Indian Tyre Industry Strategic Analysis

THE INDIAN TYRE INDUSTRY
A Strategic Management project

2/12/2014
Section E
Anvita Kasar (PGP/17/259)
Viral Malvaniya (PGP/17/274)
Nabeel Ahmed (PGP/17/278)
Nidhi Aggarwal (PGP/17/282)
Nimisha Drolia (PGP/17/283)
Sandeep Bhat (PGP/17/290)

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TABLE OF CONTENTS

INTRODUCTION ........................................................................................................................................ 3
MRF TYRES LIMITED ............................................................................................................................... 4
MICHELIN INDIA ................................................................................................................................... 6
APOLLO TYRES ................................................................................................................................... 11
JK TYRES .............................................................................................................................................. 13
CEAT TYRES LTD. ............................................................................................................................... 16
APPENDIX ............................................................................................................................................. 21

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3

INTRODUCTION

Given the complex nature of the tyre industry and the wide variety of products and consumer segments, it
makes it difficult for the market players to follow any pure generic strategy. The following analysis of the
two strategies helps us to answer as to why any particular strategy cannot be followed in isolation:
Cost Leadership: The major cost of the tyre industry comes from the input materials which is rubber.
The players do not have much control on the volatile prices of the input raw materials making it
difficult for the companies to reduce their production costs much. Therefore, any one company which
tries to follow this strategy cannot achieve much success as the major costs are common for all the
companies in the industry.
Product Differentiation: The branding of the tyre is of not much value to the OEMs and within a
product there are only few features that can be distinguished from others. Also, any innovation in the
product can be easily imitated due to easy availability of the technology. Hence pure product
differentiation strategy cannot be fully employed in the industry.
However, in order to gain a competitive advantage the companies are trying to follow separate strategy in
the different range of products it offers.

4

MRF TYRES LIMITED

MRF is the market leader among tyre manufacturers in India constituting 24% market share in terms
of revenues. It has strong brand recall and high quality commanding the price-maker status. It has a strong
presence in the T&B segment which is the largest segment of the tyre industry having about 19% market
share. It is the leader in the two/ three-wheeler segment (including motorcycles) and tractor front tyres
and holds second place in the passenger cars and tractor - rear tyres. It also exports around 12% of its
gross sales.

Company Strategy

MRF Tyres Ltd. is one company which has the most diversified range of products. Having ruled out the
pure generic strategy for the industry, MRF depends less on its own value chain and instead focuses on
the value chain of the customers. MRF thus, follows a differentiated business delivery model which is
responsive and adaptive to the needs of the customers and also delivers the products at low cost.
With presence in a large variety of products, the company tries to achieve low-cost benefit with some
products catering to the low-cost and economy segment, integrated through some product categories
where it stands out with its superior quality and strength despite supplying it at low cost and focused
differentiation with its new range of products in the aviation sector.

The following table summarizes some of its products according to different strategies:

Low Cost Strategy Focused Differentiation
Strategy
Integrated Strategy
Passenger Cars- ZCC, ZVT, VTM
Catering to brands like Maruti,
Hyundai
2 wheelers- Zapper RF, Zapper FV
OTR/T&B- Musclerok Smooth
Farm Services- Front Shakti Life,
Rib
Aero Muscle- MRF is the
first domestic company to
focus on the niche area of
aviation tyres for helicopters
and aircrafts in the defense
sector
Passenger Cars- ZLO, ZSLK,
Wanderer
2 wheelers- Meteor, Zapper Vyde
OTR/T&B- Musclerok X,
Industrial
Farm Services- Shakti Super,
Power Tiller

Strategic Issue
5

The industry and MRF Tyres alike are facing similar problems of shrinking bottom-line and increasing
competition. MRF till recently had refrained from backward integration strategy and had focused only on
horizontal expansion by increasing its manufacturing capacity. This has prevented MRF from effectively
addressing the issue of control over raw material prices and regular supply. Another major threat has been
the competition from international players, specifically due to the low taxes on imported tyres as
compared to imported rubber and other raw materials. The expansion by MRF had been focused within
the country which helped it create a strong international image of being a quality tyre manufacturer, but
restricted its access to the niche international markets such as the high end sports tyre market and ability
to compete with the international players.

Recommendations
Given the recent developments in the raw materials market, the status of labor reforms in the country and
no signs of dealing with the disparity in the tax structure (on imported tyres compared to imported raw
materials), the company should now look for expanding into the new emerging markets such as African
and South American markets. Also, it should adopt the backward integration strategy for acquiring rubber
plantation units in these new markets. It should also adopt the inorganic growth strategy for expanding
into international market through mergers and acquisitions. To compete with the international players, it
should focus on establishing strategic joint ventures and development centres for entering into the niche
sports tyres market.

6

MICHELIN INDIA

Michelin India has a predominated differentiation based strategy and relies on superior quality and brand
appeal to gain a premium on its products. Michelin came to India almost a decade ago and today markets
its range of tubeless car radial, tubeless and tube type bus and truck radial tyres. Today, Michelin in India
offers Product for India Market for Passenger Cars, Truck & Bus, Two Wheeler & OTR (Off the Road),
According to Abhijeet Bakre, Head-Marketing at Michelin India, and the organization is looking to
establish its brand in India. As they are completely new to the market, at present Michelin is a small
player in the market. To grow by 25% in sales volume, Michelin decided to tap on the emerging markets
such as India. The tyres sold in India are formulated or tweaked to meet the local road conditions and the
consumer expectations of the market.

Passenger Car
Michelin, continuing its trend of innovation was among the first tyre company to introduce tubeless tyres
in India for vehicles. Their Product Offering includes tubeless radial tyres for passenger cars starting from
a Maruti 800, Alto, Zen, Esteem, Hyundai Getz, Accent, Ford Ikon to Honda City and many more.
Michelin Passenger Car radials such as Primacy LC, Pilot Preceda 2, Pilot Sport, Energy XM1+ not only
saves fuel & the environment but are also high on performance and safety. Their SUV range of tyres such
as Latitude Cross, LTX A/T 2 , Latitude Tour HP offers maximum grip & durability as well as the on
road comfort. The partnership in the OE business with car manufacturers like Honda & Mercedes, the
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strong and growing network of dealers and innovative distribution programs like Tyre Plus have been
the key drivers for fostering the growth of Michelin in India.

Truck & Bus Tyres
Michelin Radials for Truck and Bus are designed to work optimally as per the Indian road conditions.
These tyres not only offer better mileage, but also last that much longer, thereby substantially reducing
cost per km. Michelins XDE2* XDY3,XZE2 & XZY3 are some of the truck and bus radial tyres that
cater to the Indian driving conditions. These radial tyres are proving to provide the fleet owners with the
best value for their money in terms of fuel economy and longer life. International formats of distribution
like Michelin Truck Service Centre offers more value to the customers wherein customer gets all Tyres
and Tyre related services under one roof at reasonable cost. Their partnership in the OE business with
theVolvo Bus & an extensive dealer network across the country ensures our reach to our existing &
potential customers.
Two Wheel Tyres
With its impressive track record in innovating two wheel technologies and winning championships
globally, Michelin has recently introduced its Two Wheel Tyres for the Indian Market. Both Sirac Street
and Pilot Sporty provide excellent levels of dry and wet grip, handling and comfort on Indian bikes.
OTR Tyres
MICHELIN, continuing its trend of innovation was the first tyre company to introduce OTR radial tyres
in India. Michelin Earthmover tires are built to perform. As the undisputed leader in radial tyre
technology, Michelin tires are engineered to provide Long tyre life, Exceptional protection against cuts,
punctures and tears, Excellent traction, Fuel economy and Smooth ride and operator comfort.

The following table gives a bifurcation of various brands of tyres on the basis of strategy they follow

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Category Product Generic Strategy
Passenger Cars Michelin
Energy
*XM2

Differentiation
Advantage : Runs Longer, saves more fuel and is robust
and safer
Michelin Pilot
Preceda
Focused Differentiation
Scope : For city driving
Advantage : Ultimate Sports Performances, designed for
Asian needs
Michelin
Primacy LC
Low Cost Strategy
Advantage : Less Driving noise, saves fuel, longevity
and safety
Michelin
Primacy HP
Differentiation Strategy
Advantage: Lasts 25% longer, brakes shorter in the wet
Michelin Pilot
Sport 3
Advantage: Better road holding, driving pleasure
Michelin
Energy
*XM1

Integrated Strategy
Advantage: Saves fuel, safety
Michelin
Primacy 3 ST
Better road grip, quieter ride, improved handling
SUV Michelin
Latitude Tour
HP
Advantage : Gives maximum comfort, lasts longer and
safety guaranteed
Michelin
Latitude Cross
Focused Differentiation Strategy
Advantage : traction of all terrain type, exceptional
mileage
Michelin LTX
A/T
2

Advantage: Maximum all-terrain traction
Light Truck Michelin Agilis Focused Differentiation Strategy
Advantage : Improved mileage, very robust
Motorcycle Michelin Pilot Differentiation Strategy
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STRATEGIC ISSUE FACED
One of the main strategic issues facing Michelin India is the limited distribution and logistics system of
Michelin tires in India. Hence despite the superior products, the availability of Michelins products at the
demanded place is a challenge. Tire industry being very much customer oriented, distribution channel
plays a very important role for connecting with the customer. The steps taken for overcoming this
problem was the joint venture with Apollo Tyres. The JV failed after Apollo tyres exited the JV due to
prevailing market conditions and slower than projected pace of radialisation. With the limited dealer
network and the failure of joint venture with Apollo tyres have aggravated the issue.

RECOMMENDATIONS
Michelin with its global brand value and assured quality with its dedicated R&D and work culture needs a
proper distribution network to complement its manufacturing and marketing prowess. Hence an integrated
strategy is needed in India, for Michelin to gain its market share. The distribution network would be
obtained best with a joint venture. But after the failure of JV with Apollo tyres, Michelin would need to
build its distribution network. The cost savings associated with the distribution network would enable the
firm to move towards cost efficiency and become more affordable for the end users. With its
manufacturing facility at Chennai, TYREPLUS is an addition to Michelins initiative of innovative
distribution programs that aim to enhance retail experience for customers. Another such programme is
Michelin Priority Partners (MPP), under which Michelin creates partnerships with dealers who share the
strategic orientation of the company Offer the customers best quality products and services at the best
price. Hence there is a need for an efficient network of distributors to make the products of Michelin
reach the users, which remains a challenge for Michelin. Hence to attain the objective of 25% of sales, it
needs to reach on par with MRF and JK Tyres in terms of reach to the consumer. This could be achieved
Sporty,
Michelin Sirac
Street, Pilot
Street Radial,
Pilot Road 2
Advantage : Dry grip, Wear resistant, good breaking
efficiency, high mileage
OTR XZSL, SM27,
XM 37, SGLA2
L2/G2, XSE7
Each tyre is custom made for the specific purpose of skid
steer loaders or graders or loaders or bolldozers, etc
Advantage: Log tyre life, exceptional protection against
cuts, excellent traction, fuel economy and smooth ride
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if the focus is on both cost and differentiation of products through a dedicated distribution network, hence
an integrated strategy is proposed.

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APOLLO TYRES

By the end of 2005, Apollo Tyres India Ltd. had become the second largest tire manufacturing company
in India after MRF. They offer variety of SKUs in almost all the segments of automobiles. They have
grown inorganically by acquiring plants overseas. This has enabled them with capabilities in different
market segments. Apollo until late nineties primarily focussed in the low cost segment. Their sales were
concentrated to truck and bus market(HCV).In mid-nineties they ventured into the radial tyre market. As
radialisation continued they moved in to more niche segments. In 2008 they acquired Netherlands based
which was a premium brand in the European markets. Taking forward this collaboration Apollo is slowly
focussing on in its strategy to expand its markets to south American markets. Currently Apollo has
adopted low cost strategy in Hatchbacks and radial bus and truck tyres. Since there is huge potential for
high end luxury cars in india in coming years Apollo has started rolling out premium products that match
in performance with companies like Michelin ,Bridgestone and Pirelli but at a lower cost, hence following
and integrated strategy for sections. In OTR category, low cost has been the key strategy through out its
history.The following table gives a bifurcations of various brands of tyres on the basis of strategy they
follow.
Low Cost
Stratgey
Integrated Stratgey
Passenger Car Tyres
Amazer Acceler Maxx
Amazer XL ALNAC 4G
Acclere Aspire 4G
Hawkz A/T
Hawkz H/L
Heavy Commercial Vehichles
Amar Gold Endurace
Amar
Kaizen
XT-9
XT-7
OTR
Dhruv
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Krishak
Krishak Super
XTRAX RC317
Power haul
Krishak Premium
CR

Problems With Current Strategy:
Apollo Tyres have grown leaps and bounds in terms of market penetration and sales. The company has
been successfully able to leverage upon its cross national manufacturing units to cater the needs of the
respective regions. The major problem in their strategy has been a conflict or overlap of their generic
strategies brand. Even after acquisition of BV Vredestein which is a premium brand of tyres, the brand
image of the company was still considered to be in the low cost segment. Although the company has all
the competencies to become a number one brand in india,it still has a long way to go before it can
compete with the global players.

Proposed Strategy :
Apollo Tyres has to prioritize their strategy in terms of their product placements. They can sell/market all
the niche products under the Vredestien brand which Is a renowned premium brand all over the world.
Along with it they can continue their dominance in the low cost segment by their parent brand name.They
also should enter into the two-wheeler segment which they failed to catch on.It can be seen that even the
companies which ventured late into the two wheeler tyre market(CEAT and Dunlop) are reaping good
returns. This trend might continue considering the socio-economic factors and the ever slow developing
road infrastructure of the country.

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JK TYRES
COMPANY STRATEGY
The strategy followed by JK Tires is mostly of Focused Differentiation. Following reasons helped us to
arrive at the same:-
Through continuous innovation, it has stayed ahead of the race. It was not only the pioneer of
high performance radial technology in India, it also introduced tires such as H-Rated, V-Rated
and Z-Rated for racing cars. This has helped in the growth of its client base over the last few
years. It set up Asias first tire and Polymer Research Center, HASETRI, which is actively
engaged in advanced tire testing and Polymer research.
Advantages of JK Steel Radials over conventional nylon truck tires are as follows:
Better fuel economy up to 10% or more fuel saving compared to nylon tires
Longer life around 50% to 100% more than nylon tires
Significantly lower maintenance costs and downtime
Lower cost per kilometer (CPKM): up to 10% or more savings in tire cost per km.
Better puncture resistance
More riding comfort and reduced cargo damage
Better traction and braking, both on wet and dry roads
Excellent high-speed capability

The company is quick in delivering solutions. The strategy has been to offset any losses or
shortfall in supply of tires, as tires account for 5% of the value of a passenger car. For example,
when there was a "slowdown" in one of the company's six plants in Banmore, Madhya Pradesh,
the company strategists swung into action to speed up the completion of its Chennai plant, ahead
of schedule.
Since the OEMs reputation is at stake if something goes wrong with the tires, unless they are
assured that you have the quality and the capability, they will not go with you. Also since
switching costs in this industry is low which gives high bargaining power to buyers (OEMs),
maintaining adequate supply of tires as per demand could be a differentiating strategy to boost
client base.

The company invests heavily in services. It has 20 wheel centers which is equipped with
technically advanced equipment and provides solutions to all truck and bus tires. Thus it
differentiates itself from competitors by providing high class services for truck and bus tires. The
Wheels Centers-cum-showroom is spread over 8,000 sq ft and has a nitrogen inflator machine, air
compressors, greasing pumps, pneumatic wrenches and a generator set to ensure end-to-end truck
and bus tire care.

Relationship with the Buyers: JK Tires is the first choice for some of the largest tractor
manufacturers of India like Mahindra & Mahindra, John Deere and TAFE.

High level of exports: JK Tires was the first company in India to export all steel truck radials
(both tubeless type and tube tire) to more than 80 countries worldwide including to USA, UK,
Australia, Gulf countries and South American countries. The company is accredited with:

o GCC certificate for exports to Gulf countries.
o E mark certificate for exports to European countries.
o DOT certificate for export to America.
o In Metro certificate for exports to Brazil.
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MAJOR STRATEGIC ISSUES FACED BY THE COMPANY
JK Tires relies more on the replacement segment to gain market share; it commands about 30
percent share in truck and bus tires segment in the replacement market. However, it has poor
presence in Passenger car market. With the growth of OEMs in Passenger Car Market, this
market offers high potential.
Most of the huge investments at JK Tires are funded by debt. The government in its bid to
counter inflation has been increasing interest rates which may affect the profitability of the
company.

Category Product Generic Strategy
Passenger Cars UX1 Focused Differentiation
Scope : Super luxury cars
Advantage : Ultra-high performance tubeless radials
Ultima Sport Focused Differentiation
Scope : For city driving
Advantage : Shorter braking distances with better grip
Ultima Neo Integrated Strategy
Scope : For all hatchbacks
Advantage : Ensures fuel savings due to low rolling resistance
LCV
(Light
Trucks/Buses)
Steel King,
JET XTRA,
JET RIB,
JET R MILES
Integrated Strategy
Scope : All LCVs
Advantage : Better fuel efficiency, higher mileage
JET TRAK 39 Focused Differentiation
Scope : All LCVs
Advantage : Very high load carrying capacity
Farm Services Sona HF Tractor
Rear
Integrated Strategy
Scope : All Tractors
Advantage : Longer Life, Better Fuel efficiency
Sona Tractor
Rear,
SONA Tractor
Front,
SONA H/F
Tractor Front,
SONA 5 Tractor
Trailer
Scope : All applications
Advantage : Better traction, retreadability, high load carrying
capacity,
Off-The-Road
(OTR)
V-BHTEL,
V-BHSS,
VEM-027
EG-04 DX
Integrated Strategy
Scope : Industrial Sites/Earthmovers
Advantage : Increased Durability, Wear resistant
VEM-045,
VEM-99,
EG-04

Scope : Industrial/Construction Sites
Advantage : Better anchorage, load carrying capacity, resistant
to external damages
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RECOMMENDATIONS
Since tire sales to OEMs constitute about 40-45% of the total sales, therefore JK Tires should
focus on the OEM segment also. Since it is already a dominant player in the replacement segment
in the Truck and Bus category, it should start expanding in the OEM segment and also tap the
passenger car market.
To combat the price volatility of raw materials and inability to pass on price rise to
OEMs/Replacement Market, the company should adopt the backward integration strategy to
acquire rubber plantation units.
The company should restructure its finances.

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CEAT TYRES LTD.

With two major tyre plants in Maharasthra, one each in Halol - Gujarat, Cochin - Kerala, through RADO
Tyres, and two plants in CKITL and ACPL in Sri Lanka, through CEAT Kelani, CEAT produces over 7
million tyres a year and commands around 13% share of the Indian tyre market. They have a robust
national network consisting of 34 regional offices and over 3,500 dealers among which approximately
100 are exclusive dealers running the CEAT Shoppe outlets for passenger cars segments and 96 exclusive
dealers running the CEAT HUBs for Truck & Bus Segments.

The companys net sales increased by 15% from a year-ago and this was accompanied by volume growth
of 16%, according to Anant Goenka, Chairman of Ceat. Truck and Bus tyres are the highest contributor to
the annual turnover of the Company (61 per cent)

Net profit almost tripled to Rs.67 crore as the company did not see any exceptional expenditure in the
December quarter.

Company Strategy

In the year 1996, CEAT launched a new radial car tyre 'Maestro', the first radial tyre in India to use state-
of-the-art polyester tyre cord technology combined with steel belts. They also launched a new heavy-duty
product 'Stamina', which is a light commercial vehicle tyre. The radial tyre plant has commenced
commercial production in Nasik and the formula one radial tyre was received in the market.

In 2001, when Mr. Paras Chawdhary took over as the CEO of the company, the bad time was at its peak:
CEAT was over-leveraged, it had no money to spend, no financial institution was willing to support it,
and raising money through the equity route was just not possible as the share price at that time was too
low.

Under the leadership of Mr. Chaowdhary, CEAT reduced the debt burden and thereby cut the interest
payout. It stopped all fresh investments as it was desperate to clean up its books. It also made significant
changes with top to bottom approach and company started making profits with good growth rate.

During the year 2004-05, the company entered into agreement with Pirelli of Italy for outsourcing radial
tyres, which were marketed in the brand name, CEAT Spider Radials.
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The year 2010-11 saw significant R&D efforts to develop new raw materials, enhancement in the quality
of tyres and new range of products. Innovative launches of first of its kind concepts in the truck and farm
category during the year under review have set into motion the process of thought leadership by CEAT. In
light of the increasing raw material costs, successful efforts were made in development of cheaper
substitutes for costly raw materials without compromising on quality parameters. This has helped the
Company to not only reduce cost but also in optimizing material consumption.

1. Tyres that are sold to OEMs follow the B2B sales process hence they do not require an elaborate
distribution network. Also tyres that are exported use the distribution network of some other
company. Hence the most challenging Sales and Distribution network is developed for the
Replacement Market. This supports Mr. Chowdhary's objective to focus on the replacement
market where the company's share in its total sales was just 50 per cent. The replacement market
is important for tyre manufacturers as the consumers here don't mind paying extra for a quality
product.
2. The company put its might behind ensuring the quality of the products. Earlier, the quality of its
products was acceptable, but not something that would create a customer pull. This was even
more so as CEAT started targeting 20 per cent of its revenues from the export market where
profitability was good.
3. CEAT has restructured internal processes which include mergers of various roles and making
operations more efficient.
4. Over the time, CEAT decided to get into high-margin segments (90 per cent of its products are
now in that category).

The following table summarizes some of its products according to different strategies:

Low Cost Strategy Focused Differentiation
Strategy
Integrated Strategy
Trucks/LCV FM super, LUG XL,
MILE XL
2 wheelers- Formula series,
Earth Movers HT series, Rock XL
New Rib pattern and
Gripp technology through
R&D.
Truck/LCV - Pro series,
Buland series in light truck
Farm Vehicles - Ayushman
Series
2 wheelers Vertigo Series
18

bias
2 Wheelers Secura Series
Car and SUV - Milaze for
better mileage and Rhino
series for safety

Strategic Issue
In the period of 2001- 2010, very few suppliers were willing to give materials since the company had not
cleared the dues of over Rs 150 crore (Rs 1.5 billion). And it was getting increasingly difficult to explain
to the investing community and the board the reasons for the worsening profit margin vis-a-vis its
competitors. There were also legacy issues in Maharashtra. Currently, major constraints for CEAT are its
size and investment especially when the stiff competition in Indian as well as Global market demands
these.
The company plans to expand capacity and become the countrys second or third biggest tyre maker,
where it is now No. 4. To reach that goal, it plans to grow at a rate of 20% every year, outpacing the tyre
markets growth of around 8%.

Recommendations
Before 2001, company was not working efficiently which led to huge losses and debt in the books. After
appointment of Mr. Paras Chawdhary, companys functioning improved at a significant rate and internal
defects were also obviated. CEAT started focusing on replacement market and opened a new production
facility of Radial tyres in Halol, Gujarat where the company could afford the labor at 40 percent cost of
Maharashtra. Our recommendation would be to stick to the present differentiation strategy in tyres and
maintain the efficiency levels in the factories. Also to reach to the number 3 position, CEAT should
expand at the present or higher rate. Once investment opportunities are wide, alliance and acquisition
strategies should be implemented to boost the sales in the export market as well. Company already has
ventured jointly with companies in Srilanka and Bangladesh, it could now move further in developing
South East Asia and Middle East regions where automobile industry is growing.
Goodyear tyres presence in India is over 90 years old. It is a market leader in farm segment. Though the
tractor industry in India has witnessed a decline in 2012, your companys farm OE business has registered
a 2% growth. The companys farm replacement business has registered a healthy growth of 14%, which is
much higher than that of the industry. Passenger vehicles sales grew at 8.5% (Source: Society of Indian
Automobile Manufacturers), which translated to moderate consumer tyre demand from the Original
19

Equipment Manufacturer (OEM) customers, however, the OE business has registered a healthy growth
and we continue to gain market share. Consumer replacement tyres also felt softening of demand due to
rising pressure on consumers purchasing ability as a result of higher interest rates, fuel prices and food
inflation.
Product-wise Generic Strategy:
The overall generic strategy is Focussed Differentiation for most of the products of company. The
classification of products here however is taken in the basis of tyre families
Product Advantage Generic strategy
Assurance tyres Help provide a smooth quite ride and redefined
handling. Mostly for on road vehicles, and are all
seasoned and fuel efficient
Focussed integration
Eagle tyres Help provide steering precision and confident
handling. Mainly used for sports vehicles
Focussed differentiation
Efficient Grip tyres Help evacuate water from beneath the tread with
their wide circumferential grooves. These are
mostly summer-season tyres used for sports
vehicles
Excellence tyres The OE tuned asymmetric tread design helps
provide responsive handling and a smooth ride.
These are also summer, sports vehicle tyres.
Fierce tyres Designed to help enhance driving performance
while also providing a stylish appearance. Mainly
highway tyres.
Fortera tyres Help provide enhanced forward and lateral
traction for stable handling. Mainly for high
performance sports vehicles
Integrity tyres These are all season tyres popular with many
vehicles for everyday on-road driving.
Ultra Grip tyres Utilize innovative technologies to help provide
enhanced winter traction, mainly for sports
vehicles
Wrangler tyres Tough tread compound helps deliver rugged on-
and off- road performance, on all kinds of terrains.
20

Mainly used for farm traction

Strategic issues:
As pointed out in the companys annual report, the growth in farm sector is witnessing a decline due to
various reasons. The crop output from Kharif season (monsoon) has declined over the years, owing to a
drought in certain parts of the country leading to lower farm income and thereby likely to impact the
business in the future. With the farm OE industry on a decline, the replacement industry is facing high
levels of competitive pressure. Hence, to grow its market shares in the replacement market, the Company
is focusing on channel expansion and extraction. The Company plans to continue focusing on expanding
this product in the targeted markets that is the farm vehicles.
However, considering the slow growth in the sector, the sales may decline (as seen in the year 2012).
Recommendations:
To get over this, the company needs to expand, not only in the farm segment, but also in the passenger car
segment which is growing very rapidly in the country. Also the company may consider introducing new
products in the two-wheeler segment, which has shown promising growth.
For innovating in these segments, while continuing focus on the farm segment, the company needs to
invest more on innovation and technological enhancement of the existing products.
To fund these investments, the company may use its leveraging capacities, given that currently the
company has no debts, long term or short term, in its books. Thus, by taking the advantages of leverage,
the company can make its product line more attractive to diverse customer base.

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APPENDIX
A BRIEF HISTORY OF TYRE INDUSTRY
World
The history of the tyre industry is closely interwined with those of the rubber and automobiles. Although
metal tyres existed before the discovery of rubber, the true meaning of the word is intimately connected
with the use of elastomers. Major technological breakthroughs such as the vulcanization process (Charles
Goodyear, 1839) and the pneumatic tyre (Robert William Thomson for bicycles in 1846; the Michelin
brothers for automobiles in 1895) led to the establishment of the first tyre companies at the beginning of
the 20th century. The tyre industry has grown tremendously ever since in tandem with the auto industry.
Today the global industry encompasses around 400 factories world-wide producing more than 1 billion
units globally.
The peak of the industrys dynamics in the modern era was reached in the late 1980s when a series of
dramatic restructuring occurred. While in 1985 fourteen companies shared 75% of the market, towards
the end of the decade, after a series of mergers, the big three (Goodyear, Michelin and Bridgestone)
controlled over half of the industry. Most of these include a US target company and a European or
Japanese buyer.
India
The origin of the Indian Tyre Industry lies in 1926 with Dunlop Rubber Limited setting up the first tyre
company in West Bengal. MRF joined the industry in 1946. Since then, the Indian tyre industry has
grown rapidly. We can divide it in following five phases.
Phase 1(1920-35) - During 1920 to 1935, there was no domestic production. Indian tyre industry was
dominated by foreign players in the pre-Independence period. Hence the demands met through imports.
Dunlop (U.K), Firestone &Goodyear (USA) were the key players in the industry. Policy regime was also
liberal for imports which helped these players.
Phase 2 (1936-60) - In the year 1936 the domestic production started by Dunlop, Firestone, Goodyear and
Indian tyre & rubber company. In 1956 with recommendation of the Tariff Commission, Government
imposed tariff &non-tariff barriers on imports.
Phase 3 (1961-74) - In 1961-74, government came up with policies which facilitated licensing of
additional production capacity, regulation on capacity expansion and repatriation of profits of foreign
companies, enforcement of export obligation on MNC and protection from external competition. These
encouraged Indian companies like MRF, Premier and In-check to enter manufacturing sector.
Phase 4 (1975-91) - This period saw entry of large Indian business houses like Singhania & Modi in the
industry. Domestic companies had technical support from MNCs. There was introduction of radial tyres
and vertical integration during this time. Also, there was an exponential growth in tyre production &
exports.
Phase 5 (After 1992) - With external trade liberalisation and reduction in import duty, the re-entry of
MNCs started either independently or in collaboration with Indian capital. Also, there was progressive
reduction seen in import duty. Over the period of last ten years Indian tyre industry has grown rapidly.

22

GLOBAL AND LOCAL MARKET DESCRIPTION
Size of Market:
Global
The Global Tyre market is moderately concentrated with top seven players accounting for around 65% of
total global tyre sales (2009). Further, the top three players - Michelin, Bridgestone and Goodyear control
50 per cent of the total global tyre market, with Michelin and Bridgestone close competitors for the
leadership position. The global truck tyre market size is estimated to be around 146 million tyres (in
2009), with Asia accounting for around 45 per cent followed by Europe at 18 per cent.
Local
The industry is moderately concentrated, with the top seven players accounting for over 80 per cent
market share. The Indian tyre industry grew by around 8% in FY13. The industry is dominated by the
Truck and Bus segment. Replacement market continues to remain crucial for the truck-bus category while
the passenger vehicle segment drives the OEM sales. Indian Replacement Market has grown by over 4%
in FY13. Tyre exports also grew at a healthy rate. Off-the-road category and Truck and Bus tyre category
contribute to over 70% of total tyre exports (in tonnage terms). The Middle East region and South East
Asian countries are major export destinations, together contributing to over 60 per cent of total tyres
exported, in value terms.
The performance of the Tyre Industry is largely influenced by the Replacement segment, as truck tyres
account for the largest share of the Industrys product mix. The increase in outlay of buses under
JNNURM scheme in future is expected to aid the Tyre industry. The Indian Tyre Industry has over 30
players; however Apollo Tyres and MRF Ltd have closely competed for the top slot. While MRF
dominates sales of passenger and motorcycle tyres, Apollo Tyres is the leader in truck and bus tyre
category. MRF is also the largest exporter of tyres in value terms. Recently multinational players like
Michelin have begun operations in India (Michelle has a plant in Chennai), Bridgestone have also set up
capacities for production of truck and bus radial tyres.

23

Product Categories and Customers:
The Indian tyre industry can be categorized into the OEM segment (24 per cent market share),
replacement market (65 per cent) and exports (11 per cent). The OEM segment comprises automobile
manufacturers, while the replacement segment mainly consists of the transportation and corporate sectors,
and individuals.
Tyres can be classified into two main segments on the basis of vehicle categories - commercial vehicle
tyres and passenger vehicle tyres. Commercial vehicle tyres include medium and heavy commercial
vehicles (MHCV), light commercial vehicle (LCV) and tractor tyres. Passenger vehicle tyres include car,
jeep, motorcycle and scooter tyres. Category-wise mix in Production is shown below (2011-12).

Product categories and Market segments are shown below:-

For FY13, passenger car tyre sales have remained quite flat with minimal growth. Market statistics
indicate that SUV and van tyre segments have again shown stable growth of around 3.8%. Truck-bus
24

tyres have shown growth of around 11%, though a decline in demand for cross ply tyres, particularly in
the truck-bus and light truck categories, have been noted. Growth of Radial tyres in Truck-bus segment
has led to longer replacement cycles. Radials have a 60% share in the OEM market and 22% in
replacement.
Radialisation
Tyre technology witnessed an important innovation - Radialisation - in 1978. Although it offers several
advantages such as additional mileage, fuel saving and improved driving, radialisation did not pick up in
India in the initial years. This can be attributed to factors such as the poor condition of Indian roads, older
vehicles produced in India not having a suitable structure for fitment of radial tyres, misconception that
radial tyres are not required for Indian vehicles, unwillingness of consumers to pay a higher price for
radial tyres, among others. However, the situation has changed radically in recent years, especially for
passenger car tyres, where radialisation has reached 98 per cent and is expected to touch 100 per cent in
the next few years. In the medium and heavy commercial vehicles segment too, there has been sharp
growth in radialisation over the last 3-4 years due to significant capacity addition by major players. Radial
tyres are priced approximately 25-30 per cent higher than comparable cross-ply tyres.
Pricing Structure:
Margins of players are sensitive to prices of raw materials, as it accounts for 70 per cent of sales and 75
per cent of the total operating cost. Natural rubber, nylon tyre cord (NTC), carbon black, styrene
butadiene rubber (SBR), poly butadiene rubber (PBR), rubber chemicals, butyl rubber and zinc oxide are
the key raw materials, accounting for 92-94 per cent of the total raw material cost. The remaining 8-10
per cent includes aromatic oil, bead wire, process oil, stearic acid, etc. Movement in raw material price
dictates the industrys profitability.
Raw Materials cost have increased over the past few years. Despite the industry being moderately
concentrated, players have not been able to fully pass on the rise in these costs to consumers. This is
because the decrease in customs duty over the years has led to cheaper imports from China and other
South East Asian countries, thus exerting pressure on tyre prices. This has impacted the margins of
players. In terms of type of tyres, radial tyres command a premium as compared to traditional bias tyres.

25

PORTERS FIVE FORCE ANALYSIS
The tyres & rubber market will be analyzed taking manufacturers of tyres as players. The key buyers will
be taken as vehicle manufacturers (for mounting as original equipment), and the aftermarket, which
includes garages, warehouses and distribution centers, independent dealers, and retail stores (that sell
replacement tyres directly to consumers), and raw material producers as the key suppliers.

1. Competitive Rivalry - Medium
Despite there being more than forty players in the Indian tyre industry, there is high concentration
of market power with the top ten players claiming almost 95% of the market share. Category wise
also, for e.g., in passenger car segment, 2 wheelers and commercial vehicles, only top 3-4 players
hold about 75-80% of market share. But individually the companies have market shares very
similar to each other and hence, there is rivalry existing between them.
2. Bargaining Power of Buyers Moderate
The buyer market can be divided into two segments- the OEMs and the replacement market. The
OEMs have a strong position with respect to their contracts with the tyre manufacturers. There
are low switching costs and hence their bargaining power is very high. Also, due to fragmented
nature of the market, increase in costs cannot be transferred to the buyers completely and the
existence of many players makes the replacement market also very powerful in terms of their
bargain. Buyer power is strengthened by the lack of differentiation in the product offered by
players. Consequently, they are able to shop around for the cheapest deal. However, some
manufacturers benefit from brand strength, with many buyers opting for reputable brands in
recognition of their performance and quality. Additionally, tyres are essential products for buyers;
such products are not dispensable, and this reduces buyer power. Overall, buyer power is assesses
as moderate
3. Bargaining Power of Suppliers High
The supply of raw material can also be segregated into two parts- Natural rubber and other petro-
chemical based material. The demand for rubber which is the main raw material is very high
unlike the production and so the bargaining power of rubber manufacturers in India is high.
However, tyre companies can now buy rubber from the international market which is reducing
their power. But, in case of other materials (carbon black, nylon tyre cord), the prices are beyond
the control of the tyre industry and hence, the bargaining power of suppliers is high.
4. Threat of New Entrants Medium
The tyre industry is highly capital-intensive with long payback periods. Also, there are lower
margins which make it very difficult for the new players to enter and sustain. New entrants must
be aware of strict environmental and safety regulations imposed by governments. These
regulations change frequently, are becoming more stringent and can have an adverse effect upon
business. The existence of strong brands, with reputations for performance and quality, acts as a
further barrier to entry for new companies. Existing companies also benefit from economies of
scale, which new entrants would be required to develop. But, there is scope for the automobile
players who can do backward-integration and thus, strengthening new players.
5. Threat of Substitutes Weak
The EOMs have the option to use imported tyres (with the advent of Chinese competition) when
the prices in the domestic market start increasing. However, the replacement market consumers
do not have this luxury and so we can say that the substitute threat is weak. One possible
substitute is counterfeit tyres, including tyres that are designed to look like those from major-
name brands, but produced and sold more cheaply. However, in general the trade in counterfeit
vehicle parts does not occupy a large share of the market

26

INDUSTRY TRENDS AND DRIVING FORCES
Industry trends (short-term):
Tyre production increased by 7.6% in tonnage terms in 2012 over 2011, led mainly by growth in
the Truck and Bus tyre category, which constitutes 50% of total tyre production.
T&B production grew at 6.4% (in tonnage terms) in 2012 due to increase in pick up in
replacement demand. However, the pace of growth remained slow due to weak industrial growth.
Weak replacement demand in fourth quarter of 2012-13 coupled with weak OE sales is expected
to have led to lower demand.
Trends in tyre production

Demand drivers:
Commercial vehicles segment: Replacement market trends are the major drivers of demand in
commercial vehicle tyres, which in turn are dependent on the industry activities and freight
movement. The latter are dependent on performance of agriculture, infrastructure, housing and
industrial sector.
Passenger vehicles segment: The demand in this segment is primarily from the OEM segment
followed by replacement segment and exports.OEM demand depends on new product launch.
Replacement demand depends on life of the car tyre and usage of a car in terms of number of
kms. It is mainly dependent on new car sales, which in turn is dependent on personal disposable
income.
27

Exports: total exports grew by 21% in 2011-12. This growth was mainly driven by steep
growth in Off The Road category (65%) and Truck and Bus tyre category (12%).

28

IDENTIFICATION AND DESCRIPTION OF STRATEGIC GROUPS
Tyre industry can be broadly classified in to different segments like
1) Commercial Vehicle segment
2) Passenger Vehicle segment
3) Others
Commercial Segment Vehicle:
The commercial vehicle segment is the largest segment in terms of value.
Low cost Strategy Group:
MRF, Apollo Tyres, Ceat and JK are the major players in the low cost strategy group in this segment. In
the past Apollo tyres had a clear cut edge over its competitors. But as the trend of radialisation continues
there has been a shift in market share .JK and MRFs market share has been constantly increasing in recent
years as Apollo was late to enter in the radial market.

Differentiation Strategy Group
In the premium segments the major players are Michellin tyres, Pirelli and Bridgestone. These brands
have been able to capture market share even from the low cost strategy group companies. These
companies used to import tyres to India for sales are now in pursuit to set up manufacturing plants in
India. Michellin has set up Rs 4500 Crores green field plant for the Truck-Bus Radial Category and
Bridgestone is expected to set up TBR plants in Pithampur, MP and Chakan, Pune.
Passenger Car Vehicle:
The share of these segments in the total tyre market has changed significantly in the past decade, with the
share of passenger vehicle tyres increasing over this period. The major companies in the low cost strategy
group consists of companies like Apollo ,MRF,JK tyres and CEAT. These companies have different
SKUs to cater to the needs of the customer. Price war is very much common. The margins are very low
for OEM tyres as there are many suppliers in the market, where as for OEMs margins are comparatively
much higher.
0
10
20
30
2010 2011 2012 2013
CV-segment Radilisation
29

In the Premium segment strategy group players like Michellin ,Pirelli ,Yokohoma ,Sumitomo caters are
mostly to high end vehicles .As the number of luxury cars have been increasing rapidly the demand for
premium tyres have been on the rise. These tyres are mostly imported for their manufacturing facilities
located outside India.
In Motorcycle and Scooter segment there is only one dominant strategy group which is of low cost in
nature. Dominant players are MRF and CEAT.

Some OEM companies use premium tyres like Continental and Pirelli also.
Other Segments
Tractors and OTR.
There is only low cost Strategy Group in this sector as the customer base is mainly farmers. Good year is
a major player in this industry. So far very less or almost no foreign players have entered this market.

0
20000
40000
60000
80000
100000
120000
2008 2009 2010 2011 2012
Passenger Car-Market share
Apollo
MRF
JK
Ceat
30

KEY SUCCESS FACTORS
The global tyres and rubber market has experienced fluctuating levels of decline and robust growth for the
2008-2012 period. This is down to variations in geographical markets, with tyre demand declining in
Europe as new registrations collapse while replacement markets in Asia Pacific saw an increase following
natural disasters. The market is expected to accelerate and achieve moderate growth across the forecast
period.
Order-winners and order qualifiers and its use in the establishment of the relative importance of certain
performance objectives. Order winner and order qualifier are criteria defined by managers within their
operation strategy plan to gain competitive advantage in the market. The success of a company depends
greatly on Order-winner factor (Slack, Lewis 2008). It is the most important factor that drives customers
to purchase a product or service from a company. When planning the competitive strategies the Order-
winning factor should be at the top of priority list, because in the long run it will benefit the company
with an increase in business, provided that higher performances on this factor is achieved.
Although order qualifier is not as important as order-winner factor but it plays also an important role as it
is used as a bait to draw customers attention to product or service. Slack, Lewis (2008) states that
companies must be above a particular level of operations performances to draw customers attention,
but the performance of order-winning factor is what is going to influence the customers decision towards
a product or service.
Being a homogenous product, there is not much difference in products offered by competing tyre
manufacturers. There are a large number of buyers in this market; however, their position is strengthened
by the fact that market players must compete heavily on price due to the largely undifferentiated nature of
the product. However, companies do try to differentiate themselves by outdoing one another in some
Points of Parity, such as quality, safety, tread design, economy, etc.
The top market players must compete on product design, performance, price and terms, reputation,
customer service, and consumer convenience. The fact that the product is largely undifferentiated
increases rivalry further.
High performance tyres are less likely to overheat, grip the road better, and offer a safer ride than
most other tyres. They are expensive, however, and may not last as long. These are order
qualifiers and in future they have tendency to become order winners. In the past ten years, the
high performance/ultra high performance market has grown by almost 10%. That trend is
expected to continue.
Comfort tyres (touring): Touring tyres offer the twin advantage of endurance with
superior ride comfort. These classes of tyres are a favourite amongst long distance
car drivers such as business travellers. This factor is actually order qualifiers and
need to be present in all tyres.
Mileage: One of the biggest value propositions of radial tyres is the improved
mileage that it brings with it. Mileage is the top priority for the Indian middle class
buyer. With higher research in investments in this field, they tend to become order
qualifiers as all competitors would be having a reasonable mileage.
Price: Tyre prices play a much smaller role in the passenger car tyre industry,
compared to tyre features. Consumers are more concerned about the attributes of the
tyre (quality, durability, etc) than its price. Due to highly undifferentiated nature of
the product, price wars too tend to happen as the customer would go for a lower
priced product.
Wear life: The wear life of a tyre determines the life if the tyre. The more durable a
tyre, the higher will be its wear life. It is tough to be differentiated much as serves as
a order qualifier for the segment. But due to increased research and development in
this area, this may become order winner in future.
31

Grip: Given the high seasonal differences in India, consumers typically look for tyres
that suit their local climate. Thus, while consumers in arid areas look for tyres that
can endure high temperatures; consumers in monsoon fed areas prefer tyres that can
grip the road even in the worst of seasons. This needs to be present in all tyres and
serve as order qualifiers.
Cornering and braking: Cornering and braking refers to the way a tyre handles the
extreme shear and frictional forces it experiences when the vehicle cuts corners or
brakes at high speeds. Superior braking and cornering performance is always desired
by sports and highway drivers. This too serves as an order qualifier and needs to be
present in all tyres.
A company can gain competitive advantage concentrating on one or both of the following factors, and
hence these serve as the key success factors in tyre industry
1. Quality: With increased expenses in this field, companies can produce high quality tyres to serve
various segments and hence differentiate. Brand perception plays a big role here as customers are
very brand loyal in which quality plays a big role.
2. Global Brand Image: As the more and more tyre manufacturers expand their operations across
the globe, the importance of establishing their brand in the minds of the consumer is increasing.
As new players step into emerging markets, advertising helps introduce them to the public and
establish brand recognition, possibly before their competitors have the chance. The high
performance craze also adds to the advertising mix. Consumers likely to buy high performance
tyres are often lured by magazine, TV ads, and even product placement in movies and TV shows.
3. Pricing: Within acceptable levels of quality, introduction of cheaper brand tyres has placed
greater pressure on prices. There have been continued rises in imports of cheaper tyres from
China. If tyres are over the price range, most customers will turn away from leading tyre brands.
With modern manufacturing practices, the average cost of tyres has decreased leading to a price
advantage which can be passed on the consumers.
1. Lower input costs
Managing raw material costs will allow any given tyre manufacturer to increase
profits over their competition. The recent rise in natural gas and petroleum prices has
placed an increased burden on this aspect of the business. Using e-business technology
has also allowed certain manufacturer to obtain their raw materials at lower costs.
Longterm supply contracts also serve as a common industry strategy to reduce costs.
Outsourcing manufacturing, especially of the lower end, economy tyres, has been a
strategy recently employed as well. Labor costs are another critical cost driver. Properly
executed management and commission structures can help ensure efficiency in the
workplace.
2. Efficient Production
Despite the fairly recent trend toward increased differentiation, to compete in the
tyre industry you still have to be a cost leader. After 62 people were killed due to faulty
tyres in 2000, the Firestone recall resulted in National Highway Traffic Safety
Administration passing the TREAD Act increasing test standards, labeling requirements,
pressure monitoring and reporting standards.
3. Low cost Distribution
To be low cost distributor in the tyre industry any tyre manufacturer might
consider downsizing their distribution centers, if at all possible, this will lower their cost
distribution. Many companies also eliminate their outside storagetherefore reducing
any unnecessary costs. Tyre companies typically adjust their inventory on a quarterly
basis to prevent them from backlogging and loosing money. Also, the smaller firms in
this industry may be too small and are usually spread out all over the world, which causes
them to work together in order to produce efficiently while still maintaining low costs.
4. Tight Control System
32

The overall goal of many of these firms is typically to be highly competitive
while also being a low cost producer. It is very obvious that there is a great opportunity to
capitalize on the growing demand for the American-made tyre on an international basis.
Employees are also working hard on expanding their companys production capabilities,
improving productivity and increasing the overall manufacturing that is involved. Also,
many tyre manufacturers prefer to produce their automobile tyres in the U.S. because of
the political instability and country volatility. These are some of the main concerns that
discourage manufacturing in countries other than the U.S and because transport costs for
tyres are typically bulky relative to their prices.
4. Innovation: Ever since the recent economic downturn, consumers are constantly seeking
affordable products. Businesses that are able to maintain a degree of creativity and originality
throughout their products, as well as having them accessible at affordable prices, will appeal to a
wide group of consumers. Tyres demand high-tech innovations; these are expenses that only few
tyre companies can afford. The evolutions of tyres stand testimony to the value of innovation.
Disruptive innovation can be the order winner for the future.

33

BRIEF HISTORY

1.) MRF Tyres Ltd.
MRF Limited (Madras Rubber Factory Ltd.) is an Indian based multibillion company manufacturing,
distributing and selling rubber tyres including tubes, flaps, tread rubber and conveyor belts in India and
more than 65 countries abroad also with a presence in coats and paints, toys and motorsports. Started as a
toy balloon manufacturing unit in 1946 by KM Mammen Mappillai in Madras, it started tread rubber
manufacturing in 1952. In few years, it was able to draw out the MNCs that were operating in India and
became the only Indian-owned unit with 50% share of Indian tread-rubber market. From a Pvt. Ltd. Co. it
was converted into a public company in 1961 and manufacture of automobile tyres was started in
collaboration with Mansfield Tyre and Rubber Co. By 1960s it had begun exporting its quality tyres to
overseas markets with its offices in U.S. and Beirut. To increase its base, it ventured into collaboration
with BF Goodrich Tyre Co. for technical knowhow in 1981. Further, the Co. started to grow receiving
constant recognition in quality improvement and customer satisfaction. With its increasing interest in
sports, it also started a cricket training academy Pace Foundation and is involved in car racing, karting
and rallying. Today, MRF is the leading player in the tyre industry with a brand of its own.

2.) Michelin
Compagnie Generale des Etablissements Michelin (Michelin or "the company") is a manufacturer and
seller of tires. It is also engaged in the distribution of navigation systems, as well as in the production of
lifestyle products. The company operates in 170 countries worldwide. It is headquartered in Clermont-
Ferrand, France and employed 113,443 people as on December 31, 2012.
Michelin was incorporated on 28 May 1888. In 1891, it took out its first patent for a removable pneumatic
tyre which was used by Charles Terront to win the world's first long distance cycle race, the 1891 Paris
BrestParis. Michelin has made a number of innovations to tyres, including in 1946 the radial tyre.
Michelin had bought the then bankrupt Citron in the 1930s. In 1934, Michelin introduced a tyre, which if
punctured, would run on a special foam lining, now known as a run-flat tyre.
In 1988, Michelin acquired the tyre and rubber manufacturing divisions of the American B.F. Goodrich
Company founded in 1870. This included the Norwood, North Carolina manufacturing plant which
supplied tyres to the U.S. Space Shuttle Program. Two years later, it bought Uniroyal, Inc., founded in
1892 as the United States Rubber Company.

3.) Apollo Tyres
Its first plant was commissioned in Perambra, Kerala. The company now has four manufacturing units,
one in South Africa, two in Zimbabwe and one in Netherlands. It has a network of over 4,000 dealerships
in India, of which over 2,500 are exclusive outlets. In 1967, Apollo Tyres was registered. In 1991, its
second plant was started in Limda, Gujarat and the third plant in 1995. It started selling tyres for two-
wheelers in 1994. In 2006, it took over Dunlops Africa Operations and expanded operations outside
India. It further expanded acquiring a green field project in 2008 and Netherlands based tyre makers
Vredestien BBV. It sold of its South African operations to Sumitomo Rubber Industries of Japan and
another failure faced by the company was that its proposed takeover of Cooper tyres failed due to months
legal standoffs and delays.

34

4.) JK Tyres
JK Tyre & Industries Ltd is an Automotive Tyre, Tubes and Flaps manufacturing company based in
Delhi, India. The name JK is derived from the initials of Kamlapatji (18841937) and his father Seth
Juggilal (18571922). It is the Radial tire Leader in India and is the only tyre manufacturer offering the
entire range of 4 wheeler radials for Trucks, Buses and Cars. It has a worldwide customer base in over 80
countries across all 6 continents. Headquartered in Delhi, it has six manufacturing centers across Mysore,
Banmore (MP), Kankroli (Rajasthan), and Chennai. It is the manufacturer of Indias largest OTR tyre-
VEM 045, and has 21% market share in passenger car segment. JK Tyre has also enhanced its global
reach by taking over Tornel, a renowned Mexican company, which has 3 plants in Mexico. JK Tyre
started manufacturing tyres in 1977 with a capacity of 0.5 million tyres per annum. It has grown multi-
fold over the years, and currently has a capacity of more than 16.6 million tyres per annum from its 9
plants in India and Mexico. The company has an R&D division, Hari Shankar Singhania Elastomer and
Tyre Research Institute (HASETRI) with headquarters at Kankroli. HASETRI was established in October
1991, and is one of its kinds in Asia.

5.) Ceat Tyres
CEAT tyres is a manufacturer and seller of tires. It works towards construction, preparation, repairing,
importing, dealing and selling of tyres in all types of vehicles.
CEAT (Cavi Elettrici e Affini Torino) was formed in 1924 for electric cables and allied products. In
1958 it was sold to Pirelli and entered India in collaboration with TATA. In 1982 CEAT was taken over
by RPG group which renamed it to CEAT limited. CEAT introduced CEAT Cricket Ratings in 1995 in
association for overall performance rating of cricketers.

6.) Falcon Tyres
Falcon Tyres Limited is an Indian company, marketed under the DUNLOP brand, and is known for its
high quality products with unique patterns and designs. Their clientele includes some of the leading
automotive manufacturers of India, such as Hero Moto Corp, Royal Enfield, Bajaj Auto, Piaggio Vehicles
Pvt. Ltd., Mahindra, Honda Motors, Scooter India, etc. Along with these OEMs, Falcon has a significant
presence in the export and replacement segments of the market as well.
Falcon was incorporated in 1973. With its state-of-the-art plant at Mysore, it was taken over by the Ruia
Group in December 2005. It entered into a Technical Aid Agreement with Sumitomo Rubber Industries
Ltd. of Japan which provided the company access to the latest International technology, new product
range, upgraded product quality and the best processes. The production capacity of the Mysore plant was
gradually augmented from 350,000 tyres a month to more than 1,000,000 tyres a month and is being
further enhanced. A 6 MW co-generation power plant has also been commissioned.

35

PROFILE

1.) MRF Tyres Ltd.
Head Office No.114,Greams Road, Chennai-600006, Tamil
Nadu
Enterprise value 80893.017 ( Rs. in Millions)
Profit 8022.1 (Rs. in Millions) (year ending Sep 2013)
Market Share 24.4%
Number of Employees 15494 (2011)
Brands Wanderer, Supertrekker, Estate, Twintread, Safari
Products and Services Tires- Passenger Cars, Two-wheelers and OTR
Zapper, Meteor, Revz, Sandgrip
Sports Goods- MRF Pace Foundation
Toys-Funskool
Paints & Coats, Conveyor Belts, Precured Treading
System
Markets 65 countries
Production Facilities India and Sri Lanka
Average Growth Rate 8-10%

2.) Michelin
Head Office Compagnie Generale des Etablissements Michelin
23 place des Carmes-Dechaux 63040
Clermont-Ferrand Cedex 9
France
Enterprise value (as of 22-2-2014) $17.43 Billion
Profit $ 1500 million
Michelin's share of the global market (2012) 14.6%
Number of Employees( Dec 2012) 113,443
Brands Michelin, Bfgoodrich, Uniroyal, Tigar, Kormoran,
Lleber, Riken, Taurus, and Warrior
Products and Services Tires- Car, Van, Motorcycle, Scooter, Bicycle,
Motor racing, Truck, Agricultural Equipments,
Earthmovers and Aviation
Travel services- Maps and Guides, ViaMichelin
Lifestyle products- Shop Michelin
Markets (2012) 170 countries
Production Facilities 18 countries
Average Growth Rate +0.84%

3.) Apollo Tyres
Head Office Sector 32
Apollo House, 7 Institutional Area
GURGAON-122001
Enterprise value 6269.76 (Rs. in Crores)
Profit 3125 (Rs. in millions)
Market Share 20.6%
Number of Employees 16000
Brands Apollo, Kaizen, Maloya, Regal, Vredestein
36

Products and Services Acclere, Amazer, Aspire, Hawkz, Quantum,
Dhruv, Krishak
Markets 118 countries

4.) JK Tyres
Head Office New Delhi
Enterprise value (as of 22-2-2014) 564.57 (Rs. in Crores)
JK Tyres share of the global market (2012) 14.6%
Number of Employees( 03-09-2013) 5,010
Brands Passenger Car-Ultima XP, Tornado, Vectra, Rally
OTR-VEM AS-E3, E4-SS, VEM-045-E4,
VEM 99E4
Truck Tyre- Jet-One, Jet-R Plus, Jet-R Miles, Jet Xtra
load, Star lug
Products and Services Tyres-Passenger Car Radials, Truck/Bus Bias,
Truck/Bus Radial, LCV, SCV, Farm, Off-The-Road
Production Facilities 6 in India, 3 in Mexico
Average Growth Rate -0.79%

5.) Ceat Tyres
Head Office Mumbai, India
Enterprise value (as of 22-2-2014) 1,005.26 Cr
CEAT's share of the Indian market (2012) 13%
Number of Employees( Dec 2012) 5,220 (As of 2008)
Products and Services Tires- Trucks and heavy duty vehicles, Light
Commercial vehicles, Earthmovers, Forklifts,
Tractors, Trailers, Cars, SUVs, Motorcycles and
scooters


6.) Falcon Tyres
Head Office FALCON TYRES LTD.
K.R.S. Road, Metagalli
Mysore 570016, India
Enterprise value (as of 22-2-2014) INR 107.31 Cr
Company Size 1001-5000 employees
Brands Dunlop (India), Falcon and Donin (export market)
37

Products and Services Tires- 3 wheeler(auto jap, auto stat, autoking, kargil,
leader, lug, steel, super star), car(pc523), farm, jeep,
LCV, moped(challenger, geo cruiser, magic, maxigrip,
monstergrip, unigrip, zebra y plus, ecostar),
motorcycle(challenger, geo cruiser, magic, maxigrip,
monstergrip, unigrip, zebra y plus, ecostar),
scooter(challenger, geo cruiser, magic, maxigrip)
Markets Mainly India
Production Facilities Mysore
Growth Rate(2012) +0.71%

COMPARATIVE SWOT ANALYSIS

Company Strengths Weaknesses Opportunities Threats
1.) MRF Ltd. Enjoys No.1 position
in tyre industry with
brand equity and
loyalty of customers
With wide product
portfolio has a good
export market
Has 7 manufacturing
facilities in India, a
strong distribution
channel and sound
financial position
Diversification into
Funskool, MRF Pace
Foundation and MRF
Racing
Constant innovation
and advertising itself
as an eco-friendly tyre
making Co.

Faces volatility in
industrial relations
and have faced
problems of labour
unrest (cases of
lockouts reported)
Developing
countries with
growing car
consumers
present an
opportunity of
emerging new
markets
Growth of the
automobile
industry leading
to more tie-ups
(as it is involved
in B2B
marketing)
Scope of
diversification
Strong
Competition
with national
and international
brands and price
wars
Volatility in
prices and
availability of
raw material as
Indias rubber
production is
less than demand
Availability of
cheaper
technology
makes it easier
for newer
companies to
enter the market
2.) Michelin Comprehensive brand
portfolio and brand
diversity
Global market leaders
in earthmover, aircraft
radial and agricultural
tires
Global market leaders
in earthmover, aircraft
radial and agricultural
Significant recalls
due to defects
Excessive
dependence on
external distribution
network
Developing
countries with
growing car
consumers
present an
opportunity of
emerging new
markets
Growth of
replacement and
Strong
Competition
with national
and international
brands and price
wars
Volatility in
prices and
availability of
raw material as
38

tires
Premium brand image
Extensive operational
network enabling
economies of scale
car and van tires
market
Indias
Many stringent
regulations
3.) Apollo
Tyres
Wide product variety
Excellent
geographical coverage
across Asian
European and African
markets
Robust financial
condition
Perceived as a
premium brand
Overseas
manufacturing plants
Low presence in
latest car models
Two wheeler/three
wheeler presence
non-existent
Not yet an established
market leader as a
brand
Increased
possibility of
OEM tie-ups
Ever improving
transportation
infrastructure
Emergence of
India as a hub
for small car
manufacturing
Price Wars
Stiff competition
from domestic
and foreign
players
Volatility of
prices in key raw
material-Natural
Rubber
Cheaper
manufacturing
technologies
4.) JK Tyres Wide dealership
network
Premium brand name
Good understanding
of customer needs
Continuously
innovating and
improving the
efficiency levels
They have
successfully received
accreditations of ISO
9000 QS 9001 and
ISO 14001
Steel Wheel initiative
-implemented as one
stop sales cum service
center.
Dial a tyre service- an
innovative concept,
with the ordered tyre
being delivered at
your doorstep.
They have limited
market share due to
presence of other
players
They have low
presence in two/three
wheeler segment
Emerging
markets and
improved
lifestyle
More tie-ups
with automobile
companies
Horizontal and
concentric
diversification
Emergence of
India as a hub
for small car
production
Volatility in
prices and
availability of
raw material
Government
Policies with
respect to export
duties, import
duties, tax levied
on automobile
industries
Introduction of
other transport
facilities like
metro, monorails
and local trains
Price wars
Stiff competition
from national
and international
brands
5.) Ceat
Tyres
All vendors ISO
certified
Strong brand image
Very high customer
satisfaction and hence
brand loyalty
Extensive
distributional network
Less significance in
international market
Developing
countries with
growing car
consumers
present an
opportunity of
emerging new
markets
Improved
infrastructure
Tough
competition with
national and
international
brands and price
wars
Volatility in
prices and
availability of
raw material
39

giving push to
demand of
heavy duty tyres
Opportunities in
market abroad
Many stringent
regulations
6.) Falcon
tyres
High quality products
Strong presence in
domestic market
Low market share
Negative growth rate
in the past
Labor issues
Developing
countries with
growing car
consumers
present an
opportunity of
emerging new
markets
Growth of
replacement and
car and two and
three wheeler
tires market
Increasing rates
of interest
Global
economy
Rising cost of
raw materials
(natural rubber)
Tax changes
Price war and
strong
competition
from global
players

COMPARATIVE VCA

FIRM INFRASTRUCTURE

1.) MRF Tyres
MRF (Madras Rubber Factory) is head quartered at Chennai. They have 6 manufacturing facilities in
India (all in south) in proximity of rubber belt of India, with sales network divided in 4 zones;
east(14), west (23), south(33) and north(27 dealers)- very strong and developed distribution network.

2.) Michelin
Michelins IT organization is segmented into to two regions. First, the worldwide level, MASC (for
Master Resolution Center application) is devoted to the comprehension of resolutions with local
business units. Michelin initiated a program of transformation in 2005 designated SIMPLE
PERCENTAGE / IT, and it was implemented in an evolutionary method in several phases, which
measures the activities of IT through the use of function points. But besides this usefulness of
measure of performances, function points also supports project planning, measuring project progress
and supports setting priorities based on size and scope.
3.) Apollo
Apollo Tyres head office is based at Gurgaon .It also has regional offices in Asia Europe and Africa.
In terms of IT, its integrated using an ERP system, SAP. Right from procurement of raw materials to
the sales and distribution is integrated via SAP. The firm has manufacturing plants across three
continents and supplier dealer networks throughout the world.

4.) JK Tyres
The company has headquarters at Delhi. It has six modern plants in India which are strategically
40

located at Mysore, Banmore, Kankroli, and Chennai. It has a worldwide customer base in over 80
countries across all 6 continents.

5.) Ceat Tyres
CEATs organization is segmented into to two regions. The worldwide level, and the domestic level.
With headquarter in India, it has two production facilities in India and Srilanka. While looking
forward to collaborate with major tire producers, currently CEAT produces 9.4 lacs tyre per month.
These are sold majorly in India and exported in other 110 countries.

6.) Falcon
Falcon has state-of-art manufacturing plant in Mysore with production capacity of 1,000,000 tyres a
month. The company has partnered with OEMs and has kept pace by developing tyres for newer
models in a short span of time. It has also commissioned a 6 MW cogeneration power plant.
HR POLICIES:

1.) MRF Tyres
MRF has an integrated human resource training .They recruit people from campuses-poly techniques
and and engineering colleges and will be provided on the job training in the plant or sales field.
2.) Michelin
Michelin offers every new employee a personalized welcome and an induction program that enables
them to learn about the Company, its values, strategy and organization, to become familiar with their
work environment, and to build a relationship network. The D-Way program is helping to develop
gender diversity in plants by enabling each facility to analyze their job opportunities for women.
3.) Apollo Tyres
The Academy encourages employees to be a part of workshops, conferences and seminars organised
for professional growth and learning. It has even resulted in networking with diverse communities
across industries, further fuelling the knowledge bank of an employee. The nomination for the
programmes is made by the department heads and the nature of the training imparted is a pulling
factor in itself .The entire gamut of training programmes has acted as a retention tool for Apollo
Tyres. A healthy mix of behavioural and technical learning programmes has brought out a polished
individual.
4.) JK Tyres
JK Tyres aims to be amongst the top 25 best employers in India. It provides a conducive work
environment fostering all-round growth of its employees. They have sports, entertainment, and health
benefit programmes for employees. The company also provides adequate training programmes at
every level of each function. The Company invests significantly in some of the worlds best HR
practices such as talent management programs, executive coaching for developing leaders, creating
mentoring culture in the organization, competency mapping, assessment and development center, 360
degree feedback and management development programs, etc.

5.) Ceat Tyres
41

After being acquired by RPG group, CEAT has seen appreciable work culture. It promotes the
freedom given to employees at work and emphasizes on the fact that every employee can make a
difference. CEAT celebrates a number of events ranging from major festivals like Navratri, Diwali to
informal events like dance parties and quarterly connects just to keep the enthusiasm of employees
going. The average worker age at new plant of Halol is 23 years. The shop floor of car radial plant is
managed by all women employees.
TECHNOLOGY:

1.) MRF Tyres
The MRF R&D team has made strides in developing Radial-tyre technology for Indian roads, based
on its cross-ply techno competence. MRF has laid great emphasis on strong R&D and continuous
product up gradation, which has led to the successful development of the unique tyre technology for
cross-ply tyres. Additionally, MRF has developed its very own radial tyre technology to suit the
tough service conditions on Indian roads - for both, the passenger and commercial segments. This has
led to the launch of several innovative products.
2.) Michelin
Michelin enjoys a capacity for innovation unmatched anywhere in the industry, with a technology
center operating in Europe, Asia and the United States, 6,000 people involved in research,
development and process engineering, a portfolio of more than 2,000 patent families being expanded
by 250 new filings a year, and an annual budget of more than 600 million.
3.) Apollo
R&D:-Apollo has ain house R&D centre at Limda plant baroda They also have knowledge transfer
with other companies and also through consulting services.
4.) JK Tyres
Technology has always been the companys driving force. JK Tyre pioneered radial technology in
India way back in 1977. The companys plants are equipped with the worlds most advanced
manufacturing and testing machines. The company recently commissioned a Green Field Project in
Chennai, which is intended to increase the capacity of its plants to 20 million tyres per annum. It also
established the first independent research and testing centre (HASETRI) for developing better
technologies for elastomers and tyres.

5.) Ceat Tyres
Serving over 100 countries with excellent quality of tires, the hunger of CEAT is not satisfied. They
continuously look for the opportunities with their R&D functions support. Currently they seek to
produce various PCR and TBR size tires. With youth as a part of their team CEAT observes active
participation in Quality Circles (QC), Quality and Management (Q&M), and Cross Functional Team
(CFT). CEAT is the first tyre company in India to get the ISO/TS 16949:2002 certification
PROCUREMENT:
42

1.) MRF Tyres
MRF tyre sources its raw materials from Kerala. They own few rubber plantations in Kerala. Other
raw materials like synthetic rubber and other chemicals are sourced from throughout the world.
2.) Michelin
Researchers involved in polymer synthesis and materials physics and chemistry work alongside
analytic chemistry experts to understand, design, develop and process engineer raw materials and
components that improve performance. Michelin produces 35% of its synthetic rubber and 70% of its
Truck and Earthmover steel cables.
3.) Apollo
Apollo tyre has a constant set of suppliers for procurement with whom relations have been established
for a long period of time. They have strict supplier quality assurance tests to ensure quality of raw
materials.
4.) Ceat Tyres
With total 2 countries India and Sri Lanka, CEAT manages an efficient way of procurement of raw
materials. For example, it recently opened a new manufacturing facility in Halol, Gujarat. With
states friendly policy, CEAT gets gas, water and electricity at very convenient way. Proximity to the
port too helps in procuring raw materials and exporting tyres.
LOGISTICS:

1.) MRF Tyres
Like any other company the sourced raw materials are stored in the storage area of the plant. In some
MRF plants the material unloading and storage functions are handled by third party logistics
companies. MRF sales are predominantly present in the local markets. The finished products are
transported to distributor warehouses and OEM manufacturing plants via road cargo.

2.) Michelin
Michelin outsources its inbound and outbound logistics movement of tires from Michelins
production plants into warehouse facilities. The agency ensures that the tires and accessories are
delivered, handled and presented correctly to meet Michelins service level requirements. They also
manage reverse logistics for Michelin.
3.) Apollo
Most of the major raw material (Natural rubber) is imported through cargoes. Other raw materials like
synthetic rubber, carbon black and other chemicals are locally sourced. The Raw materials are stored
43

in the RMS-Raw material storage in the respective manufacturing plants. For managing in plant
inventory service PIBs software has been developed. The Finished product after testing is assembled
in the FGS-Finished Goods Storage. The packed finished products are cargoed either to dealers
(replacement Market) or OEM plants or to ports for export market.
4.) Ceat Tyres
CEAT has three level distribution structure. Factory supplies goods to RDC (Regional Distribution
Centre) or one DDC (Divisional Distribution Centre) which is located at Nashik. The logistics are
carried out efficiently. For example, the set of goods is formed at RDCs and strapped. The tube is
inflated before being transported to RDC.
OPERATIONS:

1.) MRF Tyres
MRF has its own manufacturing units in India and Sri Lanka. Emphasis is on testing and cost cutting.
Since they have a large OEM base in passenger car segment more importance is given to defect
detection and testing.
2.) Michelin
To satisfy Michelin quality requirements, the various manufacturing stages follow a rigorous,
methodical process combined with continuous quality control at all stages of rollout. From receipt of
the raw materials to the time tires leave the plant, every stage is rigorously controlled. After curing
and before shipment, tires undergo last verification. The verifications made are of several kinds:
visual, ultrasound, uniformity and architecture.
3.) Apollo
Operations at Apollo tyres are one of the key advantages of the firm. The firm emphasizes on quality
control and cost reduction by implementation of six-sigma, Lean principles TQM, continuous
improvement via quality circles etc. To attract OEMS they constantly pursue various certifications
like ISO, EMS and OHSAS.
4.) JK Tyres
The company has 134 sales, service and stock points located throughout the country. They have over
3,500 dealerships across India. The Company has well-established internal control systems, e.g. the
Internal Audit Department which carries out extensive audits throughout the year covering all areas of
operations, to ensure conformance with internal checks and controls. The Company has implemented
ERP systems connecting all plants, sales offices and head-office enabling seamless data and
information flow. The Company also has robust Budgetary Control System and Management
Information System (MIS) for ensuring that the Companys assets and interests are safeguarded.

5.) Ceat Tyres
44

According to industry demand, CEAT makes highly customized tyres. This is successfully done in
collaboration with research and development department of their OEM partners. CEAT has numerous
partners in two wheelers as well as three wheelers which play a significant role in the process.
SALES AND MARKETING:

1.) MRF Tyres
MRF is the current market leader with a great variety of portfolio. It has a strong brand presence and
wide distribution network all over the country. As on March 31, 2012, the company had a network
120 sales offices and 9,155 dealers, a strong presence in the replacement market which is critical to its
overall profitability. Of the above dealer network of 9,155, more than 4,500 deal exclusively in
MRFs products.
2.) Michelin
Michelin has introduces TYREPLUS Program in India. TYREPLUS is an addition to Michelins
initiative of innovative distribution programs that aim to enhance retail experience for customers.
Another such programme is Michelin Priority Partners (MPP), under which Michelin creates
partnerships with dealers who share the strategic orientation of the company Offer the customers
best quality products and services at the best price.
3.) Apollo Tyres
Apollo tyre has a wide dealer network around the world. They have few dealers, called as value
dealers (Apollo point) who sell their products exclusively. Apollo tyres recently started advertising
aggressively in the visual and print media due to shift in their product portfolio towards passenger car
tyres from previous Heavy vehicle category.
4.) JK Tyres
JK Tyre Steel Wheels (for car tyres), one Stop solution for complete Tyre Sales and Service
requirements, was the exclusive retail chain, started in 1996. There are over 110 such JK Tyre Steel
Wheels spread across 80 cities in the country. The company has exclusive dealers network across the
country. The company is marketed as Pioneer of Radials in India.

5.) Ceat Tyres
With 36 regional offices and over 3500 dealers in India, CEAT has a robust network distribution. It
promotes the brand name using offline and online methods which basically are centered towards
customer services. Tie up with Yahoo India, SMS promotion, E-mail newsletters are part of it. It also
has international cricket rating system which to support promotional activities.
6.) Falcon
The Brand is sold under the brand name of Dunlop in India and Falcon and Donin in the export
market. It is marketed as a superior quality product.
45

SERVICE:

1.) MRF Tyres
Product service is provided mainly through sales offices located throughout the country.
2.) Michelin
Michelin, a worldwide leader in tyres and mobility, opens first of its kind truck service centre MTSC,
(Michelin Truck Service Centre), in Namakkal, near Salem. The one-stop shop is equipped with state
of the art facilities including a computerized Truck tyre Alignment Machine, Truck tyre balancing
machine, Truck tyre repair machine etc and offers end to end tyre-related services for trucks.
3.) Apollo Tyres
Apollo tyres has an internet powered customer service function. They have provided platform for
consumer complaints and reddressals on their website. On the field they have employed Tyre experts
who work in close association at customer contact points.
4.) JK Tyres
JK Tyre & tubes provides warranty against manufacturing defects arising out of any deficiency in
design, Manufacturing, material or workmanship. Under its Fleet Management Program, it has
launched a tyre check-up campaign known as Heal-The -Wheel in which a detailed report of the data
pertaining to Tyre Performance, Fuel Consumption and CPKM is shared with the owner, along with a
suggestion plan for proper care and maintenance to enhance tyre life and reduce CPKM (Cost per
Km). It also provides Indias first 24x7 On-Road Tyre Assistance Service Fix-A-Tyre, for JK Tyre
customers (only in Delhi-NCR and Chennai). Also it has 17 tyre care centres located across the
country. JK Tyre Truck Wheels is a Truck/Bus service center which provides a one stop solution to
all tyre maintenance needs for trucks and buses.

5.) Ceat Tyres
CEAT is known for its excellent before and after sales customer service. It customizes tyres
according to needs of customer and after sales keeps them updated using different networking
methods. It has a dedicated customer service department certified with ISO/TS 9000. Customers can
purchase tyres from any of three types of outlets.

CORE COMPETENCIES
MRF Tyres Michelin Apollo Tyres JK Tyres Ceat Tyres Falcon
Core
competency of
MRF is its
brand value in
the Indian
market .It has
The ability to
deliver a
balanced
performance of
tire safety,
durability and
Core competency
of Apollo tyres
has been its
operational
efficiency. Their
emphasis on strict
Core
competency of
JK Tyres is
constant
innovation
and R&D.
Renowned for
their superior
quality and
durability of
tyres.
Falcons core
competency is its
strong presence
in the domestic
market and
superior quality
46

leveraged its
market leader
position to
create a
superior brand
image in the
minds of the
customer.
fuel efficiency,
while developing
services that meet
the expectations
of each customer
regardless of
power train,
driving
environment or
conditions of use.
quality control
and cost cutting
along with
multiple location
of plants in many
counties have
enabled them to
produce and
deliver quality
products
efficiently
Pioneer of
radial tyres in
India, it is the
Radial tire
Leader in
India and is
the only tyre
manufacturer
offering the
entire range of
4 wheeler
radials for
Trucks, Buses
and Cars.
of the products in
terms of strength,
tyre patterns and
design. Also, its
high operational
efficiency is one
of the major
advantages.

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A Strategic Management project

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