Press Release Summary: Bharatbook.com launches a latest report which elucidates facts about the "Indian Tyre Industry"
Press Release Body: Bharatbook.com added a new report on "Indian Tyre Industry" (http://www.bharatbook.com/detail.asp?id=71341)
The report elucidates facts about the Indian Tyre Industry, supplemented by latest statistical data and comprehensive analysis.Emphasis is laid on the following key subject matters to accomplish the report.The characteristics of the industry (raw material intensity, cyclicality, competition, wide distribution network, capital intensity, low bargaining power, branding, technology requirements, margins and duty structure) and its demand drivers (vehicle production & population, regulatory norms, retreading of tyres etc.).Category-wise tyre production and market-wise tyre offtake analysis for the period FY 03-07.Market competition and category-wise market share of players. Change in category-wise market share of players in FY07 vis-a vie FY06.Cost Analysis (raw material, power & fuel, employee and selling expense) of the top players with specific focus on raw material costs.Category-wise tonnage offtake growth projection for the tyre industry for a fi ve year horizon (FY 07-12) along with SWOT analysis of the industry.Financial profi le, international forays, expansion plans of the top fi ve players along with the details of corporate actions by other global and local players in India.
The Indian Tyre Industry produced 736 lakh units of tyres (11 lakh tonnes) garnering Rs. 19,000 crores in FY 07. MRF Ltd. was the market leader (22% market share) followed closely by Apollo Tyres Ltd. (21%). The other major players were JK Tyre & Industries Ltd (18%) and Ceat Ltd. (13%). The industry tonnage production registered a 5 year CAGR of 9.69% between FY 02-07¬.
Truck & Bus tyre category (accounting for 57% of the tonnage production) recorded a 5 year CAGR of 7.85% (a rate slower than that of the industry) while Light Commercial Vehicle (LCV), Motorcycle and Car tyre categories grew at 15%, 16% and 14% respectively (at rates faster than that of the industry). Off the road (OTR) tyres (customized tyres which fetch a higher margin compared to other tyres) category is growing at a fast pace. The OTR tyre category registered a 5 year CAGR of over 20% in the last five years. Most of the top players are increasing their capacity for the production of OTR tyres so as to improve their product mix, for e.g. CEAT Ltd. is increasing its OTR capacity at its Nasik plant from 60,000 to 1,00,000 tyres by end 2008, JK Tyre & Industries is expanding its OTR capacity from 25,000 tyres to 42,000 tyres by end 2008, even smaller player like Falcon tyres is making its foray into the OTR category.
The exports from the country clocked a CAGR of 13% in unit terms and 18% in value terms in the period FY 02¬07. Most of these tyres that are exported are of cross ply design. With radialisation catching up in some of these markets, the manufacturers will need to graduate to radial tyres so as to protect their share in the export market. Radialisation of tyres is still minimal in India. Only the car tyre market has moved to radial tyres (95%) but in all other categories cross ply tyres are still preferred. Poor road conditions, overloading in trucks, higher initial cost of radial tyres and poor awareness levels in tyre users are the main reasons for the non transition of the domestic market to radial tyres. However, going ahead, radialisation in truck & bus tyres may increase due to government’s focus on infrastructure development.
Research expects the tyre industry to register a tonnage growth of 9¬10% in the next five years (FY 07¬12). The truck & bus and LCV tyre category are expected to register a CAGR of 8% and 14% respectively (FY 07¬12).
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