greater than in previous years.
Energy intensity significantly decreased between 2009 and 2010
benefiting from the capacity optimization effect related to
production increase.

From 2013 to 2017, the global energy intensity continuously

decreased, to slightly increase again in 2018 and 2019, remaining
around 3% below the 2010 levels. The 2018 and 2019 increase is
attributed to the integration of several energy intensive production
plants (either new plants that were not at full capacity or older
plants with less efficiency).

It is important to note that intensity does not increase as much as

absolute energy consumption. This reflects TIP members’ efforts to
improve resource efficiency of their manufacturing operations.

Weighted average energy intensity: total energy consumption for 11 TIP members / total
production volume of these companies.
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 Energy policies and outstanding projects
Management and strategy
Involving staff members to reduce energy losses
TIP companies implemented efficiency programs with a focus on
energy. To reduce their impact and shift to a more sustainable way of Toward increasing the efficiency of their operations, a few TIP members
manufacturing, TIP members’ focus on reducing energy consumption conducted assessments of the different energy losses that can occur in all
in their manufacturing sites, increasing energy efficiency of the areas of the manufacturing facility (steam use, utility costs, heating, cooling
equipment and developing renewable energies. and electric use efficiency, etc.). To do so, they involved staff members by
developing their ability to recognize and implement energy-saving
Companies have programs that include employees to improve their opportunities, by developing a “zero-loss” culture, or by creating a global
processes, using cross-functional teams working on energy efficiency energy project catalog to share best practices between their sites. They also
and training their employees to identify opportunities for conducted third-party audits resulting in the identification of multiple projects
improvement. with potential savings.

Targets
A few TIP members have set specific long-term energy intensity Investing in energy efficiency projects
goals (those longer than 10 years). The deadline for these targets set
during the previous years are 2020 and 2023. Several companies Many companies set optimization projects including:
have fixed yearly targets which are set at corporate-level while the • Online monitoring for leak detection and rapid reaction
challenges to achieve them are addressed at regional or site-specific • Installation of new equipment (e.g. heat pumps) with higher efficiency rates
levels; each business location has responsibility to implement • Lighting optimization programs such as LED lighting equipment installation
measures toward group targets.

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 Energy – focus on the energy mix
Analysis of the energy mix of the sector shows a voluntary change from more
carbon intensive energy, mainly fuel oil and coal, to less carbon intensive sources
of energy, such as electricity and natural gas, from 2009 to 2019, and particularly
since 2015. The addition of renewable electricity in the total purchased electricity is
clearly visible, as well as the decrease of the consumption of fossil fuels such as
fuel oil.

The share of electricity consumption grew by 3%, driven by power purchase

agreements and renewable electricity certificate purchased by several
companies of the sector. Many of the companies also installed solar panels or
other renewable energy generating sources on their sites and consumed the
electricity produced directly on site (part included in the renewable electricity
consumption). However, in 2019, the self-generated and consumed electricity on-
site represented less than 1% of total renewable electricity consumed. This low rate
is partly due to the fact that not all generated renewable electricity is consumed on
site by these companies as it is sold back to the grid, and therefore it is not
represented on the graph.

Over the reporting period, TIP members usually replaced high-carbon energy with
*diesel, propane,
more low-carbon power sources and renewable energy through local action plans. petrol, other.
The change in energy sources included harnessing steam power from renewable
fuels, increasing natural gas consumption and shifting to electric devices, such as
Evolution of the energy mix of the sector
forklifts for example.
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 CO2 emissions
CO2 intensity
tCO2/ton

Total CO2 emissions (manufacturing)

TIP members’ CO2 emissions are directly related to their energy
consumption. CO2 intensity levels decreased by 6% between 2015
and 2019. Three key factors drove this decrease:

• An evolution in the energy mix: over this period, the sector

switched from coal and fuel oil to natural gas and purchased
electricity (See page 11 on energy mix).

Million t CO2
• Lower Scope 2* emission factors with regards to purchased
electricity: most of the countries where companies operate have
changed their own energy mix over the years, positively
impacting the sector’s overall performance.

• Implementation of decarbonization measures (examples are

given on the following page): dividing total CO2 emissions by
total energy consumption reveals an 8% decrease in average
emission factor (in tons of CO2 per GJ) between 2010 and 2019.

Weighted average CO2 intensity: total CO2 emissions for 11 TIP members / total production
volume of these companies.
*Scope 2 emissions are indirect emissions from the generation of acquired and consumed electricity, 12
steam, heat, or cooling. Scope 1 emissions are direct emissions from owned or controlled sources.
 Carbon policies and outstanding projects
Management Global impactful initiatives
Climate change is an important topic for the industry. Several members joined international global initiatives to reinforce their engagement, for
Both the impacts related to the manufacturing sites and example:
emissions emitted during the sourcing of raw material or • Climate targets were submitted to the Science Based Targets (SBTs) initiative for
product-use phase are addressed by TIP members verification. These SBTs provide companies targets for carbon neutrality across their
through policies. CO2 policies on industrial sites are manufacturing base by 2050. One example saw a TIP member set an internal carbon
mostly linked to the energy strategies. price to spur further progress and analyze return on investment in capital projects.
Most TIP members implement programs to shift to a less • Members also joined International initiatives (RE100 or Paris Climate Agreement)
carbon-intensive energy mix, either by producing and committed to the promotion of renewable energy sources.
renewable energy, or by changing the sourcing of the • Other initiatives saw members participate in National policies by setting long-term
energy they consume. targets with ministries when possible.

Targets
Most TIP members have set mid-term and/or long-term Developing renewable energy instead of fossil fuels
GHG emission reduction targets. Target setting covers
scope 1, 2 and 3 emissions. Companies are using renewable energy at their manufacturing sites, such as solar panels
or biomass in a switch from fossil fuels to a less carbon-intensive energy mix:
• Policies on 100% renewable electricity: many companies identified switching to
renewable electricity in their plant management, usually at site level.
• Installation of solar panels: most companies installed photovoltaic panels. The
electricity generated is either directly consumed by the companies or sold back to the
grid. The power installed tends to increase over the years.
• Changes in the steam sources: when possible changes of the sourcing of steam to
low-carbon steam that incudes thermal energy from biomass, for example. 13
Water intake
Water intensity
m3/ton
Total water intake significantly decreased over the reporting
period, even if overall production in 2019 was 12% higher than in
2010.

Total water intake (manufacturing)

The weighted average water intensity also decreased sharply
(-19%) between 2010 and 2019, especially between 2013 and
2017, before remaining almost constant ever since.
Over the period, most TIP members managed to enhance their
performance by implementing efficiency improvement projects at
their production facilities. Water optimization practices are largely
implemented because they reduce resource consumption and

million m3
mitigate risk in water stressed areas.
Water reuse and water recycling are key objectives for the
industry, and TIP members consider water-scarcity risk in their
target setting.
Water saving generally does not bring significant return on
investment; notwithstanding, companies are achieving good
results driven by their commitment to water/resource saving and
reducing impact on local communities.
Weighted average water intensity: total water intake for 11 TIP members / total production
volume of these companies.
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 Water policies and outstanding projects
Systematic implementation of measures to detect, repair and prevent
Management
water-leakage
Cooling-water and steam are required for the tire production process
and water is used at site-level for sanitary purposes. Efforts to Many TIP members improved the measurement of water abstract and usage:
improve the sustainable management of water include detecting, • Installing of smart meters that improved the ability to track key water use
repairing and preventing water-leakage, improving water reuse and parameters
recycling, and focusing efforts on water-stressed locations. • Measuring and tracking the usage regularly through online monitoring

Targets
Reducing water abstraction through water reuse and recycling
All companies have set targets that concern water use reduction.
Targets can be on: Many TIP members identified ways to reuse water in the equipment:
• Ability to reduce water withdrawal in the coming years • Ensuring closed loop-circuits for the cooling systems and change of the
heat pumps to reduce the water lost through evaporation
• Global amount used
• Retreating wastewater at the facilities enabling the plant to reuse it as
• Water recycling on the manufacturing sites sanitary water and cleansing water
Special attention is given to manufacturing sites located in areas • Recovering, treating and reusing rainwater
where water stress is high. To properly account for these specific
areas, a few members track water use and water withdrawal data at
Focusing on the at-risks plants
their facilities and use the WRI Aqueduct Tool to annually assess
water stress, down to the basin level at every location. Several companies conducted water risks assessments to identify the plants
with the highest water scarcity risks and adapt the action plans to perfectly fit
to the local situation.

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ISO 14001 compliance
Certification rate
%
The percentage of ISO 14001-certified sites among the total
number of sites slightly increased, after a period of stabilization
between 2015 and 2017 (weighted average).
It is important to note that 2019 covers the highest number of
industrial sites since the beginning of collection of environmental
data and that it shows the highest certification rate.

ISO 14001 sites

Certification rates further illustrate the fact that most TIP members
have, or are, developing Environmental Management Systems
(EMS) and policies.
TIP companies are aware of the importance of certification, as
demonstrated both internally, through their processes, and
externally, through communication and reporting. Certifications are
also a preferred means of meeting customers’ increasing
environmental requirements.

Several companies have included a 100% certification rate target

in their overall environmental policy, but in most cases, certification Weighted average certification rate: number of ISO 14001 certified sites for 11 TIP
processes are considered on a plant-by-plant basis. members / total number of sites for these companies included in the scope.

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 Environmental management
Certifying all plants according to ISO 14001
Environmental Management Systems (EMS)
Many companies have set up goals or policies to achieve 100% of
TIP member companies have set up EMS in almost all of certified sites, through two main ways:
their manufacturing facilities. These systems ensure • Working on certifying the last operating plants in the scope that
environmental data are sufficiently monitored in an effort to are not certified yet
foster continuous improvements. • Only acquiring certified sites
Training and education campaigns are a key requirement of the
EMS standards, thus reinforcing the impact of the certification.
The benefit of rolling out EMS across an ever-growing
number of plants is that best practices may be tested more
Implementing broader Management System
easily, and their results monitored in real-time. The whole
sector may derive major improvement as they pilot Many TIP members have created their own Management System in
innovative techniques faster and ultimately better implement order to monitor and drive their performance at corporate level, and
low-intensity processes. not necessarily on the sole scope of the operating plants. These
policies often refer to the ISO 14001 certification which is a
reference in this topic.

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 How have TIP members improved their performances?
The following lists provide examples of measures taken by TIP member companies that have directly contributed to improvements in the
environmental performance of tire manufacturing operations as measured through the aggregated data set presented in this report. For
additional information on TIP members’ individual contributions toward sustainable development see next page.
Methods for improved energy efficiency and CO2 footprint reduction
Changes in the energy mix
• Reducing CO2 emissions by switching fuels from heavy oil, coal and used tires to natural gas
Energy savings - energy efficiency
• Installation of solar and / or photovoltaic panels
• Completion of energy surveys for identifying energy loss and potential savings
• Conversion to wind and hydroelectric energy sources
• Installation of energy efficient machinery to reduce energy loss
• Studies to assess the feasibility of replacing coal with natural gas, biomass or other primary
• Reduction of energy through zero loss thinking
energy sources
• Establishment of an Energy-Saving Technology Committee
• Conversion from diesel to LPG fuel sources for boiler energy
• Renewal to high-efficiency equipment (mixers, pumps, motors, air compressors, heat
• Utilizing heat recovery technology to use factories’ waste heat for air-conditioning
pumps, etc.)
• Joining the RE100 initiative to promote renewable energy sources
• Lighting optimization with LED lighting equipment installation
• Energy generation from biomass sources including food waste and vegetable oil
• Implementation of systems for air, steam and nitrogen leak detection and repair
• Implementation of online steam trap monitoring to improve boiler efficiency Methods for improved efficiency in water use
• Installation of heat pumps on the evaporative cooling towers to enable waste heat to
• Systematic implementation of measures to detect, repair and prevent water-leakage
be repurposed, notably in heating systems
• Implementation of closed-loop water management systems including water recycling and
rainwater collection (used as cooling water and for restrooms)
Management systems
• Implementation of evaporative cooling to capture process water and steam condensate to reuse
• Expansion of metering at the plants to enable more robust, real-time monitoring of and reduce the use of water
energy performance in a centralized energy management system • Promotion of the improvement of equipment for measuring the volume of discharges in order to
• Sharing of best practices between sites by the creation of a global energy project improve their accuracy
catalog • Installation of water treatment facilities at all production bases to prevent deterioration in the
• Introduction of data management for detailed tracking of energy and water usage quality of wastewater
• Promotion of a modal shift in logistics and encouragement of low-carbon mobility • Assessment of water stresses within manufacturing plant catchments to enable smart water
• Implementation of an internal carbon price management practices, using the WRI Aqueduct Tool 18
Discover more about TIP members’ contributions to sustainable development

Bridgestone Corporation Manufacture Française des Pneumatiques Michelin

https://www.bridgestone.com/responsibilities https://www.michelin.com/en/sustainable-development-mobility

Continental AG Pirelli Tyre S.p.A.

https://www.continental.com/en/sustainability https://corporate.pirelli.com/corporate/en-ww/sustainability/sustainability

Cooper Tire & Rubber Company Sumitomo Rubber Industries, Ltd.

http://coopertire.com/corporate-responsibility https://www.srigroup.co.jp/english/sustainability/index.html

The Goodyear Tire & Rubber Company Toyo Tire Corporation

https://corporate.goodyear.com/en-US/responsibility.html https://www.toyotires-global.com/csr/

Hankook Tire & Technology Co., Ltd. The Yokohama Rubber Co., Ltd.
https://www.hankooktire.com/global/sustainability.html https://www.y-yokohama.com/global/csr/

Kumho Tire Company Inc.

https://www.kumhotire.com/ko/company/sustainableList.do (Korean)

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Appendix

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Methodological note
Entities and reporting scope calculations. CO2 emissions associated with fuel consumption related to offsite
transportation (employees, products) are excluded.
The reporting scope includes all sites under TIP members’ operational control. The
data are consolidated at 100% for all entities under operational control (regardless of Sources for emission factors:
the financial consolidation rate). The following activities are included in the reporting
• Scope 1 emission factors: 2006 IPCC (Intergovernmental Panel for Climate
scope: tire manufacturing sites and all related onsite activities (canteen, R&D, mixing,
Change) Guidelines for stationary combustion in the manufacturing industry.
bladder production, reused tire processing, etc.), and stand-alone sites with mixing
activities. Other stand-alone sites (bladder production, steel cord, textile facilities, • Scope 2 emission factors associated with electricity purchases: IEA CO2
retread tire processing, HQ, offices, etc.) are excluded. Emissions from fuel combustion highlights (2018).
Please note that due to new acquisitions, greenfield sites or shutdowns over the years,
Water intake: The water intake represents the net amount of water entering the sites
the reporting scope and the number of sites participating in the reporting is not
and withdrawn from any external source (pumping from natural resources, public
constant.
networks, recycled water from external companies or from desalinization plants, steam
The qualitative information reported is not exhaustive and the implementation of purchases, etc.). All external sources of water intake used for industrial, cooling and
measures can vary both between and within companies. domestic usage are considered, including the amount of water sold to offsite third
parties or consumed by activities of third-party companies onsite.
Indicator definitions ISO 14001: The certification rate has been calculated based on dividing the total
number of sites with ISO 14001 certification by the total number of sites. A site is
All indicators were calculated using the “Common Methodology.” The “Common
recognized for ISO 14001 certification during a given calendar year, only if an external
Methodology” is a reporting protocol which defines the indicators, scope and
certificate is valid on December 31st of that year.
calculation methodology. The “Common Methodology” was set up and agreed upon
by TIP members and is summarized below: Production: Production is calculated as the weight of intended products to be sold to
end-users as an output of the production lines as well as the weight of new materials
Energy consumption: The energy consumption is consolidated in Net Calorific Value
integrated in retread tires if part of the tire manufacturing plant.
(NCV). The electricity and steam sold to external third parties are deducted. Fuel
consumption related to offsite transportation (employees, products) is excluded. The published value for the intensity indicators is the weighted average for the eleven
TIP members.
CO2 emissions: This includes CO2 emissions from energy consumption related to the
tire manufacturing process and other facilities on the production sites. The energy sold
to external third parties (electricity and steam) are not deducted for the CO2 emissions 21
 Summary of KPIs
Absolute environmental indicators Environmental Intensity indicators
(manufacturing) (2009 value = 100%) (manufacturing) (2009 value = 100%)

2 2

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Contact
Anne-Cécile Remont
Director, WBCSD Tire Industry Project

Maison de la Paix
Chemin Eugène-Rigot 2B
CP 2075 1211 Geneva 1

+41 79 568 06 13

www.wbcsd.org/tip

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WBCSD (Geneva) WBCSD (New York) WBCSD (Delhi) WBCSD (London) WBCSD (Asia Pacific)
Maison de la Paix 29 East 19th Street, 4th Floor WBCSD India, 4th Floor WeWork Mansion House 01-03 Science Park Drive
Chemin Eugène-Rigot 2B New York, NY 10003 Worldmark 2, 33 Queen Street 118222
1211 Geneva USA Aerocity New Delhi 110 037 London EC4R 1BR Singapore
India UK 24
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