2. Indian Tyre Industry
• Indian Tyre Industry to Register a Growth of 9-10% in
the Next 5 Years
• The main category of tyres produced in the country is
that of Truck & Bus tyres.
• These tyres accounted for 57% of the total tyre tonnage
production in FY07 followed by LCV tyres which
accounted for 9% of the total tyre tonnage production.
• The industry tonnage production registered a 5 year
CAGR of 9.69% between FY 02-07.
6. Conti……
• Reduced demand in wake of global slowdown
– Industry forced to take production cuts in Q3
– Situation improved slightly in Q4
• Profits declining
– Price increase taken but insufficient to counter the
raw material cost impact
– Production cuts resulting in relatively higher fixed
overheads
7. Conti……
• Industry affected by high raw material prices
and reduced demand
– Replacement market under pressure due to lower
consumer spend and liquidity crunch
• Close to Customers - wide distribution
network for that the company had decide to
open more dealers 4000 and above and in
south Africa 600 and above.
8. Conti……
• Special Networks : Apollo Radial World (190+)
& Apollo Pragati Kendra (60+)
• Strategic distribution partnership : Reliance
Petroleum, ONGC & Tata Motors
• Announced acquisition of Vredestein Banden
B.V., a €300+ Mn Company with
manufacturing base in Netherlands, and
operations all over Europe