THE TYRE MANUFACTURING INDUSTRY<br />
INTRODUCTION<br />Faces huge competition, cost and price pressure.<br />The zooming auto industry has driven the growth.<b...
Economic expansion and road development has made a contribution.<br />   eg. The golden quadrilateral and the NSEW Corrido...
Five forces model <br />
A 2 tier Industry<br />Tier 1 players<br />	Present in all three segment -<br />	1)Replacement market<br />	2)Original equ...
Key Players<br />
Major Sales Segment<br />
Intensity of Rivalry : High <br />    The tyre industry in India is fairly concentrated, with the top 5 companies accounti...
BARGAINING POWER OF SUPPLIERS<br />- High<br />
Number of Suppliers – Low<br />Availability/ acceptability of raw material substitutes – Low<br />Switching costs – High<b...
Demand for Tyres<br />
Bargaining Power of Buyers<br />OEM’s                                            High<br />In Replacement Market          ...
THREAT OF POTENTIAL ENTRANTS<br />LOW, due to HIGH ENTRY BARRIERS<br />
ENTRY BARRIERS<br />Highly capital intensive industry<br />Rs4bn for radial tyre plant with a capacity of 1.5mn tyres<br /...
Shortage of raw material<br />Force of rivalry<br />High risk<br />
THREAT OF SUBSTITUTES <br />Low, but increasing<br />Import of tyres<br />ISI mark made compulsory<br />
Porter’s Model<br />Entry                    High returns<br />     BarrierHigh risks<br />High<br />Low<br />HighLowExit ...
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Indian Tyre manufacturing industry

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A study on the Indian Tyre Industry

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Transcript of "Indian Tyre manufacturing industry"

  1. 1. THE TYRE MANUFACTURING INDUSTRY<br />
  2. 2. INTRODUCTION<br />Faces huge competition, cost and price pressure.<br />The zooming auto industry has driven the growth.<br />The number of vehicles is swelling.<br />The truck and bus market is the largest segment in terms of value.<br />
  3. 3. Economic expansion and road development has made a contribution.<br /> eg. The golden quadrilateral and the NSEW Corridor project.<br />Though the volumes have increased the profitability has gone down due to the increase in raw material cost.<br />
  4. 4. Five forces model <br />
  5. 5. A 2 tier Industry<br />Tier 1 players<br /> Present in all three segment -<br /> 1)Replacement market<br /> 2)Original equipment manufacture(OEMs) <br /> 3)Export<br />Tier 2 player <br />
  6. 6. Key Players<br />
  7. 7. Major Sales Segment<br />
  8. 8. Intensity of Rivalry : High <br /> The tyre industry in India is fairly concentrated, with the top 5 companies accounting for more than 80% of the total production of tyres.<br />
  9. 9. BARGAINING POWER OF SUPPLIERS<br />- High<br />
  10. 10.
  11. 11. Number of Suppliers – Low<br />Availability/ acceptability of raw material substitutes – Low<br />Switching costs – High<br />Threat of forward integration – High<br />Tyre industry not the key customer<br />
  12. 12. Demand for Tyres<br />
  13. 13. Bargaining Power of Buyers<br />OEM’s High<br />In Replacement Market Moderate<br />Switching Cost Low<br />Threats of Backward Integration Low<br />
  14. 14. THREAT OF POTENTIAL ENTRANTS<br />LOW, due to HIGH ENTRY BARRIERS<br />
  15. 15. ENTRY BARRIERS<br />Highly capital intensive industry<br />Rs4bn for radial tyre plant with a capacity of 1.5mn tyres<br /> Rs1.5-2bn for a crossply tyre plant of a capacity to manufacture 1.5mn tyres<br />High raw material costs<br />
  16. 16. Shortage of raw material<br />Force of rivalry<br />High risk<br />
  17. 17. THREAT OF SUBSTITUTES <br />Low, but increasing<br />Import of tyres<br />ISI mark made compulsory<br />
  18. 18. Porter’s Model<br />Entry High returns<br /> BarrierHigh risks<br />High<br />Low<br />HighLowExit Barrier<br />

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