WASTETYRERECYCLINGPROJECTUNDERSTANDING 1 1.1. 1.2. 2 2.1. 2.2. 2.3. 2.4. 2.5. 3 4 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7.

. 4.8. 4.9. 4.10. 5 5.1. 5.2. 6 6.1. 6.2. 6.3. 6.4. 7 7.1. 7.2. 7.3. 7.4. 8 OVERVIEW OF THE INDIAN TYRE INDUSTRY: Introduction Key Influencers MAJOR PLAYERS MRF Ltd. Ceat Ltd. Apollo Tyres Ltd. J.K. TYRES Bridgestone India Private Limited TYPES OF TYRES BEING CONSUMED IN INDIA TYRE RECYCLING IN INDIA TYRE LIFE CYCLE USES BUSINESS OPPURTUNITY MARKETS PRESENT SCENARIO LANDFILL DISPOSAL STOCKPILES AND ILLEGAL DUMPING FACTS AND FIGURES LEGISLATION ENVIRONMENTAL CONCERNS SCOPE FOR TYRE RECYCLING PROJECT IN INDIA: REPLACEMENT MARKET TYRE COMPOSITION AND STAGES IN RECYCLING WASTE MANAGEMENT OPTIONS REDUCE REUSE RECOVERY Pyrolysis Flow chart of the process followed in pyrolysis CASE STUDIES - INTERNATIONAL EXAMPLES V.PROMPT THE NETHERLANDS CHINA PIRELLI TYRES - ITALY STARTING UP OF WASTE TYRE BUSINESS 3 3 3 5 5 6 6 6 7 8 10

WASTE TYRE RECYCLING PROJECT REPORT as a SEPERATE DOCUMENT ( Included)

WASTETYRERECYCLINGPROJECTUNDERSTANDING

1. OVERVIEWOFTHEINDIANTYREINDUSTRY:

1.1.

Introduction

TheRs.20,000croreIndianTyreIndustry,ishighlyrawmaterialintensiveandpredominantly aCrossPly(orBias)tyremanufacturingindustry.Itishighlyconcentratedwherein10large manufacturersaccountforover95%ofthetotaltonnageproductionof11.35lakhM.T.It produces all categories of tyres, except Snow Tyres and Aero Tyre for which there is no demanddomestically. The Indian tyre industry accounts for around 5% of the global demand as well as global supplyoftyres.DomestictyreindustryhaswitnessedaremarkablerecoveryinFY10,aftera slowdowninFY09.Thisgrowthwasdrivenbystrongrevivalinautomobiledemandonthe back of resurgence in economy, rise in employment levels, and easing of interest rate scenario. Although strong demand growth is an encouraging scenario for the domestic industry,risingimportshasbecomekeyconcernfactorofflate.Onanaverage,55%ofthe production is for replacement market, followed by 29.8% sold to OEMs directly and the remainingisexported. TurnoverofIndianTyreIndustry Rs.25,000Crores TyreProduction(Tonnage) TyreProductionAllCategories(Nos.) TyreExportfromIndia(Value) Numberoftyrecompanies 13.50lakhM.T. 971Lakh Rs.3000(est.)crores 36

1.2.

KeyInfluencers

Thelevelofeconomicactivity,performanceofdomesticautomotiveindustry,andthefaring ofthetransportsectordirectlyinfluencetheperformanceofthetyreindustryinIndia.With the replacement segment dominating the overall tyre demand, the industry remains inherently vulnerable to economic cycles. While radialisation has become the norm in the passengercarsegment,inthebusandtrucktyresegment,itsacceptanceisstilllimited.Bus andtruckradialisationcouldemergeinthelongtermasthequalityofroadsimprovesand the restrictions on overloading are better enforced. The practice of retreading, which is
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WASTETYRERECYCLINGPROJECTUNDERSTANDING

gaining increasing acceptance, could pose a challenge to replacement demand in the medium term. The ability of the retreading sector to capture potential replacement demandwoulddependontheawarenessamongcustomers(ofthebenefitsofretreading) andalsothequalityofretreadingdone.Giventhelowlevelsofpenetrationoftwowheelers andpassengercarsinthecountry,OEMdemandislikelytoincrease,whichinturnwould ush up replacement demand with a lag. Slowdown in automotive industry and global economy in general negatively impacted the Indian tyre industry in 2009. The industry tonnage growth was only 2.19% during first nine months of FY 2009, compared to 7.38% growth experienced during the same period last year. Demand side was also severely affectedasalmostallautomanufacturerswereforcedtoadjusttheirproductionlastyear.A majorrelieffortyremanufacturerswasprovidedbythegovernmentbyreducingtheexcise dutyontyresfrom14%to10%inDecember2008,andfurtherto8%inFebruary2009.

WASTETYRERECYCLINGPROJECTUNDERSTANDING

2. MAJORPLAYERS

MARKETSHARE INDIANMARKET
5% 4% 22% 18% MRF APOLLO CEAT GOODYEAR BIRLA 10% 7% 13% 21% JKTYRE BRIDGESTONE OTHERS

Whilethetyreindustryismainlydominatedbytheorganisedsector,theunorganisedsector holdsswayinbicycletyres.ThemajorplayersintheorganisedtyresegmentconsistofMRF, Apollo Tyres, Ceat and JK Industries, which account for 63 per cent of the organised tyre market. The other key players include Modi Rubber, Kesoram Industries and Goodyear India,with11percent,7percentand6persentsharerespectively.Dunlop,Falcon,Tyre Corporation of India Limited (TCIL), TVSSrichakra, Metro Tyres and Balkrishna Tyres are someoftheotherplayersintheindustry.MRF,thelargesttyremanufacturerinthecountry, hasstrongbrandequity.Whileitrulessupremeintheindustry,otherplayershavecreated nichemarketsoftheirown

2.1.

MRFLtd.

MRFLimited(MRF)isawellknownIndia sNo.1,whichwasincorporatedon5thNovember 1960. The Company manufactures the largest range of tyres in India and is the market leaderwiththelargestmarketshareinalmosteverysegmentofthetyreindustry,product portfolio of the company includes Tyres, Pretreads and Conveyor Belts. MRF has six manufacturingplantsinIndia.Ithasadistributionnetworkofover2,500outletsinIndiaand alsohasoverseasofficesinUnitedArabEmirates,BangladeshandVietnam.Apartfromthe domestic,thecompanyexportsitsproductstoover75countriesworldwide.
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WASTETYRERECYCLINGPROJECTUNDERSTANDING

2.2.

CeatLtd.

CeatLtd.isapartoftheRPGconglomerate.Thecompanyoffersthewidestrangeoftyresto leading Original Equipment Manufacturers across the world. They manufacture arange of tyres catering various segments. The company operates two plants in Maharashtra. The company has a robust national network consisting of 34 regional offices and over 3,500 dealers.Thecompanyhastheirpresencein110countries.

2.3.

ApolloTyresLtd.

ApolloTyresLtdisengagedinmanufacturingautomobiletyresandtubes.Theyarehaving theirmanufacturingfacilitiesatTrichurinKeralaandVadodarainGujarat.Theyarethefirst Indian tyre company to launch exclusive branded outlets for truck tyres and also the first Indiancompanytointroduceradialtyresforthefarmcategory.

2.4.

J.K.TYRES

J K Industries Ltd. (JKI), the leader in the Indian Tyre Industry and manufacturers of well knownJKTYRE.JKTyrealongwithitssubsidiaryVikrantcurrentlyholdstheNo.1positionin the4Wheelertyresegmentwithamarketshareof20.8%.JKTyreandVikrantcontinueto be the leaders in the commercial tyre segment which constitute 70% of the Tyre Market withthehighestmarketshareintheIndianTyreIndustry.JKTyremaintainsitsdominant positioninthePassengerCarRadials.JKTyreisapreferredsupplierwithmostoftheOEMs. JKTyrehaslaunchedseveralnewproductsincludingrecentlylaunchedTractorRadialTyre. JKTyreisintheprocessoffurtherexpandingitsPassengerRadialcapacitytostrengthenits positionfurther.

Firstmanufacturertolaunch"T"ratedtyresin1994Ultima. Firstmanufacturertolaunch"H"ratedtyresin199697Ultima210H. FirstmanufacturertolaunchDualContactHighTractionSteelradialsAquasonic FirstmanufacturertointroduceIndia'sfirstrangeofecofriendlycolouredtyres.

WASTETYRERECYCLINGPROJECTUNDERSTANDING

2.5.

BridgestoneIndiaPrivateLimited

BridgestoneCorporation,Japanwasestablishedintheyear1931.Today,thecompanyisa US $23.2 billion Corporation with its headquarters at Tokyo. It controls 18.2% of global marketandsellsproductsinover150nations.Thecompanyhas47tyreplantsand93non tyreplants,3technicalresearchanddevelopmentcentresand10provinggrounds.Today, Bridgestonehasaworldwideworkforceofmorethan110,000employees.Itisaglobaltyre manufacturing company, which emphasizes on Japanese traditions. It is still growing and expandingandaimingatincreasingitsshareintheworldtyreandtubes,industrialrubber products like belts, hose, chemical products, sporting goods, automotive parts, electro materialsandmarineproductsetc.

WASTETYRERECYCLINGPROJECTUNDERSTANDING

3. TYPESOFTYRESBEINGCONSUMEDININDIA

CATEGORYWISETYRESALESININDIA
BUS/TRUCK LCV PASSENGERCAR
47% 7%

18%

JEEP TRACTORFRONT TRACTORREAR TRACTORTRAILER OTHERS

21%

1%

2% 2%

2%

CategorywiseTyreProductioninIndia FinancialYear200708&200809(AprilSeptember) (InLakhNos.) Tyresfor: 200708 Truck&Bus 65.57 PassengerCar 80.06 Jeep 7.40 LightCommercialVehicle 25.17 TractorFront 9.17 TractorRear 6.30 TractorTrailer 4.42 AnimalDrawnVehicle 1.49 Scooter/Moped 55.65 MotorCycle 134.11 Industrial 3.31 OfftheRoad(OTR) 0.69 Total 393.34

200809 67.93 88.36 7.38 27.86 10.32 7.28 4.29 1.51 50.95 153.49 3.44 0.77 423.58

%Change 4 10 0 11 13 16 3 1 8 14 4 12 8

WASTETYRERECYCLINGPROJECTUNDERSTANDING

CategorywiseTyreProductioninIndia FinancialYear200708&200809(AprilSeptember) (InLakhNos.) Tyresfor: Truck&Bus PassengerCar Jeep LightCommercialVehicle TractorFront TractorRear TractorTrailer AnimalDrawnVehicle Scooter/Moped MotorCycle Industrial OfftheRoad(OTR) Total
TheabovetwotablesclearlyindicateariseintyreproductioninIndiafrom8%in200809to18%in 200910.

200809 128.39 165.7 14.69 52.98 18.42 13.15 7.58 2.81 108.83 301.48 301.48 5.68 821.07

200910 148.11 200.47 14.02 57.39 23.86 16.34 9.03 2.94 135.57 356.64 5.38 1.61 971.36

%Change 15 21 5 8 30 24 19 5 25 18 5 18 18

WASTETYRE W ERECYCLING GPROJECTU UNDERSTANDING

4. TYR RERECYCL LINGININ NDIA

aking transp portation mo efficient and travel more comf ore t fortable sinc ce Tyres have been ma re carriage whe in 1845 Early tyres were mad eels 5. de they wer first invented for horsedrawn c fromlate exwhichisa anaturalextractofther rubbertree.Thesedaystyresarema adeinseveral stagesus singmanydi ifferentmaterialsassum mmarizedbe elow:

RubberThec R compositionisdictatedb bytheendu userequirem mentsofthetyre.Ablen nd of natural a and synthetic rubber is mixed with carbo black an chemica on nd als orvulcanizat tion.Atypic calcartyreu usesabout40%naturalr rubberand6 60%synthet tic fo ru ubber. Te extiles and steel wireL Layers of te extiles make up the cas sing of the t tyre, which is re einforced with steel wir Most mo re. odern tyres use steel w to reinf wire force the tyr re where it mee the rim of the whee (called be w ets el eads). In hig performa gh ance, or truc ck ty yressteelwi ireisalsousedtoreinforcethetexti ilecasing.

The c constructed tyre is plac in a mould and inflated. Heatin under pr ced ng ressure in th he mould sh hapes the tr read and vulcanizes the erubber. Tyresare desi igned to acc commodate a varietyofvehicles,surfacesandweatherconditions.Forexample,t trucktyreste endtohave a higherpe ercentageofsteeltoreinforcethe structure.T Tyresstillhav vethesame ebasicdesig gn and, despite variatio there is enormous potential fo reuse or r on, or recovery due to the vast esofwastet tyresgeneratedeachyea ar. quantitie

Then numberofv vehicleshittingtheroadsisincreasingeveryday yandsoisth henumbero of tyres. Th here is a bus siness oppo ortunity up f grabs an its in rec for nd cycling them With mor m. re than 33 million vehi icles added to the India roads in last three y an years, can you guess th y he uldhaveincr reasedmani ifoldleading gtosomegra aveproblem ms? otheritemsthatwou
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