India Tyre Industry (Swot Analysis, Tows Matrix, Porter's Five Force)

TYRE INDUSTRY ANALYSIS

Industry Analysis:

An Overview of the Indian Tyre Industry (FY 2010-11) (Source : ATMA)

• Total No. of Tyre Companies : 39

• Total No. of Tyre plants : 60

• Industry Concentration : 10 Large Tyre companies account for over 90% of Tyre Production (in value & tonnage terms)

• Industry Turnover* : Rs. 30,000 Crores

• Production : 14.88 lakh tonnes

• Value of Tyre Exports* : Rs.3,700 Crores

• Value of Tyre Imports* : Rs.1780 Crores

*estimated

Trends in Tyre Production, Exports and Imports: (2010-11 over 2010-09)

• Growth in Overall Production: 22% increase

• Growth in Exports: 22% increase

• Growth in Imports: 48% increase

Top Players in the Industry:

1) MRF India Ltd.

2) Apollo Tyres Ltd.

3) JK Tyres & Industries Ltd.

4) CEAT Ltd.

5) Balkrishna Industries Ltd.

6) Goodyear India Ltd.

7) TVS Srichakra Ltd.

8) Falcon Tyres Ltd.

9) Kesoram Industries Ltd. (Birla Tyres)

10) Bridgestone India Ltd.

Market share as per Volume:

Truck & Bus Passenger Car Motor Cycle

Company Market Share Company Market Share Company Market Share

JK Tyre 22% Apollo 24% MRF 28%

MRF 21% MRF 24% TVS Srichakra 23%

Apollo 21% Bridgestone 19% Falcon 17%

In News – Tyre Industry

There is a marked shift in the performance of the tyre industry in 2011-12, as its overall net profit has become negative. As against a total net profit of Rs 584.63 crore of the leading eight companies put together in 2010-11, the corresponding figure in the FY12 is Rs 39 crores, according to the Automotive Tyre Manufacturers Association (ATMA). The net profit dropped by 107 per cent in the last financial year, compared to that of FY11.

According to the consolidated figures of the ATMA, the books of MRF, the country's leading tyre company, recorded a steep rise in its profit at Rs 690.41 crore, but this includes an extraordinary item (amounting to Rs 404 crore) towards method of calculation of depreciation. If the extraordinary item is excluded, then the net...