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The Rs.20, 000 crore Indian Tyre Industry, is highly raw material intensive and predominantly a Cross Ply (or Bias) tyre manufacturing industry. It produces all categories of tyres, except Snow Tyres and Aero Tyre for which there is no demand domestically. Indian tyre industry is highly concentrated wherein 10 large manufacturers account for over 95% of the total tonnage production of 11.35 lakh M.T. On an average, 55% of the production is for replacement market, followed by 29.8% sold to OEMs directly and the remaining is exported.

Over the years, tyre manufacturers have developed a vast marketing network using dealers and depots and as such all types of tyres are now easily available even in the remotest corner of the country. No doubt, international auto majors in India now roll out their vehicles using Indian manufactured tyres.

Slowdown in automotive industry and global economic in general negatively impacted the Indian tyre industry in 2009. The industry tonnage growth was only 2.19% during first nine months of FY09, 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.

Increasing Cost of Raw Materials: Ram materials primarily comprise of natural rubber, crude and steel based materials which have historically experienced volatility in prices, especially during the last few months when price of domestic natural rubber increased almost 40%. Given the fact that raw materials constitute around 70% of the cost of production, combined with the manufacturers' inability to pass on the increased cost to their customers due to intense competition, rise in prices of these materials have a huge impact on profitability.

Increasing Radialization: Unlike in the developed countries, radialization has not yet reached its dominance in India. Particularly the truck, bus and LCV segments continue to be largely a cross ply based. Despite offering higher mileage, lower fuel consumption and improved safety, radial tyres have not yet caught on primarily because of poor road conditions and high initial cost which is approximately 25% higher than bias tyres. Moreover, the two important raw materials required for producing radial tyres (Steel Tyre Cord and Polyester Tyre Cord) are not manufactured domestically. Moving towards radialization will be vital if tyre producers want to protect their share in international markets. As of 2008, radialization as a percent of total production in passenger car tyres, LCV and heavy vehicles was 95%, 12% and 3% respectively.

Off the Road Tyres: Last year saw the top manufacturers, including CEAT and JK Tyres increasing their capacity of OTR (Off the Road) tyre production. OTR tyres are customized tyres and provide relatively higher margin. Increasing the proportion of OTR in the product mix is seen as a measure to improve profitability.

Increased Dumping: Besides material price fluctuations and lack of radialization, the industry is also suffering intense competition from low priced tyres from China and other South East Asian countries. Despite being of a better quality, Indian manufactured tyres loose ground when it comes to pricing. Moreover, slowing automotive demand from developed countries has made India a lucrative market for cheap tyres, thus resulting in increased dumping of cheap tyres from China.

Retreading: Another area of concern for the tyre manufacturers is the increasing retreading, where the worn out tread of the old tyre is replaced with a new tread. Retreading costs approximately 20% of a new tyre and is therefore gaining popularity, especially in Southern part of the country. Elgi Tyres and Tread Ltd are the two major retreaders in India. Significance of such retreaders can be gauged by the fact that around 85% of the tyre demand is for replacement.

Unresolved Tax Issue: The issue of inverted tax structure, wherein the import duty on natural rubber is 20% but import duty on finished tyres is as low as 10% still remains unaddressed. Operational inefficiency and taxation issues have being denting the competitiveness of Indian tyres.

Global Expansion: Several manufacturers are now moving global and are setting up manufacturing bases overseas. After acquiring Dunlop three years ago, Apollo Tyres recently acquired Vredetein Banden in Europe. JK Tyres acquired Tornel, a Mexican company last year to penetrate into American tyre market.

Despite these challenges, according to CARE Research, while the industry may register a tonnage growth of only 4.27% in FY09, the long term prospective seems to be bright. They expect the industry to experience a CAGR of approximately 8.21% between FY08 to FY13. Automotive companies have started experiencing increasing sales and raw material prices are stabilizing which will boost tyre sales over the coming months. However, experts suggest there will be some time lag before profitability picks up as tyre manufacturers are still carrying high cost inventories.

For more information, please refer to http://understandingbasicsoffinance.blogspot.com/. Geetika

Cape Town Film Production

South Africa's beautiful Mother City, Cape Town has become increasingly popular as a film location in recent years. The unmistakable Cape scenery can be seen as backdrops for advertisements, movies and television programs the world over.

It is becoming quite usual for local Capetonians to spot Hollywood stars out and about at the Cape's luxury hotels, funky cocktail bars and cafes and even relaxing on the exquisite white beaches of the uber-trendy Atlantic Seaboard. Many feature films have been shot in Cape Town over the past years - most notably Lord of War (starring Nicolas Cage) which was released in late 2005.

On any given day, especially in the summer season (November to February) one can spot numerous sign boards for a range of production companies on location on the roads of the Cape.

Numerous local casting agencies and production houses have sprung up all over Cape Town. One of the big draw-cards for international film crews is the excellent and affordable local talent available for everything from feature length movies to clothing catalogues. Many of Cape Town's men, women and children earn extra income by featuring in big and small productions being filmed in and around the city.

The exchange rate is favorable to most incoming production crews, which is another key motive for them choosing Cape Town as a location.

In addition many international passport holders are not required to obtain visas prior to entering South Africa, which means less paperwork and red tape for visiting production teams.

Cape Town offers a huge diversity of locations. From 5 star resorts and hotels and luxury beachfront mansions to bustling inner city streets; from majestic mountains to wide open beaches to shady forests - it's all here. The cameramen who come to Cape Town always exclaim on the great natural light that bathes the city.

Many of the sites can also double as well-known but more expensive locations in other parts of the world.

There are also plenty of historical touches found in the variety of architecture and décor of certain quarters, as well as a rich cultural diversity which adds texture and color to many productions and shoots.

About the Author

Francois specializes on <a href=http://www.bookcapetown.com>Cape Town</a> tourism. He has written many articles on <a href=http://www.bloombergaccommodation.co.za/>Cape Town accommodation</a> and <a href=http://www.drivesouthernafrica.com/>car rental South Africa</a>. For more tips visit his website.

white milky film on windshield?

i used to bring my car to the car wash until their brush broke the blinker holder. so i decided to wash my car with mr clean Auto Dry. Let me tell you...WORST DECISION EVER! i guess the film on my windshield is the auto dry party. when it rains and when my wipers go across, my whole windshield leaves a white film and then in about 3 seconds it dries up. its a pain because it blurs my vision driving and just a pain in the ass! i have tried re-washing about 3 times, soda to clean it,rubbing alcohol and nothing works! i asked a friend of mine who is a mechanic if he knew, and he said put some rain x on it and it lubricates it and the rain just sheets off. but then my mom said it was the worst thing she ever used. she said it left a film on her windshield. is that the same thing i have goign on? what would be a good thing to get rid of that? i did put NEW blades on. please help? has anybody used rain-x?

I've used Rain-X for years and love it....

You have a very light film of oil on your windshield though that needs to be thouroghly cleaned off before you put Rain-X on.

Try brake cleaner and an old T-shirt to remove all the oil residue from your windshield.
Then use a good window cleaner, then rain-X.

Oh, by the way, brake cleaner is going to ruin paint, rubber, and your hands if you get it on them. (be carefull)

ADDED:
Don't use those "new fangled" sylicone wiper blades. They SUCK!!

Back on the track: Pace-setting female jockey returns after 41 years
Months of preparation for a single race that will be over in minutes. Hours in the exercise saddle working youngsters on the track as the sun begins to rise.

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