SBICaps Indian Tyre Industry Overview June2007

Indian Tyre Industry
An Overview
Prepared By
June 2007 Strictly Confidential

Abbreviations:
• OHT: Off Highway Tyres • OEM: Original Equipment Manufacturer
• ATV: All Terrain Vehicle tyres • MUV: Multi Utility Vehicle
• OTR: Off The Road tyres • MHCV: Medium and Heavy Commercial Vehicle
• RM: Replacement market • JKIL: J K Industries Limited
• CV: Commercial Vehicles • GIL: Goodyear India Limited
• PV: Passenger Vehicles • ATL: Apollo Tyres Limited
• T&B: Trucks & Buses • PCR: Passenger Car Radial
• LCV: Light Commercial Vehicle • LTR: Light Truck Radial
the world’s leading M&A alliance

• Although the tyre industry faces huge competition, price & cost pressures and high
entry barriers, the changing dynamics, with the growing economy and the escalating
auto industry, provide a fillip to the industry.
• The zooming auto industry, with sales growing at a CAGR of 15.8% during the
2002-06 period, has driven the growth in the tyre industry, keeping both the OEM
and replacement demand buoyant.
• The demand and growth for the industry depends on primary factors like overall
GDP growth, agricultural & industrial production and growth in vehicle-demand and
on secondary factors like infrastructure development and prevailing interest rates.
• The total number of vehicles on the road is constantly swelling, on the back of an
increase in road-transportation, which would gain more momentum once projects
like the Golden Quadrilateral and NSEW Corridor project get implemented.

• The Indian tyre industry, comprising of 40 companies (47 factories) in the organized and unorganized
sectors, can be divided into two tiers:
• Tier-I players (top 5 tyre companies) account for over 80% of industry turnover containing a well
diversified product-mix and presence in all three major segments, i.e. replacement market, original
equipment manufacturers (OEM's) and exports.
• Tier-II companies are small in size, concentrating chiefly on production of small tyres (for two/
three-wheelers, etc.), tubes and flaps and the replacement market. The industry has a negligible
market share in the commercial vehicles tyre category and is around 20% in the two-wheeler tyre
category.

Tyre exports are increasing consistently, with

tyres being exported to over 65 countries
worldwide. Tyre exports grew at a CAGR of
11%, over FY1994 to FY2006.
In 2005-06, production and consumption of

rubber grew by 5.5% and 6.2%, respectively,
while exports increased by
51.2% (for the same period), on account of the
imbalance in the global demand-supply position.
The average domestic price of rubber increased
by 20.3%, while the
international prices soared by 31.5% in the same
period.
Note: 1 Quintal = 100 KGs

Indian Tyre Industry – Crossply and Radial Tyres
• Tyres made in India can be broadly classified as crossply and radial.
• Crossply tyres account for 90-95% of tyres sold in India. The body of the tyre called the carcass
is made up of layers of rubber coated nylon or rayon fabric called piles. The main difference
between these two tyres is the direction in which ply cords are arranged and the type of
reinforcement medium used.
• In a crossply tyre, the fabric cords of the tyre criss cross each other and the major reinforcing
materials used are rayon and nylon tyre cords. Radial tyres have more flexible sidewalls and the
reinforcing medium include polyester, nylon, fiberglass and steel.
• There is a substantial price difference between crossply and radial tyres. Radial tyres are 10-15%
costlier compared to the crossply ones. Radial tyres can be differentiated on the type of belt
used – fiberglass, steel and nylon.

Radialization in the Commercial Vehicle Segment
• The initial cost of a radial tyre is approx. 25% higher on a cost

per kilometer (CPK) basis.
• Radialization gained a quantum jump with the fitment of radial
tyres by original equipment manufacturers (vehicle
manufacturers) even on lower end/high volume cars.
• Currently over 95% of the passenger car OE fitment is of radial
tyres.
• Since fitment of tyres in the replacement market (by the Radialization Level 1995 2004
consumer generally follows the same pattern as that of the
original fitment of tyre in the car, the level of radialization has Passenger Car 28% 85%
increased significantly in the last few years, from 28% in 1995
to over 75% in 2003. LCV 9% 11%
• The share of radialization in truck and bus segment continues T&B 1% 2%

to be low even at present, i.e. less than 2%. This is so due to
comparatively higher cost of radial tyres (though the per km.
Cost is eventually low), unsatisfactory road conditions and a
general mindset that radial tyres for commercial vehicles are not
good for Indian roads.


The Key Players – Indian Market
1. MRF
2. Apollo Tyres
3. JK Tyres TIER-1 COMPANIES
4. CEAT
5. GOODYEAR
SBICAP Approach
6. TVS TYRES
Based on our preliminary research we have categorised,the
7. BIRLA TYRES
key companies in the Indian Tyres sector by existing market
8. FALCON TYRES share based on Turnover. The above Top5 have therefore
9. Govind Rubber Limited been classified as Tier-1 which account for about 70-80%
market share.
10. BALAKRISHNA
11. MODI RUBBER We have profiled these companies as well as some of the
other main players in the following slides to give Pirelli a
12. METRO TYRES perspective of the Indian market and facilitate an
13. SUPERKING understanding of the profiles of the Indian players.
None of the companies have been approached at this stage

to explore their future plans and views on any form of
association with a Global Leader.
1. MRF TYRES
• In 1952, MRF ventured into the manufacture of tread rubber. And with that, the first machine, a
rubber mill, was installed at the factory. In 1961, with the success achieved in tread rubber, MRF
entered into the manufacture of tyres.
• In 1967, MRF became the first Indian company to export tyres to USA.
• In 2004, MRF's turnover crossed INR 30 billion mark.. MRF is the market leader among tyre
manufacturers in India, with a 24% share in terms of revenues. Due to its leadership position,
coupled with its strong brand recall and high quality, MRF commands the price-maker status.
• MRF has a strong presence in the T&B segment, the largest segment of the tyre industry, and
commands around 19% market share in the segment.
• It is the leader in the two/ three-wheeler segment (including motorcycles) and tractor front tyres,
and holds second place in the passenger cars and tractor - rear tyres.

MRF TYRES
• Exports account for around 12% of the gross sales in MRF. The Company has a distribution
network of 2,500 outlets within India and exports to over 65 countries worldwide.
• MRF has expanded capacities continuously in the past few years from 13.1mn tyres in FY01 to
21.6mn tyres in FY06.
• Its capacity utilization also has clocked more than 90% in most of the years. In FY06 it had a
capacity utilization of 94.3%. MRF plans to invest INR 6 bn (109.1 million Euros) to expand its
capacities in next two years. It is planning to add 0.1mn tyres in PCR segment, 0.1mn tyres in two-
wheeler segment and about 20,000 tyres in LCV segment.

MRF TYRES - Financial Snapshot
Financial and Operating Performance FY 2006

(Euro Millions)
Total Sales 769.76
PAT 14.53
Equity 0.77
Net Worth 149.87
Market Capitalization (as on 8th June ’07) 300.02

2. APOLLO TYRES
• ATL is the largest CV tyre manufacturer in India. CV segment is the largest segment in Indian tyre
industry on revenue terms. ATL is having 28% market share in T&B segment and 26% in LCV
segment in FY 2007. It has recently launched T&B radials, a segment poised to grow above 20%
in the coming years.
• It is ranked 15th in the global tyre industry after acquisition of DTL. It has three tyre plants in
India, two plants in South Africa and one plant in Zimbabwe with a total capacity of 890 tpd.
• It is the second largest player in the Indian tyre industry, with a market share of 22%, in terms of
revenues, and the largest player in the T&B segment, with around 22% market share and 82% of
its product mix coming from this segment. It also enjoys a strong brand recall.
• Its products profile includes T&B bias and radial, LCV bias and radial, PV radial, Farm bias and
radial and OTR bias. It does not have a presence in two wheeler tyres.
• It has a wide product range and sells under various brands including popular brands like XT,
Loadstar, Amazer, Accelere.
• The Michelin Group has begun to sell radial tires to the Indian market in the framework of the
Joint Venture with Apollo Tyres Ltd.
• ATL derives 80% of its revenues from the replacement market, where the EBITDA margins are
higher; hence, at operating levels, Apollo Tyres has better margins compared to those of its peers.

APOLLO TYRES- Capacity and Location(s)
• After its inception in 1975, the second plant was

commissioned in Limda (Baroda, Gujarat ) in 1991.
• ATL has expanded its tyre capacity from 430 tpd in FY03 to
660 tpd in FY06, an increase of 15.0% CAGR.
• Apart from this ATL has acquired DTL which has a capacity
of 150 tpd in South Africa and 30 tpd in Zimbabwe.
• ATL has planned to put up a Greenfield capacity near
Chennai with 110 tpd in the intial phase and with a terminal
capacity of more than 200 tpd. Tamil Nadu capacity will have
production facility for T&B radial and PCR. It will cater the
high growth T&B radial which is expected to grow from the
present 4% to 10% by 2010 out of the total T&B tyre sales.
ATL has earmarked Rs.4bn for the first phase of this
Greenfield expansion.
• ATL is expanding PCR tyre capacity by 1.1mn units and LTR
tyre capacity by 0.1mn units by the end of FY07 to take the
total tyre capacity to 710 mt/day from 660 mt/day in FY06
(does not include tube capacity).

ATL - Financial Snapshot

(Million Euros)
Total Sales 869.31
PAT 21.28
Equity 8.44
Net Worth 167.26
Market Capitalization 294.78

(as on 6th June ’07)

3. J K TYRE
• JK Tyre is a leading exporter of tyres from

India and roughly accounts for about 26% of
the total tyre exports from India (along with
its associate Vikrant Tyres Limited)
• JK Industries has a 17% market share, in terms
of revenue, making it the third largest player in
the industry.
• The Company ranks first in the MHCV and
Passenger Car tyre segments, with 79% and 7%
of its product mix coming from these segments,
respectively.
• Exports account for approximately 17% of its
gross sales.

J K TYRE - Product details and locations
Products: Locations:
• Automobile Tyres • Banmore (Morena, Madhya Pradesh)
•Automobile Tubes •Kankroni (Udaipur, Rajasthan)
•Automobile Flaps

J K TYRE – Financial Snapshot

(Million Euros)
Total Sales 154.29
PAT 2.5
Equity 5.6
Net Worth 72.71

4. CEAT TYRES
• The oldest company of the RPG Enterprises, CEAT Tyres was established in 1958.
• One of India’s leading tyre manufacturers, with an annual turnover of INR 2,391 crores.
• Having been in the export business for over forty years, CEAT today enjoys 14% of the Indian
market share of global exports, clients in over seventy countries, and a turnover of approximately
US $47 million.
• Individual market shares include 64% in Singapore, 22% in UAE and 22% in Philippines. It also
sends its products to USA, Bangladesh, Pakistan, Vietnam, Iran, Nigeria, Egypt and other African,
Middle-East and Far-East Asian countries
• Meeting global standards with manufacturing processes being globally approved by DOT
(Department of Transportation) and IN-METRO.
• Long-standing business tie-ups with major OEMs including TATA Motors, Ashok Leyland,
Mahindra & Mahindra, Maruti, L&T, Eicher, Swaraj Mazda, Caterpillar, Bajaj Tempo, Piaggio,
Hero Honda, HMSI (wholly owned subsidiary of Honda Motors, Japan) and TVS Motors

CEAT TYRES
• It has a total capacity of 385 tpd in two plants in

Maharashtra. It sources two-wheeler tyres from
private players.
• CEAT has a 14% market share, in terms of
revenues, and is an average player across categories.
68% of its product mix comes from the MHCV
segment.
• Its leading brands in the T&B segment are Lug XL,
Mile XL and Rib XL, Secura in two-wheelers and
Formula-1 in passenger radials.
• In terms of profitability, CEAT has lower margins
compared to its peers, in spite of deriving 60% of
its revenues from the replacement market.

CEAT TYRES

(Million Euros)
Total Sales 434.65
PAT 7.14
Equity 8.31
Net Worth 68.84
Market Capitalization (as on 5th April ’07) 135.36

5. GOODYEAR India Ltd.
• Goodyear India, with presence across the globe, has a market share of 6% in the Indian Tyre
industry, in terms of revenues.
• Goodyear India (GIL), is the Indian subsidiary of 3 rd largest global tyre major. GIL is present in
PCR, tractor tyres and OTR in India.
• GIL is the market leader in tractor tyre segment in India.
• It has a significant market share in the tractor tyres segment, with 22% share in tractor - front tyres
and a 30% share in tractor - rear tyres.
• It derives 45% of the product mix from the MHCV segment and 31% from the tractor tyres
segment.

GIL – Product and location details
Products:
Location:
• Automotive Tyres
• Ballabgarh (Faridabad, Haryana)
• Flaps
• Automotive Tubes
• Transmission Belting
• Industrial V Belts
• Other Rubber Products
Capacity:
•GIL is expanding its PCR capacity from 4,500 tyres per day to 10,000 tyres per day at a capex of
Rs800mn.
• GIL is investing Rs500mn to start the shop-in-shop multi-brand concept where there is trained
staff to recommend the tyres good for the cars.

GIL - Financial Snapshot
Financial and Operating Performance CY 2006

(Million Euros)
Total Sales 171.16
PAT 5.53
Equity 4.2
Net Worth 16.29

6. TVS TYRES
• TVS Srichakra is Part of the TVS Group, the

largest Auto Ancillary group with a turnover of
over US$ 2.2 billion.
• The company Manufactures Industrial Pneumatic

Tyres, Farm & Implement Tyres, Skid Steer Tyres,
Multipurpose Tyres and Vintage Tyres at its State -
of- the- art manufacturing facility at Madurai,
Tamilnadu, India.
• The Company is a global player exporting to USA,
Europe, Africa, South America and South East
Asia.

TVS TYRES - Financial Snapshot

(Million Euros)
Total Sales 86.37
PAT 1.24
Equity 1.39
Net Worth 9.63

7. BIRLA TYRES
Domestic
• Manufacture a large variety of tyres that serve the needs of urban and rural users.
• Produce tyres in LUG, SEMI LUG, & RIB pattern for various segments of the Indian Road
Transport. LUG production is taken up depending on the application and usage namely road
conditions, loading patterns, vehicle tyres, etc.
• Out of the total production approx 68% is Truck tyres and balance 32% Non-truck tyres.
• Birla Tyre enjoys the status of a preferred OEM for supplying tyres to Tata Motors, providing JIT
(Just in Time) services, contributing to their business bottom line.
• It also serves State Transport Units all across the country with a wide range of tyres. The STUs it
serves includes: NBSTC, SBSTC, CTC, Maharashtra STC, Karnataka STC, 21 units in Tamil
Nadu, BEST, Himachal STC, Pepsu, Punjab Roadways, Pune Municipal Transport, Rajasthan
STC, MPSTC, Chandigarh STC, J&K STC, Haryana STC, etc.
Exports
• It exports 30% of its production against the industries average of 20% to more than 43 countries
namely Bangladesh, Vietnam, Middle East, Africa, Philippines, Afghanistan, South Africa, North
America, etc.

BIRLAS TYRES - Products
• Truck - Lug •.Lcv - Semi Lug

Various heavy duty rear wheels for Heavy duty tyres, for various light commercial
commercial vehicles vehicles
• Truck - Rib •.Passenger Bias

A range of heavy duty front wheels for Tyres suitable for various passenger vehicles.
commercial vehicles
•Jeep
• Truck - Semi Lug Tyres appropriate for Jeeps.
Long haul tough vehicle tyres, suitable for
both front & rear use. •.Farm
Suitable tyres for agricultural purpose.
• Lcv - Lug
Heavy duty rear wheels for light •ADV
commercial vehicles. Tyres befitting the challenging roads of the
countryside.
• Lcv - Rib
Heavy duty wheels for light commercial
vehicles

8. FALCON TYRES
• An ISO 9001 & TS 16949 Company, incorporated in 1973, FALCON TYRES located in
Karnataka, India, is a part of P K Ruia Group.
• Falcon manufactures and markets a wide range of nylon bias ply tyres and butyl tubes for
two and three wheelers, passenger cars, jeep, light commercial vehicles and farm vehicles, under
'DUNLOP' brand for the domestic market and 'FALCON' brand for overseas market.
• Falcon Tyres has a 2% market share in the tyre industry, and is the third largest player in the two
& threewheeler (including motorcycle) tyres segment. 86% of the Company’s product-mix
accounts for motorcycles and the two/ three-wheeler segment.
• The product range includes Low aspect ratio of varying Load Index, Uni-Directional tyres, Tube
less tyres (Scooter) and butyl tubes for two and three wheelers, passenger cars, jeep, light
commercial vehicles and farm vehicles

FALCON TYRES - Financial Snapshot

(Million Euros)
Total Sales 46.47
PAT 0.66
Equity 1.03
Net Worth 42.03

9. Govind Rubber Limited
• Govind Rubber Limited is a part of a big Industrial group called

SIYARAM PODDAR GROUP(SPG). The group is engaged in the
business of diverse products like Tires, Textiles and Paper products.
• GRL Tire range in "INTERNATIONAL" brand is reckoned for high
degree quality consistency. It has earned customer confidence and goodwill
in international and domestic markets with prestigious OEM's and in
replacement markets, worldwide. The development of new sizes, profiles
and special types of tires is an ongoing in-house activity.
• The research and development department has its own fully equipped
laboratory for conducting checks and controls where stringent tests are
conducted and findings can be traced for each batch.
• It has made exclusive and strategic agreements/arrangements in the USA,
Europe, Middle East & Far East to cater to its wide customer base.

GRL TYRES - Capacity and Location(s)
Locations: Products:
• Jugiana (Ludhiana, Punjab) • Auto Tubes

•Kanganwal (Ludhiana, Punjab) • Auto Tyres
•Bicycvcle Tubes
•Bicycle Tyres

Financial Snapshot – GRL Tyres

(Million Euros)
Total Sales 38.11
PAT 0.23
Equity 3.85
Net Worth 0.43
Market Capitalization (as on 10.6

8th June ’07)

10. BALKRISHNA
• The company is a product of the Siyaram Poddar Group.

Balkrishna Industries (BIL), operates in three different business
segments – Pneumatic Tyres, Coated/un-coated Paperboards
and Processing of Textile fabrics.
• BIL has recently decided to focus on tyre business only. It has
approved to transfer assets and liabilities of Paper board division
and Textile processing division to wholly owned subsidiaries.
This will help BIL to focus on fast expanding tyres business.
• Tyre segment constitutes more than 80% of revenues 95% of
profits for BIL. BIL exports nearly 95% of its production. BIL is
focused on wide range of OHT, ATV tyres and OTR tyres.
These are niche segments and command better margins.
• BIL is among top 10 producers in OHT comprising earthmover
tyres, industrial tyres and agricultural & construction equipment
tyres.
• Global tyre majors like Bridgestone and Michelin have exited the
OHT business since it is too fragmented, generates low volumes
and is labour-intensive. BIL on the other hand has capitalized on
its strength in engineering and lower labour costs to carve out a
niche in this specialty tyre segment. BIL’s topline has grown at
31.9% CAGR from FY02 - FY06 to Rs6.2bn.

BALAKRISHNA – Capacity and Location(s)
• At the end of FY06 BIL was having 48,000 and 18,000

tpa tyre manufacturing capacity at Bhiwadi and Waluj
respectively.
• It has planned to increase Bhiwadi capacity by 6,000

tpa and Waluj capacity by 4,000 tpa in FY07.
• It has also planned to put up 30,000 tpa capacity at

Chopanki. This will take the total capacity to 0.1mn
ton for BIL by the end of FY07.
• It is also putting up a mixer at Waluj.
• Areas of specialisation are:

• Tyres for Agricultural applications
• Tyres for Industrial and Construction applications
• Tyres for Utility and Recreation vehicles (ATVs)
• Tyres for Lawn and Garden applications
• Tyres for Earth Moving applications

BALAKRISHNA – Distribution Network

BALAKRISHNA – Financial Snapshot

(Millions Euros)
Total Sales 112.72
PAT 12.72
Equity 3.51
Net Worth 52.27

11. MODI RUBBER Ltd.
• The operations at the Company's plants at Modipuram, Modinagar and Partapur have remained
suspended since August, 2001 including various sales depots/offices of the Company. However,
efforts are being made to recommence the operations.
• Modi Rubber Limited is a flagship company of Modi conglomerate.
• In collaboration with the world renowned Continental Aktiengesellschaft of Germany, the first
Modi Continental automobile tyre rolled out of the state-of-the-art Modipuram plant in 1974.

MODI RUBBER Ltd. – Financial Snapshot

(Million Euros)
Total Sales 0.00
PAT -3.94
Equity 4.55
Net Worth -11.17
Market Capitalization

12. METRO TYRES
• Set up in 1968, Metro Tyres has established itself as a market leader for bicycle
tyres and tubes in India.
• With steadily increasing production of quality products, the Company

ventured into overseas market and developed a niche for itself in the
international market.
• The Company also kept itself abreast with latest technologies and developed
Nylon tyres and Butyl tubes with its own R&D efforts.
• The Company has diversified into the field of home appliances such
as electric fans, electric irons, sewing machines, etc. under the brand name
“ORTEM”.

13. SUPERKING
• Established in 1982, Superking manufactures and exports high quality tyres for various
applications. Adequate use of machineries, high quality materials and progressive technology have
helped Superking carve a respectable place among the tyre companies in India.
Products
• Agriculture Tractor Drive Wheel & OTR Tyres

• Light Commercial Vehicle Tyres
• Jeep & Van Tyres
• Fork Lift Industrial, Skid Steer & Dumper Tyres
• Agriculture Tractor Front
• Industrial Rib. Tractor Trailer,
• Agricultural Implement & Power Tiller Tyres
• Agriculture Implement Tyres
• Three Wheeler Tyres
• Golf & Go-Kart Tyres

SBI Capital Markets Limited
A Brief Introduction
the world’s leading M&A alliance June 2007 Strictly Confidential

About SBI Capital Markets Limited
State Bank of India Asian Development
Bank ¾ SBI Capital Markets Ltd. (SBI Caps) was founded in 1986 as a wholly owned
subsidiary of the State Bank of India, the country’s largest bank. In January 1997,
the Asian Development Bank took over 13.84% stake in the equity of SBI Caps
86.16% 13.84% stake
stake ¾ As part of State Bank Group with the full backing of SBI, its Indian associates and its
overseas subsidiaries, SBI Caps has direct links with a number of Multilateral
Agencies and International Financial Institutions
¾ No.1 Fund Mobiliser in the Country, raising over Rs.1219.11 billion through public,
rights issue and private placement of equity & debt during the past 5 years
Vision - To be the
best India-based
¾ Pioneer in Securitisation and Privatization: Accomplished the first true
Investment Bank
Securitisation in the power sector in the country and the only investment bank to be
co-opted on the RBI’s Working Group on Asset Securitisation as a Special Invitee
Mission- To
provide credible, ¾ Advisor to Government of India on crucial issues like studying India’s Power
professional and requirements and Role of Central PSUs, Securitisation of SEB overdues and the
customer -focussed only non-lending institution to be a participant in a nodal committee set up by the
world- class Ministry of Power
Investment
Banking services
¾ Strong relationship with the Government, having worked for several fund-raising,
strategic sale and other advisory transactions for Government of India and several
State Governments.
Network of Offices & Human Resources at SBI Caps
¾ SBI Caps Corporate Office is located in Mumbai and there are eight
Regional Offices in Delhi, Kolkata, Chennai, Bangalore, Hyderabad,

Chandigarh
Ahmedabad, Chandigarh and Guwahati and an alliance in

Guwahati
Bangladesh. The Company has a strong force of professionals with
New Delhi
Ahmedabad
rich and diverse experience in various spheres of Investment Banking.
Kolkata
Hyderabad
Mumbai ¾ SBI Caps pool of professionals constitutes the best talent drawn from
Bangalore every relevant field - finance, banking, management, accounting and
taxation. The employees in the management and executive cadre

Chennai
consist of experienced bankers deputed from State Bank of India and
direct recruits comprising various professionals from reputed

Investment Banking Broking
Sales & Distribution Research Management Institutes and qualified Chartered Accountants.
SBI Caps is amongst the earliest players in the Indian Capital Markets with fully integrated
operations offering the entire range of Investment Banking services under one umbrella

Strategic Associations / Tie-ups
¾ SBICAP (UK) Limited, floated in 2006 is a wholly owned subsidiary

SBICAP (UK)
of SBI Capital Markets Limited to provide services in the areas of
Cross Border M & A, FCCBs /GDRs, Private Equity, etc.
¾ Tie-up with CLSA for overseas acquisition, strategic investors &

CLSA
international offerings such as ADRs and GDRs.
¾ SBI Capital Markets Limited is the Indian representative of M&A

M&A International
International Inc, which has International network in 38 Countries.
Other International ¾ SBICAP has entered into tie-ups with investment banks in Sri
Tie-ups Lanka, Bangladesh, Oman and Qatar

Domain Expertise
• Mergers & Acquisitions & Advisory • Project Advisory & Structured Finance
¾ Privatisation ¾ Project Appraisal
¾ Joint Venture ¾ Structured Finance
¾ M&A and Takeovers ¾ Credit Syndication
¾ Private Equity/FCCB Placement ¾ Infrastructure Advisory
¾ Financial / Business Restructuring ¾ Securitization
¾ Business Valuation
¾ Rights Issues
• Capital Markets • SBICAP Securities (subsidiary of SBICAPS)

¾ Equity and Debt Origination ¾ Stock Broking
¾ Private Placements ¾ Sales & Distribution
¾ International Offerings ¾ Securities Research

Leveraging M & A International Tie-up
Offices of member firms:
Amsterdam Antwerp
Atlanta Barcelona
Baltimore Belgrade
Beijing Bern
Boston Buenos Aires
Budapest Chicago
Cleveland Copenhagen
Dallas Dublin
Hamburg Helsinki
Hong Kong Istanbul
Jacksonville Kiev
Ljubljana London
Los Angeles Madrid
Miami Mexico City
Moscow Mumbai
New York Oslo
Philadelphia Richmond
Riga San Francisco
Santiago Sao Paulo
Seattle Seoul
Seville Shanghai
Singapore Stockholm
St. Petersburg Sydney
Tallinn Tokyo
Toronto
Vilnius
Turin
Warsaw
SBI Capital Markets Limited is the exclusive
Indian representative of M&A International Inc.

Leveraging M & A International Tie-up
•For the fifth year

running M&A
International Inc.
leads the mid-
market M&A
league tables
•* Completed
transactions by
volume in 2006
(value US$ 5m -
250m)
•Source:
www.mergermark
et.com, M&A
International Inc.
Global mid-market league table

Thank You
the
world’s leading
M&A alliance
SBI Capital Markets Limited

Mergers & Acquisition and Corporate Advisory Group Contact Persons:
202, Maker Tower ‘E’, Cuffe Parade, Meenakshi Iyer
Colaba, Mumbai – 400 005, India. Vice President & Group Head
Meenakshi.Iyer@sbicaps.com
T# +91-22-22189166-69 F# +91-22-22186367/8332
Sameer Karulkar
Website: www.sbicaps.com Assistant Vice President
A Subsidiary of State Bank of India, India’s largest bank Sameer.Karulkar@sbicaps.com

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Indian Tyre Industry

June 2007 Strictly Confidential

• OHT: Off Highway Tyres • OEM: Original Equipment Manufacturer

• ATV: All Terrain Vehicle tyres • MUV: Multi Utility Vehicle

• RM: Replacement market • JKIL: J K Industries Limited

• CV: Commercial Vehicles • GIL: Goodyear India Limited

• PV: Passenger Vehicles • ATL: Apollo Tyres Limited

• T&B: Trucks & Buses • PCR: Passenger Car Radial

• LCV: Light Commercial Vehicle • LTR: Light Truck Radial

the world’s leading M&A alliance

the world’s leading M&A alliance

the world’s leading M&A alliance

Tyre exports are increasing consistently, with

In 2005-06, production and consumption of

the world’s leading M&A alliance

• Tyres made in India can be broadly classified as crossply and radial.

reinforcement medium used.

reinforcing medium include polyester, nylon, fiberglass and steel.

used – fiberglass, steel and nylon.

the world’s leading M&A alliance

• The initial cost of a radial tyre is approx. 25% higher on a cost

• The share of radialization in truck and bus segment continues T&B 1% 2%

the world’s leading M&A alliance

the world’s leading M&A alliance

None of the companies have been approached at this stage

the world’s leading M&A alliance

21.6mn tyres in FY06.

wheeler segment and about 20,000 tyres in LCV segment.

the world’s leading M&A alliance

Financial and Operating Performance FY 2006

Total Sales 769.76

Net Worth 149.87

Market Capitalization (as on 8th June ’07) 300.02

the world’s leading M&A alliance

the world’s leading M&A alliance

• After its inception in 1975, the second plant was

the world’s leading M&A alliance

Financial and Operating Performance FY 2007

Total Sales 869.31

Net Worth 167.26

Market Capitalization 294.78

the world’s leading M&A alliance

• JK Tyre is a leading exporter of tyres from

the world’s leading M&A alliance

the world’s leading M&A alliance

Financial and Operating Performance FY 2007

Total Sales 154.29

Net Worth 72.71

Market Capitalization (as on 8th June ’07) 76.03

the world’s leading M&A alliance

the world’s leading M&A alliance

• It has a total capacity of 385 tpd in two plants in

the world’s leading M&A alliance

Financial and Operating Performance FY 2007

Total Sales 434.65

Net Worth 68.84

Market Capitalization (as on 5th April ’07) 135.36

the world’s leading M&A alliance

the world’s leading M&A alliance

the world’s leading M&A alliance

Financial and Operating Performance CY 2006

Total Sales 171.16

Net Worth 16.29