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SWASTIK DASH

VISHWAJEET CHOPRA

VISHAL PAHARIYA

RAGHVENDRA VAIDYA

CHINMAY AGRAWAL

SUMIT JANGRA

SANYAM AGGARWAL

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` External factors influencing a companysperformance.

` For example GDP, interest rate, purchasing power

of people etc.` Analysis of Macro environment is important to

know the current position of a company, futurescenario and how they are going to affect a

companys business.

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` Rs 13000 crore industry.

` Mainly dominated by organised sector.

` Highly raw material sensitive

` Also depends on agricultural and industrial performance of the economy

transportation needs and production of vehicles.

` Divided into 3 sectors namely: original equipment

makers, Replacement sector and export sector.

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Others

Indian TyreIndustry

MHCV HCV LCV

PassengervehiclesCommercialvehicles

OTRFarm

VehiclesIndustrialVehicles

Cars cootersMotorcycles

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` High-performance company and one of theleading Indian tyre manufacturer.

` Founded in 1976, has annual revenues of over

US$ 1.8 billion.` Pioneer in the implementation of Six Sigma

among all tyre companies in India.

` Among the top15 tyre manufacturers in the world

in terms of revenue.` Network of 4000 dealerships in India with over

2500 exclusive outlets.

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Entry Barriers:HIGH

Threat ofsubstitutes:

LOW

Inter iri alry:LOW

BargainingPower of the

buyer:HIGH

BargainingPower of the

supplier:HIGH

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` GDP Absolute

` Time

` Inflation

` Road Length` Index of industrial production

` Service Sector Contribution

` Population

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` Road and support infrastructure

` Import Restrictions

` Government Policies

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` Increasing costs of Raw Materials

` Changes in taxation policies

` Sources of Demand

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Increase in demand offreight movement

Increase in commercialvehicles demand

Increase in TyresDemand from OEMs

Creates Replacementdemand after about 12-

18 months

GrowingEconomy

Interest in wear& tear of tyres

CreatesReplacementdemand for

Tyres

Increase in incomelevel, higher disposable

income

Increase in demand forpassenger cars

Increase in demand for

passenger car tyres

Creates Replacementdemand after about 24-

48 monthsIncrease in Tyre

Sales

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` Explosion in the number of nuclear families

` Higher car density per family

` Shifting away from Savings, to EMI culture

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` Development of radial technology

` Advanced technology introduced by international

players

` Improved Capacity-utilization techniques

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Strength

` Market leadership in the segment of truck and bustyres

` Global quality standards, international process andsystem certifications and presence

` Extensive distribution network in India and SouthAfrica

` High usage of IT

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Weakness

` No presence in two and three wheeler marketsegment

` It is a capital intensive business

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Opportunities

` Leadership position in the commercial vehiclesegment

` New product segments like Truck/Bus Radial(TBR), Off The Road tyres (OTR), retreading andallied automotive services

` Growth in overseas markets like Europe

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Threats

` Imports from neighbouring countries atcompetitive prices

` Raw material price volatility` radialisation level in the commercial vehicle

segment

` Inverted duty structure between tyre and natural

rubber

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` Venturing into two and three wheeler segments

` aggressive marketing

` product innovation

` Opening more TRUST outlets` Increase global presence

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