India Tyres Industry

 Essay in India Tyres Industry

CAR TYRES

AN Industry Overview

This project looks at the auto Tyre sector in India and how the Distribution channel helps this industry to grow and serve the needs with the End buyer. | JOB DONE BY: VIKRAM FALOR: DM14157RAMYAA RAMESH: DM14266AMIT SHUKLA: DM14104

Introduction: -

The American indian Tyre Industry is a important part of the Car Sector and a huge interdependent on those of the Automobile players. The Of india tyre market accounts for roughly 5. 0% of the Global tyredemandgeneratingrevenuesofapproximately`30, 000cr for FY2011. Out that 90-95% comes from the household market. You will find around 40 tyre producers in India and the top ten tyre player's account for about 90-95% in the total tyre production in India. The growth in home tyre sector was negatively impacted by the global slowdown in2009. Nevertheless, the industry experienced are mark able restoration in 2010. This growth was primarily driven by solid revival in automobile require on the back side of improvement in macro overall economy and reducing of interest costs.

The American indian Tyre Industry produced 119. 2 mn units of tyres (1. 5mntonnes) in 2010‐11. With an average, In Indian early on 60. 0% of the production is for replacement unit market, and then 25. 0% sold to Oes directly plus the balance is definitely exported. Worldwide, the ORIGINAL EQUIPMENT MANUFACTURING (OEM) segment makes up 30. 0% of the tyre market, export products 10. 0% and the balance from replacement market. Exports turnover to get India during 2010‐11 was at `3, 600cr. Segmental Breakup of Industry Turnover FY11:

The Indian Tyre industry is definitely characterized by the raw materials intensity (Raw material costs account for approximately 70% of turnover). There exists huge competition among the top few players whom dominate the industry and that leads to low margins. These players are continuously focused on advertising and marketing, branding goods and conditioning their division network simply by increasing supplier network in order to increase their business.

Inputs in Tyre:

The industry is highly intensive while using Raw materials Consumption. The Raw materials costs makes up 65-70% in the total creation cost of tires. Natural rubber constitutes may be the major natural material pertaining to the product and it is used by the industry which will accounts for about 43% with the total expense. The various other raw materials used by the tyre industry are crude derivatives such as carbon dioxide black, rubberized chemicals, artificial rubber and nylon tyre cord cloth, Therefore , growing crude oil prices increase natural material costs and affect the profitability of the company.

CUSTOMERS:

Based on the client segments, the tyre market has been broadly divided into a couple of categories: Factory Manufacturers (OEM)

Replacement Marketplace.

1) Factory Manufacturers – This includes vehicle manufacturers just like – Hero Honda, Tata Motors, Marathi Suzuki and so forth The demand from your OEM industry fluctuates immediately in line with end-use demand for the automobile/construction equipment segment; consequently prone substantial degree of cyclic variation. The total tyre sales to OEMs are on an average 40-45% in the total product sales. 2) Alternative Market – These are the final customers who also replace older tyres with their vehicles. This kind of demand will depend on factors including vehicle human population on - road, highway conditions, overloading norms, miles driven. This is less cyclical than ORIGINAL EQUIPMENT MANUFACTURING (OEM) demand and is generally delivers higher-margin business for companies. The replacement unit market accounts for 45-50% from the total product sales. Radializationof Cartyres:

Radialization of Car tires has brought an important change in the industry. Inside the Passenger Car market, Radialization has come to 98. 0%. These tires have their wires running radially from bead at 85 degrees viewpoint to the remora long the outer surface from the tyre. Rewarding mediums that are used in these tires are synthetic, polyester, nutritional fibre glass and steel. These tyres are often 20. 0% more expensive compared to the Bias Tyres. These tires have longer life and...

References: EXAMPLE LINKS: --

http://www.supplychaincanada.org/assets/u/CaseStudyNewTires.pdf

http://www.drivingforbetterbusiness.com/casestudies/michelin.aspx

COMPANY WEBSITES LINKS:

www.mrftyres.com

www.apollotyres.com

www.bridgestone.co.in

NEWS CONTENT: -

http://www.business-standard.com/article/markets/tyre-makers-cut-prices-on-high-inventory-poor-demand-113032100530_1.html

http://www.tyrepress.com/News/51/north_america/27616.html


Related

Essay about Global Location Analytics Industry 2014-2018

п»їGlobal Location Stats Market 2014-2018 Location stats is a procedure that sets up and understands complex improvements with the usage of geographical details available in different kinds of data. Location…...

Choose Two Major Themes in the Merchant of Venice. State What You Include Learnt Regarding these Themes and Their Importance in Providing You...

The Merchant of Venice Select two main themes in " The Merchant of Venice”. Point out what you possess learnt regarding these themes and their importance in providing…...

Is this consumer the right suit for your firm? Essay

п»їYue Jin (Christina) Acct 531 Sep 24th 2013 Content summary #2 Is this client the right suit for your company? Summary: This article…...

Essay regarding Midterm Examination: Design Materials Manufacture

ME 3210 Woodruff College of Mechanical Engineering Atlanta Institute of Technology Design and style, Materials, and Manufacture initial Midterm Exam Fall 2013 Note…...

Mci Harvard Case Remedy Essay

The MCI's source of funds has been release of shares. Common stocks and shares as IPO of 6M shares and $27. 070. 000, 00. An issue of 9. six-hundred.…...

Master of Arts Essay

E-Marketing: A brand new approach to the modern economy Jonika Kromidha Stavroula Krypotou Division of Organization Administration PgD/MSc in Foreign Marketing two hundred fifty…...

Essay regarding Cache Device 4

Unit some keeping children safe E1 -- Health and protection at work action 1974 * Standard Food cleanliness regulations 1995 * Into the safety…...

Harish Manwani AGM Talk 2012 Tcm114 297226 Study Paper

COUNTRYSIDE INDIA – AN GROWING POWERHOUSE Harish Manwani -- 2012 NON-URBAN INDIA – AN APPEARING POWERHOUSE Section One: Introduction It is often declared there…...

Primary Sector of Business: Extraction of Raw Materials from Nature Dissertation

Chapter We Introduction Individuals are constantly engaged in a lot of activity or perhaps others in order to satisfy all their unlimited would like. Every day we…...

Compare and Contrast: Jobs in a Home Research Daily news

In the hustle and bustle of working in a restaurant there are key circumstances to always remember, stay organized, retain time, and know what's going on around you. With…...