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Raw Materials of  Tyre Industry - Overview     (FY 2011-12)

Tyre Industry is highly raw-material intensive. Raw materials cost accounts for approx. 72% of Tyre Industry Turnover.
Given below is the composition of raw-materials as a percentage (%) of Total Raw Material Cost:
Natural Rubber
44%
Nylon Tyre Cord Fabric
19%
Carbon Black
12%
Rubber Chemicals
5%
Butyl Rubber
4%
PBR
5%
SBR
5%
Others
6%

65% of total Natural Rubber consumption is by the Tyre Sector, balance by rubber based non-tyre industries.

Total weight of raw-materials consumed by tyre industry – 18 Lakh M.T.

Total Cost of Raw Materials consumed by tyre industry – Rs.30,000 Crores

Raw Material Availability
 
  • No domestic Production of Butyl Rubber and Styrene Butadiene Rubber (tyre grades), & 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:

    1. duty-free imports permitted against export of tyres;domestic demand not sufficient to meet complete requirement;technical and commercial considerations;
    2. business strategy to have multiple sources of supply.