Final Ppt of Tyre
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Transcript of Final Ppt of Tyre
INDUSTRIAL RESEARCH ANALYSIS
TYRE INDUSTRY
SWETA VED 41 A PRATIK PATIL 26 A ANISHA SATPUTE 31 B
MARKET OVERVIEW Tyre Industry is highly raw-material intensive. Raw materials cost accounts for approx. 70% of Tyre Industry Turnover. Given below is the composition of raw-materials as a percentage (%) of Total Raw Material Cost:Natural Rubber Nylon Tyre Cord Fabric Carbon Black Rubber Chemicals Butyl Rubber PBR SBR Others 44% 19% 12% 5% 4% 5% 5% 6%
63% of total Natural Rubber consumption is by the Tyre Sector, balance by rubber based non-tyre industries. Total weight of raw-materials consumed by tyre industry 17.50 Lakh M.T. Total Cost of Raw Materials consumed by tyre industry Rs.21,000 Crores
Turnover of Indian Tyre Industry Tyre Production (Tonnage) Tyre Production All Categories (Nos.) Tyre Export from India (Value) : Number of tyre companies: Industry Concentration
Rs. 30,000 Crores 14.88 lakh M.T. 1192 Lakh Rs. 3600 crores 39 10 Large tyre companies account for over 95% of total tyre production. Passenger Car tyres: 98% Light Commercial Vehicles: 18% Heavy Vehicles ( Truck & Bus ): 15%
Radialisation Level - Current (as a % of total tyre production)
Government Policy Tyre Industry Delicenced since Export (of tyres and tubes) Import (of new tyres and tubes) Import Policy for Used / Retreaded tyres: 1987 Freely allowed Freely allowed. Restricted from April, 2006
MAIN PLAYERS
MARKET SHARECOMPANYMRF TVS APOLLO CEAT GOODYEAR
SALES (CRORES)7,462.74 702.48 5,045.99 2,816.50 1,300.25
CAPACITY UTILISATIONCOMPANIES INSTALLED CAPACITY MRF APOLLO CEAT GOODYEAR TVS SRICHAKRA 31700000 15260280 66 1422 32953 PRODUCTION CAPACITY 31302161 12311542 94 1279 15728 UTILISATION CAPACITY % 99% 81% 142% 90% 48%
SALES GROWTH RATECompanies Apollo MRF CEAT J.K.TYRES Goodyear 2006 13% 18% 9% 8% 5% 2007 10% 15% 8% 18% 3% 2008 23% 12% 11% 12% 10% 2009 9% 31% 24% 30% 28%
OPERATING PROFIT MARGINCompanies Apollo MRF CEAT J.K.TYRES Goodyear 2006 10% 7% 7% 6% 8% 2007 13% 10% 9% 9% 8% 2008 9% 9% 1% 8% 6% 2009 16% 12% 11% 13% 13% 2010 11% 11% 4% 7% 9%
Operating profit margin18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2006 2007 2008 2009 2010 Appolo MRF CEAT J.K.TYRES Goodyear
NET PROFIT MARGINCompanies Apollo MRF CEAT J.K.TYRES Goodyear 2006 3% 2% 2% 1% 5% 2007 6% 4% 6% 2% 5% 2008 3% 3% -1% 0% 3% 2009 8% 5% 6% 4% 7% 2010 4% 5% 1% 1% 6%
DEBT TO EQUITY RATIOCompanies 2006 2007Apollo MRF CEAT J.K.TYRES Goodyear
2008 0.51 0.86 0.95 1.91 0.00
2009 2010 0.66 0.22 0.68 1.24 0.00 1.01 0.56 1.17 1.84 0.00
0.64 0.66 1.00 1.60 0.46
0.38 0.62 0.66 1.71 0.00
Inventory turnoverCompanies Apollo MRF CEAT J.K.TYRES Goodyear 2007 6.09 5.78 6.71 5.50 11.92 2008 7.23 5.13 7.74 5.96 11.95 2009 7.79 5.25 7.42 6.43 12.54 2010 5.76 7.05 6.62 7.46 18.64
Debtors DaysCompaniesApollo MRF CEAT J.K.TYRES Goodyear
2007 17.64 45.16 44.62 59.64 48.46
2008 10.81 41.90 45.21 48.71 45.42
2009 8.13 38.24 45.04 46.16 35.96
2010 11.38 34.03 44.25 45.70 27.56
Creditors DaysCompaniesApollo MRF CEAT J.K.TYRES Goodyear
2007 101.24 80.29 156.54 155.19 108.24
2008 83.30 88.57 140.36 142.61 95.31
2009 85.77 101.34 162.51 158.23 107.75
2010 92.51 74.46 158.01 123.78 99.08
Potential Entrants threat is low due to high entry
barriersSupplier bargaining power isIndustry Rivalry
lowbut can increase
Buyers bargaining power is
low
High
Threat of substitutes is low but increasing
PEST ANALYSISPolitical Factors include: Tax policy Employment laws Trade restriction and Tariffs Political stability Trade Agreements Economic Factors include: Economic growth Interest Rate Foreign Investment Raw material Availability Inflation Social Factors include: Population growth rate Trend of Buyers Health Consciousness Career attitude Social cultural changes Technological changes include: Industrialization R&D activity Advancement of technology
Demand - Supply GAP
7081000 6973300 8144800 0 0 0 Total Supply(Production )
92947000
Export
Com pone 2006 2007 2008 2009-07 -08 -09 10 6094116 5589043 nts8764852 0
Total Demand(Indian 647158 641439 761495 100000000 Market) 84 57 2090000000 80000000 70000000 60000000 50000000 40000000 30000000 20000000 10000000 0 2006-07 2007-08 2008-09 2009-10
Total Supply(Production ) Total Demand
Future Projection of Production2006-07 73545 2007-08 81103 2008-09 82107 2009-10 97137 2010-11 2011-12 2012-13 119197 134850 152381