...A REPORT ON THE INDIAN TYRE INDUSTRY By Harsha Verma 09BSHYD0310 Nehal Basedia 09BSHYD0509 Prabani Phukan 09BSHYD1064 Jitendu Kumar Dixit 09BSHYD0336 Sandeep Kumar Gupta 09BSHYD0733 Date of Submission: September 03, 2010 The Indian Tyre Industry 2010 TABLE OF CONTENTS Acknowledgement ............................................................................................................... 4 Executive Summary .............................................................................................................. 5 Introduction .......................................................................................................................... 7 Purpose of Report ....................................................................................................................................................... 7 Scope of the Report .................................................................................................................................................... 7 Phase I: Industry Analysis ................................................................................................................................. 7 Phase II: Test of Efficiency of Market .......................................................................................................... 7 Phase III: Company Analysis ............................................................................................................................ 7 Scope of Study...
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...The Industry: * Dominated by local players(90% of tires) * In 2006, 40 competitors with production volume 70 million tires * 4 local players alone accounted 75% of sales * Expansion of automobile mkt, production of vehicle doubled b/w 1994-2004 * Growth of 2 wheelers & 3 wheelers was high because of city dwellers * Resulting in growth in no. of tires sold 4.5 % in 2004 and 5% in 2005 Two main tire technologies * Diagonal or cross ply (created in 1950) * Easily recognised with its very high profile * In contrast, represented 65% of tire sales (value?) in India * Because of factors specific to India (emerging countries) * Variable quality of road, tendency to overload vehicles * Competitive price of Cross-ply * Long life expectancy, double of radial * Great capacity of absorption on rough terrain * But poor road holding at high speed * Strong risks of coming off the rim at high torsion and stress * Radial (Created in 1965 by Michelin) * Flat but wider * Established itself in developed countries with * Increased performance * Better adhesion * Greater resistance to torsion and friction * Sales growing slowly in India but with improvements in roads and car performance * Technological improvements were being made to cars in recent years * In 2006, radial represented 85% of car tire sales by volume (28% in 1995) * Radial...
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...Unit-1: MARKET SHARE OF DIFFERENT TYRE COMPANIES IN TRUCK SEGMENT Unit-2: CUSTOMER’S PREFERENCE ON DIFFERENT BRANDS AND TYRE COMPANIES IN TRUCK SEGMENT Ambedkar Institute of Management Studies 1 Contents Unit-1: MARKET SHARE OF DIFFERENT TYRE COMPANIES IN TRUCK SEGMENT. Executive Summary: a. Introduction b. About Tyre industries in India (Background, key issues, Review of performance) c. Growth of Tyre Industries d. Various Types of Tyre segment JK’s Brief profile (Company) a. b. c. d. About JK Mission & Vision Marketing strategy SWOT analysis e. Organizational structure Objectives of the study Need for the study Limitation of the study Research Methodology of the study Data analysis & Interpretation Findings Suggestions Unit-2: CUSTOMER’S PREFERENCE ON DIFFERENT BRANDS AND TYRE COMPANIES IN TRUCK SEGMENT. Consumer Buying behaviour Indian consumer profile Objective of the study Limitation Of the study Methodology Data analysis & interpretation Findings Suggestions Conclusion Bibliography Annexure Ambedkar Institute of Management Studies 2 Executive Summary: a. About Tyre industries in India b. Growth of Tyre Industries c. Various Types of Tyre segment JK’s Brief profile (Company) a. About JK b. Mission & Vision c. Marketing strategy d. SWOT analysis e. Marketing Organization Executive Summary a. Introduction Ambedkar Institute of Management...
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...IN-COMPANY TRAINING REPORT ON “MARKETING STRATEGIES OF JK TYRES” COMPLETED IN JK TYRE LIMITED [pic] SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF B.COM (H) IIIRD YEAR DELHI COLLEGE OF ARTS & COMMERCE, NEW DELHI TRAINING SUPERVISOR: SUBMITTED BY: MR. HARMEET SINGH KOHLI KARAN ARORA (Marketing Manager Central Zone) ROLL NO. 336 SECTION - A STUDENT DECLARATION I hereby declare that the Summer Training Report conducted at “Marketing Strategies of JK Tyres” submitted in partial fulfillment of the requirement of B. Com(h) III Year. It is my original work and the same has not been submitted for the award of any other Degree/diploma/fellowship or other similar titles or prizes. KARAN ARORA ROLL NO. 336 SECTION - A UNDER THE GUIDANCE OF: MRS. NEHA AGGARWAL MR. PANKAJ KUMAR (FACULTY OF COLLEGE) Student signature ACKNOWLEDGEMENT It is indeed a moment of immense gratification for me to express my deepest gratitude to Mr. Harmeet Singh Kohli, (Marketing Manager Central Zone) for providing me with an opportunity to carry out this project study and help me create this report on “Marketing Strategies of JK Tyres". I am grateful to him for forecasting an excellent academic ambience...
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...Marketing Management-1 Project Stage I & 2 Report On MRF Tyres Submitted to: Prof. Dr. D K Batra Submitted by: Group 2 Section A, PGDM 15-17 Abstract This report focuses on MRF tyres and seeks to provide a detailed analysis of the company, their competitors and their customers. It aims to give insights on the various strengths that have catapulted MRF tyres to be regarded as the numero uno in the tyre industry. The report also highlights some weaknesses that they need to address as a tyre company and lists out various challenges that lay in their path ahead. Apart from MRF tyres, an overall summary of the tyre industry has also been given to give a background to the analysis. Contents Automobile & Tyre Sector and Company Overview 1 Automobile industry 1 Tyre industry 1 Evolution of industry 1 Technological evolution 2 Radialization of truck tyres in India 3 Classification of tyres 3 Cartelization accusations 3 Company Overview 4 Situation Analysis 5 Competitor Analysis 5 Apollo Tyres 5 JK Tyres 5 CEAT 6 Resources & Capabilities (2014) 6 Campaigns 6 Customer Analysis 7 Distribution channels 7 Market size and potential growth 7 Customer survey highlights 7 Perceived risks 8 Dealers’ survey 9 Company Analysis 9 SWOT Analysis 10 Strengths 10 Weaknesses 10 Opportunities 10 Threats 10 Challenges faced by MRF 11 Going Global 11 Incentives for dealers...
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...writing. I would like to express my sincere thanks to my faculty guide Prof. Nikunj Patel and Prof. Ritesh Patel for providing inspiration and encouragement. We are also very thankful to the other teaching & non-teaching staff of the institute for extended their help; co-operation and support which have greatly ease our work and made our report unproblematic. At Last but not least we would like to thank all those who helped directly or indirectly for preparation of this financial report, their efforts have not gone unnoticed. Thanks for being there. Jitesh Agrawal Sunny Teelani EXECUTIVE SUMMARY This report containing in three parts: - Economic Analysis, Industry Analysis & Company Analysis. We...
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...wage rates, conditions of employment, level of competition, and job location. MRF Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing company located in Chennai, Tamil Nadu, India. The name was later changed as "Manorama Rubber Factory". MRF is mainly involved in making vehicle tyres. It is India's largest tyre manufacturing company, and among the dozen largest worldwide. It exports to more than 65 countries.MRF is the sister concern of the leading malayalam daily "Malayala Manorama".The founder of the MRF, Mr.K.M.Mammen Mappilai was the brother of late Mr.K.M.Mathew, ex-chief editor of "Malayala Manorama" Natural rubber is produced primarily in three countries: * Thailand * Malaysia * Indonesia A leader in the category MRF holds the No.1 position for the last 21 years. Established as toy-balloon manufacturing company in 1946 by KM Mammen Mappillai, MRF quickly emerged as the leading maker of tread rubber. Since then, the company hasn't looked back. The fact that it is the first tyre company in India to reach a turnover of 5000 Crores is testament to its dominance of the industry Services MRF offers a whole host of services to its customers, ranging from helping them pick the tyre of their choice to helping them maintain their vehicle. T & S MRF T&S is a one stop shop for a unique tyre shopping experience. An experience that's fun and enjoyable for the whole family. T&S stocks the entire range of...
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...J.K TYRES Report on J.K tyres Assignment of Business Policy and Strategic Management Submitted By:- Submitted To:- Md. Talha Sarwar 14-MBAK-59 GG1779 Mr. Yashik P. Sir (Assistant Professor) Department of Business Administration Contents • Introduction to company • Vision, mission, business definition, goals and objective of company • SWOT analysis • Environmental appraisal • Organisational appraisal • Business level strategy • Corporate level strategy • Corporate governance • Corporate Social responsibility • Functional implementation • Operational implementation • About stake holders • Project implementation of co. • Resource allocation 1 COMPANY PROFILE JK Tyre and Industries Ltd. is a mega corporate entity that is emblematic of excellence, diversification and pioneering new technologies. A part of JK Organization which ranks among the leading private sector groups in India, JK Tyre and Industries is committed to self-reliance and follows an ethic that views customer satisfaction as an index of achievement. HISTORY: JK Tyre started manufacturing of tyres in 1977 with a capacity of 0.5 million tyres per annum which has grown over the years to its present capacity of 8.7 million tyres per annum. It has four modern plants in India, strategically located in the State of Rajasthan, Madhya Pradesh and Karnataka. The Company produces and sells tyres and tubes under well-known brand names of "JK Tyre” and “Vikrant” for all categories...
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...Procurement Assignment 1- Part A Industry: Automobile Ancillaries (Tyres & Tubes) Financial Year 2011-2012 | Turnover of Indian Tyre Industry | Rs. 43,000 Crores | Tyre Production (Tonnage) | 15 lakh M.T. | Tyre Production – All Categories (Nos.) | 2254 Lakh | Tyre Export from India (Value) : | Rs. 4209 crores | Number of tyre companies: | 39 | Industry Concentration | 10 Large tyre companies account for over 95% of total tyre production. | Radialisation Level - Current (as a % of total tyre production) | Passenger Car tyres: 98% Light Commercial Vehicles: 20% Heavy Vehicles ( Truck & Bus ): 18% | Major Players of Tyres & Tubes in India * MRF Tyres Ltd. * Apollo Tyres Ltd. * CEAT Ltd. * Balkrishna Industries Ltd. * Govind Rubber Ltd. * Falcon tyres Ltd. * JK Tyres & Industries Ltd. Company of Interest: MRF Tyres Ltd. Company Background: Mr K. M. Mammen is the CMD of the company. The promoters hold about 26% of the total equity in the company, while institutional investors hold about 14% and individuals hold about 34%. Industry group: Tyres & tubes Main product / service: Tyres Ownership group: MRF Group Entity type: Public Ltd. Incorporation year: 1960 Size group: Top decile Ranking: Global Ranking 2012 Ranking | 2011Ranking | Company | 2011 tyre sales (100 million U.S.dollars | 2010 tyre sales (100 million U.S.dollars) | 2009 tyre sales (100 million U.S.dollars) | 17 | 17...
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...CHAPTER-1 INTRODUCTION 1.1 THE INDUSTRY Tyre industry consumes over 60% of the total rubber production with respect to Indian economy. But in actuality only just around 52% of the tyre is natural rubber. Remaining 48% consist of synthetic rubber, carbon, chemicals, etc. The origin of tyre industry in India dated back to 1926 when Dunlop Rubber Limited set up the first tyre factory in West Bengal. MRF followed the suit in 1946. Since then the Indian tyre industry has grown rapidly. Transportation industry and tyre industry go hand in hand as the two are interdependent. Transportation industry has experienced 10% growth rate year after year with an absolute level of 870 billion ton freight with an extensive road accounts for over 85% of all freight movement in India. The tyre industry in India is classified under 4 categories based on the year of commencement of production namely 1. 1st Generation Companies - which included Dunlop and Firestone. 2. 2nd Generation Companies - which included MRF, CEAT, Goodyear, and Premier. 3. 3rd Generation Companies - which included Apollo, Vibrant, Modi Rubber, and J.K.Tyres. 4. 4th Generation Companies - includes the companies started after 1970 and also which are yet to start production. Pneumatic Tyres are manufactured according to relatively standardized processes and machinery, in around 450 tire factories in the world. Over 1 billion tyres are manufactured annually, making the tyre industry the majority consumer of natural...
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...Asia-Pacific | Industry | 0,336 | 0,055 | 0,265 | 0,344 | Apollo tyres sales | 0 | 0,135 | 0,245 | 0,62 | Cumulated sales | 0 | 0,135 | 0,38 | 1 | Cumulated sales- sales | 0 | 0 | 0,135 | 0,38 | Cumulated sales+(Cumulated sales-sales) | 0 | 0,135 | 0,515 | 1,38 | Industry[Cumulated sales+(Cumulated sales-sales)] | 0 | 0,74 | 13,75 | 47,47 | | | | | | | | | GIR | 61,96 | The International Strategy of Apollo Tyres. International position: The international position of Apollo Tyres seems to be one of Regional Dominant Player. Below is the table of calculations of the Global Revenue Index (GRI). According to these calculations, the GRI in this case is of 61,96, which means that Apollo Tyres is a Regional Dominant Player. This result is coherent with the characteristics of Apollo Tyres, because it is dominant in India. The company wants and is maintaining both a world-class brand (Dunlop) and a local low-cost brand (Regal Tyres). Its dominance in the Indian market (62% of sales in the Asia-Pacific region) is focused on the low-price demand in India. In its international strategy, Apollo Tyres goes beyond solely exporting to other markets, but has also established other facilities and acquired other companies in its international expansion. However, the vast majority of its sales are in the Asia-Pacific reason, particularly in India. Therefore, we can conclude with the calculations and the statistical data that Apollo Tyres is a Regional Dominant...
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...Tyre companies stocks down on slow down in auto sales and gloomy economic outlook After enjoying positive ride in the first four months of this year due to falling raw material costs and revival in auto sales growth, stocks of tyre companies fell in April and May thanks to slow down in auto sales and gloomy economic outlook of the country which has dampened sentiments of investors. Stocks of Indian tyre companies had increased around 30% in the first one and a half month of this year while the Bombay Stock Exchange’s Benchmark 30-share Sensex (Sensex Index) spiked by 15% in the same period. However, despite the Sensex Index fell by around 5% in the period of 15th February to 10th April 2012, tyre companies’ continued to move northwards due to falling raw material costs and continued growth in automobile sales, mainly car sales. Tyre companies had posted robust earning growth in the January-March quarter on the account of an impressive sales growth in automobile and softened prices of natural rubber in domestic and international markets and that had reflected on tyre companies stocks. After restoring some confidence at the start of this year, investors again started losing confidence on the bourses because of discouraging waves of poor industrial growth, record level low of the rupees against the dollar and falling GDP growth rate, and rising crude oil prices. India’s economic growth plunged in the fourth quarter (January-March) of 2011-12 to 5.3%, which is a nine...
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...(CEATLTD) CEAT Limited is a tyre manufacturing company based in Mumbai & producing over 10 million tyres a year. Founded in Italy as CEAT Tyres by Virginio Bruni Tedeschi, the company established its manufacturing in India in 1958 and was sold to Pirelli by Virginio's heir Alberto Tedeschi in the 1970s. The company's Indian division was then taken over by RPG Enterprises in the year 1982 which also got the rights to the CEAT brand and renamed the company as CEAT Limited. CEAT owns two tyre manufacturing facilities in Maharashtra (Bhandup and Nasik) and has also set up a greenfield radial tyre manufacturing facility at Gujarat (Halol). It has three manufacturing plants in Sri Lanka in Joint Venture and it also outsources certain amount of automotive tubes, tyres and flaps. It also markets tubes and flaps which are outsourced from its partners. CEAT offers a range of tyres to all user segments and manufactures tyres for all vehicles consists of heavy-duty trucks and buses, light commercial vehicles (LCV), earthmovers, forklifts, tractors, trailers, cars and jeeps, motorcycles and scooters and auto-rickshaws. CEAT exports to over 110 countries across the world. CEAT is the only tyre company to be awarded the ISO/TS 16949:2002 certification. It is also the 1st Indian tyre company to get a TUV certificate. In the Financial year 2013, CEAT expanded its footprint in Bangladesh with a joint venture (70:30) with A K Khan & Company Ltd to set up a tyre manufacturing unit in Bangladesh...
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...CHAPTER – 1 INTRODUCTION 1. INDUSTRY PROFILE Technology generation in the Indian tyre industry has witnessed a fair amount of expertise and versatility to absorb, adapt and modify international technology to suit Indian conditions. This is reflected in the swift technology progression from cotton (reinforcement) carcass to high-performance radial tyres in a span of four decades. Globalization has led to the linking of the economies of all the nations and therefore major Indian players in the tyre industry are pursuing global strategies to enhance their competitiveness in world markets. The present section broadly undertakes an overview of the Indian tyre industry through an examination of its growth trends with respect to production, exports and acquisition of technological capabilities. Key Features At present there are 40 listed companies in the tyre sector in India. Major players are MRF, JK Tyres, and Apollo Tyres & CEAT, which account for 63 per cent of the organized tyre market. The other key players include Modi Rubber, Kesoram Industries and Goodyear India, with 11 per cent, 7 per cent and 6 per cent share respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-Srichakra, Metro Tyres and Balkrishna Tyres are some of the other significant players in the industry. While the tyre industry is largely dominated by the organized sector, the unorganized sector is predominant with respect to bicycle tyres. The industry is a major consumer of the domestic...
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...India: An Application of Mixed Method Investigation Prathap Oburai and Michael J Baker Executive Summary KEY WORDS International Marketing Strategy Grounded Theoretic KEY WORDS Approach Privatization Case Research Methodology Indian Banking Internationalization drives and export orientation are prominent in the organizational strategies of a number of leading Indian firms and multinationals located in India. This is a significant indicator of the growing competitiveness of firms, industries, and the nation. This paper examines the sources of competitive advantage in a few selected sectors and firms and explores the internationalization possibilities and potential. International marketing strategies are complex and tend to vary widely across nations, industries, and firms. The elements that form the ingredients of international strategies are numerous and their importance is tightly interwoven to contexts. With a view to enrich the existing body of international marketing theory, the authors investigate the international marketing strategies adopted in 12 different business sectors in India in an attempt to explore and explain the similarities and differences found in this varied set of industries. The examples span the old economy industries such as the assembly and manufacturing enterprises that are both skill-and capital-intensive and also the new economy sectors that are information-intensive. This study is exploratory in nature and offers a classification scheme using...
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