Tyre industry

Presentation by: Mukesh Kumar M.B.A. IB

Introduction

The tyre industry in India is 30000 crores Faces huge competition, cost and price pressure

Zooming auto industry has driven the growth The truck and bus market is the largest segment in India terms of value

OBJECTIVES
Study of the import of raw material for tyre industry To analyze the items of raw material imported by Indian tyre firms, production of tyre in product-wise To analyze the export potential of tyre products in international market. Based on the research, to suggest policy options to improve the tyre industry of India.

Financial

Year 10-11

Tyre Production(tonnage) 14.88 million tonnes Natural Rubber consumption 947715 tonnes Number of Tyre Companies 39 10 large companies account for over 95% of total tyre production

Government Policy

Tyre industry delicensed since 1987 export(of tyres and tubes) & imports(of new tyres and tubes)freely allowed. Import policy for used/retreaded tyres: restricted from april,2006

Raw material availability

No domestic production of Butyl rubber and styrene butadiene rubber Tyre Industry imports raw materials on account of the following factors: - Duty free imports permitted against export of tyres. -Business strategy to have multiple sources of supply

Raw mateRials..

63% of total Natural Rubber consumption is by tyre sector Total weight of raw materials consumed by tyre industry 16.72 M.T

Raw Material Consumption

Categorywise tyre export

Current Statistics

EXPORTS

MARKET SEGMENTS
Replacement Market Original Equipment Manufacturers Exports State Transport Purchases

Global Rubber Consumption

(000 MT)

Country China India USA Japan Malaysia World Total

Year 2010 3040 905 687 637 470 9667

Ranking 1 2 3 4 5

In consumption however, India has recently attained second position, next only to China Chinas appetite is insatiable. And to safeguard its interests the Chinese Government is rapidly buying up rubber plantations across various geographies.

Problems
Volatile raw material prices Inability to pass on price rise to OEMs Low export due to low cost manufacturing tyre countries Rising interest rate make finance expensive

Suggestions
Buyout area under natural rubber production Should import tyres Ask for duty free import Lower interest rate Expansion of capacity

Thank You Thank You