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

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1 1 OVERVIEW OF THE INDIAN TYRE INDUSTRY: Introduction Key Influencers 3 2 MAJOR PLAYERS MRF Ltd Ceat Ltd Apollo Tyres Ltd J.K. TYRES Bridgestone India Private Limited 7 3 TYPES OF TYRES BEING CONSUMED IN INDIA 8 4 TYRE RECYCLING IN INDIA 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 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 9 WASTE TYRE RECYCLING PROJECT REPORT as a SEPERATE DOCUMENT ( Included) 1

2 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 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 Tyre Production (Tonnage) Tyre Production All Categories (Nos.) Tyre Export from India (Value) Rs. 25,000 Crores lakh M.T. 971 Lakh Rs (est.) crores Number of tyre companies 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 2

3 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 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

4 2. MAJOR PLAYERS MARKET SHARE INDIAN MARKET 18% 10% 7% 5% 4% 13% 22% 21% MRF APOLLO CEAT GOODYEAR BIRLA JK TYRE BRIDGESTONE OTHERS 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 Indias No. 1, which was incorporated on 5th November 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. 4

5 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 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 J.K. TYRES J K Industries Ltd. (JKI), the leader in the Indian Tyre Industry and manufacturers of wellknown 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 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. 5

6 2.5. Bridgestone India Private Limited Bridgestone Corporation, Japan was established in the year 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 nontyre 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. 6

7 3. TYPES OF TYRES BEING CONSUMED IN INDIA CATEGORY WISE TYRE SALES IN INDIA 18% BUS / TRUCK LCV 47% 21% 7% PASSENGER CAR JEEP TRACTOR FRONT TRACTOR REAR TRACTOR TRAILER OTHERS 1% 2% 2% 2% Categorywise Tyre Production in India Financial Year & (April September) (In Lakh Nos.) Tyres for: % Change Truck & Bus Passenger Car Jeep Light Commercial Vehicle Tractor Front Tractor Rear Tractor Trailer Animal Drawn Vehicle Scooter / Moped Motor Cycle Industrial Off the Road (OTR) Total

8 Category wise Tyre Production in India Financial Year & (April September) (In Lakh Nos.) Tyres for: % Change Truck & Bus Passenger Car Jeep Light Commercial Vehicle Tractor Front Tractor Rear Tractor Trailer Animal Drawn Vehicle Scooter / Moped Motor Cycle Industrial Off the Road (OTR) Total The above two tables clearly indicate a rise in tyre production in India from 8 % in to 18 % in

9 WASTE TYRE RECYCLING PROJECT UNDERSTANDING 4. TYRE RECYCLING IN INDIA Tyres have been making transportation more efficient and travel more comfortable since they were first invented for horse drawn carriage wheels in Early tyres were made from latex which is a natural extract of the rubber tree. These days tyres are made in several stages using many different materials as summarized below: Rubber The composition is dictated by the end use requirements of the tyre. A blend of natural and synthetic rubber is mixed with carbon black and chemicals for vulcanization. A typical car tyre uses about 40% natural rubber and 60% synthetic rubber. Textiles and steel wire Layers of textiles make up the casing of the tyre, which is reinforced with steel wire. Most modern tyres use steel wire to reinforce the tyre where it meets the rim of the wheel (called beads). In high performance, or truck tyres steel wire is also used to reinforce the textile casing. The constructed tyre is placed in a mould and inflated. Heating under pressure in the mould shapes the tread and vulcanizes the rubber. Tyres are designed to accommodate a variety of vehicles, surfaces and weather conditions. For example, truck tyres tend to have a higher percentage of steel to reinforce the structure. Tyres still have the same basic design and, despite variation, there is enormous potential for reuse or recovery due to the vast quantities of waste tyres generated each year. The number of vehicles hitting the roads is increasing everydayy and so is the number of tyres. There is a business opportunity up for grabs and it s in recycling them. With more than 33 million vehicles added to the Indian roads in last three years, can you guess the other items that would have increased manifold leading to some grave problems? 9

10 TO BUY THE FULL INDUSTRY REPORT ALONG WITH DETAILED PROJECT REPORT FOR RECYCLING WASTE TYRE including the financials and technology supplier SEND DRAFT OF RS. 2999/ IN NAME OF NEPRA ENVIRONMENTAL SOLUTIONS PVT. LTD Payable at AHMEDABAD, In case of Outstation Cheques please issue for Amount RS.3250/ Courier it to along with your contact details to NEPRA Environmental Solution Pvt Ltd ATRIA, Lane Opp Atithi Resturant Bodakdev, Ahmedabad GUJARAT INDIA. 10

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