History of tyres:

Iron tyres The earliest tyres were bands of iron (later steel), placed on wooden wheels, used on carts and wagons. The tyre would be heated in a forge fire, placed over the wheel and quenched, causing the metal to contract and fit tightly on the wheel. A skilled worker, known as a wheelwright, carried out this work. The outer ring served to "tie" the wheel segments together for use, providing also a wear-resistant surface to the perimeter of the wheel. The word "tyre" thus emerged as a variant spelling to refer to the metal bands used to tie wheels. Rubber tyres The first practical pneumatic tyre was made by John Boyd Dunlop, a Scot, in 1887 for his son's bicycle, in an effort to prevent the headaches his son had while riding on rough roads (Dunlop's patent was later declared invalid because of prior art by fellow Scot Robert William Thomson). Dunlop is credited with "realizing rubber could withstand the wear and tear of being a tyre while retaining its resilience. Pneumatic tyres are made of a flexible elastomeric material, such as rubber, with reinforcing materials such as fabric and wire. Tyre companies were first started in the early 20th century, and grew in tandem with the auto industry. Today, over 1 billion tyres are produced annually, in over 400 tyre factories, with the three top tyre makers commanding a 60% global market share.

Introduction of Indian Tyre Industry

Technology generation in the Indian tyre industry has witnessed a fair amount of expertise and versatility to absorb, adapt and modify international technology to suit Indian conditions. This is reflected in the swift technology progression from cotton (reinforcement) carcass to high-performance radial tyres in a span of four decades. Globalization has led to the linking of the economies of all the nations and therefore major Indian players in the tyre industry are pursuing global strategies to enhance their competitiveness in world markets. The present section broadly undertakes an overview of the Indian tyre industry through an examination of its growth trends with respect to production, exports and acquisition of technological capabilities.

Key Features
At present there are 40 listed companies in the tyre sector in India. Major players are MRF, JK Tyres, and Apollo Tyres & CEAT, which account for 63 per cent of the organized tyre market. The other key players include Modi Rubber, Kesoram Industries and Goodyear India, with 11 per cent, 7 per cent and 6 per cent share respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-Srichakra, Metro Tyres and Balkrishna Tyres are some of the other significant players in the industry. While the tyre industry is largely dominated by the organized sector, the unorganized sector is predominant with respect to bicycle tyres. The industry is a major consumer of the domestic rubber market. Natural rubber constitutes 80% while synthetic rubber constitutes only 20% of the material content in Indian tyres. Interestingly, world-wide, the proportion of natural to synthetic rubber in tyres is 30:70
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The sector is raw-material intensive, with raw material accounting for 70% of the total costs of production Total production figures in tonnage: 11.35 lakh MT & total production of tyres in all categories: 811 lakh (2007-08) Current level of radialization includes 95% for all passenger car tyres, 12% for light commercial vehicles and 3% for heavy vehicles (truck and bus) Restrictions were placed on import of used /retreaded tyres since April 2006 Import of new tyres & tubes is freely allowed, except for radial tyres in the truck/bus segment which has been placed in the restricted list since November 2008

Total value of tyre exports form India is approximately Rs 3000 crore (2007-08) The major factors affecting the demand for tyres include the level of industrial activity, availability and cost of credit, transportation volumes and network of roads, execution of vehicle loading rules, radialization, retreading and exports.

New Policy Initiatives

The tyre industry in India has had to grapple with raw material price volatility, rupee appreciation and cheap Chinese imports. In this connection, some of the recent initiatives by the government to facilitate the growth of the sector include: No WTO bound rates for Tyres and Tubes. No restrictions on the import of all raw materials required for tyre manufacture except carbon black, which has been placed in the restricted list. Increasing thrust on development of road infrastructure.

Evolution of Tyre Industry in INDIA

Phase Period Characteristics No domestic production. Demand met through imports. Phase I 1920-35 Key players included Dunlop (U.K), Firestone & Goodyear (USA) Domestic production begins by Phase II erstwhile trading companies: 1936-60 Dunlop, Firestone, Goodyear and India Tyre & Rubber Company Regulation on Indian companies-MRF, Phase III Premier & Incheck- enter 1961-74 manufacturing sector with foreign technology; licensing of additional production capacity capacity expansion and repatriation of profits of foreign companies; enforcement of export obligation on MNC; Entry of large Indian business houses like Singhania & Modi & Phase IV 1975-91 technical collaborations with MNCs, vertical integration and exponential growth in tyre production & exports Delicensing of production, placing of imports under OGL with tariff & non-tariff barriers Imposition of tariff & non-tariff barriers on imports Liberal imports PolicyRegime

Phase V 1992 onwards

External trade liberalization & reduction in import duty; reentry of MNCs either independently or in collaboration with Indian capital

Progressive reduction in import duty; liberalized imports

Future Prospects of the Indian Tyre Industry

The Indian Tyre industry is expected to show a healthy growth rate of 910% over the next five years, according to a study by Credit Analysis and Research Limited (CARE). While the truck and bus tyres are set to register a compounded annual growth rate (CAGR) of 8%, the light commercial vehicles (LCV) segment is expected to show a CAGR of about 14 %. However, we have to also take account of the effect of the global recession on the sector in making these assessments. The growth of the sector is closely linked to the expansion plans of the automobile companies; the governments thrust on development of road infrastructure and the sourcing of auto parts by the global Original Equipment Manufacturers (OEMs). Some significant hurdles towards attaining these projected growth rates could be raw material related price volatility, rupee appreciation and the looming threat of cheap Chinese imports. The Indian tyre companies need to make active efforts to explore newer markets as the existing markets for bus-truck tyres, which account for about 45 % of the total export volume, is nearing saturation. There is also an urgent need to increase the degree of radialization in order to safeguard their share in the export market. Global tyre manufacturers have been making constant efforts to innovate and offer a diverse range of products such as tyres with pressure warning systems, run flat tyres, eco-friendly tyres and energy efficient tyres.
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The Indian domestic companies have to pursue a growth strategy of continuous innovation and increasing emphasis on product differentiation.

Players in India market Tyre Industry

MRF Madras Rubber Factory, popularly known as MRF, is a major tyre manufacturing company located in Chennai, Tamil Nadu, and India.

Apollo Tyres
Apollo Tyres Ltd is a high-performance company and the leading Indian tyre manufacturer. Head quartered in Gurgaon,

Dunlop Tyres
Dunlop Tyres is a British company owned 75% by Goodyear Tyre and Rubber Company and 25% by Sumitomo Rubber Industries

Good Year
Goodyear Tyre & Rubber Company was founded in 1898 by Frank Sobering. Goodyear manufactures tyres for automobiles CEAT CEAT Limited is a tyre manufacturing company based in Mumbai, India. CEAT is an abbreviation for Cavi Electric Affine Torino

Bridgestone Corporation
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Bridgestone Corporation is a multinational rubber conglomerate founded in 1931 by Shojiro Ishibashi in the city of Kurume

Strategy of J K Tyres
Strategic thinking is key to the evolution of successful marketing strategies of JK tyre. This involves the following analyses: i. Understanding markets: Strategic perspective of the market requires skilful analysis of the trend and how they affect the market size and demand for the firms product. ii. Finding market niches: Price, service, convenience and technology are some of the niches in Indian market. iii. Product and service planning: Analysis of the customers promotion of the brand, both of the firm and competitors, besides an analysis of the situation in which the customer uses the product. iv. Distribution: Structural changes in inventory management, mobile distribution are some of the key factors that are going to affect the distribution process in the Indian market. v. Managing for result: With pressure on costs, prices, and margins, marketers will have to make effective utilization of every rupee spent in marketing.

JK Tyre has an extensive network of more than 4000 dealers spread across the country. The channel partners are considered as extended family members. We have exciting programmes like ACE Club, which helps in building a relationship beyond business. The conferences and interaction forums act as platforms of discussing ways and means to improve our value proposition to the customers. JK Tyre strives hard to establish a mutually beneficial relationship with its business partners
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Financial performance of previous year: Revenue: 6148.59 crore (increase 842 crore) Total profit 1011.42 crore (increase 100 crore)

Mission & Vision of JK Tyres

VISION To be amongst the most admired companies in India, committed to excellence

MISSION Be a Customer Obsessed Company - Customer First 24x7 No.1 Tyre Brand in India Most profitable Tyre Company in India Motivated and Committed team for excellence in performance Be a Green Company Deliver Enhanced Value to all stakeholders Enhance global presence through Acquisition / JV / Strategic Partnerships

SWOT Analysis of J K Tyres

STRENGTHS Strong brand image Being quality oriented rather than quantity oriented Large product width & line (product mix) Very large distribution channel. Reasonable price.
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Effective employee in JK

WEAKNESSES Less Brand Awareness

Less concern about small car segment OPPORTUNITIES A burgeoning work force and growing middle class population High growth potential for its exports as demand for JK tyre in Europe increasing.

THREATS

Indian customers are mainly value buyers demanding a better overall package. JK is poised in a better position than other players in the market to capitalize on this opportunity

Entry of new players with newer and better technologies in the small car tyre segment.

STRATEGY OF MRF TYRES

Strategic thinking is key to the evolution of successful marketing strategies of MRF tyre. This involves the following analyses: (a) Understanding markets: Strategic perspective of the market requires skilful analysis of the trend and how they affect the market size and demand for the firms product. (b) Finding market niches: Price, service, convenience and technology are some of the niches in Indian market.
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(c) Product and service planning: Analysis of the customers promotion of the brand, both of the firm and competitors, besides an analysis of the situation in which the customer uses the product. (i) Distribution: Structural changes in inventory management, mobile are some of the key factors that are going to affect the distribution market.

distribution

process in the Indian (ii)

Managing for result: With pressure on costs, prices, and margins, have to make effective utilization of every rupee spent in marketing.

marketers will

Market opportunity of MRF tyres:-

Identification of market opportunity is critical before the management of affirm takes a decision to launch or diversify in any product area. This involves analysis of the following: Size of the market Marketing strategies and the extent and quality of services rendered by other firm in the industry. Market programmed required to satisfy market wants Identification of key success factors in an industry and linking them to a firms strengths and weakness Market opportunity

(a) (b) (c) (d)

Size of the market How well the market is served Prospective inches Marketing mix required to succeed
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(e)

Core competencies required

Segmentation 3 broad segments (market type): OEM, Replacement and Export Sub segments: Truck /Bus, Light Commercial, Jeep & Utility Vehicle, Passenger Car, OTR, Two wheelers,Farm Service Tyres Targeting Targets all sub-segments with various variants. 13 variants for Passenger cars Positioning MRF muscle man Product The various tyres for passenger cars are ZVTS,ZVT,ZQT,ZV2K,ZV2K and Wanderer Price SANTRO-ZVTS TT Rs.2058 INDICA- ZVTS TL Rs.2247 MARUTI-800 ZIGMA Rs.1526Promotion Sponsor motor sports in India Brand ambassadors Gautam gambhir Brian Lara
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Place 2500 outlets across India Exports to 65 countries Financial performance of previous year: Revenue: 9743 crore (increase 700 crore) Operating income: 893 crore(increase 80 crore)

SWOT Analysis of MRF

STRENGTHS
Strong brand image Has Largest product width & line (product mix) Enjoys status of price maker Very large distribution channel Economies of scale due to optimum capacity utilization Collaboration with BF Goodich Tyre Co., USA Strong financial positions

WEAKNESSES
Costly tyres as compared to other companies Less concern about large tyre segment (trucks and tractors)

OPPORTUNITIES
A burgeoning work force and growing middle class population Can manufacture rear tyres for trucks and tractors as it has got lots of buyers due to agriculture dominance.

THREATS
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Entry of new players with newer and better technologies in other tyre segment So many close competitors like MRF, Apollo, Birla, Ceat, Modi, Kaize

Finding
After comparative analysis of both company I found MRF tyres has more loyal customer as compare to JK and but JK tyres have more number of outlets in India but growth rate of both company is going down as compare to previous, because some more competitor entered in Indian market. Both companies is performing very well, but performance of MRF Company is better than JK tyre because MRF is existing in India. Both companies have almost same strategy, but performance is differing because of availability . Both companies which have been analyzed in the project are leaders in their own position. These companies have outperformed the respective benchmarks and are giving healthy returns over a period of time, however given the vagaries of the cyclical nature of parent industry and present scenario in European markets, the autocomponent sector is well poised to grow in future.

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