Retread Rubber Market Analysis
RETREAD RUBBER - MARKET ANALYSIS
Introduction
1. In the manufacture of a new tyre, about 75% of the manufacturing cost is incurred in Tyre Casing and remaining 25% in the Tread (The portion of the tyre which meets the road surface).Hence, by applying a new Tread over the body of the worn out tyre, a fresh lease of life is given to the tyre, at a cost which is less than 30% of the price of a new tyre. This process is termed as Tyre retreading and the materials used for process are known as Retread Materials.
2. With an estimated turnover of Rs. 2,700 Crore, the Indian tyre-retreading industry at present is a fraction of the overall tyre industry (with a turnover of about Rs. 37000 Crore) and is largely focused on commercial vehicles (heavy and light) and off-the-road Tyres (OTR) tyres. Over 50% of the Indian re-treading industry is fragmented and lies with numerous un-organised participants. Organised participation in re-treading is limited in India to a few participants like the Elgi group, Midas Rubber, Indag Rubber Limited and Vamshi Rubber Limited, and some tyre manufacturers like MRF, Apollo and JK tyres.
3. The project envisages establishing a most modern plant for the manufacture of Pre cured Tread Rubber and other retreading materials. A Centralized Research and Development Laboratory and Mould & Die Design Centre are also establishing to support the complex to meet the highly competitive global market requirements. A sincere attempt is made here to analyse the market potential of this product by tracing out the history of the industry, its origin and development in India, the present scenario of the industry in India, major Indian manufacturers and financial performance, the world market and global standards, various demand drivers and Demand – Supply gap analysis.
History of Retread Rubber Industry 1. When cars and trucks were first equipped with pneumatic tires in the beginning of the 1900s, the biggest problem was getting the
Introduction
1. In the manufacture of a new tyre, about 75% of the manufacturing cost is incurred in Tyre Casing and remaining 25% in the Tread (The portion of the tyre which meets the road surface).Hence, by applying a new Tread over the body of the worn out tyre, a fresh lease of life is given to the tyre, at a cost which is less than 30% of the price of a new tyre. This process is termed as Tyre retreading and the materials used for process are known as Retread Materials.
2. With an estimated turnover of Rs. 2,700 Crore, the Indian tyre-retreading industry at present is a fraction of the overall tyre industry (with a turnover of about Rs. 37000 Crore) and is largely focused on commercial vehicles (heavy and light) and off-the-road Tyres (OTR) tyres. Over 50% of the Indian re-treading industry is fragmented and lies with numerous un-organised participants. Organised participation in re-treading is limited in India to a few participants like the Elgi group, Midas Rubber, Indag Rubber Limited and Vamshi Rubber Limited, and some tyre manufacturers like MRF, Apollo and JK tyres.
3. The project envisages establishing a most modern plant for the manufacture of Pre cured Tread Rubber and other retreading materials. A Centralized Research and Development Laboratory and Mould & Die Design Centre are also establishing to support the complex to meet the highly competitive global market requirements. A sincere attempt is made here to analyse the market potential of this product by tracing out the history of the industry, its origin and development in India, the present scenario of the industry in India, major Indian manufacturers and financial performance, the world market and global standards, various demand drivers and Demand – Supply gap analysis.
History of Retread Rubber Industry 1. When cars and trucks were first equipped with pneumatic tires in the beginning of the 1900s, the biggest problem was getting the