STRONG GROWTH IN THE DOMESTIC AUTO INDUSTRY HAVING A POSITIVE EFFECT ON THE INDIAN TYRE INDUSTRY
27 January 2005 - Research and Markets

Research and Markets (http://www.researchandmarkets.com/reports/c12263) has announced the addition of India Sector Studies: Indian Tyre Industry to their offering

The tyre industry has witnessed a CAGR of 8.3% over the last decade mainly fuelled by the strong growth in the domestic auto industry. Though the replacement market has driven the industry growth for long time, the OEM market has seen a robust growth over the last couple of years.

The industry is highly capital intensive, as it requires around Rs4bn to set-up a radial tyre plant with a capacity of 1.5mn tyres and around Rs1.5-2bn for a crossply tyre plant of a capacity to manufacture 1.5mn tyres.

-The profitability of the industry has high correlation with the prices of key raw materials such as rubber and crude oil as they account for more than 70% of the total costs. The raw material to sales ratio in the industry is around 65%.

-The industry has high entry barriers because of its capital-intensive nature and low operating margins. With demand increasing at a steady pace, the industry is expected to go through a consolidation phase.

-The industry is dominated by four players, MRF, Apollo Tyres, JK Industries and Ceat and enjoys more than 70% of the total market share.

-The fortunes of the industry are linked to the trend in the domestic auto industry, rethreading, trend in road transportation and spending on road infrastructure.

The companies have lined up further expansion plans to meet the increasing demand.

Tyre Company Profiles

Ceat India

MRF Tyres

JK Industries

Apollo Tyres

TVS Srichakra

Michelin

Annexures

For more information visit http://www.researchandmarkets.com/reports/c12263

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