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.
Market Players• MRF Tyres• Ceat Tyres• JK Tyres• Birla Tyres• Bridgestone Tyres• Dunlop Tyres• Goodyear Tyres• Michellin Tyres
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
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.
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