Indian Tyre Industry Overview

Indian Tyre Industry over Rs 50,000 Crs. (US $ 8 Bn) (2015-16)

Commercial Tyre segment (Truck/Bus & LCVs)
About 75% (by value) of total tyre market
Exports to over 100 countries
Radicalization - Car tyres over 98% - Truck tyres about 44% (OEM
-72%)
Top 5 global tyre players - present in Indian Market
3 / 4 top Indian players dominate the markets

Sector information
After a healthy growth in 201415, the domestic tyre demand is
estimated to clock a muted 0-2%
during the current fiscal

The Indian tyre industry is

expected to remain strong with
revenues estimated to grow by 78% during fiscal year 2015- 2016

The domestic tyre demand grew

by 10- 12% during 2014- 15
supported by 7- 7.5% growth in
the Original Equipment
Manufacturer (OEM)

Globally

Rising average vehicle life

drives replacement Tires
Demand in the
Aftermarket
Stable Automobile
Production Fuels Growth
in the OEM Market
Growing demand for
Crossover utility vehicles
provides transaction to
Passenger car tire Sales
Construction vehicle tires
to grow amidst optimistic
forecasts for the world
construction industry

GDP and Capacity

Ranked 25th largest tyre
manufacturing company
Total Capacity 35 Mn. Tyres p.a
Large Talent pool of about 15000
employees

MAJOR PROBLEMS & CHALLENGES

Environment Challenges :Impact of climate changes is significant
Climate protection
Scarcity of Natural resources
Economic Challenges
Rising Population & Mobility
Growing Population & Mobility
Among the growing middle class in emerging
economies

TRENDS & OPPPORTUNITIES (INDIA)

The Indian tyre market is
highly concentrated as about
60% of the market is catered
by top players.

Passenger cars tyre segment

is the fastest growing
category with a raising
demand in future.

At present the two-wheeler

and commercial tyre segment
is witnessing tremendous
growth.

The market is expected to

witness fierce competition
from international players
entering the Indian market.

The technological aspect, the

market is flooded with
technology like tubeless tyres,
radial and retreading.

Future aspects of JK Tyres

Government Incentive: The Government of Indias Automotive Mission Plan

(AMP) 20062016 has come a long way in ensuring
growth for the sector.
It is expected that this sector's contribution to the GDP
will reach US$ 145 billion in 2016
creation of an additional 50 million jobs along with an
ambitious target of increasing the value of the output
of the sector to up to Rs 18,89,000 Crore (US$ 282.65
billion).

Future Scope

The rapidly globalizing world is opening up newer

avenues
The Indian auto-components industry is set to become
the third largest in the world by 2025.
Over the next decade opportunities for autocomponent manufacturers.

Porters five force model

1) Bargaining power
of supplier
Rubber
Other Petro
chemical based
material
4) Threat of
newentrants
global tyre industry is
already seeing
mergers and
acquisitions in order to
restructure

2) Bargaining power
of buyers
OEM's
Replacement

3) Threat of
substitute
It is moderate or as
the industry is facing
opposition from
retreading sector all
over the globe.

5) Industry rivalry
because gradually the overseas players are
expanding their wings over Indian tyre industry
and also a limited and every player is moving
towards automated technology

Corporate office New Delhi, India

|Establishment 1974 |
Founder - Hari Shankar Singhania
Market Share -30% approx.

JK Group
Jugilal Singhania & kamlapat Singhania

Kanpur family
Gaurhari Singhaniya

JK Cement
JK Technosoft

Delhi Family
Harishankar Shinghaniya
JK Tyre
JK Paper
JK Lakshmi
Cement
Fenner India
JK Risk
Management
&Insurance
Broker

Mumbai family
Vijaypat Singhaniya

Raymonds textile

GLOBLE FOOTPRINT

CSR Activities
Health care: Free medical camps, eye camps, population control program titled
Parivartan, Pusphawati Singhania research Institute.

Education: Lakshmipat Singhania school in Jaykaygram, Adult literacy

programmes in remote villages, Childeren career councelling.

Environment: 1,00,000 tree plantation in last five years, adoption of public

parks, maintenance of civic amenities.

Sports: Promotion of various sport events and karting.

Acquisition of CIL(Cavendish)

JK Tyre & Industries acquired Cavendish Industries ..effective 13th

April, 2016
CIL acquisition gives JK Tyre strategic entry into 2/3 Wheeler
Category
Product line : TBB tyres, TBR tyres, 2-3W tyres, Tractor tyres, Tubes
&Flaps
Capacity 100 lacTyres p.a.
Laksar plant is an excise benefit zone -excise exemption of 10 years
(upto 2020)
CIL Rs 2170 Crs

Equity Rs 50
Crs

JK TYRE : 64%

Other JK Group
Co(s) :36%

Debt Rs 1470 Cr

Major competitors
It was founded in 1976. Its first plant was commissioned in Perambra,
Thrissur, Kerala.Apollo Tyres Ltd is the world's 17th biggest tyre
manufacturer, with annual consolidated revenues of Rs 117.1 billion
It is a multinational auto and truck parts manufacturer founded in 1931.
Profit Rs 102.97 Billion. the company is the largest manufacturer of tires
in the world, slightly ahead ofMichelin.
CEAT, was established in 1958. Today, CEATis one of India's leadingtyre
manufacturersand has presence in global markets, and has a capacity of
over 95,000+Tyresper day. Revenue of 53.75billion INR
It is an American multinational tire manufacturing company founded in
1898. Revenue of US$ 18.138 billion. Full-year Goodyear net income of
$307 million, segment operating income exceeds $2 billion
Madras Rubber Factory Limited, commonly known by the abbreviation
MRF. Founded:1946,Chennai. Revenue of 13,444.75
crore(US$2.0billion)

 They have wide dealership network

They have good understanding of
customer needs
They are one of the leading tyre exporters
of India
They are continuously innovating and
improving the efficiency levels

Low presence in two/three wheeler

segment
Limited market share due to the presence
of other major brands in the segment

Strength

weakne
ss

opportu
nities

Threat

Emerging markets and improved

lifestyle
Horizontal and concentric
Diversification
More tie-ups with Automobile
companies as its mainly into B2B
market.

Price wars
Stiff competition from national and
international brands
Cheaper technologies

Competitor Analysis
Name
MRF

Last Market Cap.

Price
(Rs. cr.)

Sales
Turnover

Net Profit Total Assets

50,872.55

21,575.78

20,243.94

2,327.72

8,767.84

219.95

11,196.00

8,701.64

844.86

4,582.72

Balkrishna Ind

1,013.90

9,800.21

3,241.77

567.67

4,083.60

Ceat

1,326.40

5,365.30

5,494.15

452.52

2,603.13

JK Tyre & Ind

148.45

3,367.05

5,880.43

400.96

3,794.64

TVS Srichakra

4,021.85

3,079.55

2,059.87

197.21

534.91

Apollo Tyres

The analysis it reveals that in the competitive market a small change in the
strategy of the company, can win a lot as well as ruin inits position in the
market. The committee isof the view thatthe tyre being thederived demand
item
thatis
for
the
fitmentinthevehicle.Tyredemand
andproductiongrowthiscloselyrelatedto production growth of automobile
and extent of usage of vehicle.

Why This Company ?

As jk tyres is a part of jk group
organization which covers many
industries like cement, paper, financial
services.

This company is known for innovation,

dynamism, people oriented.

Presence in every corner of India

deep rooted core values, honesty,

trust and openness