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Raw Materials of Tyre
Industry - Overview
(FY 2010-11)
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Tyre
Industry is highly raw-material intensive. Raw materials
cost accounts for approx. 70% of Tyre Industry Turnover.
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Given
below is the composition of raw-materials as a percentage
(%) of Total Raw Material Cost:
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| Natural
Rubber |
44%
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| Nylon
Tyre Cord Fabric |
19%
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| Carbon
Black |
12%
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| Rubber
Chemicals |
5%
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| Butyl
Rubber |
4%
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| PBR |
5%
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| SBR |
5%
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| Others |
6%
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63% of total Natural Rubber consumption is by the Tyre Sector,
balance by rubber based non-tyre industries.
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Total
weight of raw-materials consumed by tyre industry –
17.50 Lakh M.T.
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Total
Cost of Raw Materials consumed by tyre industry –
Rs.21,000 Crores
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| Raw
Material Availability |
- No domestic Production of Butyl Rubber and Styrene Butadiene Rubber of tyre grades, i.e.,
1502 and 1712 & EPDM.
- Production of Nylon Tyre Cord Fabric, Polybutadiene Rubber, Rubber Chemicals, Steel Tyre Cord, Polyester Tyre Cord insufficient to meet domestic demand.
- Tyre industry imports raw materials on account of the following factors:
- duty-free imports permitted against export of tyres;domestic demand not sufficient to meet complete requirement;technical and commercial considerations;
- business strategy to have multiple sources of supply.
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