Comparison between radial and nylon tires

Type :

Theses

Pages :

35 pages

Format :

.doc

Published date :

05/26/2009

Category :

Arts & media

Sub category :

Journalism

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Summary :

Executive summary
Introduction to Indian tire industry
Objectives of research
Briefing about major competitors
Company profile
Research methodology
Analysis of findings
Conclusion
Recommendations
Bibliography
Appendix
Questionnaire

Abstract

MRF limited is the largest producer of tires with a 22% market share. Over 95% of its revenues comes from tires. It has six plants spread over south India. MRF derives almost all of its revenue from the sale of automobile tires, automobile tubes, tread rubber and pre-cured treads. A Small portion of the revenue comes from sale of conveyor belts, automobile coating, leather skins, and other products. MRF also targets the lucrative replacement market (76% of market) and bulk original equipment segment. The company reported decline of profits in June 2001. The fall of profits is mainly because of the rise in the prices of rubber. MRF consumes 90000 to 100000 tones of rubber every day.

MRF manufactures automobile tires, automobile tubes, tread rubber and pre-cured tread. In the year 2001-2002, net sales increased by a sluggish1.67%. Just exceeding 23 billion, reminiscent of the phlegmatic performance of the auto industry, which was again an offshoot of the pessimism of the overall economy? Moreover, the company was affected by a rise in raw material prices, especially nylon tire cord and carbon black that was attributor but not the main cause of its predicament. Net profits nose-dived by a whooping 35% from Rs986mn to around Rs640.6mn in the 2001-2002 fiscal. This was mirrored by the relative fall in the operating profits of the company, which was again due to the relative fall in the operating profits of the company, which was due to the relative increase in input prices, which was not accompanied by an equal increase in prices.

tires are basically of two types- cross-ply and radial. In cross-ply tires, nylon or rayon tire cords are arranged diagonally across. In radial tires, polyester, nylon, fiberglass or steel cords are arranged perpendicular to the circumference. radial technology is an improvement over cross ply and radial tires are priced at (of 25-30%) premium. They are long lasting and have lower incidents of flats.