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SYNOPSIS

Topic: INDUSTRY ANALYSIS OF TYRE INDUSTRY

CASE STUDIES OF MRF TYRES AND JK TYRES

Name Damanpreet Singh Formatted: Font: 12 pt

Roll No. 1853321 Formatted: Font: 12 pt

Course Master Of Business Administration Formatted: Font: 12 pt

Institution Dayalbagh Educational Institute University Formatted: Font: 12 pt

Study Center Ludhiana Formatted: Font: 12 pt

Name of Project Guide Mr. Dayal Jaiswal Formatted: Font: 12 pt

Title of Project Industrial Analysis – TYRE INDUSTRY Formatted: Font: 12 pt

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Name of Organization Madras Rubber Factory Ltd. & JK Tyre Formatted: Font: 12 pt
Industries Ltd. Formatted: Font: 12 pt
TABLE OF CONTENTS
1. Abstract _________________________________________________________________ 3
2. Introduction ______________________________________________________________ 3
2.1.MRF LTD Mkt Cap – ₹25,680 cr (April, 2017)__________________________________4
2.2. JK Tyre & Industries Limited-₹ 854,30 cr (April, 2017)__________________________4
3.Objectives _________________________________________________________________ 5
4. Review of literature _________________________________________________________ 5
5.Methodology _____________________________________________________________ 6
5.1. Tools / Techniques To Be Used For Data Analysis: ____________________________ 7
5.2.Data to be collected _____________________________________________________ 8
5.3.Sources of data ________________________________________________________ 9
6.References _________________________________________________________________ 9
1. Abstract

This industrial research paper aims at industrial analysis of the tyre

industry. A diagnostic study of the tyre industry will be done at the global
level and then coming down to national level. Inception Growth and
development of the industry will be studied along with the factors which
lead to developent of this indistry in india and the supporting factors like
government policies and programs.

Indepth study will be conducted for MRF Ltd and JK Tyre ltd. The analysis
will be doing using past financial performance, management
performance, strategies adopted and various macroeconomic factors
associated to it. The Tyre Sector has been analysed in detail that holds a
strong positive uphold in the upcoming time. Various tools have been
incorporated in this study that takes into consideration both quantitative
and qualitative factors into the consideration. These factors have finally
helped in making proper assumptions followed by determining an
optimal capital structure that will help in the valuations of MRF
effectively. The report will help an investor to gain deep insights about
MRF and will help in making the investment decisions in the company .
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2. Introduction Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment: Left +
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Tyre Industry, has become the most competitive markets in the world
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and with the help of new technology, ultra-modern production facilities
and availability of raw materials, the sector is set to grow further. The
Indian tyre industry has witnessed a remarkable growth in last few years
on the back of growth in automobiles demand, especially in passenger
vehicles and twowheeler segments. The Indian tyre industry is ancillary
to the automobile industry. Demand swings in any of the auto segments
(Commercial vehicles, cars, two-wheelers) have an impact on the tyre
demand.

INDIAN TYRE INDUSTRY

Commercial Vehicles Passenger Vehicle Others-4%

and Buses -73% Tyres-23%

MHCV LCV-8% Tractors- Cars/MU 2-wheelers-

-59% 10% Vs-11% 12%

2.1.MRF LTD Mkt Cap – ₹25,680 cr (April, 2017) Formatted: Heading 1, Indent: Left: 0.25"

MRF Limited started as a balloon rubber factory in Madras (now Chennai)

in 1946, moved on to making latex cast toys and contraceptives in 1949.
Started manufacturing tread rubber in 1952 and by 1956 was the market
leader with 50% of market share. Became a public company in 1961 and
started exporting to US (world’s largest Tyre manufacturer and
exporter). Also, set up an in-house research unit in the 1960s, 2nd plant
in 1970, 3rd in 1971 and 4th in 1972. In 1973 became the first company
to manufacture nylon passenger car tyres commercially. It started
manufacturing truck tyres in 1978 and became the country’s largest
selling truck tyres in a couple of years. 1985 – It launched tyres for two
wheelers. In 1989 collaborated with Hasbro International USA and
launched FUNSKOOL India. In the same year also entered in collaboration
with Vapocure Australia to manufacture PU (polyurethane) paint
formulations. 2007 touched the T.O of $1bn, doubled it within 4 Yrs to
$2bn (2011)

2.2. JK Tyre & Industries Ltd.-₹ 854,30 cr (April, 2017)

JK Tyre & Industries Limited is an automotive tyre, tubes and flaps

manufacturing company based in Delhi. JK Tyre is based in over 80
countries across all 6 continents. It is a part of J. K. Organisation group of
Companies. JK Tyre acquired Mexican tyre major – Tornel in 2008. With
production facilities in all 9 plants, total production capacity is almost 20
million tyres p.a. The company was converted into a public limited
company on 1 April 1974. The manufacturing project was promoted by
Straw Products Ltd and J.K. Synthetics Ltd

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3.Objectives color: Accent 1, English (India), Do not check spelling or
grammar

 To do a descriptive study on tyre industry in India.

 To do an analytical and comparative study on working and
performance of two tyre companies on. (MRF and JK Tyres)

4. Review of literature
 Jasmine Kaur (2010) IMPACT OF RECESSION ON TYRE INDUSTRY
Her study concluded that recession was a tough phase for indian
tyre industry it caused sustain in domestic tyre industry and spurt
in price of raw material.
As a result, indian tyre industry was not able to shift out of
recession for a certain period of time.

 S.Mohana Kumar and Tharian Geroge k. (2001) IMPACT OF

REFORMS ON TYRE INDUSTRY
The analysis focused on the dominant truck and bus tyre segment
and the imact of reforms over it. The entry of MNCs in the post-
reform period made a verge of major shake-up, underlining the
need for nationalisation of the product mix, favouring radical tyres
with large-scale investment.

 Iyre and Upadhyay (2004) R&D ACTIVITES IN INDIAN TYRE

INDUSTRY
R&D in the Indian tyre industry, is basically geared towards applied
research, involving the development of new designs in different
segments, the changing of tread design, reinforcement material,
compound development, cost optimization for quality
improvements and orientation towards changing customer
requirements.

5.Methodology
In the present study, the information and data is collected by using well
prepare questionnaire after collecting questionnaire from respondent.
The statistical tools and refrences are used for tabulating an analyzing
the data with simple average and percentage.

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5.1. Tools / Techniques To Be Used For Data Analysis:
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 Fundamental analysis & assumption making: At the

company level, fundamental analysis involves examination of financial
data, management, business concept and competition. As with most
analysis, the goal is to derive a forecast and profit from future price
movements. By believing that prices do not accurately reflect all
available information, fundamental analysts look to capitalize on
perceived price discrepancies.
 Industry analysis: Industry analysis is a tool that facilitates a
company's understanding of its position relative to other companies
that produce similar products or services. Understanding the forces at
work in the overall industry is an important component of effective
strategic planning. An industry analysis consists of three major
elements: the underlying forces at work in the industry; the overall
attractiveness of the industry; and the critical factors that determine
a company's success within the industry.
 Market analysis: Market analysis strives to determine the
attractiveness of a market, currently and in the future. Investors
evaluate future attractiveness of a company by understanding
evolving opportunities, and threats as they relate to that
organization's own strengths and weaknesses. This will involve
strategies adopted, movement of share in the market for the past one
year, competitive advantage gained etc. Preparing projected Balance
Sheet & Profit and Loss Statements. Common size balance sheet and
common size profit & loss statement are used to predict the future
statements. Common size balance sheet is a statement where all the
assets and liabilities are expressed as a percentage of total assets of
the company whereas in common size profit & loss statement, all the
items are expressed as a percentage of net sales. Hence the
assumption are made as a percentage of net sales for predicting the
future profit & loss statement of the company.

 Ratio analysis: A ratio analysis is a quantitative analysis of

information contained in a company’s financial statements. Ratio
analysis is used to evaluate various aspects of a company’s
operating and financial performance such as its efficiency, liquidity,
profitability and solvency.

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5.2.Data to be collected
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 Standalone and Consolidated Balance Sheets and profit and loss Formatted: Font: 16 pt, English (India)

statements of the companies.

 Past share prices of the companies.
  Annual reports and other set of valid reports available.
 Industry Reports.
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5.3.Sources of data
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 Ace Equity.
 Annual Reports.
 Industry Reports.
 Company website.
 Research Papers.
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6.References
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 International Journal of Research in Engineering, Science and

Management Volume-1, Issue-12, December-2018.
 https://en.wikipedia.org/wiki/MRF_(company)