final rohit (1)

8/18/2019 Final Rohit (1)

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Introduction

Virtually no other technical achievement has impacted Western society more profoundly

than the commercial introduction of the pneumatic tire more than a century ago. Thereinventionof the air-filled tire by the Scottish-born veterinarian, John Boyd Dunlop, in !!! changed not

only the "ay people of that day travelled but also "here and ho" "e live today.

#lmost everything "e eat, "ear or other"ise consume no" comes to our door by a rubbertired

vehicle. What$s more, if it "ere not for the pneumatic rubber tire, high"aytransportation - and

modern life as "e %no" it - "ould not be feasible. &ncreased mobility,made possible by the

pneumatic-tired automobile, has permitted urban populations to into suburbs rather than having

to cro"d together in cities to be close to the "or%place. 'amily diets are no longer limited to

"hatever produce happened to be in season and available locally.

(rior to the modern automotive era, people seldom left their native to"ns or farms travel "as

difficult, even for short distances. Travel for pleasure "as a lu)ury en*oyed only by the rich and

leisured. &t simply "asn$t an option for most "or%ing people.

The practical "orld consisted of the distance they could travel in a day or t"o by "hatever

of transportation happened to be available.+ail transport offered the only means of long-distance

travel by land, and the horse provided most day-to-day transportation. 'or most people, life$s

choices "ere fe". &n rural areas, generation after generation lived and died in their native village

"ithout venturing more than a day s "al% from their home. Those born to cities often "ereʼ

obliged to live in dingy industrial sections in order to be near the factories "here they "or%ed.

With no suburbs to spea% of, the best neighbourhoods "ere those up"ind of the factories as the

"inds carried soot and industrial fumes over the homes and yards of the less affluent.With theturn of the century, pneumatic-tired vehicles began "idening the hori ons of average people and

altering their "ay of life. 'or aeons people had been familiar "ith an area "ithin a radius of

perhaps five miles from their home. The rail"ay allo"ed travel to other centres perhaps thirty or

fifty miles distant but this ne" form of travel, at first by bicycle and then increasingly by car,


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filled in the gaps. 'or the first time, routes "ere ade uately mapped and distances plotted

bet"een places that previously had held little relevance for a less-mobile population.

With "idespread use of the automobile came the need for improved roads and sturdier

bridges, thereby creating additional means of employment. e" service industries sprang

up around the automobile and tourism. +oad signs "ent up, and many to"ns and cities

began to rely on the money brought in by visiting motorists. /radually, cities themselves

began to spra"l as an increasing number of residents built homes and sought different

lifestyles in the suburbs.

The tire itself developed gradually over a long period and even no" it is constantly

improving. There have been no dramatic advances in tire design 0e)cept perhaps the

introduction of the radial tire1 but innovations in machinery, the development of ne"

materials and the entrepreneurial efforts of many of the companies in the industry have allmade important contribution to the tire as it is today.

This survey of tire development puts many of these achievements in conte)t. &t is not a

history of rubber but concentrates on the most important product made of rubber - the

pneumatic tire. The history of rubber is a fascinating sub*ect in itself. 'or those interested

in the "ider sub*ect an e)cellent source is the idiosyncratic and very en*oyable Bouncing-

Balls "ebsite .


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Vulcanisation 1839

Graphic 1 - Charles G oodyear

1800 - 1860

2ntil the development of the vusatiolcanin process by 3harles /oodyear, rubber "as an

interesting but not very practicable material - stic%y "hen hot and brittle "hen cold.

Vulcanisation or the process of changing its physical properties through the application of

sulphur and heat, changed this dramatically and rubber came into "idespread use. 3harles/oodyear ran a successful hard"are business in (hiladelphia and became interested in rubber as

a material of the future "ith enormous possibilities. The big problem that everyone recognised

"as its instability, particularly the tendency to go soft andstic%y. 4is business failed, in one of the

periodic economic crises of that time, but he persevered "ith his e)periments.Some "ere

partially successful to the e)tent that hereceived international recognition and a letter of

commendation from (resident #ndre" Jac%son. 4o"ever,each development had some "ea%ness

that prevented"ide scale adoption. Various additives "ere used in different proportions and

different "ays - magnesia, lime,bron e po"der and nitric acid but none of them gavepermanent

improvement. 5ventually he tried sulphur

after seeing a colleague use it for drying rubber. 5ven that didn t "or% at first but "hen heʼ

accidentally dropped some on a heated stove he sa" that it "as perfectly cured. 4e then

turned his attention to the heating process, e)perimenting "ith different temperatures and


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different heat sources. eventually settling on steam heating for four to si) hours at a

temperature of 67 degrees 3entigrade.

4o"ever, he "as not a natural businessman and although he too% out a patent in !88

02S (atent 69661 and established a factory "ith his brothers, he never made much money

from his innovation. &ndeed he spent many years defending his patent. :ne particular

problem "as in 5ngland, at the time the manufacturing centre of the "orld. 4is agent had

sho"n samples of vulcanised rubber to Thomas 4ancoc% in !8;. 4ancoc% "as a partner

of 3harles >,>>> in debt "hen he died in !9> but the royalties paid off these debts in time and

his family "ere able to live comfortably.


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Pneumatic Tire v2 1888

# reproduction of Dunlop s firstʼ

pneumatic tire

John Boyd Dunlop, a Scottish veterinarian, ?re-invented@ the pneumatic tire in Belfast. 4is

son, on his tricycle, found the cobbles on the Belfast streets gave an uncomfortable ride

and his father devised a substitute for the solid rubber tires. 4e put together a rubber tube "ith

a one-"ay valve for inflating, covered it "ith a rubber casing, and attached it to the tricycle$s

rear "heels "ith "rappings of tape.Dunlop began to develop his idea andpersuaded a local firm,

W.5dlin A 3o. to ma%e bicycle frames to fit the ne" tire. 4e patented

the ne" tire on December th, !!!. These fatCmummyC tires "ere ridiculed at first, but, in !!

a "ell-%no"n local cyclist "on a race at3herryvale and opinions uic%ly changed.he tire rapidly

gained favor "ith racing cyclists, "ho appreciated both the smoother rideand the easier pedaling

pneumatics produced .


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Tread improvements 1904

2ntil no" tyres had a round cross section but cars "ere getting bigger and more po"erful.

&n >8 3ontinental in /ermany and


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3o.moulded raised letters on the tread surfacethat spelled C : SE&D.C &n > 3ontinental

became the first company to design and mar%et a tire specifically designed for use in "inter

sno" and mud

Market Development 1914 – 1940

The 'irst World War hindered the gro"th of the civilian mar%et for automobiles but

stimulated development in better materials and designs. 5ven though truc%s "ere usede)tensively on the Western 'ront horse transport "as still dominant. 4o"ever, perhaps the

most influential result of the "ar "as the introduction it gave to many ordinary people to

the possibilities of motorised transport.


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been used to mi) the various materials specified into a homogenous mass. These "ere open to

the atmosphere and gave off both dust and fumes and there "as al"ays the possibility of in*ury

to the operative.The ne" design used blades rotatinginside a closed chamber rather than rollers.

This "as far more productive than the old method and it also virtually eliminated the

variability of human control.3onsiderable progress "as being made

"ith synthetic rubbers as discussed in the last section but there "ere also other chemical

advances. &n ;8 antio)idants "ere introduced to reduce the degradation caused by e)posure to

o)ygen, o one and ultraviolet rays. The 2S +ubber 3o. and B.'./oodrich developed these

independently

Different Types of Tyres


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3hoosing the right type of tyre for your car is important to get the intended performance from

your car. +ead on to %no" more.

/one are the days "here one could choose bet"een a set of Bias or +adial tyres. &n todayGs

"orld, the sheer variety of tyres you can buy depending on "hat their specialist applications

are is long and varied. :ne can easily "al% into a dealership today and replace your

manufacturer provided tyres for a set of high performance ones that can completely change

the "ay your car loo%s or performs on the road.

Basically the tyres are divided into Standard and (remium categories. (remium category is

further divided into Sporty and Touring category. &n the premium category, some special

construction types are available i.e. 4igh Speed Tyres and +un 'lat tyres. &n the Touring

category, 5co-'riendly tyres are available. 'or S2V and


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available. Depending on percentage of :nH:ff usage, categories available are #HT 0#ll

Terrain1, 4HT 04igh"ay terrain1, and 4HI or 4H( 04igh"ay Iu)uryH 4igh"ay (erformance1

4ere is a list of tyres you can buy to get the best out of your car.

Standard tyres #lso %no"n as Stoc% Tyres or /eneral 2sage tyres, these are usually the :5

fitted tyres you get "ith the car. Same specification tyres are also available in aftermar%et.

These are the tyres to go for if you are satisfied "ith your current tyre performance and your

e)pectations from tyres are not very demanding. Since these are tested and approved by :5

manufacturers, most of the performance parameters are optimi ed for general usage. These

tyres generally do not ta) your poc%ets as much as premium tyresK

Touring tyres 3omfort is the main emphasis of these tyres. 3omfort not only stands for

driving comfort 0Iess vibrations1, but also lo"er noise levels. Such premium tyres are

usually preferred by people using premium cars mainly for going to office or travelling "ith


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the family. The tread patterns of Touring tyres are less aggressive than Sporty tyres and have

certain design features on tread "hich create lesser noise. Top category "ithin Touring tyres

may have asymmetric patterns and may be even asymmetric construction varying bet"een

?:uter@ and ?&nner@ Sides.

Sporty tyres #lso %no"n as (erformance Tyres, these are designed for improving the grip

and handling of a vehicle are called performance tyres.


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4igh Speed tyres 4igh speed tyres are available in Touring and Sporty patterns Their

construction is more durable that can resist high temperatures due to high-speed rolling

resistance and deal "ith strong / forces under hard cornering. 4 ; > Speeds of 4 A above are considered high

speedsV ;8>

W ; > #vailable in (remium category tyres and

premiumH lu)ury imported carsM 6>>

5co-friendly Tyres &t$s not *ust automobiles that have %ept pace "ith the times and increased

environmental pressures to become environment friendly. The tyres they ride on, too, have


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become more ecofriendly. 5ssentially, ecofriendly tyres help reduce fuel consumption by

offering the lo"est rolling resistance possible. Io" rolling resistance, as the name suggests,

is achieved by reducing friction losses in the compounding.

3urrently the 5co-friendly tyres use silica to a tyre compound "hich allo"s tyre ma%ers toma%e lo"-rolling resistance tyres "ith ade uate grip. Tyre manufacturers have also loo%ed at

optimising design, contour, compound and tread pattern, and too% a completely ne"

approach to all four components of the tyre to achieve both fuel efficiency and optimum grip.

&n &ndia, fuel e)pense per year is several times that of e)pense on tyres. Therefore savings

through 5co-friendly tyres are much higher than the premium paid for these tyres.

+un 'lat tyres +un flat tyres are available in premium category 0Both in Touring and Sporty

types1 They are designed to minimise loss of handling of a vehicle after a tyre puncture has

occurred. &t allo"s the car to be driven on the punctured tyre so that the driver does not have to

change the tyre. 4o"ever, after a puncture has occurred it can be driven only for a short distance

0Typically about !> %ms1 and under a limited speed 0usually !> %mHh1.

+un flat tyres have reinforced side"alls and additional lateral strengthening to ensure that the

tyre maintains its shape and form "ithout air pressure in it to bear the "eight of the vehicle.

Ioss of air pressure in a tyre also increases friction and heats up the tyre, therefore, heat

resistant rubber is used to construct a run flat tyre to reduce heat build-up in case of a

puncture. :n normal tyres, the air pressure inside the tyre %eeps the tyre bead in place on

"heel rim flange. The beads of +un flat tyres are designed to %eep the tyre them in place on

the "heel rim flange even "hile there is no air pressure inside the tyre.

#lthough run flat tyres "ith their added stiffness can usually end up improving a carGs

dynamic properties, they "or% best in countries "ith better road conditions. &n &ndia "here

high"ays are riddled "ith potholes "ith ra or edges, a simple puncture can end up costing

thousands of rupees as a run flat tyre has limited repairability 0


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Top > compnany tyre industry

1. M !

Among all tyre companies in India, MRF stands at frst position with a marketcapitalization o Rs 16,7 !rore" MRF is a leading tyre man# act#ring company,which was incorporated in the year 1$ 6"

MRF is acclaimed worldwide or its high %#ality tyres, con&eyor 'elts, pretreadsand other prod#cts" ()*+, anderer, ()*), (-! and (./ are some o the&ariants o tyre man# act#red 'y the company"

*alking a'o#t the per ormance o MRF in the last fnancial year, the companygenerated re&en#e o more than s 14"#00 $rore rom sales" Also, the proftgenerated 'y the company crossed the mark o Rs 1,00 !rore"Market $apitali%ation 2 Rs 16,7 !rore

. &P'((' T) *+

Apollo *yres with a market capitalization o Rs 1 ,341 !rore stands at 4nd in thelist o top 1 'est tyre man# act#ring companies in India" Incorporated in theyear 1$74, Apollo *yres has grown into a leading tyre company and also standamong the largest tyre companies in the world"

ith man# act#ring acilities in India and *he 5etherland, Apollo *yres makeshigh %#ality tyres and sells them in more than 1 co#ntries in the world" Apollo

*yres in the fnancial year 4 1 4 13 generated re&en#e o more than s13",00 $rore rom sales"Market $apitali%ation 2 Rs 1 ,341 !rore


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3. -&( /+ & / D +T /*+ (/M/T*D - T

alkrishna Ind#stries .imited 8 9*: is another leading tyre company, which wasesta'lished in the year 1$;7" *he company man# act#re tyres or hea&y&ehicles, that incl#de ind#strial &ehicles and agric#lt#ral &ehicles"

*he company has 3 man# act#ring sites in India that employ more than 6,people" *he company is known or making high %#ality tyres, which is e >ro#p that has

'#sinesses in di?erent sectors like In ormational *echnology, =harmace#ticals,-ngineering, !onstr#ction, etc"

@ead%#artered in M#m'ai, !eat has man# act#ring sites in di?erent places inthe co#ntry that together prod#ces more than $3, tyres e&ery day" !eatmakes tyres or di?erent &ehicles that incl#de Motorcycles, !ommercial )ehicles,

*ractors, etc"


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*alking a'o#t per ormance, !eat in the last fnancial year shown a decentgrowth and generated re&en#e o more than Rs 3,7 !rore" !eat also has astrong network in India with more than 0,3 dealers and o&er 43 distri'#tors,that co&er more than 6 districts o the co#ntry"

Market $apitali%ation 2 Rs 0,371 !rore

5. 6 T) *

9 *yre with a market capitalization o Rs 4,601 !rore is placed at 3th position inthe list o top 1 'est tyre man# act#ring companies in India" -sta'lished in theyear 1$7 , 9 is among the top tyre companies in India and has 6man# act#ring plants in the co#ntry"

inner o m#ltiple awards, 9 *yre is known or pro&iding high %#ality tyres ordi?erent &ehicles that incl#de cars, commercial &ehicles, arm &ehicles and o?road &ehicles"

Market $apitali%ation 2 Rs 4,601 !rore

#. TV+ + /$ & &

*)+ +richakra is nero#p and came into

e


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,. 7''D)*&

>oodyear with a market capitalization o Rs 1, 43 !rore is ranked 7th in the listo top 1 'est tyre man# act#ring companies in India" >oodyear is an American

*yre Man# act#ring !ompany, which was incorporated in the year 1;$;"

>oodyear made de'#t in India in the year 1$44 and presently stands amongleading tyres companies in India" *he company is known or making %#ality tyres

or di?erent types o &ehicle like cars, arm e%#ipments, commercial &ehicles,etc"

Market $apitali%ation 2 Rs 1, 43 !rore

8. PT( * T* P /+*+

ith a market capitalization o Rs 4; !rore, =*. -nterprises is the ne


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9. D ('P / D/&

5e


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1 th position on this list is occ#pied 'y Modi R#''er .imited, an India *yreMan# act#ring !ompany known or man# act#ring high %#ality tyres" *hecompany is growing swi tly and in the last fnancial year, its total re&en#ecrossed the mark o Rs 44 !rore"

Market $apitali%ation 2 Rs 76 !rore

/ndian scenario

*he tyre ind#stry has e&ol&ed rom the more 'asic cross ply to the moresophisticated radial tyres" 5ylon cords that impart low weight and additionalstrength to the tyres ha&e also replaced !otton ply" *his ind#stry is stronglylinked to the a#tomo'ile sector" *his ind#stry is also dri&en 'y agric#lt#raland in rastr#ct#ral acti&ity that takes place in the region, as these two ha&ean impact on the transport sector"

/ndia Vs 7lo al *he glo'al tyre market c#rrently is estimated at C+B 7 'illion while theIndian market is aro#nd Rs" 1 million" *he glo'al market is dominated 'y>oodyear +#mitomo with a share o 44D" En the other hand, the domesticind#stry is dominated 'y MRF .td" +e&eral mergers and ac%#isitions ha&echaracterized the glo'al market, in the recent past" *his is essentially toac%#ire technology, gain wider access to markets and 'e competiti&e" Indianplayers are also reengineering their '#sinesses and looking at strategic tie#ps in this segment"

In terms o technology, radial tyre #sage has 'een catching #p at a %#ickpace in the glo'al market" Almost all the a#tomo'ile segments ha&e shi tedto radial tyres and the #sage o cross ply is restricted to tr#cks and '#sesonly" En the other hand, in the domestic market, the radial tyres are 'eing#sed only in the passenger car segment while the rest o them still stick tothe cross ply &ariety" *his is 'eca#se o the lower price o cross ply and its retreada'ility" In addition, the poor %#ality o roads in India restricts the #se os#ch tyres"

/ndian scenario


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Current Scenario

Pricing Scenario

Pricing is infuenced by the demand. Since the tyre demand has not signi cantly increased in the lastone year, many o the tyre companies have surplus stocks. Hence in the last 2- months the tyrecompanies are o!ering discounts bet"een 2# to $# percent to car manu acturers, but the carcompanies are trying to s%uee&e more discounts. 'he cheap imports o non-radial tyres rom (hinaare also adding to the present "oos o these tyre manu acturers.

Exim Scenario

'he e)port market or *ndia has been predominantly to the +S that accounts or nearly # oe)ports rom the country. 'hese are mostly o the cross ply variety. Ho"ever, o late *ndia s share inthe +S market is being threatened by (hina and /apan. 'hese t"o countries are able to o!er pricesthat are lo"er than that o!ered by *ndian manu acturers. *n addition, these t"o nations arelogistically better placed than *ndia "hen it comes to e)porting to the +S . 0omestic tyre

manu acturers are also acing threat rom imports rom (hina and South 1orea. 'he landed cost otyres rom (hina is lo"er than the *ndian price by # . *n addition, tyres rom South 1orea areimported at # customs duty "hile rom other countries the duty levied is . 'hus in both casesthe domestic tyre manu acturers are eeling the heat.

Government Policies

'he recent budget policy o the government has also not brought much relie to the tyre

manu acturers. 'he ma3or issues o concern are high import duty on ra" materials, ban on importo used tyres, lack o e)emption in import duty or steel and polyester tyre cords 4currently beingimported5 and imports o tyres rom South 1orea at lo"er duty.

Crystal Gazing

'he uture is e)pected to see many strategic alliances among the domestic and global players toenable them to have access to latest technology and e)pand their distribution net"ork. betterdistribution "ill also ensure easy availability. 'he introduction o ne"er auto models "ill signi cantlyhave a bearing on the tyres demand. 'he tyre companies "ill also be looking or tie-ups "ith the678 s or better stability and long-term relationship. 9or instance, the international player

:ridgestone has a tie-up "ith 'atas or supply o tyres or its model ;*ndica . :ridgestone has enteredthe *ndian market in association "ith ssociated (ement (ompanies and has set up amanu acturing plant at 1heda in 8adhya Pradesh. Hyundai s associate tyre manu acturer isreported to set up operations at Sriperumbudur, in 'amil


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=olicy -n&ironment2All categories o tyres can 'e e


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•-


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atural u er /mports /mperative – )et


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– Befnition o inp#t ser&ice and its eligi'ility#nder !en&at !redit R#les, 4

– !ondition o non a&ailement o !en&at !redit'y the >*A +er&ice =ro&ider sho#ld 'eremo&ed

– !en&at credit or Inp#t ser&ices witho#tmaking payment

– +er&ice ta< credit on goods man# act#red on Go' work 'asisO

– Bistri'#tion o credit 'y Inp#t +er&iceBistri'#tor

+er&ice *a< 8 Finance Act, 1$$ N R#les *here

#nder: – Re&erse !harge Mechanism J imposes'#rden o transaction cost and complianceiss#es

9ey +#'mission8s:

P*here is an #rgent need to correct the e


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PIncrease in c#stoms d#ty on *yres rom 1 D at present to 4 D, the same rate asits principal raw material 8i"e" 5at#ral R#''er:O

P*o meet the defnite short all 'etween domestic 5R prod#ction 2 cons#mption 8gapin a&aila'ility or which imports are indispensi'le:, limited %#antity o 5R import on

*ari? Rate S#ota 8*RS: 'asis T 7"3D or a %#antity o 1 , M* or Fy 1 13"+#ch *RS 'ased &ol#me o 5R import 'e allowed on a rec#rring 'asis each year asper demand 2 s#pply gap as esta'lished 'y the R#''er oard 8>o&t" o India: eachyear"

e +u mission s contd>

For other key RMs o *yre Ind#stry, the d#ty in&ersion anomalies contin#e andneed to 'e corrected 'y way o 2


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ai&er o c#stoms d#ty on raw materials 5E* man# act#red domestically,

P #tyl R#''er 8@+ !ode 4 01 : J present rate o c#stoms d#ty 2 3D

P+tyrene #tadiene R#''er 8*yre >rade: 8@+5 41$ : J present rate o c#stomd#ty2 1 D"

P-=BM 8@+5 4 7 : present rate o !#stoms B#ty 2 1 D

Red#ction in !#stoms B#ty on key raw materials o *yres or which the domesticcapacity prod#ction is ins#Ucient to meet domestic demand, i"e"

P5ylon *yre !ord 8@+5 3$ 4 1 1 : J Red#ction so#ght rom 1 D to 3DO

P=oly #tadiene R#''er 8@+5 4 4 : J Red#ction so#ght rom 1 D to 3DO

P+teel *yre !ord 8@+5 7014 $ : J Red#ction so#ght rom 1 D to 3DO

PR#''er !hemicals 8@+5 0;141 0 1 : J Red#ction so#ght rom 7"3D to 4"3D

P=olyester *yre !ord 8@+5 3$ 4 4 : J present rate o c#stoms d#ty2 3D to 4"3D

+ummar Bri&en 'y the strong re&i&al in a#tomoti&e demand, partic#larly in the passenger&ehicle and two wheeler segments and e


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imported rom !hina and *hailand" hile this mo&e is e


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I!RA e


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Bomestic 5at#ral r#''er 85R: prices to remain range 'o#ndO imports to rise ondisco#nted glo'al 5R prices2 +low down in domestic prod#ction d#e to #n a&ora'leclimatic conditions co#pled with signifcantly cheaper glo'al 5R prices has led to asharp G#mp in import o cheaper 5R into the co#ntry" ith glo'al demand stayingweak, partic#larly rom !hina and a s#rpl#s sit#ation in *hailand is e


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It looks at the size and growth of this product in the two main end-user markets,

original equipment !"# and replacement tires $ tyres, and then examines the regional

markets for both end-uses.

%roduct trends in terms of design criteria and market niches are analysed and thedifferent requirements of the main markets investigated.

This report is already prepared in draft form but will be individually completed for each

purchaser in order to incorporate the latest news and information. In addition it may be

possible to include additional information on request.

The report will cost &'( and will be sent within five working days of the order.

If you are interested in this sub)ect please e-mail *eil +ullineux via the ontact orld

Tire eport %age .

The Market for Truck Tires / Tyres

The market for truck tires $ tyres is very different from passenger car tires $ tyres in

terms of end-use markets, customers, and markets served. This report looks first at the

total market and then at the geographical regions and the various market segments.

The key trends within this market are identified and analyzed.

etreading is an important element in this market and the ma)or players are extendingtheir influence by acquisition and by developing internal programmes. /t the same time

new technical developments are changing the way tires are sold and the economics of

fleet management.




he Market for Agricultural Tires / TyresThe market for agricultural tires $ tyres is specialist, with clearly defined products and

markets. / number of the largest tire $ tyre companies are exiting this market, making

way for the growth of smaller, more specialist, manufacturers and niche players.

http://www.worldtirereport.com/contact-world-tire-report.htmlhttp://www.worldtirereport.com/contact-world-tire-report.htmlhttp://www.worldtirereport.com/contact-world-tire-report.htmlhttp://www.worldtirereport.com/contact-world-tire-report.html


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0owever, the market is becoming increasingly sophisticated with a steady move

towards radial tires and specific designs to minimise soil compaction. /t the same time

many farm vehicles are becoming more powerful in order to increase productivity and

they need improved traction on a variety of surfaces.

/ ma)or trend is a widening of the market from the traditional farm- centred products

to include tires $ tyres for landscape maintenance vehicles and the rapidly growing

sector of all-terrain vehicles /T1s.#




The Market for Earthmover & OTR Tires / TyresThe market for earthmover and off-the-road !T # tires $ tyres is the biggest of the

specialist markets and also the one requiring the most technical sophistication and

capital investment. !nly a few companies have the capability of manufacturing the

largest of these tires but the recent scarcity in this market and the high prices obtained

by the limited number of suppliers has attracted a number of new competitors into this

field.

0owever, the market is segmented and the different end-users have different

requirements. 2uite apart from their technical requirements, some are performance-

oriented, others are cost-oriented and there are a number of purely opportunistic users.

*ow that the demand has fallen so quickly the supply shortage of tires $ tyres has

eased but the question now arises of whether these newcomers will carve out a

permanent niche for themselves.

There are also other questions to be answered such as the future mix between radial

and bias tires $ tyres and whether the manufacture of these tires $ tyres will move to

low-cost countries. The underlying and future demand in the ma)or world regions willbe an important factor in this and it is examined in some detail.

3ome of the ma)or users are moving towards a proper maintenance and repair system

for tires $ tyres with the help of their suppliers and this could open up a new income

stream for those companies capable of taking advantage of this development.


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The Market for Aviation & Aircraft Tires / Tyres/viation tires $ tyres represent another small but high margin niche market for tires $

tyres, in which only a limited number of companies are engaged. "ven within a

relatively small market there are three separate markets, each with specific and

different requirements - commercial, military and general aviation.

This market has been dominated by the more technically advanced companies able to

devote research and development resources to designing and manufacturing these

sophisticated products but more companies, particularly in the developing world, nowbelieve themselves capable of providing the same technical support to their sales effort.

/ir transport has shown consistent growth for the last fifty years and growth in absolute

numbers will increase faster than world 45%. 0owever there are increasing pressures on

the industry which will change its structure and the composition of its fleets. This will

inevitably affect the demand for tires $ tyres in terms of quantity and, more

importantly, design quality.

This report is already prepared in draft form but will be individually completed for eachpurchaser in order to incorporate the latest news and information. In addition it may be


The Market for Two- heeler Tires / TyresThis market includes some of the simplest of tires $ tyres - for bicycles - and some of

the most sophisticated motor cycles.# 6oth the manufacturing demands and the

markets for these products differ dramatically so both large and small companies are

involved though they do not, in general, compete. 0owever, the edges of these marketsare not clear cut and they are becoming even more blurred.

This report examines the trends in each of the three markets for motor cycle, scooter

and bicycle tires $ tyres and attempts to quantify and explain the changes that are

taking place.


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The Market for !n"ustrial Tires / TyresIndustrial tires $ tyres cover a wide range of applications and the products themselves

vary widely. They range from relatively large pneumatic tires used for material handling

in ports and transport nodes to small, solid tires $ tyres fitted to many fork lift trucks.

This variety requires focused distribution systems and this has given opportunities to a

number of smaller manufacturers and specialist distributors.

The ma)or segments of the industrial tire $ tyre market are identified and the growth

prospects of each examined.




Tire / Tyre Materials of Manufacture/ radial tire $ tyre consists of roughly 7( different parts and as many as twelve rubber

compounds. The materials which go into a tire $ tyre account for 7(8 of the final priceof the tire $ tyre and they influence everything from the initial design to the disposal

options.

"ach of the materials making up the final mix has an important role and this report is

designed to give an understanding of that role - chemical, physical and economic. /ll

the main materials are examined, the role they play in tire function, the factors

involved in their production, the ma)or players involved and the trends in that particular

industry.

The main materials covered are9

• *atural rubber

• 3ynthetic rubber

• arbon black

• 3ilica


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• 3teel cord

• :ibres

• hemical additives



Tire / Tyre Manufacturing:or much of its history, tire $ tyre making has been a multi-stage and highly labor-

intensive industry involving building up the tire carcass in layers on a drum. The

introduction of automated processes has tended to be gradual and partial; evolutionary,

not revolutionary.

This is now all beginning to change, driven by the demands of the market. :irst +ichelin

and then most of the ma)or manufacturers, have announced radical new manufacturing

processes which promise dramatic improvements in investment costs, productivity,

material saving and quality standards.

The details of many of these processes are still regarded as commercially sensitive but

enough information is known to recognize that a paradigm shift is taking place in the

tire $ tyre industry, which will change the economics of tire $ tyre manufacturing andand the marketing fundamentals of tire $ tyre distribution.

In order to understand these changes, this report examines how tires $ tyres have been

made and are still made at present# and then reviews the pressures on the industry

that have brought about these proposed and actual changes to the manufacturing

process. The various manufacturers< solutions are then compared, before examining the

implications these changes will have for the industry as a whole.



Marketing of Tires / Tyres


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+ost marketing of tires $ tyres is carried out at a local level but, with the increasing

globalization of the tire $ tyre industry, the policy is now set internationally. This report

examines the main themes of international marketing, how the ma)or players are

reacting to these themes and the implementation in the main regions.

The dominant issue is branding - how it has evolved, the part it plays and the strategies

of all the ma)or players. =inked in with this is product positioning, the role of niche

products and niche markets and then the advertising and promotional strategies that

have been developed to address the agreed policy.

5istribution and retailing are key elements in the marketing mix and ma)or trends in

these areas are examined to see how companies are adapting to the rapidly changing

market environment.




Recycling of Tires / TyresIf not ignored completely, recycling of tires $ tyres was very low on the industry


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Technical "evelo#ments - Materials &Pro#ertiesTechnical change is vital to the tire $ tyre industry and, although there are few

breakthroughs in the chemistry and physics of tire $ tyre design and manufacture, the

pace of evolutionary change is speeding up.

This report examines the main materials used in tire construction to assess the

developments that are happening and then looks at the properties of the tire in order to

see what progress has been made and where future effort will have to be concentrated.

+aterials9

• *atural rubber

• 3ynthetic rubber

• arbon black

• 3ilica

• !ther fillers

• 3teel cord

• :ibers

• hemicals

• *ew materials

%roperties9

• 5urability

• eight• *oise

• olling resistance

• Inflation

• et surface performance


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• /geing




Technical "evelo#ments - Tire / Tyre $tan"ar"sTechnical developments do not occur in a vacuum; they are frequently brought about

by new industry standards or legislation. This report examines the most important

legislation or potential legislation# that is influencing the tire $ tyre industry and then

looks at the way the industry has reacted with specific design improvements.

/fter looking at the design process and how that has changed, the report discusses the

recent and future improvements in particular tires9

• %assenger car tires tyres#

• 0igh performance tires tyres#

• inter tires tyres#

• unflat tires tyres#

• :ashion items

• Truck tires tyres#

• /ircraft and !T tires tyres#

It then looks at the various technologies that are coming into use and the possible

combination of these technologies to make >the intelligent tire.>

• adio frequency identification :I5#

• Tire tyre# pressure monitoring systems T%+3#

• *ew tire$wheel designs

• Intelligent tires tyres#

• 3ystems integration

• :uture research





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Stratagic industry analysis

SWOT Analysis

Strengths

=. (ompany has large product port olio.2. *t s a =$# year old company and is in true sense a global company "ithmarkets in rica, 7urope, merica, sia and ustralasia

. (ompany is ac%uiring companies in 8alaysia and 8odi 'ires in *ndia therebysho"ing its intentions o e)panding in emerging economies o the "orld.

$. Sponsors o 9*9 >orld (up and other ma3or global sporting events

Weaknesses

=.


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sustainable.

Threats

=. 'here is Sti! (ompetition rom national and international brands.

2. /apanese and +S economies are not gro"ing much and have reached amaturity phase.

. @overnment Policies ".r.t e)port duties, import duties, ta) levied onautomobile industries and economic condition o nation as it determines thesale o automobiles.

$. *ntroduction o other transport acilities like metro, monorails and local trainskeeping pollution ha&ards caused by combustion o automobile uels.

. Aolatility o ra" material prices and 9luctuation o e)change rates.

Opportunities and Threats: These are external factors stemming from community or

societal forces.

• Trends (new research)

• Society’s cultural, political, and economic ideology [

• Funding sources

• Current events

• Societal oppression

!lthough the S"#T analysis was originally designed as an organi$ational method %or

&usiness and industries, it has &een replicated in various community wor' as a tool %or

identi%ying e ternal and internal support to com&at internal and e ternal opposition [*+ The

S"#T analysis is necessary to provide direction to the ne t stages o% the change process[*

-t has &een utili$ed &y community organi$ers and community mem&ers to %urther social .ustice in the conte t o% Social "or' practice

https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-community_tool_box-13https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-community_tool_box-13https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-community_tool_box-13https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-BOOK-16https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-community_tool_box-13https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-community_tool_box-13https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-BOOK-16


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Benefits

The S"#T analysis in Social "or' practice %ramewor' is &ene%icial &ecause it helps

organi$ations decide whether or not an o&.ective is o&taina&le and there%ore ena&les

organi$ations to set achieva&le goals, o&.ectives, and steps to %urther the social change orcommunity development e%%ort [*/ -t ena&les organi$ers to ta'e visions and produce practical

and e%%icient outcomes that e%%ect long0lasting change, and it helps organi$ations gather

meaning%ul in%ormation to ma imi$e their potential [*/ Completing a S"#T analysis is a

use%ul process regarding the consideration o% 'ey organi$ational priorities, such as gender

and cultural diversity, and %undraising o&.ectives

Limitations

Criti1ues include the misuse o% the S"#T analysis as a techni1ue that can &e 1uic'ly

designed without critical thought leading to a misrepresentation o% Strengths, "ea'nesses,

#pportunities and Threats within an organi$ation2s internal and e ternal surroundings[34 !nother limitation includes the development o% a S"#T analysis simply to de%end

previously decided goals and o&.ectives This misuse leads to limitations on &rainstorming

possi&ilities and 5real5 identi%ication o% &arriers This misuse also places the organi$ation’s

interest a&ove the well &eing o% the community Further, a S"#T analysis should &edeveloped as a colla&orative with a variety o% contri&utions made &y participants including

community mem&ers The design o% a S"#T analysis &y one or two community wor'ers is

limiting to the realities o% the %orces speci%ically e ternal %actors, and devalues the possi&le

contri&utions o% community mem&ers

Pest analysis

This form of business analysis examines the external environment and the global

factors that may affect a business. It can provide a quick and visual representation of

the external pressures facing a business, and their possible constraints on strategy.

https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-benefits-18https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-benefits-18https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-SWOT_does_not_need_to_be_recalled-20https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-benefits-18https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-benefits-18https://en.wikipedia.org/wiki/SWOT_analysis#cite_note-SWOT_does_not_need_to_be_recalled-20


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P – Political

E – Economic

S – Social

T – Technological

POLITICAL:

This is concerned with how political developments, regionally, nationally and

internationally might affect a business?s strategy.

"mployee protection-

health$safety, redundancy pay, discrimination, minimum wage

onsumer protection-

truth in advertising, high-pressure sales tactics, sales agreements

ompetition protection-

unfair trade practices, monoply, mergers @ takeovers

ECONOMIC:

This involves the analysis of a wide variety of economic factors and their effects on a

business. They include9

"conomic growth and rising living standards

=ow$high levels of inflation

=ow$high levels of unemployment

6alance of payments

value of imports vs exports#

SOCIAL -

hat competitive advantage might a business gain by social changes taking place

outside of the businessA

/ging population, reduced birth rates, longer life expectancy


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hanging role of women in the workplace

Improved "ducation B better skilled workers

"arly retirement, more leisure time

ising divorce rates, more CsingleD households

Eob security

Immigration creating a wider range of consumer tastes

TECHNOLOGICAL B

The impact of technological advancement on business strategy.

6usiness 3oftware applications word processing, spreadsheets, database,

accounting systems, inventory systems#

omputer-aided design

omputer-aided manufacturing

Internet$Intranet

Five force model


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final rohit (1)

Documents