TYRE INDUSTRY

IN
INDIA
Presented By –
Alok Chowdhury
 INTRODUCTION
• THE ORIGIN OF INDIAN TYRE INDUSTRY DATES BACK TO 1926.

• INDIAN TYRES ARE EXPORTED TO OVER 65 COUNTRIES

WORLD WIDE.

• IT CONTRIBUTES TO ABOUT 0.5% OF THE TOTAL GDP OF THE

COUNTRY.

• THE INDUSTRY IS WORTH Rs.25000 CRORES AND 14% OF IT IS

FROM EXPORTS

• IT PROVIDES EMPLOYMENT TO 0.5 MILLION PEOPLE.

 OEM &
REPLACEMENT

TYPES OF TYRE UNREGULATED

MARKETS

USED TYRES
 DEMAND FOR TYRES

CATEGORY WISE SALES SEGMENTS

7% 14%

TRUCK/BUS
21% JEEP REPLACEMENT
TRACTOR OEM's
PASSENGER VEHICLE EXPORTS
LCV 24%

5% 62%
65%

2%
 TOP PLAYERS
NAMEPLT ESTABLISHED STOCK PRICE TURNOVER (CR) MARKET SHARE
MRF 1946 74877.30 13245.81 31.12%
APOLLO TYRES 1972 260.70 8933.77 20.99%
CEAT 1958 1300.95 6167.34 14.47%
JK TYRES 1974 123.10 5979.12 14.04%
BALKRISHNA IND 1987 1200.75 4464.46 10.49%
TVS 1911 2970.45 1960.42 4.60%
GOODYEAR 1898 1130.85 1511.84 3.55%
GOVIND RUBBER 1964 9.75 205.36 0.48%
OTHERS - - - 0.26%
 SWOT ANALYSIS
STRENGTHS

•ECONOMIC REVIVAL EFFORTS UNDERTAKEN BY THE GOVERNMENT

•R&D INITIATIVES BY TOP PLAYERS

WEAKNESSES

•HIGHLY CAPITAL INTENSIVE TECHNOLOGY

•FLUCTUATIONS IN EXCHANGE RATE

•PRICING PRESSURE
 SWOT ANALYSIS
OPPORTUNITIES

• ACCESS TO GLOBAL SOURCES OF RAW MATERIAL

• EXPLORATION OF NEW MARKETS

THREATS

• INTRODUCTION OF OTHER MODES OF TRANSPORTATION

• CHEAPER IMPORT OF TYRES

• INCREASE IN PRICE OF NATURAL RUBBER

• FOUNDED IN 1946 IN
TIRUVOTTIYUR, CHENNAI
• PRESENT IN 65 COUNTRIES
WORLDWIDE
• OPERATING MARGIN 10.81% AND
PROFIT MARGIN 7.54%
• RETURN OF EQUITY 12.31%
• EBITDA 22.28 BILLION
• FOUNDED IN 1972 IN THRISSUR,
KERALA
• PRESENT IN 100+ COUNTRIES
• OPERATING MARGIN 7.21% AND
PROFIT MARGIN 4.93%
•
• RETURN OF EQUITY 8.48%
• EBITDA 16 BILLION
 WHY MRF IS ON TOP ?
• MRF STRIVES TOWARDS MINIMIZING DEFECTS AND
POLLUTION
• STRICT ADHERENCE TO INTERNATIONAL QUALITY STANDARDS
• CONCENTRATION ON ASIAN MARKET WHILE IT’S BIGGEST
COMPETITORS ARE FOCUSING ON EXPANDING EUROPEAN
MARKET BASE
• PRESENCE IN TWO WHEELER AND THREE WHEELER MARKET
IN INDIA
• MRF ALREADY EXISTS IN THE RADIAL TYRE MARKET WHILE
IT’S COMPETETORS ARE JUST JOINING THE SHIFT FROM BIAS
TYRES
 CONCLUSION
• CHINA IS LOSING IT’S COST ADVANTAGE DUE TO RISING WAGES

• INTERNATIONAL PLAYERS LIKE MICHELIN HAVE ENTERED THE

INDIAN MARKET

• PRICE VOLATILITY OF RUBBER AND PETROLEUM PRODUCTS

OBSTRUCTS PRODUCTIVITY

• ROBUST GROWTH RATE IN ALL VEHICULAR SEGMENTS

• LOW LABOUR COST OFSET BY LOW PRODUCTIVITY

THANK YOU