Indian Tyre Industry

Abstract

The report on ‘Indian Tyre Industry' is divided into three sections. Section I of the report provides 5-year coverage on the industry from FY03-08, with specific focus on the performance of the industry in FY08 and April-December 2008. In addition, for a new reader, the basics of the industry too have been provided in Section II of the report. Section III of the report gives an analysis of the top five industry players which is followed by extensive data points in the Annexure.

• The category-wise performance of the industry in the domestic and export market in FY08 and first nine months of FY09 have been studied. Growth trends for each of the tyre markets and tyre categories have been tracked for the past five years.
• Category-wise leadership position of the players has been presented.
• Cost Analysis (raw material, power & fuel, employee and selling expense) of the top players with specific focus on raw material costs besides a detailed study of the raw materials used by the industry has also been provided.
• The emerging trends of the industry have been highlighted and a SWOT analysis of the industry is done.
• CARE Research' s long-term (FY08-13) and short-term (FY09 as well as FY10) tonnage offtake projection for T&B, LCV, Cars, Motorcycles and other tyre categories has been provided with detailed explanation of the methodology adopted and its limitations.

• The evolution of the industry through its different phases in the different market segments has been traced to give a new reader a firm understanding of the industry.
• 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.) have been analysed.

• This section gives the profiles of the top five players, namely, Apollo Tyres Ltd, Ceat Ltd, MRF Ltd, Goodyear India Ltd and JK Tyres & Industries Ltd. The profile includes financials of the company for the last three financial years, product ranges, sales mix, capex plans and global forays. Besides this, the details of corporate actions by other global and local players in India are also provided.
• Category-wise domestic as well as export units sales of the industry as well as of the top five players has been provided for the last five years (FY03-FY08).

Though in FY09, CARE Research expects the industry to register a tonnage growth of only 4.27%, the growth is expected to be higher in the medium and long run. In FY10, the industry is expected to post a growth of 6.81% while the industry growth is expected to touch 8.21% on a Compounded Annual Growth Rate (CAGR) basis between FY08-13. The T&B and LCV tyre categories are expected to register a 5-year CAGR of 6.83% and 8.97%, respectively, during this period.