tyre industry in india by - raj kumar gupta

8/4/2019 tyre industry in india by - raj kumar gupta

1/21

1

A Project Report

On

NGR Tyre pvt ltd

Submitted byRaj kumar gupta

Akshay joshi

Nuksar khan

Submitted toProf.Aslam Logade

SUMAN EDUCATION TRUST

DILKAP RESEARCH CENTER AND INSTITUTE

OF MANAGEMENT STUDIES

2009-2010


2/21

2

SUMAN EDUCATION TRUST

DILKAP RESEARCH CENTER AND INSTITUTE OF MANAGEMENT STUDIES

CertificateCertified that this Report Submitted by

Raj kumar gupta

Akshay joshi

Nuksar khan

Student of the course

Master In Management Studies as a project work for subject

NGR Tyre pvt ltd

And that I have instructed/Guided for the said work from time to time &

found to be satisfactorily progressive.

Prof.Aslam Logade

Place:

Date:

Signature


3/21

3

DECLARATION

We the students of MMS programme (3rd semester, 2nd

year) of 2009-10 batch At the Institute of management studies,

Neral do here by declare that this project report entitled NGR

Tyre pvt ltd have been carried out by us during this semester

under the guidance of prof.Aslam logade as per the norms

prescribed by the University of Mumbai , and the same work has

not been copied from any source directly without

acknowledging for the part/section that has been adopted from

published /non published work.


4/21

4

IndexTopic page no

Company Introduction 5

About Market 8

Procedure12

Market Segmentation 15

Distribution 17

Promotion 18

Strategy 19

Coclusion 20


5/21

5

Company Name:-NGR Tyre pvt ltd.

Geographical Location:-

Companys Head Office

Address: - Corporate office-402, Sahyog bldg. S.V. road,

Near central bank, Khar (w) mumbai-4000050

Tel.:022-28082824/28082825

Factory Location:-

Factory Outlet will be near Murbad Area.

30000 Sq ft Land MIDC Plot with 20,000 Sq ft RCC Construction Built Up

(Factory) on It In Murbad Industrial Area in Near Thane/Kalyan. The land is

bought in industrial area at very low price. The price paid for land is 150/-

per sq ft.


6/21

6

Product offered by company:-

Tyre

A tyre is a strong, flexible rubber casing attached to the rim of a wheel. Tiresprovide a gripping surface for traction and serve as a cushion for the wheels

of a moving vehicle.

Tyre for following mentioned segments:-

Trucks and Buses

Light Commercial vehicles

Motorcycles Passenger cars


7/21

7

Brand Name: - Road Star

LOGO:-

Slogan:-Smoothening the road


8/21

8

Companys Mission:-

To be No.1 Tyre(commercial) Brand in India To be Most profitable Tyre Company in India Be a Green Company by developing eco friendly technique Deliver Enhanced Value to all stakeholders Be a Customer Company - Customer First 24x7

Companys Vision:-

NGR will provide total customer satisfaction through products and services of

highest quality and reliability.

Core Values:-

Excellence:-It comes from delivering the best. Integrity including intellectual honesty, openness, fairness & trust Commitment:-Commitment to roll great product


9/21

9

Product:-

Application Market:-

The sales categorically is in the Indian tyre industry for Trucks and Buses, Light Commercial

vehicles, Motorcycles and passenger cars are:

Trucks and Buses: 13%

Light Commercial vehicles: 29%

Motorcycles: 27%

Passenger cars: 31


10/21

10

Market Size:-

The Indian tyre industry generates roughly Rs 18,800 crore in revenues with an aggregate

installed capacity of 12-13 lakh tonnes. The Indian tyre industry produces tyres for trucks, buses,

passenger cars, jeeps, light trucks, tractors, animal drawn vehicles, scooters, motorcycles,

mopeds, bicycles, off-the-road vehicles and special defense vehicles. The tyre industry registered

a 5-year Compounded Annual Growth Rate (CAGR) of 8.02% between 20003-08. The tyre

industry, which was reeling under a slowdown in demand till December 08, is likely to show

signs of improvement in the coming period. With the price of rubber, a key raw material, easing

off and uptick in demand from passenger cars, tyre makers are likely to register a better growth

this year.

Industry Structure:-

The tyre industry is pretty consolidated with the top six companies accounting for 87% of the

industrys tonnage production, largely dominated by Indian firms. MRF, with 22.4% market

share, is the leader, marginally ahead of Apollo Tyres 21.4% in terms of tonnage production .JK

Tyre is the third largest player and has consolidated its position in the off-the-road tyre (OTR)

category.

Domestic tyre makers derive a little more than half of their sales from the replacement market

(58.9%), followed by OEM tyres (34.2%) which are essentially tyres sold directly to automobile

firms. The balance is accounted by exports (6.5%), government (0.4%).


11/21

11

Competitor Analysis:-

0

5

10

15

20

25

Series1


12/21

12

Market Potential:-

As far as domestic demand is concerned, the OEM and the replacement segments are likely to

witness strong growth given the current performance of the automotive sector.

Given the strong linkages of tyre industry with automotives, its demand is likely to be strong

over the short to medium term.

As for the export demand for tyres, the outlook is positive. In the light of the prevailing domestic

market situation, most of the tyre manufacturers have taken to exports to reduce inventory build-

ups. In FY2003, Indian tyre exports stood at Rs. 10.8 billion (10% of the total industry) in value

terms and 3.1 million in unit terms (6.5% of total production). 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.


13/21

13

COMPONENTS USED IN TIRE ASSEMBLY:

Inner liner: Extruded rubber sheet with low air permeability.(alternate for the tube) Body ply: Calendared sheet of rubber and reinforcement (fabric). Tread: Thick extruded profile that comes into contact with the road. Side wall: Non reinforced extruded component with antioxidants. Beads: Bands of high tensile strength steel, encased with rubber. Belt: Calendared sheet of rubber and closely spaced steel cords. Cushion gum: Thin sheet of rubber. Applied on the inside of the tread.

MANUFACTURING OF TIRE:


14/21

14

Five steps involved in the manufacturing of a tire:-

Compounding and Mixing Component preparation Building Curing Final finish

Raw Materials used:

Rubber (Natural and synthetic) Fillers (Carbon black, silica, carbon chalk) Reinforcing materials (steel, rayon, nylon) Plasticizers (oils and resins) Chemicals for vulcanization (sulphur, zinc oxide, various chemicals) Chemicals as antioxidants to counter ozone effects and material fatigue Miscellaneous


15/21

15

A list of the types of Tyres used in India (Produced by our company):-

Performance tyres or summer tyres: Performance tyres are meant for people who prefer to

drive harder than the average consumer.

All-round or all-season tyres: All-round tyres are the most commonly found tyres.

Wet-weather tyres: Wet-weather tyres provide better grip during the rainy seasons.

Snow & mud or ice: These tyres are meant to work well in winter conditions

All-terrain tyres: All-terrain tyres are typically used on SUVs and light trucks

Mud tyres: Mud tyres are meant for dirty and mushy roads.


16/21

16

Market Segmentation:-

Industry wise:-

Vehicle Manufacturers or OEMs

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

The replacement market, including State transport undertakings and Government buying,

accounted for around 59% of the total tyre demand in FY2003. The demand in the

replacement market depends on the vehicle population, the level of economic activity,

life of the products transported, kilometer per vehicle, the price of the tyres and the

quality of the existing road infrastructure. Additionally, the replacement market, which

offers better margins, is extremely competitive. The replacement market is dominated bythe truck and buses segment, which accounted for 22% of all tyre sales in the replacement

market in FY2003.

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 FY2003, Indian tyre exports stood

at Rs. 10.8 billion (10% of the total industry) in value terms and 3.1 million in unit terms

(6.5% of total production). Indian companies have currently entered into sourcing

agreements (for tyres) with neighboring countries.


17/21

17

Product wise:-

Performance tyres or summer tyres: Performance tyres are meant for people who prefer to

drive harder than the average consumer.

All-round or all-season tyres: All-round tyres are the most commonly found tyres.

Wet-weather tyres: Wet-weather tyres provide better grip during the rainy seasons.

Snow & mud or ice: These tyres are meant to work well in winter conditions

All-terrain tyres: All-terrain tyres are typically used on SUVs and light trucks

Mud tyres: Mud tyres are meant for dirty and mushy roads.

Category wise:-

Trucks and BusesLight Commercial vehicles

Motorcycles

Passenger cars

Tractor Front

Tractor Back


18/21

18

Distribution channel:-

The company will develop its distribution network in majority of districts of Maharashtra in the

starting years. The objective is to increase the presence in rural part of Maharashtra where money

is factor which matters more than brand. After 5 years once the breakeven is achieved the

company will lay down its network in other part of India more rigorously. Company will try to

have tie up with agents from other countries who deals in import export of tyres.

Flow chart for initial year:-

NGR TYRE (P)LTD

C &F AGENTS (23)

STOCKISTS (342)


19/21

19

Promotional Strategy:-

Use of media:-Advertisement on television mainly on Marathi channels, doordarshan

which are viewed in rural India.

Emphasize on logo, Slogan:-To create good brand image the company will emphasize

on its logo and slogan and brand name.

Advertisement at petrol pumps:-The company will put standys ,banners, hording at

petrol pumps which are mainly located on national highway.

Advertisements in car and bike showrooms:- The company will put standys ,banners at

car and bike showrooms.

Raw Material Supplier:-

1. Jay Enterprise- MumbaiJay Enterprise Manufacturers and dealers Industrial raw material Rubber, Lime

Stone Powder Carbon Black, Stearic Acids , Oleic Acids in india.

Address : B-301, West View,117, Bajaj Road, Vile Parle(W), Mumbai - 400 056,

India.

2. Devki Enterprises- ThaneDevki Enterprises are manufacturers, distributors and suppliers of rubber

chemicals, carbon black, Rubber to Metal Adhesives, Synthetic Rubber based

Adhesives for Rubber Industry in thane, India

Address : 4, Lotus Shopping Centre, Icon Plaza, Gauripada, Near - R.T.O.

Office, Kalyan (W), Thane - 421 301, India
http://www.indiarubberdirectory.com/premium.asp?category=38&id=24007&memtype=premiumhttp://www.indiarubberdirectory.com/premium.asp?category=38&id=24007&memtype=premiumhttp://www.indiarubberdirectory.com/premium.asp?category=38&id=23901&memtype=premiumhttp://www.indiarubberdirectory.com/premium.asp?category=38&id=23901&memtype=premiumhttp://www.indiarubberdirectory.com/premium.asp?category=38&id=23901&memtype=premiumhttp://www.indiarubberdirectory.com/premium.asp?category=38&id=23901&memtype=premiumhttp://www.indiarubberdirectory.com/premium.asp?category=38&id=24007&memtype=premium


20/21

20

Strategy used by company:-

Tie up with garages:-High margins will be given to them.

High margins to C&F, Stockiest, Retailers. Presence in all over India Tie up with OEM manufacturer Try to establish as well known brand in other foreign countries.


21/21

21

Conclusion:-

NGR TYRE PVT LTD will be one of the best Tyre manufacturing companies in India. Customer

Relationship is the key to success for us.

It can further increase its market share through customer relationship program and brand

awareness.

Documents

tyre industry in india by - raj kumar gupta