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The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber
Limited set up the first tyre company in West Bengal. MRF followed suit in 1946.
Since then, the Indian tyre industry has grown rapidly.
Transportation industry and tyre industry go hand in hand as the two are
interdependent. Transportation industry has experienced 10% growth rate year
after year with an absolute level of 870 billion ton freight. With an extensive road
network of 3.2 million km, road accounts for over 85% of all freight movement in
India.
MAJOR PLAYERS:-
MRF
APOLLO
JK TYRE
CEAT
BIRLA
GOODYEAR
FINANCIAL REPORT ON TYRE INDUSTRY:-
Financial Year 2017-2018 (Est.)
Turnover of Indian Tyre Industry Rs. 20,000 Crores
Tyre Production (Tonnage) 11.35 lakh M.T.
Tyre Production – All Categories 811 Lakh
(Nos.)
Tyre Export from India (Value) : Rs. 3000 (est) crores
Number of tyre companies: 43
Industry Concentration 10 Large tyre companies account for
over 95% of total tyre production.
Radialisation Level - Current Passenger Car tyres: 95%
(as a % of total tyre production) Light Commercial Vehicles: 12%
Heavy Vehicles ( Truck & Bus ): 3%
Government Policy
Tyre Industry Delicenced since 1987
Export (of tyres and tubes) Freely allowed
Import (of new tyres and tubes) Freely allowed Since 2001 except
Truck / Bus (Radial Tyres), which is in
the Restricted List from 24th Nov.
2008 onwards.
Import Policy for Used / Retreaded Restricted Since April, 2006
tyres:
ENVIORNMENT ANALYSIS:-
Porter's Model
The OEMs have total The tyre industry in India is The tyre industry
control over prices. In fairly concentrated, with the consumes nearly 50% of
fact, the OEMs faced top eight companies the natural rubber
with declining accounting for more than produced in the country.
profitability have also 80% of the total production The price of natural
reduced the number of of tyres. rubber is controlled by
component suppliers to Rubber Control Board
make the supply chain and the domestic prices of
more efficient. natural rubber have
registered a significant
increase in recent times.
Threat of Substitutes: Low but
Increasing
During the FY2002, over
1,10,000 passenger car tyres were
imported. This constitutes over
2% of total radial passenger car
tyre production in the country.
However, with the reduction of
peak custom duty, the import of
tyres is likely to increase.
MARKET SEGMENTATION:-
While the truck and buses tyres are set to register a CAGR (compounded annual
growth) of 8 per cent, the LCV (light Commercial vehicles) tyres are poised for a
CAGR of 14 per cent.
According to the CARE study, the growth in the Indian tyre industry will be
fuelled by the expansion plans of the automobile companies, government's focus
on development of road infrastructure and sourcing of auto parts by the global
Original Equipment Manufacturers (OEMs).
However, the tyre industry has to grapple with raw material price volatility, rupee
Appreciation and cheap Chinese imports.
The tyre industry in India recorded a CAGR of 9.69 per cent during 2012-17.
The size of the industry was estimated at Rs 19,000 crore in 2012-17 with a total
Production of 736 lakh units of tyres.
In 2016-17, the replacement tyres accounted for 53 per cent of the total tyre
tonnage offtake, followed by 31 per cent share of OEM and 15 per cent by
exports.
Out of the 736 lakh ton of tyres, 54, 49,560 units worth Rs 2,600 crore were
exported.
The exports from India posted a CAGR of 13 per cent in unit terms and 18 per cent
in value terms between 2012-17.
The study points out that on the export front, the Indian tyre companies need to
explore newer markets as the existing market for bias truck tyre which accounts for
about 45 percent of the total export volume is nearing saturation.
This apart, with rationalization catching up in the foreign markets, the Indian tyre
Companies need to graduate to radial tyres so as to protect their share in the export
Market.
At present, radicalization of tyres is low in India except for the car tyre market
where 95 per cent of the tyres is radicalized while cross ply tyres is preferred in all
other categories.
Cross ply tyres are preferred owing to poor road conditions, overloading in trucks,
higher cost of radial tyres and poor awareness among the tyre users in the country.
The CARE report observes that though the tyre technology in India has witnessed
several developments with continuous innovation, the domestic tyre manufacturers
still lag behind their global counterparts in terms of product differentiation.
Global tyre makers offer a wide change of products like tyres with pressure
warning systems, run flat tyres, eco-friendly tyres and energy efficient tyres.
Tyre Demand by Markets
The demand from the OEM segment is a derived one and directly correlated to the
level
of automotive production. The OEMs demand varies significantly across
categories from
Between 8% for truck and bus tyres to over 50% for some other segments like,
jeeps and Mopeds.
Replacement Market
Applying a new tread or "re-treading" can extend the life of the tyre at a
significantly lower cost, thereby lowering replacement demand. In India,
retreading finds greater acceptance in the commercial segment.
According to ATMA, even if only 25% of the truck and bus segment is radicalized,
the savings in fuel costs would be around Rs. 7,500 million.
Exports:
In the light of the prevailing domestic market situation, most of the tyre
manufacturers have taken to exports to reduce inventory build-ups. In
FY2017-18, Indian tyre exports stood at Rs. 3000 cror appx. (15% of the
total industry) in value terms. Indian companies have currently entered into
sourcing agreements (for tyres) with neighboring countries. For instance,
Ceat and J K Tyres have sourcing agreements with tyre producers in Sri
Lanka and China. This is likely to have a positive impact on tyre exports
from India
COMPANY PROFILE
HISTORY:
Vision:
Mission:
1940 First in India to manufacture steel Bailing Hoops for jute and cotton
and to make the country self sufficient by meeting the entire
demand J.K. Iron & Steel Co. Ltd., Kanpur.
1944 First in India to produce Aluminium virgin Metal from Indian Bauxite-
Aluminium Corporation of India Ltd., Jaykaynagar.
1976 First in India to produce steel belted Radial Tyres for passenger cars,
trucks and buses- J.K. Tyre Plant, Kankroli.
1980 First in world to make Steel Belted Radial Tyres for three wheelers-
J.K. Tyre Plant, Kankroli.
1984 First in India to produce white cement through dry process- J.K.
White cement. Gotan.
1991 Banmore Tyre Plant (BTP) set-up with a capacity of 5.7 lacs tyres p.a
1996 India's first dual contact high traction steel radial- aquasonic
launched Introduced steel wheels.
The company is a leading Supplier to all Major OEMs – Ashok Leyland, Tata
Motors, Eicher Motors, Force Motors, Maruti Suzuki, Mahindra & Mahindra,
Mahindra Renault, Punjab Tractors, Swaraj Mazda, TAFE etc.
Expansion Plans:
The company is fast expanding its capacity, to cater to the rising demand and drive
growth. JK Tyre has undertaken expansion of Rs.480 crores to increase the
capacity and is further planning to invest Rs.1200 crores in the next 3-4 years to
fulfill the growth demand for JK Tyre. The pace of radialization of truck/bus
segment in India is picking up fast. It is expected to move from nearly 7% to 15%
in the next 5 years. To fulfill this rising demand, JK Tyre is expanding its trucks
and bus radial capacity from 3.67 lac to 8.00 lac tyres, i.e. more than double. The
company is also setting up capacity to manufacture specialty tyres for niche
markets.
Motorsport:
Expressing his happiness over ASCI's judgement, JK Tyre marketing director T K Banerjee says:
''This is a fabulous example of why all of us need to have faith in bodies like ASCI. We believe
that the process of self-regulation in Indian advertising is working for both companies and
agencies. We also hope that this would encourage various players to bring superior technology
and consumer service standards and claim leadership in a more healthier and competitive
manner.''
The case was started when few competitors filed a complaint with ASCI against JK
Tyre's print advertisement, in which JK Tyre announced its numero uno position in
the fourwheeler tyre segment, quoting production figures compiled by Automotive
Tyre Manufacturer Association and other authentic industry sources.
But the competitors contradicted the claim, stating the fact that market figures from
a company's annual report should be used as authentic data to claim
one'sleadership, not the production figures.
But ASCI considered the case at the Consumer Complaints Council on 23 May
2002 and upheld JK Tyre's contention that production figures, as compiled by
authentic industry sources and used by JK Tyre to claim its leadership, is a valid
and applicable comparison platform
Hence, JK Tyre's claim as No 1 tyre manufacturer in India is a perfectly valid and
correctstatement. This also reflects ASCI's agreement to JK Tyre's viewpoint that
figures, as stated in the one's annual report, could actually be misleading and could
include revenues from non-tyre-related businesses also. JK Tyre, pioneers of radial
technology in India, is today India's largest manufacturer of tyres in the four-wheel
segment, including tyres for trucks and buses, LCVs, passenger cars, jeeps,
tractors, ADVs and OTRs. After 25 years of pioneering world-classtechnologies in
India, JK Tyre has recently launched the country's first eco-friendly coloured tyres
as well as steel-belted tractor rear radials.
PRODUCT RANGE
BIAS
SIZE TYPE
RADIAL
SIZE TYPE
Management is like a coin having two sides. One is the theoretical part and second
is the practical part. In the theoretical part of management we learn in our
classroom from the lectures, seminars, group discussions that are arranged from
time to time.
The project study focused on “JK tyre” as a product and the subject is to
understand the mind set of different customers about the product. Being a student
of marketing management, the inquisitiveness to peep on practical side of
consumer perception promoted in study.
In this study efforts have been made to prepare the report as realistic as possible.
Limitation of the study:
The project surfers from the following limitations due to the inherent and
restrictive nature of the study undertaken:
This study is restricted only to sample space chosen for the study.
LOCATION: banmore
DATA TYPE:
For the above study both type of data were used such as primary data and
secondary data. For primary data different areas of jaipur were being visited and
for the secondary data internet & reference books have been used.
DATA ANALYSIS
AND
INTERPERTATION
Table showing the market share in 10 wheelers tyre
segment:
3. JK 302 24.16
5. Ceat 49 3.92
6. Others 61 4.88
INTERPERTATION:
From the above table and graph it is shown that the in 10 wheeler tyre segment
MRF occupy’s the first position. While JK and Appolo sharing the second
position together. While apart from these one’s Birla and MRF also have a good
stake in this segment.
Table showing the market share in 6 wheelers tyre segment:
Company Tyre(units) %
APOLLO 305 33.89
MRF 223 24.78
JK 187 20.78
BIRLA 134 14.89
CEAT 29 3.22
OTHERS 22 2.44
Total 900 100
Appolo
MRF
J.K.
Birla
CEAT
Other
INTERPERTATION:
In the 6 wheelers segment the market share have some changes, apart from Apollo
and MRF, Kaizen also has good presence in the market due to its cheap price and
comparatively good quality.
Total market share in 6 and 10 wheelers segment:
INTERPERTATION:
Looking at the combined market share of the 10 & 6 wheelers Apollo and JK are
the leader of the market containing 28.60% & 22.74% % of market. MRF contain
3rd position with 22.47% of the market.
INTERPERTATION:
The market share of the different brands of the jk tyres is shown in the above graph
and table..if look the share of the jk tyre brand wise than we find that jet one and
jet track cover more than 70% of the market. Jet rib also has its presence in the
market.
UNIT-4
FINDING
SUGGESSION
CONCLUSION
Findings:
After taking the feedback of more than 100 customers the study reveals that the
buying behavior of the customer is very different according to the size of their
business. Big transporters mostly prefer JK TYRE and they are less concern with
the price the main concern of them is take quality and JK TYRE providing them
the same. While the small customers (owner of 1-5 trucks) mostly preferring the
cheap tyres so most of them are using BIRLA tyres. They are very much concern
with the price of the tyre.
The customers are also having different experience on different brands. It is found
that many customers prefer JK’s guaranteed tyres such as “JET TRAK 39” and
economy class rib tyre “VIKRANT TRACK KING” for its mileage & reliability
but it is also true that many other brands such as “JET MILES”, “JET PACE”,
“JET SUPER LUG” do not have a strong place in customers mind. The study
shows that JK’s strong contender is APOLLO whose quality was appreciated by
many. APOLLO’s “XT-7” & “LOAD STAR SUPER” are very much preferred. In
guaranteed tyres BIRLA’s “SAMSON” is the main contender of JK. Incase of
normal loaded trucks customers mostly rely on CEAT but in over load APOLLO &
JK are reliable. Certainly MRF has not a good reputation at all.
1. JK is the market leader followed by APOLLO.
Suggestion:
1. JK Tyre is doing well in rib segment but they are based in only on one brand
“Vikrant”. So JK should tryto increase the awareness of other brands.
3. Keep eye to reduce the cost of manufacturing. So price will further reduced and
competition will increased.
3. The big transporters & customers are satisfied with the JK Tyres .
4. The prices of JK Tyres are not high against with the other Company tyres.
STRENGTHS:
Strong brand image.
Reasonable price.
OPPORTUNITIES:
A burgeoning work force and growing middle class population.
High growth potential for its exports as demand for JK tyre in Europe
Increasing.
Entry of new players with newer and better technologies in the small car
tyre segment.
So many close competitors like Appolo, Birla, Ceat, Modi, Kaizen etc.
APPENDIX
NAME:…………………..
JOB NO:…….
A: 5-10
B: 10-15
C: more than 15
Q: 2- How many truck you have in 6 wheelers segment?
A: 5-10
B: 10-15
C: more than 15
A: JK
B: APPOLLO
C: MRF
D: OTHERS
A: Cheapest
B: Reasonable
C: High
A: YES
B: NO
Q: 6- How do you find the service of JK industry?
A: Good
B: Better
C: Average
BIBLIOGRAPHY:
2. www.parleagro.com
3. www.netmba.com
4. www.indiainfoline.com
5. www.financialexpress.com
6. Business line.
8. www.coolavenues.com