waste tyre reycling project report brief

WASTE TYRE RECYCLING PROJECT UNDERSTANDING

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1 OVERVIEW OF THE INDIAN TYRE INDUSTRY: 3

1.1. Introduction 3 1.2. Key Influencers 3 2 MAJOR PLAYERS 5

2.1. MRF Ltd. 5 2.2. Ceat Ltd. 6 2.3. Apollo Tyres Ltd. 6 2.4. J.K. TYRES 6 2.5. Bridgestone India Private Limited 7 3 TYPES OF TYRES BEING CONSUMED IN INDIA 8 4 TYRE RECYCLING IN INDIA 10

4.1. TYRE LIFE CYCLE 4.2. USES 4.3. BUSINESS OPPURTUNITY 4.4. MARKETS 4.5. PRESENT SCENARIO 4.6. LANDFILL DISPOSAL 4.7. STOCKPILES AND ILLEGAL DUMPING 4.8. FACTS AND FIGURES 4.9. LEGISLATION 4.10. ENVIRONMENTAL CONCERNS

5 SCOPE FOR TYRE RECYCLING PROJECT IN INDIA:

5.1. REPLACEMENT MARKET 5.2. TYRE COMPOSITION AND STAGES IN RECYCLING 6 WASTE MANAGEMENT OPTIONS

6.1. REDUCE 6.2. REUSE 6.3. RECOVERY 6.4. Pyrolysis

Flow chart of the process followed in pyrolysis 7 CASE STUDIES - INTERNATIONAL EXAMPLES

7.1. V.PROMPT 7.2. THE NETHERLANDS 7.3. CHINA 7.4. PIRELLI TYRES - ITALY 8 STARTING UP OF WASTE TYRE BUSINESS

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


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1. OVERVIEW OF THE INDIAN TYRE INDUSTRY:

1.1. Introduction The Rs.20,000 crore Indian Tyre Industry, is highly raw material intensive and predominantly a Cross Ply (or Bias) tyre manufacturing industry. It is highly concentrated wherein 10 large manufacturers account for over 95% of the total tonnage production of 11.35 lakh M.T. It produces all categories of tyres, except Snow Tyres and Aero Tyre for which there is no demand domestically. The Indian tyre industry accounts for around 5% of the global demand as well as global supply of tyres. Domestic tyre industry has witnessed a remarkable recovery in FY10, after a slowdown in FY09. This growth was driven by strong revival in automobile demand on the 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, rising imports has become key concern factor off‐late. On an average, 55% of the production is for replacement market, followed by 29.8% sold to OEMs directly and the remaining is exported.

Turnover of Indian Tyre Industry Rs. 25,000 Crores

Tyre Production (Tonnage) 13.50 lakh M.T.

Tyre Production – All Categories (Nos.) 971 Lakh

Tyre Export from India (Value) Rs. 3000 (est.) crores

Number of tyre companies 36

1.2. Key Influencers The level of economic activity, performance of domestic automotive industry, and the faring of the transport sector directly influence the performance of the tyre industry in India. 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 passenger car segment, in the bus and truck tyre segment, its acceptance is still limited. Bus and truck radialisation could emerge in the long term as the quality of roads improves and the restrictions on overloading are better enforced. The practice of re‐treading, which is


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gaining increasing acceptance, could pose a challenge to replacement demand in the medium term. The ability of the re‐treading sector to capture potential replacement demand would depend on the awareness among customers (of the benefits of retreading) and also the quality of retreading done. Given the low levels of penetration of two‐wheelers and passenger cars in the country, OEM demand is likely to increase, which in turn would 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 affected as almost all auto manufacturers were forced to adjust their production last year. A major relief for tyre manufacturers was provided by the government by reducing the excise duty on tyres from 14% to 10% in December 2008, and further to 8% in February 2009.


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2. MAJOR PLAYERS

While the tyre industry is mainly dominated by the organised sector, the unorganised sector holds sway in bicycle tyres. The major players in the organised tyre segment consist of MRF, 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, with 11 per cent, 7 per cent and 6 per sent share respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS‐Srichakra, Metro Tyres and Balkrishna Tyres are some of the other players in the industry. MRF, the largest tyre manufacturer in the country, has strong brand equity. While it rules supreme in the industry, other players have created niche markets of their own

2.1. MRF Ltd. MRF Limited (MRF) is a well known India�s No. 1, which was incorporated on 5th November 1960. The Company manufactures the largest range of tyres in India and is the market leader with the largest market share in almost every segment of the tyre industry, product portfolio of the company includes Tyres, Pretreads and Conveyor Belts. MRF has six manufacturing plants in India. It has a distribution network of over 2,500 outlets in India and also has overseas offices in United Arab Emirates, Bangladesh and Vietnam. Apart from the domestic, the company exports its products to over 75 countries worldwide.

22%

21%

13%7%

10%

18%

5%4%

MARKET SHARE ‐ INDIAN MARKET

MRF

APOLLO

CEAT

GOODYEAR

BIRLA

JK TYRE

BRIDGESTONE

OTHERS


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2.2. Ceat Ltd. Ceat Ltd. is a part of the RPG conglomerate. The company offers the widest range of tyres to leading Original Equipment Manufacturers across the world. They manufacture a range 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. The company has their presence in 110 countries.

2.3. Apollo Tyres Ltd. Apollo Tyres Ltd is engaged in manufacturing automobile tyres and tubes. They are having their manufacturing facilities at Trichur in Kerala and Vadodara in Gujarat. They are the first Indian tyre company to launch exclusive branded outlets for truck tyres and also the first Indian company to introduce radial tyres for the farm category.

2.4. J.K. TYRES

J K Industries Ltd. (JKI), the leader in the Indian Tyre Industry and manufacturers of well‐known J K TYRE. J K Tyre along with its subsidiary Vikrant currently holds the No.1 position in the 4 Wheeler tyre segment with a market share of 20.8 %. J K Tyre and Vikrant continue to be the leaders in the commercial tyre segment which constitute 70% of the Tyre Market with the highest market share in the Indian Tyre Industry. J K Tyre maintains its dominant position in the Passenger Car Radials. J K Tyre is a preferred supplier with most of the OEMs. J K Tyre has launched several new products including recently launched Tractor Radial Tyre. J K Tyre is in the process of further expanding its Passenger Radial capacity to strengthen its position further.

• First manufacturer to launch "T" rated tyres in 1994‐Ultima. • First manufacturer to launch "H" rated tyres in 1996‐97‐Ultima 210 H. • First manufacturer to launch Dual Contact High Traction Steel radials‐ Aqua sonic • First manufacturer to introduce India's first range of eco‐friendly coloured tyres.


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2.5. Bridgestone India Private Limited Bridgestone Corporation, Japan was established in the year 1931. Today, the company is a US $23.2 billion Corporation with its headquarters at Tokyo. It controls 18.2% of global market and sells products in over 150 nations. The company has 47 tyre plants and 93 non‐tyre plants, 3 technical research and development centres and 10 proving grounds. Today, Bridgestone has a worldwide work force of more than 110,000 employees. It is a global tyre manufacturing company, which emphasizes on Japanese traditions. It is still growing and expanding and aiming at increasing its share in the world tyre and tubes, industrial rubber products like belts, hose, chemical products, sporting goods, automotive parts, electro materials and marine products etc.


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3. TYPES OF TYRES BEING CONSUMED IN INDIA

Categorywise Tyre Production in IndiaFinancial Year 2007‐08 & 2008‐09(April‐September)

(In Lakh Nos.)

Tyres for: 2007‐08 2008‐09 % Change

Truck & Bus 65.57 67.93 4

Passenger Car 80.06 88.36 10

Jeep 7.40 7.38 0

Light Commercial Vehicle 25.17 27.86 11

Tractor Front 9.17 10.32 13

Tractor Rear 6.30 7.28 16

Tractor Trailer 4.42 4.29 ‐3

Animal Drawn Vehicle 1.49 1.51 1

Scooter / Moped 55.65 50.95 ‐8

Motor Cycle 134.11 153.49 14

Industrial 3.31 3.44 4

Off the Road (OTR) 0.69 0.77 12

Total 393.34 423.58 8

18%

7%

21%

2%2%2%1%

47%

CATEGORY WISE TYRE SALES IN INDIA

BUS / TRUCK

LCV

PASSENGER CAR

JEEP

TRACTOR FRONT

TRACTOR REAR

TRACTOR TRAILER

OTHERS


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The above two tables clearly indicate a rise in tyre production in India from 8 % in 2008‐09 to 18 % in 2009‐10.

Category wise Tyre Production in IndiaFinancial Year 2007‐08 & 2008‐09(April‐September)

(In Lakh Nos.)

Tyres for: 2008‐09 2009‐10 % Change

Truck & Bus 128.39 148.11 15

Passenger Car 165.7 200.47 21

Jeep 14.69 14.02 ‐5

Light Commercial Vehicle 52.98 57.39 8

Tractor Front 18.42 23.86 30

Tractor Rear 13.15 16.34 24

Tractor Trailer 7.58 9.03 19

Animal Drawn Vehicle 2.81 2.94 5

Scooter / Moped 108.83 135.57 25

Motor Cycle 301.48 356.64 18

Industrial 301.48 5.38 ‐5

Off the Road (OTR) 5.68 1.61 18

Total 821.07 971.36 18

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DETAILED PROJECT REPORT FOR RECYCLING WASTE TYRE

including the financials and technology supplier

SEND DRAFT OF RS. 2999/‐ IN NAME OF

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waste tyre reycling project report brief

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