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CEAT TYRES
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
OF BACHELOR OF BUSINESS MANAGEMENT (BBM),
SUBMITTED BY
Ajay.P. Mathew
II BBM(A)-0911003
Acknowledgement
The present work is an effort to throw some light on Marketing Trait Ceat
Tyres. The work would not have been possible to come to the present shape
without the able guidance, supervision and help to me by number of people.
With deep sense of gratitude I acknowledged the encouragement and guidance received by my
Technology based
Use based
Markets
Demand Drivers
Trends in Raw Material
Opportunities Lying Ahead
Threats
RESEARCH HYPOTHESIS
RESEARCH OBJECTIVE
LIMITATIONS OF TRESEARCH
DATA PRESENTATIONS AND FINDINGS
PRESENTATION OF DATA
DATA ANALYSIS
SWOT ANALYSIS
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
CONCLUSION
REF ERA NC ES
INTRODUCTION
Ceat Ltd, a part of the RPG Goenka group, is the second largest tyre manufacturer in the country after MRF. Ceat
manufactures truck & bus, passenger car, scooter and LCV tyres. The company is a dominant player in the truck &
bus and passenger car tyre segments with a market share of 14% and 17% respectively. In FY2000, Ceat did well to
posting a 21%yoy sales growth in the replacement market for truck & bus tyres. It is presently focusing on catering
to the fast growing passenger car and two-wheeler industry. Towards this, it is commissioning a new radial tyre
Tyre industry is capital intensive and as capacities come in spurts, it leads to constant demand-supply imbalances
and consequent cyclicality in prices. Variable cost is also very high, with raw materials forming nearly 70% of the
costs. Profit margins are therefore thin. Production process is technology intensive and globally huge sums are
invested in R&D. Tyre demand is a derived demand, dependent on the auto industry, both for OEM and replacement
market. The major segments are Truck & Bus (T&B) tyres and car tyres. Value share of T&B segment is about 73%.
This segment is highly competitive and margins are typically lower than in the car tyres segment. Replacement
market forms the largest segment (about 58%), followed by OEM (about 22%). Export accounts for about 15%.
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