The tyre exports have witnessed a decent surge in the last few years, owing to more structured response from tyre companies. The exports have gone up by 15 per cent this year, rising for the fourth consecutive year.
However, the tyre industry has the potential of doubling the exports in the next few years with better policies in place. The Indian rupee has been stable, but the restrictions placed on the import of natural rubber are widening the gap between domestic supply and demand, an issue that was underlined long back by Pawan Kumar Ruia, the Chairman of Ruia Group.
Over the last few years, the tyre companies in India have aligned themselves to the global demands. Some of the firms like Apollo, CEAT, Ruia Group and few others have established a formidable reputation not only in India, but across various countries as well. The only concern is the rising prices that are hampering the progress.
On the other hand, the slowdown in the domestic market has freed up production capacity, fueling tyre exports. One of the most sought-after leaders in the tyre industry, Pawan Kumar Ruia is upbeat about the fortune as the auto sector has started doing well again. Having scampered through the worst slowdown by turning around ailing companies, he has kept Ruia Group in good stead.
Now, the industry is expecting an unprecedented boom in the country. With strong demand for tyres, import of natural rubber is imperative for tyre plants to run. The entire marketing mix including product, promotion and channel have to be designed as per the requirements of the local customer.
The currency depreciation in various key markets, including South Africa and the economic pressure in the ASEAN region due to slowdown in China is helping Indian companies. With pan India presence, major players like Ruia Group are set to go for full capacity utilization, under the able leadership of Pawan Ruia. While, other major players are also set to exercise their capability.
The tyre industry contributes 3.8 per cent of the manufacturing GDP at this juncture. Standing at the threshold of an important leap, it is likely to grow more, giving tyre manufacturers a perfect opportunity to set a new benchmark for the coming years.