A SUMMER TRAINING REPORT ON MARKETING TRAIT CEAT TYRES
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA), GURU JAMBESHWAR UNIVERSITY, HISAR
TRAINING SUPERVISOR
SUBMITTED BY
Acknowledgement The present work is an effort to throw some light on “Marketing Trait Ceat Tyres”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.
With deep sense of gratitude I acknowledged the encouragement and guidance received by my organizational guide Prof. Shah Washim and other staff members. I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.
Table of Content INTRODUCTION
BACKGROUND
OVERVIEW OF THE SITUATION
SEGMENTATION OF INDIAN TYRE INDUSTRY Technology based Use based Markets Market Share and Size Peculiar Features of the Tyre Industry Demand Drivers Trends in Raw Material Opportunities Lying Ahead Threats Tyre Company Profiles
RESEARCH HYPOTHESIS
RESEARCH OBJECTIVE
BENEFITS OF THE STUDY
SCOPE OF THE STUDY
PROBLEM CONTEXT INDUSTRY/ORGANIZATION/PERSPECTIVES/IMPLICATIONS
CONCEPTUAL FRAMEWORK
DEFINITION/OPERATIONALIZATION OF TERMS
RESEARCH DESIGN /METHODOLOGY
RESEARCH SAMPLING AND DESIGN
RESEARCH VARIABLES AND MEASUREMENT
DATA COLLECTION METHODOLOGY
LIMITATIONS OF TRESEARCH
DATA PRESENTATIONS AND FINDINGS
PRESENTATION OF DATA
DATA ANALYSIS
SWOT ANALYSIS
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS CONCLUSION RECOMMENDATIONS REFERANCES
INTRODUCTION Ceat Ltd, a part of the RPG Goenka group, is the second largest tyre manufacturer in the country after MRF. Ceat manufactures truck & bus, passenger car, scooter and LCV tyres. The company is a dominant player in the truck & bus and passenger car tyre segments with a market share of 14% and 17% respectively. In FY2000, Ceat did well to posting a 21%yoy sales growth in the replacement market for truck & bus tyres. It is presently focusing on catering to the fast growing passenger car and two-wheeler industry. Towards this, it is commissioning a new radial tyre factory in June 2000. Industry basics Tyre industry is capital intensive and as capacities come in spurts, it leads to constant demand-supply imbalances and consequent cyclicality in prices. Variable cost is also very high, with raw materials forming nearly 70% of the costs. Profit margins are therefore thin. Production process is technology intensive and globally huge sums are invested in R&D. Tyre demand is a derived demand, dependent on the auto industry, both for OEM and replacement market. The major segments are Truck & Bus (T&B) tyres and car tyres. Value share of T&B segment is about 73%. This segment is highly competitive and margins are typically lower than in the car tyres segment. Replacement market forms the largest segment (about 58%), followed by OEM (about 22%). Export accounts for about 15%.
With global demand slowing down, there is a consolidation of capacities through mergers etc. The domestic tyre industry broadly mirrors the market characteristics of the global industry. However, due to rough road conditions, the more rugged, suitable and cheaper cross ply tyres are in vogue. Consumption of natural rubber is, therefore, proportionately higher. The government has decided to impose 10% safeguard duty on carbon black and hiking benchmark prices of natural rubber (2530% of sales) in February 1999. Its impact was felt only to an extent as prices of these commodities are ruling at historical lows in the global market. Ceat is part of the RPG group, which is diversified, with presence in major sectors like power, fertilizers, pharmaceuticals, tyres, computer, telecom, financial services etc. The group stumbled trying to grow via diverse platforms and has many companies that have turned sick. But lately the strategy seems to be one of restructuring and consolidation. The group is divided into 4 broad areas - rubber & allied products, power, electronics & telecom and chemicals. Ceat’s investments in its subsidiaries have also come down this fiscal which is a sign of prudence on the management. BUSINESS DESCRIPTION Ceat is a manufacturing company, which produces rubber, tire, nylon fabric products, nylon tire yarn, glass fiber, automotive flaps,
filament
mats
and
other
rubber
products
for
the
automotive markets in India. The company has a well established research and development center that evaluates the application and development of new raw materials, compounds and tire
sizes. It produces tires for two and three wheeled vehicles, passenger cars, LCVs, trucks and buses. Ceat exports to almost 50
countries,
with
the
US
being
the
largest
destination.
The company also provides investment financial services through Meteoric Industrial Finance and Atlantic Holdings. Automotive tire sales account for around 90% of revenues, automotive tubes account for about 8% and the remaining revenues come from other non-core operations. The company is pursuing a strategic initiative of intensifying outsourcing to expand its product range and increase production volumes. Ceat has an agreement with Pirelli of Italy for outsourcing radial tires which are being marketed under the CEAT Spider Radials brand name.
CEAT INDIA Ceat Limited is a manufacturer of tires in India. Automotive tires comprise the largest part of the Company's revenue, however it also produces tire flaps, rubber tubing and nylon thread. The Company also offers financial services through Ceat Financial Services Limited, including hire purchase, office equipment finance, container and equipment/infrastructure leasing and money market operations.
History
CEAT stands for Cavi Electrici Affini Torino (Electrical Cables and Allied Products of Turin). CEAT International was first established in 1924 at Turino in Italy and manufactured cables for telephones and railways. In 1958, CEAT came to India, and CEAT Tyres of India Ltd was established in collaboration with the TATA Group. In 1982, the RPG Group took over CEAT Tyres of India, and in 1990, renamed the company CEAT Ltd.
LITERATURE REVIEW Ceat Ltd, a part of the RPG Goenka group, is the second largest tyre manufacturer in the country after MRF. Ceat manufactures truck & bus, passenger car, scooter and LCV tyres. The company is a dominant player in the truck & bus and passenger car tyre segments with a market share of 14% and 17% respectively. In FY2000, Ceat did well to posting a 21%yoy sales growth in the replacement market for truck & bus tyres. It is presently focusing on catering to the fast growing passenger car and two-wheeler industry. Towards this, it is commissioning a new radial tyre factory in June 2000.
Industry basics
Tyre industry is capital intensive and as capacities come in spurts, it leads to constant demand-supply imbalances and consequent cyclicality in prices. Variable cost is also very high, with raw materials forming nearly 70% of the costs. Profit margins are therefore thin. Production process is technology intensive and globally huge sums are invested in R&D. Tyre demand is a derived demand, dependent on the auto industry, both for OEM and replacement market. The major segments are Truck & Bus (T&B) tyres and car tyres. Value share of T&B segment is about 73%. This segment is highly competitive and margins are typically lower than in the car tyres segment. Replacement market forms the largest segment (about 58%), followed by OEM (about 22%). Export accounts for about 15%. With global demand slowing down, there is a consolidation of capacities through mergers etc. The domestic tyre industry broadly mirrors the market characteristics of the global industry. However, due to rough road conditions, the more rugged, suitable and cheaper cross ply tyres are in vogue. Consumption of natural rubber is, therefore, proportionately higher. The government has decided to impose 10% safeguard duty on carbon black and hiking benchmark prices of natural rubber (2530% of sales) in February 1999. Its impact was felt only to an extent as prices of these commodities are ruling at historical lows in the global market. Ceat is part of the RPG group, which is diversified, with presence in major sectors like power, fertilizers, pharmaceuticals, tyres, computer, telecom, financial services etc. The group stumbled
trying to grow via diverse platforms and has many companies that have turned sick. But lately the strategy seems to be one of restructuring and consolidation. The group is divided into 4 broad areas - rubber & allied products, power, electronics & telecom and chemicals. Ceat’s investments in its subsidiaries have also come down this fiscal which is a sign of prudence on the management.
Indian Tyre Industry The tyre industry has witnessed a CAGR of 8.3% over the last decade mainly fuelled by the strong growth in the domestic auto industry. Though the replacement market has driven the industry growth for long time, the OEM market has seen a robust growth over the last couple of years. The industry is highly capital intensive, as it requires around Rs4bn to setup a radial tyre plant with a capacity of 1.5mn tyres and around Rs1.5-2bn for a crossply tyre plant of a capacity to manufacture 1.5mn tyres. The profitability of the industry has high correlation with the prices of key raw materials such as rubber and crude oil as they account for more than 70% of the total costs. The raw material to sales ratio in the industry is around 65%. The industry has high entry barriers because of its capital intensive nature and low operating margins. With demand
increasing at a steady pace, the industry is expected to go through a consolidation phase. The industry is dominated by four players viz MRF, Apollo Tyres, JK Industries and Ceat and enjoys more than 70% of the total market share. The fortunes of the industry are linked to the trend in the domestic auto industry, retreading, trend in road transportation and spending on road infrastructure. The companies have lined up further expansion plans to meet the increasing demand. India Infoline Sector Studies : Indian Tyre Industry is available in Acrobat Reader (PDF) format. The Report provides exhaustive information on the Indian Tyre Sector, the demand drivers, trends in the industry (with respect to production, exports, market share), key characteristics of the Indian market and profile of leading players in India.
Boards okay Harrisons rubber division merger with Ceat Our Bureau MUMBAI, April 19
THE process of consolidating the rubber business of the Rs 6,700-crore RPG Enterprises got under way with the boards of Ceat Ltd and Harrisons Malayalam Ltd (HML) approving the scheme of arrangement involving the demerger of the rubber division of HML and its transfer to Ceat. The appointed date of the Scheme of Arrangement is fixed as October 1, 2002. Under the demerger plan for HML, Ceat will issue 95,03,900 equity shares of Rs 10 each to HML and 36,91,081 equity shares of Rs 10 each to the shareholders of HML in the ratio of one share for five equity shares held by these shareholders. The existing paid-up capital of HML will be reduced from Rs 18.45 crore to Rs 9.23 crore by reducing the paid-up value of each equity share of Rs 10 each to Rs 5 each. Besides, Ceat's investment
portfolio
will
be
demerged
and
transferred
to
Meteoric Industrial Finance Company (MIFL), one of Ceat's nonbanking financial subsidiaries. Under this demerger, MIFL will issue 3,52,13,320 equity shares to shareholders of Ceat in the ratio of one equity share of MIFL of Re 1 each for every one equity share of Ceat of Rs 10 each held by
such
shareholders
in
Ceat.
This
scheme
will
provide
reclassification of the unissued equity shares of Rs 10 each of MIFL into equity shares of Re 1 each.
Post this issue of shares, MIFL will cease to be a subsidiary of Ceat and an application will be made to the Bombay Stock Exchange for listing the company. The objective of this consolidation is to strengthen the rubber business by creating backward integration for Ceat, an official press release said quoting Mr Harsh Goenka, Chairman, RPG Enterprises. "With the merger of HML's rubber division and the divestment of all its non-tyre assets Ceat will be able to focus on its tyre business and also improve its option for sourcing this important raw material for its tyre manufacturing activities and bring about synergistic effects,'' RPG Enterprises said in the press release. Ceat had earlier said that the merger of the rubber division of HML with itself would improve the company's options for sourcing this important raw material for its tyre manufacturing activities and bring about synergic effects. HML's rubber division has a turnover of Rs 50 crore from a crop output of about 10,000 tonnes per annum, while Ceat's natural rubber consumption was approximately 50,000 tonnes worth Rs 260 crore last year. As regards HML, the demerger of the rubber division will help it to focus on its core business area of tea. The financial restructuring would enable the business to grow not only its tea business but also consider expansion into new agriculture related food products.
The Board of HML also gave its approval for a scheme of amalgamation of its 100 per cent subsidiaries, Harrisons Agro Products Ltd, Harrisons Rubber Products Ltd and Harrisons Malayalam Financial Services Ltd with itself. The valuers to the Scheme are SBI Capital Markets & KPMG and the advisors are Lodha & Co. The scheme is subject to the sanction of the courts and the National Company Law Tribunal. Ceat, MIFL and HML and its subsidiaries will apply to the High Courts for approval. Khaitan & Co has been appointed as advocates to the scheme for this purpose.
MARKETING STRATEGY Boards okay Harrisons rubber division merger with Ceat Our Bureau
MUMBAI, April 19 THE process of consolidating the rubber business of the Rs 6,700-crore RPG Enterprises got under way with the boards of Ceat Ltd and Harrisons Malayalam Ltd (HML) approving the scheme of arrangement involving the demerger of the rubber division of HML and its transfer to Ceat. The appointed date of the Scheme of Arrangement is fixed as October 1, 2002. Under the demerger plan for HML, Ceat will issue 95,03,900 equity shares of Rs 10 each to HML and 36,91,081 equity shares of Rs 10 each to the shareholders of HML in the ratio of one share for five equity shares held by these shareholders. The existing paid-up capital of HML will be reduced from Rs 18.45 crore to Rs 9.23 crore by reducing the paid-up value of each equity share of Rs 10 each to Rs 5 each. Besides, Ceat's investment
portfolio
will
be
demerged
and
transferred
to
Meteoric Industrial Finance Company (MIFL), one of Ceat's nonbanking financial subsidiaries. Under this demerger, MIFL will issue 3,52,13,320 equity shares to shareholders of Ceat in the ratio of one equity share of MIFL of Re 1 each for every one equity share of Ceat of Rs 10 each held by
such
shareholders
in
Ceat.
This
scheme
will
provide
reclassification of the unissued equity shares of Rs 10 each of MIFL into equity shares of Re 1 each.
Post this issue of shares, MIFL will cease to be a subsidiary of Ceat and an application will be made to the Bombay Stock Exchange for listing the company. The objective of this consolidation is to strengthen the rubber business by creating backward integration for Ceat, an official press release said quoting Mr Harsh Goenka, Chairman, RPG Enterprises. "With the merger of HML's rubber division and the divestment of all its non-tyre assets Ceat will be able to focus on its tyre business and also improve its option for sourcing this important raw material for its tyre manufacturing activities and bring about synergistic effects,'' RPG Enterprises said in the press release. Ceat had earlier said that the merger of the rubber division of HML with itself would improve the company's options for sourcing this important raw material for its tyre manufacturing activities and bring about synergic effects. HML's rubber division has a turnover of Rs 50 crore from a crop output of about 10,000 tonnes per annum, while Ceat's natural rubber consumption was approximately 50,000 tonnes worth Rs 260 crore last year. As regards HML, the demerger of the rubber division will help it to focus on its core business area of tea. The financial restructuring would enable the business to grow not only its tea business but also consider expansion into new agriculture related food products.
The Board of HML also gave its approval for a scheme of amalgamation of its 100 per cent subsidiaries, Harrisons Agro Products Ltd, Harrisons Rubber Products Ltd and Harrisons Malayalam Financial Services Ltd with itself. The valuers to the Scheme are SBI Capital Markets & KPMG and the advisors are Lodha & Co. The scheme is subject to the sanction of the courts and the National Company Law Tribunal. Ceat, MIFL and HML and its subsidiaries will apply to the High Courts for approval. Khaitan & Co has been appointed as advocates to the scheme for this purpose.
Ceat Limited AVAILABLE NOW! LABOR PRODUCTIVITY BENCHMARKS AND VERTICAL GAP ANALYSIS ON Ceat Limited Published today by ICON Group International, Ltd. Two of the most comprehensive studies to date on labor productivity and vertical gap analysis benchmarks for Ceat Limited (BOM).
The methodologist for this unique study is Philip Parker, Eli Lilly Chair Professor of Innovation, Business and Society at INSEAD (Fontainebleau, France and Singapore). According to Professor Parker, “With the globalization of markets, greater foreign competition, and the reduction of barriers to entry, it becomes all the
more
important
to
benchmark
a
company’s
financial
indicators on a worldwide basis. World stock markets have recently witnessed a return to fundamental financial analysis. ” The goal of the reports is to assist consultants, financial managers, strategic planners, and corporate officers in gauging certain indicators of Ceat Limited’s financial and human resource structure. The report has benchmarked Ceat Limited against competing firms in the Tires and Inner Tubes Manufacturing industry worldwide—going
beyond
traditional
methods
of
company
benchmarking. The results are two specialized reports: (1) global financial
benchmarks
using
common-size
statement
ratios
(vertical analysis), and (2) labor productivity and utilization measures collected across borders.
Coverage Two reports, financial ratios and labor productivity ratios, are available for Ceat Limited. Each report reveals productivity and industry ranks for Ceat Limited in the Tires and Inner Tubes Manufacturing industry. Reports for the following and many other Tires and Inner Tubes Manufacturing companies are available now:
Bridgestone Corporation Brisa Bridgestone Sabanci Lastik Sanayi ve Ticaret AS Ceat Limited, Compagnie Financiere Michelin, Compagnie Generale des Etablissements Michelin Continental AG Cooper Tire & Rubber Co DMIB Berhad (Malaysia) Dunlop Africa Limited Feng Tay Enterprise Co Ltd Goodyear (Thailand) Public Company Limited Goodyear Indonesia P.T. Hankook Tire Co. Ltd. Heung Ah Corp Kenda Rubber Industrial Co., Ltd. Kumho Industrial Company Limited Marangoni S.p.A. Nexen Tire Pirelli S.p.A. Sumitomo Rubber Industries Ltd. The Goodyear Tire & Rubber Co Toyo Tire & Rubber Co., Ltd. Vredestein NV
Yokohama Rubber Company, Limited •
The vertical analysis deals with questions like: How has Ceat Limited’s asset structure varied compared to global benchmarks for the Tires and Inner Tubes Manufacturing industry? Does it generally hold more cash and other shortterm assets, or does it tend to concentrate its assets in physical plant and equipment? On the liability side, does Ceat Limited typically have a higher percent of payables compared to the benchmarks, or does it hold a higher
concentration of long-term debt? Does Ceat Limited have a relatively higher cost of goods sold, operating costs, or income taxes compared to global benchmarks? Have Ceat Limited’s returns on equity been higher or its profit margins greater? •
While the labor productivity analysis answers the following: What has been the ratio of short-term and long-term assets to employee? What are typical capital-labor ratios? What are the average sales and net profits per employee compared to global benchmarks?
•
Professor Parker notes, "We are intrigued by the wide variations in basic financial and productivity measures between Ceat Limited and other Tires and Inner Tubes Manufacturing companies. The Earnings Before Interest And Taxes (EBIT), for example, varied from -2.1 to 64.21. We see this type of variation in the hundreds of ratios that we estimate.” Methodology: Uncovering Gaps
Most vertical analyses merely focus on benchmarking against domestic ratios, often published by government agencies or commercial sources. In contrast, the report calculates thousands of industry norms by looking at firms at the global level, pooling statistics on tens of thousands of companies across over 40 countries, and applying a seven-stage methodology: (1) identification of industry classifications,
(2) firm-level data collection and aggregation, (3) standardization of raw statistics, (4) filtering outliers, (5) calculation of global norms, (6) projection of deviations and gaps, and (7) projection of ranks and percentiles. For each part of the financial statement, the larger structural differences and gaps between Ceat Limited. and the global benchmarks are provided with summary tables of ranks and percentiles. TYRE manufacturer Ceat Ltd is on the road to recovery. Yet even as it leaves its losses behind, refuses to borrow and enhances sales, there are sectoral issues it must confront. Mr Paras K. Chowdhary, Managing Director, Ceat, spoke recently to Business Line on the domestic tyre industry and challenges before it.
LIMITATION OF THE RESEARCH This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your responsibility alone and India Infoline Ltd (hereinafter referred as IIL) and its subsidiaries or its employees or directors, associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and
authenticity of the information contained herein, but do not represent that it is accurate or complete. IIL or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. The recipients of this report should rely on their own investigations.
IIL and/or its
subsidiaries
and/or directors,
employees or associates may have interests or positions, financial or otherwise.
DATABASE AND RESEARCH METHODOLOGY The research Methodology defines the is the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study, the appropriate research design formulated is detailed below. Exploratory research: this kind of research has the primary objective of development of insights into the problem. it studies
the main area where the problem lies and also tries to evaluate some appropriate courses of action. The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. The important component of research methodology such as, method of data collection, tools for processing of the data and reporting format of the study, are enumerated as follows:
DATA COLLECTION The present study contemplated an exploratory research. Secondary
data:
secondary
data
which
is
already
available and published .it could be internal and external source of data.
Internal source: which originates from the specific field or area where research is carried out e.g. publish brouchers, official reports etc.
External source: which originates outside the field of study like books, periodicals ,journals, newspapers and the internet.
NATURE OF DATA Secondary data has been used which is collected through articles, reports, journals, magazines, newspapers reports prepared by research scholars, universities and internet.
TOOLS AND TECHNIQES Analysis of data has been done with help of various statistical tools like the tables and graphs.
DATA PRESENTATION AND ANALYSIS This Report features up to a ten-year record of the equity Price history for Ceat Limited. Tabular results include the High, Low and Closing price for the quarter. There is also a calculation of percentage change in price for both Quarterly and Annual periods. Price values are adjusted for stock splits and dividends. •
Ceat Limited. The Group's principal activities are to manufacture and distribute automotive tyres, tubes and flaps. The products include nylon fabric, nylon tyre yarn, glass fibre, automotive flaps, filament mats and other rubber products. The Group also provides investment financial services. The Group supplies to over 50 countries with the major business links in the United States of America, Singapore, the United Arab Emirates, Bangladesh, Philippines, Afghanistan, and Nigeria and other Asian, Middle East and African countries.
Layout and Content of a Typical Report
Tyre Industry April 2004 update The tyre production in India witnessed a growth of 29.8% on a yoy basis in the month of April 04. The most significant growth was seen in the production of the passenger car segment, which saw a jump of 59% to 936,853 in April 2004 as against 588,238 in April 2003. Other significant segments were the motorcycle segment and the tractor segment. The motorcycle segment witnessed a growth of more than 29% and the tractor segment (Front, Rear and Trailer) registered a growth of more than 25%. •
The contribution of the tyre and bus segment to the total production in April 2004 reduced to 18.8% from 21.6% in April 2003. The passenger car segment, which contributed 16.3% in April 2003, increased its share in total production to 20%. The share of the tractor segment decreased from 5.1% to 4.9% for the same period.
•
If any indication from these figures have to be taken, the growth in the passenger segment would be more than that in the commercial vehicle segment in the near future. In the recent past, there has been an ostensible shift in the demand of two wheelers from scooters to motorcycles. The figures for the production of tyres in the respective segment envisage the scenario to continue in the near term. Above average pre-monsoon showers are expected to give positive triggers to the demand of tractors. Increasing production of tractor tyres is an indicator for the same.
•
Exports of tyres grew by a substantial 39.6% in April 2004 to 291,409 from 208,710 in April 2003. The major contributors to this growth were the passenger car and the scooter segments by registering a growth of 200% and 293%. During FY04, exports contributed to the tune of 20.6% and 6% to total production of tyres in truck & bus and passenger car segments respectively. The same figures for the respective segments were 17.7% and 5.5% in April 2004. In FY04, the exports contributed 4.6% of the total tractor tyres production, which decreased to 2.9% in April 2004. This further indicates that the domestic auto industry is all set to witness a substantial growth.
Production (In mn) Apr-04 Apr-03 Truck & 880,275 777,280
Exports Growth Apr-04 Apr-03 Growth 13.3 154,695 123,760 25.0
Bus LCV 291,828 Jeep 130,774 Passenger 936,853
32.7 30.5 59.3
Car Total
219,895 100,235 588,238
4- 2,239,730 1,685,648 32.9
62,677
45,475
37.8
51,573
17,157
200.6
268,945 186,392 44.3
wheeler Tractor
108,756
94,360
15.3
1,104
1,955
(43.5)
(Front) Tractor
80,309
58,056
38.3
5,326
11,244
(52.6)
(Rear) Tractor
40,590
30,860
31.5
217
226
(4.0)
(Trailer) Total
229,655
183,276
25.3
6,647
13,425 (50.5)
Business Description: Ceat Limited. The Group's principal Tractor activities are to manufacture and distribute automotive tyres, tubes and flaps. The products nylon3,110 fabric, 293.1 Scooter 796,918 611,033 30.4 include 12,225 Motor 1,054,453 29.2 2,750 1,975 39.2 nylon tyre1,362,593 yarn, glass fibre, automotive flaps, filament Cycle mats and other rubber products. The Group also provides Moped 8,205 18,508 (55.7) 4 646 (99.4) investment financial services. The Group supplies to over Total 2- 2,167,716 1,683,994 28.7 14,979 5,731 161.4 50 countries with the major business links in the United wheeler States of America, Singapore, the United Arab Emirates, Animal 9,514 18,585 (48.8) Bangladesh, Philippines, Afghanistan, and Nigeria and other Drawn Asian, Middle East and African countries. Vehicle Industrial 23,068 Off the 4,613
26,769 3,176
(13.8) 45.2
50 788
1,958 1,204
(97.4) (34.6)
Road Total
37,195
48,530
(23.4) 838
3,162
(73.5)
Others Final
4,674,296 3,601,448 29.8
291,409 208,710 39.6
Total
STOCK CHART
Recent stock performance 1 Week
2.9%
4 Weeks
2.7%
13 Weeks
-8.7%
52 Weeks
-26.0%
Vision and Mission •
“CEAT will each time every time provide Total Customer Satisfaction through products and services of highest quality and reliability.
•
CEAT will nurture an exciting and challenging working environment embedded with fairness and free, frank exchange of views.”
Current Scenario Manufactures over 6 million tyres every year. Enjoys 55% of the local market for light truck and truck tyres. Operates from plants in Mumbai and Nasik. Exports to USA, Africa and other parts of Asia. Has a robust network consisting of 36 regional offices, over 3,500 dealers and more than 100 C&F agents. Has a dedicated Customer Service department, comprising Customer Service Managers in all four divisional offices, assisted by 50 Service Engineers.
CEAT & Cricket The first international rating system
In 1995, the Professional Management Group (PMG) and CEAT decided to transform cricket into an experience, bigger and more exciting than anything players and fans had ever witnessed. They decided
to
reward
the
performances
of
players
international
at
the level.
Thus was born the first International Rating System—CEAT Cricket
Rating
(CCR)—a
system
to
reward
outstanding
performances across every sphere of cricket—batting, bowling, fielding and even wicket-keeping! A comprehensive award system CCR encompasses all international matches (Test matches and One-day Internationals) played over twelve months, between May 1 and April 30. It rewards both, individual players as well as teams, and is indeed the world’s most credible cricket rating. A lifelong title After twelve months of scoring centuries, sending stumps flying and taking impossible catches, the best cricketer receives his most fulfilling reward—the ‘CEAT International Cricketer of the Year’. And of course, the most enduring team is rewarded too. It wins
the
‘CEAT
International
Team
of
the
Year’.
In 1996, Brian Lara won the first 'CEAT International Cricketer' award. A year later, Pakistan won the first 'CEAT International Team' award. During the World Cup in 1999, CEAT instituted the
'CEAT International Cricketer of the World Cup' award, and it went
to
Rahul
Dravid
for
his
phenomenal
performance.
The experts’ decision is final CCR is adeptly managed by a Governing Council comprising cricket legends Sunil Gavaskar, Clive Lloyd and Ian Chappell. The day-to-day affairs are overseen by Sanjay Manjerekar, the Executive Director of the Council.
•
Having been in the export business for over forty years, CEAT today enjoys 14% of the Indian market share of global exports, clients in over seventy countries, and a turnover of US $47 million.
Exporting technologically advanced products •
From five world-class plants, three in India and one in Sri Lanka, we manufacture a wide range of tyres for all user segments including trucks, buses, and LCVs. We also export farm, industrial, grader, OTR, car, scooter, autorickshaw, motorcycle and passenger car radials.
Enjoying large market shares •
Our individual market shares include 64% in Singapore, 22% in UAE and 22% in Philippines. We also send our products into USA, Bangladesh, Pakistan, Vietnam, Iran,
Nigeria, Egypt and other African, Middle-East and Far-East Asian countries. Meeting global standards •
With our manufacturing processes being globally approved by DOT (Department of Transportation) and IN-METRO, our products have direct entry into the US and Latin American markets.
Honoured with Quality certificates •
We are the first Indian tyre company to receive an ISO certificate (ISO/TS 16949: 2002, in the year 2003-2004). Over the last ten years, we have consistently been receiving export awards from AIRAI and CAPEXIL. A rare honour, indeed.
RESULTS AND DISCUSSIONS Business
Ceat is the second largest tyre manufacturer in the country. In FY2000, it produced 5.72mn number of tyres as compared to 5.24mn units in FY99, a rise of 9%yoy. Tyres
Ceat manufactures truck & bus, passenger car, scooter and LCV tyres. Ceat has an extensive distribution network of more than 3,000 dealers. Though known for its quality and successful brands such as Formula I, Endura, Secura, Samrat, Maestro, Stamina etc, market aggressiveness has been much lower than competitors like MRF or Apollo. During the year, Ceat posted a rise of 21%yoy in truck tyre sales in the replacement market in value terms. This was made possible by the 22%yoy increase in the production of truck tyres.
In FY2000, sales of tyres
contributed to 90.3% to the total turnover. During the year, the company has launched new products under the brand names ‘Fleet Master’, ‘Turbo Lug’ and ‘Elevata’. Tubes and flaps The
company
does
not
have
any
production
facility
for
manufacturing of tubes and flaps. It sources the products from other manufacturing units. In FY2000, sales of tubes and flaps contributed to 9.6% of total turnover. It sold 5.03mn tubes as compared to 4.47mn in FY99 and 1.34mn flaps as compared to 1.15mn in FY99. Exports Ceat is the second largest tyre exporter after J K Industries. Export sales on a FOB basis has fallen by 9.5%yoy from Rs1.2bn in FY99 to Rs1.08bn in FY2000. Export sales were hampered by a demand decline in the US market.
Its Sri Lankan venture Associated Ceat Pvt Ltd has a 55% share of the Sri Lankan market. In November 1998, the company tied up with a local firm, Kelani Tyres Ltd. This merger would have combined production capacity of 34 metric tons. The turnover of the JV grew from Sri Lanka Rs1.29bn in FY99 to SL Rs1.36bn in FY2000. Profit before tax rose 28%yoy to SL Rs75mn. Expansion plans The company has planned a capex of Rs1bn spread over the FY2000 and FY01. While Rs400mn will be spent on capacity upgradations, Rs600mn will be utilized for a new radial facility at its Nashik plant, which as part of the first phase will start commercial production in June 2000. A greenfield project is likely to be set up in the second phase. The company had taken over Rado Tyres in Kerala in FY98 and plans to increase its manufacturing capacity from 15,000 to 40,000 in the first phase and 70,000 in the next phase. Outlook Ceat’s fortunes are now (post restructuring) entirely linked to the tyre industry’s fortunes. As a leading player in the commercial vehicle, passenger car market and two-wheeler tyre segments, it is expected that the company would take advantage of the continuing growth in these segments. The new radial tyre plant coming up in Nashik would help the company find a foothold in the fast growing segment. Even in the export market, the company is reducing its dependence on standard bias-ply
products and concentrating on niches. The company has done well by rationalizing its debt portfolio by replacing short-term loans with long term financing from FIs. This has brought down interest costs as has been witnessed in FY2000. However, with sale of investments in its many subsidiaries, Ceat can no longer prop its operational income with ‘other’ income. Moreover, operating margin will be affected by the rise in prices of raw material inputs. With augmented capacities for car radial tyres and two/three wheeler tyres and initiatives in the field of supply chain management and controlling costs, Ceat is expected to do reasonably well for the rest of the fiscal. Demand determinants •
Growth
of
automobile
industry
will
increase
vehicle
population and thereby the demand for tyres in the OEM as well as the replacement markets. •
Relative importance of road transport and long distance travel by road leading to increased need to replace tyres.
•
Development of export market will also enable higher capacity utilization levels.
•
Economic scenario and credit availability will determine ability to purchase automobiles and in turn spur demand for tyres.
•
Retreading saves up to 80% on original cost and this will have a negative impact on fresh demand.
•
Radialisation increases the life of tyres and reduces the need for a replacement, which may inhibit volume growth.
Earning drivers •
Raw material price fluctuations: Prices of natural rubber, an agricultural commodity. Other raw materials are mainly petrochemical based and movements are cyclical.
Freeing imports of radial tyres will affect margins in that segment.
Ceat Tyres targets 14 per cent growth MUMBAI, Sept 15 (PTI) —R P Goenka controlled Ceat Ltd has set a sales target of around Rs 1400 crore for the current year while the profits of the company are expected to increase by 14 per cent over last year. In the first five months of the current fiscal, the company has recorded sales of Rs 533 crore which is 19 per cent more than the corresponding period last year, Vice-Chairman Harsh Goenka told shareholders at its 40th AGM here today. “In order to emerge as a market leader, the company’s management has set a growth target “of 14 per cent against a projected industry growth of 6 per cent,” he said. The company intends at least a one per cent growth in market shares in all the segments it operates in, Goenka said. At
present, in scooter tyres it has a market share of 21 per cent, motorcycles 11 per cent and car tyres 19 per cent. Export turnover is expected to be around Rs 140 crore this fiscal, Goenka said. It mainly exports to the United States, West Asia, Africa and South America. Ceat’s exports last year dipped to Rs 128 crore from the previous year’s Rs 153 crore chiefly due to the South Asian crisis and lack of demand from the US and Latin American countries. Essel Packaging: The Board of Directors of Essel Packaging Limited yesterday announced payment of a special “millennium” dividend of 150 per cent to its equity shareholders. RESULTS AND DISCUSSION Results (FY2001) May 08, 2001 •
Sales of tyre major Ceat limited declined 11.7% on the back of sluggishness in truck and passenger car tyre sales. Sales in this fiscal were Rs 11,904mn as compared to Rs 13,477mn in the previous year. The 11 months from April 2000, to February 2000, has been a period of nearstagnant growth for the domestic tyre industry, with the production increasing by mere 1% compared with the same period last year.
•
Total expenditure came down by 9.2% to Rs 11,665mn (Rs 12,844mn). Operating profit dipped 38% to Rs 564mn (Rs 910mn).
•
Continuing
non-tariff
barriers
in the
newly
emerging
markets, allowing direct import of natural rubber only through STC and sharp rise in price of petro products have all combined to severely dent the profitability of the company. OPM as a percentage of total income came down to 1.9% (4.6%). •
Depreciation increased 13.5% to Rs 165mn (Rs 145mn). The rise was due to new plant that has been commissioned in Nasik.
•
Ceat reported a net loss of Rs 137mn as compared to a profit of Rs 201mn in the previous fiscal. This may be attributed to drop in demand and higher input costs on one hand and slowdown in exports on the other.
•
The company will have to face competition through effective cost control, higher operating efficiency and new marketing strategies.
Financial Highlights Period to Rs in mn Sales Other income Total income Expenditure
03/01 (12) 11,903.6 325.7 12,229.3 (11,665.4)
03/00 (12) 13,476.8 277.3 13,754.1 (12,844.0)
Growth % (11.7) 17.5 (11.1) (9.2)
Operating profit Interest Depreciation PBT Tax PAT Adjusted OPM (%) Equity EPS (Rs)
563.9 (534.2) (164.8) (135.1) (2.0) (137.1) 1.9 350.9 -
910.1 (537.4) (145.2) 227.5 (26.4) 201.1 4.6 350.9 5.7
(38.0) (0.6) 13.5 -
Company Results •
Scrip Code : 500878
•
Type Audited
•
Date Begin 01 Apr 04
•
Date End
Company Name : CEAT LTD
Audited
UnAudited Audited
01 Apr 03
01 Apr 02
01 Apr 01
31 Mar 05 31 Mar 04 31 Mar 03 31 Mar 02
Description •
Gross Sales 17803.1
16479.5
14882.7
13613.7
•
Excise Duty -2523.2
-2471.2
-2750.5
-2474.7
•
Net Sales
14008.3
12132.2
11139
•
Other Income
•
Total Income 15669.7
15230.5
12407.6
11373
•
Expenditure -14884.4
-13817
-11417.3
-10576.7
15279.9
389.81222.2
275.4234
•
Operating Profit
•
Interest
•
Gross Profit 143.4649.4511.5223.6
•
Depreciation -220.6
•
Profit before Tax
•
Tax
•
Profit after Tax
•
Extraordinary Items
•
Net Profit
•
Equity Capital
•
Reserves
•
EPS
•
Nos. of Shares - Non Promoters
10
785.31413.5
-641.9
-764.1
990.3796.3 -478.8
-221 -218.4
-572.7
-188.4
-77.2 428.4293.135.2
-81.6 -109 -11.2 -67.2 346.8184.124 48.5 -206.2
-
-
2932.3
-
-18.7 140.6184.124 351
2618.1
350.9350.92993.4
-0.53 4.01 5.24 0.68 20473118 20473118
20473318 •
Percent of Shares - Non Promoters
•
Result Type A
•
Notes
A
A
A
58.1458.1458.14-
ln a significant move, the Rs.1,500-crore Ceat Ltd has tied up with leading portal Yahoo India as part of its online marketing strategy. With this tie-up the company plans to roll out a host of online promotions and Internet ads in a bid to connect with the youth segment. In fact shedding its fuddy buddy image, Ceat Ltd. id now exploring new mediums to create a contact point with its consumers. As for Ceat's tie-ups with other portals, says Ceat Ltd vicepresident (marketing) Kalyan Paul: "We are in talks with other portals but it's too early to talk about it now. Incidently, the company has an online presence with a Website for its sports property Ceat Cricket Ratings. Adds Mr. Paul: “This property is now being made more accessible to cricket fans by promotion through tie-ups with portals such as Yahoo India.” Clearly, the company is now stepping up its online marketing plans to woo the youth segment. Cashing in on the growing popularity of Short Messaging Service (SMS) also plans to enter this alternative medium to touch base with its target audience. “In addition to the Net, we are evaluating all formats which will help us connect with the youthSMS included”, informs Mr. Paul. As Indian corporates are increasingly opting for new media tools to connect with the youth segment, why has Ceat Ltd. opted for this mode of marketing now? Mr. Paul explains that as part of its new marketing plan to develop a younger image for the brand, Ceat is now exploring new mediums to create a contact point
with its consumers. "Since, there is a lot of synergy between two-wheeler owners and the Net audience, the company is planning to use Internet as a medium. A plan is being put into place to use this interactive medium to build the Ceat brand among the youth, who are today’s consumers for two-wheeler tyres and future ones for car tyres”, he adds. To meet the objective, the company is now using tools such as email newsletters which give tyre users an opportunity to understand the brand better. So with these new online initiatives, is the company going for a totally new brand image? According to Mr. Paul, the Ceat brand is strong among the target audience and the company is not looking at changing the brand equity or positioning. The existing brand plank ‘Born Tough’ has universal and timeless appeal, with a young and with-it audience. "We intend to create a relationship with new users (youth) to create a market for the future by catching consumers at the beginning
of
their
purchase
life-cycle
and
maintaining
a
relationship based on the delivery of superior value”, he reasons. As for the future of online marketing in India, Mr. Paul observes that in today's dynamic media environment, online tools are enabling marketers to target their messages more effectively to the relevant audience. COMPETITORS
India is a manufacturer, expor-ter and importer of Off-The-Road (OTR) tyres. CEAT, MRF, Goodyear, Balkrishna Tyres, Vikrant Tyres and TVS are the major manufacturers of OTR tyres in the country. OTR tyres account for 11 per cent of the country's total tyre market which is estimated at Rs 12,500 crore. Large-sized OTR tyres are imported, as their demand volume is low and it makes more economic sense to import. Also, OTR radials are not manufactured here and they are also imported. Bridgestone, Yokohama, Michellin and Pirelli are the MNCs supplying bigger OTR tyres in this country. Similarly, India also exports OTR tyres to
other
countries
including
Europe
and
America.
OTR tyres, in India, have gained the limelight because of the government's massive expenditure programme in infrastructure building,
especially
in
road
construction.
In
fact,
the
government's Golden Quadrilateral project has given a new lease of life to this otherwise sinking industry. Till 2000-01, the industry's production was almost stagnant at around 36,00037,000 tyres; in 2002-03, the production of tyres crossed 50,000 numbers. And this year its performance is expected to be even better. Industry sources claim that production of OTR tyres should touch 72,000 during 2003-04, a growth of 44 per cent. During the first 9 months of the current year, the industry has achieved a growth of 48 per cent. Says Tom K. Thomas, Vice President (Technical), Ceat Ltd, "Growth in OTR tyres was insignificant a few years ago. But the NHDP project has increased the demand for these tyres. During the next few years the demand for OTRs should grow at the rate
of
around
20
per
cent
every
year."
Despite this the mining industry remains the main customer of OTR tyres in the country. "Nearly 65 per cent of the demand for OTRs comes from Coal India Ltd," says N. Ganesh, Chief Manager (R&D), Ceat Ltd. BEML and Caterpillar are the other major customers of the industry. In the foreseeable future the mining sector is expected to remain a major customer for OTR tyres. An important feature of the OTR tyres industry is that majority of the production (nearly 67 per cent) is exported. Last year exports saw a substantial jump of 56 per cent. The industry exported 33,530 tyres during 2002-03 as against 21,468 in the previous year. One of the main reasons for the industry's over dependence on exports for its survival is the low domestic demand. Once the domestic demand picks up growth in exports is expected to come down. And this year the industry is expected to export 36,200 tyres, which is 50 per cent of the domestic production. However, the OTR tyres industry is facing some serious problems. The main cause of worry is rising raw material prices, mainly natural rubber and petrochemical based raw materials. India is the third largest producer and fourth largest consumer of natural rubber, and fifth largest consumer of natural rubber and synthetic rubber together in the world. Natural rubber accounts for nearly 26 per cent of the raw material cost of the industry. Says Tom K. Thomas, "Rising price of natural rubber has affected our margins badly. Whatever China consumes, the price of the same goes up, and whatever China produces the price of the same goes down. Banning exports is not a solution.
We may have to increase the price of OTRs, as we are planning to do in the near future." Technologically, the Indian OTR tyres industry is a step behind the developed nations. OTR radials are not yet manufactured in India. Nor do the major players have any plans to manufacture the same in the near future. But OTR radials have certain advantages over traditional tyres. OTR radials are costlier; nearly 30 per cent more than the cost of ordinary OTRs. The life of OTR radials is longer than that of traditional tyres by more than 60 per cent. Also, OTR radials result in saving in consumption of fuels. OTR radials also provide comfort to the driver thereby reducing fatigue. Industry experts foresee good growth potential for the industry in the coming years, both in the domestic market and export market. OTR tyre manufacturing is a labour intensive operation and as a result its production abroad is on the decline. This gives India good scope to expand its market abroad. Also, in the domestic market, there is expected to be more demand for Grader
and
Compactor
tyres
because
of
enhanced
road
construction activity in the country. "Import of tyres from China has just started. It may pose a threat in the coming days. Quality of the tyres is suspect but they are cheaper," Tom K. Thomas of Ceat avers. In the coming days retreading of OTR tyres could become big business. At present, it is dominated by a handful of players in the country. Considering its potential many players may take the plunge in the retreading business. Manufacturers may employ higher productivity building machines like orbitread
technology for quality enhancement. Besides, the country may start producing bigger size tyres which were hitherto imported. RESULTS AND DISCUSSIONS Industry Overview: During the year under review, the Tyre Industry grew by 7% in value and approximately 9% in volume. This clearly reflects the prevailing excess capacity situation. •
The Tyre Industry continues to bear the brunt of increasing raw material costs. Rubber imports are still controlled, resulting in high prices. Additionally, the prices of synthetic rubber
and
rubber
chemicals
have
risen
steeply
in
international markets. There has also been 2% increase in excise duty, effected by the Union Budget announced in February, 2000 on all tyres, except two wheeler and farm rear types. •
Thus, while there are valid reasons for a commensurate increase in prices, the intense competition has prevented this from happening. Margins, therefore, are under pressure.
3. CEAT'S Performance: •
The year 1999-2000 saw CEAT move out of the consolidation phase and surge ahead with increased visibility in the market place.
•
Significant
product
quality
improvements,
innovative
marketing strategies, a unique supply chain management
model, cost optimisation measures, and a committed work force, all saw the Company emerge stronger inspite of increased competition. In doing so, CEAT further reinforced its "Born Tough" image and emerged as a preferred brands. •
CEAT's growth rate of 15%, which was twice the industry growth, was a matter of great satisfaction. Particularly heartening was the 21% increase in the high value truck tyre category in the replacement market which was made possible by a 22% increase in truck tyre production the highest in the country. CEAT gained market share in other replacement segments as well, further reiterating its superior product quality,
borne
out
of
improved
technical
design
and
manufacturing processes. •
Other contributing factors to this improved performance have been the inculcation of the "Total Quality Management" culture, intensified training, exposure and involvement of employees at all levels, which have enabled a flexible market led manufacturing system to evolve. Constant initiatives were taken for more effective utilisation of resources and reduction of costs. These will be intensified even further in the future.
•
A lot of new initiatives in marketing were undertaken. A new advertising campaign and innovative communication during the Cricket World Cup which promoted the CEAT Cricket Ratings, helped improve brand visibility. The new look CEAT Shoppes were launched in phases across the country and have already set new standards in tyre retailing. A unique dealer loyalty programme to further reinforce CEAT's long standing relations with dealers elicited excellent response.
•
The consistently high quality of after sales service was maintained with the implementation of an ongoing training programme for all staff associated with this service, including technical service personnel at the dealer outlets.
•
The integrated logistics system - which links 126 stocking points with the two factories continued to work well and ensured availability of the right product at the right time, hereby keeping inventory levels low.
4. Exports: •
The decline in demand from the US market, which was flooded with cheap brands from all over the world, led to CEAT's exports declining by 7.5%. Strategies have been drawn up to reverse this situation and steps to penetrate other markets have already been taken. These initiatives will see exports on the growth path once again.
5. Manufacturing: •
The capacity optimisation projects at the Mumbai and Nasik Plants are progressing on schedule. The new radial tyre facility coming up at Nasik is expected to be completed on time with manufacturing commencing in May-June 2000.
•
The Off-take Agreement for radials and two and three wheeler tyres with erstwhile joint venture partner, Goodyear, expires in August 2000. This may be extended for a further period.
•
The expansion plan at CEAT's associated company, Rado Tyres Ltd, located in Kerala, has been implemented. This will
enhance the conversion capacity of two and three wheeler tyres to 70000 tyres per month. 6. Joint Venture in Srilanka: •
The Joint Venture structure of the Strategic Alliance in Sri
Lanka which CEAT, jointly with Associated Motorways Ltd, entered into with Kelani Tyres Ltd, effective 1st November, 1998, has been completed. •
The turnover of this joint venture, under CEAT-Kelani
Associated Holdings Pte Ltd, grew from SL Rs1293 mn in 1998-1999 to SL Rs1357mn in 1999-2000. Profit before tax rose 28% from SL Rs58.65mn to SL Rs75mn during this period.
•
The Indian Tyre Industry is a vibrant segment of the Indian
economy and is the wheels of the entire road transport sector of India, producing over 23.7mn tyres (4 Wheeler Tyres – Organized Sector) in FY03. In addition, there is a production of 25.7mn tyres in 2/3-wheeler tyre segment. The steady growth of the industry can be gauged from the fact that the industry is growing at an annual growth rate of 6%, however there is an excess supply over demand in certain categories. The total industry turnover in FY03 was Rs128.4bn and is a significant contributor to the Indian exchequer to the extent of Rs44bn by way of excise and other taxes. Approximately 80
% of the Industry production, in terms of value, comes from Heavy Commercial (Truck /Bus) and Light Commercial tyres. The Indian tyre industry caters to all segments of the market i.e. •
OEM
•
Replacement
•
STU
•
Defence
•
Exports
The total size of domestic market (4 wheeler tyres) can be estimated around 19.4mn tyres/annum for the FY03 and is expected to go up to 28.4mn tyres/annum by FY08. In addition, the tyre industry exports Rs13bn of tyres across 6 continents and over 60 countries. FY03 has seen a recovery in tyre Industry, due to up swing seen in automobile industry? Do you expect the trend to further intensify? Overall the year was better in terms of tyre consumption. Buoyancy has been observed in production and sales of all categories of vehicles during the year. Truck & Bus production grew by 23.6%, LCV by 31.9%, Car by 11.5%, MUV and Jeep by 8.2%. Tractor vehicle production, which declined during the year, however is showing some signs of improvement, due to good monsoon this year. We expect the growth trend to further intensify. Truck & Bus segment will continue to grow along with Passenger Car & MUV
segment in double digits. Also we are expecting tractor segment to emerge out of red.
What are the major threats for the Indian tyre industry? •
Opening of Indian economy, reduction in import duties and concessional import tariffs for countries like China and South Korea (under Region Trade Agreements) shall lead to high volume of imported tyres.
•
Particularly in light of the fact our country’s infrastructure continues to remain inadequate and incompetent. e.g. •
Power rates are very high apart from
inadequate availability.
•
•
Cost of money very high
•
Manpower productivity is poor
•
Some progress in road and ports sector
Ever rising raw material costs, petroleum prices have a direct bearing on the health of tyre industry
•
Being the core sector, tyre industry performance is directly linked with the performance of the overall economy and the automobile sector.
•
Tyre
industry
performance
also
is
impacted
by
the
performance of agricultural sector. •
As the future unfolds, the tyre industry may be impacted by competition form railway sector.
•
The sizes of the Indian tyre manufacturing plants are not of global scale and hence some of them may find the going difficult.
We are hopeful of improvements in these areas of infrastructure development. The raw materials cost are rising. •
The rising raw material costs will certainly impact the operating margins. We will make efforts to reduce the impact by improving the productivity and efficiency. However, if impact is substantial we will have no other option, but to increase the selling price of the tyre.
•
We do have long-term contract with suppliers. However, prices are fixed for a quarter or six-month. There after it varies depending upon crude prices as most of the raw material, except natural rubber, are petroleum based.
What is the USP of the Company? •
Continuous innovation and state of the art technology backed by quality is the mantra of success at JK Tyre and this has given us a clear competitive edge over our competitors.
•
JK Tyre, Pioneered the Radial revolution in India two decades ago and ever since then we have been riding the technology ladder. We offer the entire range of 4 wheeler radials i.e. Truck & Bus, LCV, Car, Jeep and Farm. We launched India’s first eco-friendly range of colored radials and are set to drive the second green revolution with the launch of the tractor radial.
•
Globally radialization in the truck and bus segment is over 60%. Envisioning the need for products to cater to changing freight & passenger movement patters on superior vehicles running on the fast improving road infrastructure, JK Tyre pioneered the introduction of truck and bus all steel Radial tyres in India for the first time. The company has deployed significant resources in the developing the market and educating the customer on the value proposition of truck and bus radial tyres. Backed by an all India service network along the national highways, JK Tyre is all set to drive yet another radial revolution in the country.
•
Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) is our in-house R&D center and is one of its kind in Asia.
Today
HASETRI
act
as
a
nerve
center
-
understand/determine consumer needs, develop and provide suitable
products
of
world-class
quality
to
the
Indian
consumer as well as continuously gauge their performance. This facility is involved in various collaboration projects with leading research agencies both in India and abroad. HASETRI is presently engaged in FEA and NDT studies with IIT Chennai, Elastomer studies with IIT Kharagpur and partnering IIT Delhi in
the
study
of
textiles.
The
internationally
acclaimed
Smithers’ in USA is also working with HASETRI in the field of VDD and Tyre Mechanics. Who are other major players in the tyre Industry, apart from JK Tyres? What is the share of your company in the total market share?
Apart from JK Tyre, MRF, Bridgestone, Apollo & Ceat can be categorized as other dominant players in Indian Tyre industry, others being Goodyear and Birla. Put together they represent around 75-80% of the Indian tyre industry. JK Tyre V/s Competition Shares of Total 4 Wheeler Tyres Company
Share
Company
Share
JK Tyre
20.9%
Ceat
15.9
MRF
22.3%
Goodyear
9.5%
Apollo
17.4%
Birla
5.6%
Bridgestone 8.5% Source: ATMA (All 4 Wheeler Tyres) 2002-03 April - March Who are the major user-segments and what is Company’s market share in each user –segment. (CVs, Car &Utility Vehicles and Farm & 2-3 wheelers)? One can categorize the major user segments in 4 wheeler tyres as Commercial Segment i.e Truck, Bus and LCV, Passenger Car Segment i.e Cars, MUVs, Jeep and Farm Segment i.e. Tractor and ADV. JK Tyre V/s First Top 3 Players Share – Truck & Bus Segment JK Tyre Apollo MRF 25.2% 24.8% 18.8% Source: ATMA (All 4 Wheeler Tyres) 2002-03 April - March JK Tyre V/s First Top 3 Players Share – Passenger Line Segment JK Tyre Bridgestone MRF 18.2% 15.4% 24.7% Source: ATMA (All 4 Wheeler Tyres) 2002-03 April - March In terms of revenues, which segment is performing better? Which segment is likely to drive the growth of Tyre Industry?
In term of revenue Truck and Bus segment contributes the maximum around 70%. Further according to me, growth in commercial vehicle & passenger car segment, production and sales, will boost up the demand and thereby continue to drive the growth of tyre industry. The infrastructure initiatives like Golden Quadrilateral and NE-SW corridor, expressways will further drive the Radial revolution in India, be it Truck & Bus Radial or Passenger car radials.
For JK Tyre the world is the stage, accordingly, it has forged long term business partnerships with overseas players. We have established a significant presence in China by way of outsourcing arrangements as well as participation on manufacturing as technology
partners.
Today
heavy-duty
bias
tyres
are
manufactured with our Technology and JK Tyre Branding and are being successfully marketed in the Chinese and other global markets. Today, we export tyres to 60 countries across 6 continents and enjoy premium brand status in highly competitive markets like the US. For being the largest exporter of tyres from the country, JK Tyre has been awarded with Top Export Award CAPEXIL in year FY03. We have generated revenue of Rs3.1bn (FY03) from our export operations. The turnover from Chinese operations will be of significant contribution in the years to come. We expect to have an estimated turnover of around Rs4bn in next few years.
What top line and bottom line growth figures are you expecting for the coming years? •
We at JK Tyre are looking for a turnover in excess of Rs50bn by
FY06
and
expected
to
improve
our
bottom-line
substantially in the years to come. We aim, to be leaders in the entire range of radial tyres (Truck & Bus, LCV, Passenger Car, Jeep & Tractor), we operate in. Could you brief us about merger with Vikrant Tyres and synergy seen in terms of change in capital structure, production capacity, sales and realizations per unit? JK Industries Ltd has metamorphosed into a mega tyre entity with the merger of Vikrant Tyres Ltd and crossed the magic turnover figure of Rs20bn in FY03. We are on the threshold of a new era with JK Tyre consolidating leadership status as well embarking on the path of enhancing our global presence. Derived Benefits •
Benefits of synergy of over Rs220mn/annum accruing to one
entity,
JK
Industries,
earlier
it
was
shared
by
shareholders of respective companies. The benefits have been realized in the areas of bulk raw material purchases, logistics and rationalization of network & sales force. •
Combined capacity of tyre stands increased from 3.5mn tyres/annum to 5.6mn tyres/annum.
•
The capital of the company stands revised from Rs345.6mn to Rs374.6mn as on September30, 2003.
•
Earning
Per
Share
of
the
restructured
entity
has
substantially increased and the market price of the share, which was Rs20-25 per share before the restructuring, is now being traded at significantly higher prices of over Rs75/share. •
Technology & R&D
•
Full Range of products
•
Focused and targeted marketed segmentation
•
Common strengths of both the brands to be leveraged
Can you brief us about your regional presence? What are the Company’s plans in order to expand and maximize its geographical reach? •
Today
we
are
exporting
to
60
countries
across
6
continents. We have a significant presence in Middle East and a strong presence is South-East Asia, including China, where in we have strategic alliances for both outsourcing as well as sale of JK Branded tyres in Chinese markets. •
W.r.t. expanding and maximizing our geographical reach, though, we are the largest exporter from India into Americas & Australia, we are in the process of further developing these markets to cater to the still untapped potential.
Anything which you like to share with us? •
•
JK Tyre is the first to introduce Truck & Bus Radials in India •
is 6 years ahead of the next likely entrant
•
Selling 0.2mn tyres per annum
•
Exporting Truck Radial Tyres worth Rs1bn
It has always been the endeavor of your company to make JK Tyre as India’s most preferred brand. It is a matter of great pride that JK Tyre is India’s first & only tyre brand to get the coveted "Super Brand" status and to feature in the prestigious Super Brands Publication. This is yet another first ever for any Indian Tyre manufacturer and is a unique recognition of JK Tyre’s unassailable position as India’s top tyre brand in quality and image perception.
•
Further recognition accorded by the world’s top customer satisfaction
survey
agency
–
JD Power, which
has
recognized JK Tyre as the "Most Improved Tyre Brand" in India.
FUTURE SCOPE OF CEAT TYRES
Demand for tyres is derived from demand for automobiles. Therefore it is a ‘derived demand’ product and its fortunes are very closely linked to those of the auto segment. Within the tyre industry the trucks and buses (T&B) segment accounts for more than 70% of sales. Though scooters and motorcycle tyre demand also plays a vital role, in value terms, CVs gain significance.
Tyre varieties can be divided into two categories – cross ply and radial. The domestic industry is dominated by cross-ply tyres, due to the poor conditions of roads in the country and overloading of CVs. This is also the reason why penetration of radial tyres in the CV segment is negligible and finds presence only in the passenger car segment. On the other hand, radial tyres
dominate
western
markets.
Radial
tyres
can
be
differentiated on the type of belt used – fiberglass, steel and nylon. Worldwide, steel belted radials are more popular due to their performance advantage. There are three major consumer segments for tyres namely replacement segment, Original Equipment Manufacturers (OEMs) and exports. Though fortunes of the sector are closely tied with
the automobile industry, replacement demand continues to remain the key growth driver. Replacement demand accounts for as high as 57% of industry volumes. However, the contribution from
OEM
and
replacement
segments
varies
across
sub-
segments in the auto sector. For instance, for the passenger car segment, demand is balanced from replacement and OEM categories i.e. 50:50. Another key transition that is taking place in the industry is the entry of multinationals like Good Year, Bridgestone and Michelin in the domestic market. MNC tyre makers have cornered a higher market share in India in the last three years due to their international relationships apart from superior technology. Since Honda, Hyundai and Toyota have an international sourcing agreement with Bridgestone, it is also the preferred supplier in India. Goodyear is believed to be the preferred supplier for Ford India. An extensive distribution network and strong brand recall are factors critical to tyre sales. Brand building is given a lot of importance by manufacturers, who allot 2-3% of sales to advertising.
With
the
introduction
of
radial
tyres,
even
technology has assumed significance. All foreign cars introduced in the country are on radial tyres. Raw materials constitute 60%-70% of production cost of tyres. Natural rubber and Nylon cord fabrics are the most critical raw materials as it accounts for 50% of total raw material cost. Since
most of the raw materials are crude derivatives, a rise in prices has a negative impact on margins.
The export market holds tremendous potential for domestic manufacturers.
Tyre
exports
have
grown
at
an
annual
compounded rate of 27% over the past 10 years. Indian tyres are exported to 56 countries, which are primarily developing countries.
NEW LAUNCHES OF CEAT TYRES CEAT slashes prices of truck, bus tyres
CEAT-Kelani Associated Holdings (Pvt) Ltd., the leading tyre manufacturer in Sri Lanka has announced a major reduction in the
retail
prices
of
lighttruck,
truck
and
bus
tyres.
"Effective December 10, 2001 this reduction would make CEAT the most affordable tyre when compared to all international brands sold in the local market, the company's General Manager (Sales & Marketing) Ashwin Padukone said. "In a market battered by the economic downturn, the ability of the customer to buy new tyres at the correct time has dwindled. As a result many vehicles are seen on the road with bald tyres, which seriously jeopardises the safety of the customers and their vehicles." Mr. Padukone said - "Using new tyres on the front wheel, has been established as the safest and the recommended option for safety reasons. We anticipate that this price reduction will encourage consumers to replace with new tyres at the right time," he said. The anticipated benefit of the increase in offtake and the consequent capacity utilization, has been factored into the price reduction and has been passed onto the consumers, Mr. Padukone added. CEAT-Kelani Associated Holdings (Pvt) Ltd., a joint venture company established in 1999, represents the strategic alliance between Kelani Tyres Ltd., AMW Group, NDB and
CEAT
Ltd.
of
India.
The
holding
company
has
two
manufacturing arms, one in Kalutara and the other at Kelaniya. COLLABORATIONS
A high percentage of fibre glass produced in the world is used for re inforcement of plastics The main products maiketed by the fibre glass plants are Mats, Rovings, Woven Rovings, Yarns etc. The use of end products i.e. fibre glass reinforced plastics are mostly in pipes and tanks, boats transport sector, furniture, crash helmets etc
The formulation chosen for continuous fibre
glass production is generally known as E-glass. This has become standard the world over as it performs well in practice and is used widely. The fibre glass produced in India is Eglass only. The process of manufacture of fibre glass consists of several steps e.g. batch preparation, production of glass melt, glass filament conditioning, winding, drying of glass cakes, conversion to saleable products. In late seventies, the background of the licensing policy was to issue a large number of letters of intent with a capacity of 2000 Tonnes per annum expandable to 4000 tonnes per annum capacity. At that time only one unit Fibre Glass RlWngton (FGP) was working at Thane-Bombay with a licensed capacity of 1290 tonnes per annum. Out of 6 letters of intent issued, only 2 units i.e. Deccan Fibre Glass Ltd, (now known as Glass Fibre Division, CEAT Tyres) and UP Twiga Fibre Glass Limited (now closed since December 1982) were installed in early eighties. The other units did not materialise mainly due to inadequate market demand The present guideline of licensing is that no new licence is to be issued till 1990, since the installed capacity in the country is around 5000 tonnes per annum against the present demand of 2400 tonnes per annum.
FGP Ltd, started production in mid sixties with remelt technology based on imported E-glass marbles. In 1974 they started their own unit melter for manufacture of E-glass with a licensed melting capacity of 1290 tonnes per annum #»nd the installed finishing equipment capacity of 2650 tonnes per annum. The company is functioning with about 70 to 80 per cent of their licensed capacity. UP TWIGA Fibre Glass Ltd, was started in 1980 at Sikandrabad in Ottar Pradesh. The capacity of the plant is 2000 tonnes per annum with electric Pochet Furnace. The unit could not develop proper market for its products. The unit, had to close down in December 1982 and has not restarted as yet Deccan Fibre Glass Ltd, came into being in 1981 at Ntehboobnagar in Andhra Pradesh. In 1983 the unit was merged with CEAT Tyres Ltd, and is presently known as Glass Fibre Division, CEAT Tyres Ltd, The installed capacity is 1770 tonnes per annum with electric Pochet Furnace. The per formance of the unit is not satisfactory and the production varies between 40 to 50 per cent of licensed capacity. The main reason for dismal capacity utilization is inadequate market demand. 1.1.7. AW the three fibre glass units were put up with foreign collaboration. The collaboration agreements were more or less similar, irrespective of the country of collaboration. The major scope of collaboration was: a) Provision of technology b) Basic engineering of the plant
c) Detailed engineering and design of special equipment and supply of materials d) Procurement and supply of special equipment e) Commissioning and Supervisory services. f) Arrangement of training of personnel in collaborator's place
SWOT ANALYSIS
Strengths
Weaknesses
•
Right products, quality and reliability.
•
Superior product performance vs. competitors.
•
Not very popular in the international market
•
Brand Image
•
Delivery-staff need training.
•
Products have required accreditations.
•
Customer service staff need training.
•
Processes and systems, etc
High degree of customer satisfaction.
•
Management cover insufficient.
• •
Opportunities •
Profit margins will be good.
•
Could extend to overseas.
•
Could seek better supplier deals.
•
An applied research centre to create opportunities for developing techniques to provide added-value services
Threats •
Vulnerable to reactive attack by major competitors.
•
Lack of infrastructure in rural areas could constrain investment.
•
High volume/low cost market is intensely competitive.
QUESTIONNAIRE
Excerpts from the interview: How do you see 2002-03 shaping up? •
The year so far has been good for the industry. All the tyre companies had good results in Q1, we too. In Q2 also, that trend continued - Apollo was the most impressive and compared to the previous similar period Ceat was also impressive. Now at end-Q3, I am noticing a mild depression in demand. I don't know the reason - December demand is always a little low, but then this year even October-November demand saw a mild fall.
•
It could be due to some after-effect of poor rains. But Q3 is a period of high tyre production. Therefore, there is a little extra-supply in the market at present. Companies are now trying to export more to take care of this problem.
But is not the global automobile market sluggish? •
I am talking of trucks and LCVs. I won't say the market worldwide is down. In fact, January-December last year most tyre companies posted good results. But yes, the kind of growth that was expected did not happen. However due to the 9/11 attack in the US, crude oil prices fell and when that happens everything else falls - synthetic rubbers, caprolactum - all went down by 20, 30 or 40 per cent.
•
The result was that even if the demand was low, it did not matter due to bigger gains on raw material costs. If good things happen for bad reasons, nobody talks of it! Until June this year, the situation was good because crude recovered but did not go above $23-24. Later, owing to issues like tension in the Middle East, crude flared up, touching $30-31. I have not seen a scenario, where within nine months you see crude at $17 and $31. Almost 80 per cent up! If your main raw material swings by 80 per cent, its derivatives also swing. At this point in time, raw material cost is another issue facing the industry. It is a substantial increase.
So, Q4 and into next year, it is a dicey market one is looking at... •
Q3 demand is more or less the same as Q2. It is seasonally a little weaker than Q2. But in this particular quarter, I think there will be some pressure on margins. In Q4, at least for the first two months, the pressure will be even more due to all the increases that started coming in from July/September - their real effect comes a few months later.
•
Two or three situations are likely. The tyre industry may be able to pass on the price increase. Can't say whether it will happen or not because there are now four major players and there is quite a fight going on in the market place. There is the possibility that in the Budget, the import duty on raw materials will come down again - could be a five per cent decline.
•
There is also a feeling that by February/March the tension in the Middle East may settle down a bit, so you could see crude prices stabilising at $22-24. If so, raw material prices will fall. Besides, the rupee has not depreciated against the dollar; it has somewhat appreciated. Thereafter the industry may be on a stronger footing.
What could be the impact on the domestic tyre industry, of the rounds of consolidation beginning to happen? •
The market in India is worth about Rs 10,000 crore. It is in the hands of four big players, two medium players and few small players. The big four - and here I am assuming Vikrant and JK are merged - are likely to have a 2002-03 turnover of Rs 8,000 crore. The two medium players - Goodyear and Birla - should account for Rs 1,000-1,200 crore. The rest should notch up another Rs 1,000 crore. About 15 years ago, we were 12 big players. But in my opinion, we will see further consolidation and nobody should be under the illusion that he is big enough to be not gobbled up. I would expect in the next two years, the number of players from four plus two, to be reduced by at least one. One more player should get out of business in the next two years and every two years you should see a player getting out. Ultimately, it will be a business of just four players.
•
I am not necessarily saying that the medium ones will go, because Goodyear will not - they have taken a decision to remain in the business. They may lose money, but they will stick around, they have deep pockets. Out of the other five,
one or two will be gobbled up over the next five years. The strategy has to be - first you take adequate steps to ensure you are not gobbled up. Second, you must have a topline whereby you get 20 per cent of the business. So, if you have a market size of Rs 10,000 crore, the minimum critical mass is Rs 2,000 crore. If you don't reach that, the chances of your going out of business are high. •
Worldwide the industry is highly consolidated. It is a $70billion market and ours is $2 billion. All Indian players rank between 10 and 20 globally. The top three worldwide are in the range of $12-13 billion, the biggest among us is MRF, about half a billion dollars. If you go to the middle level - like Continental, Pirelli or Yokohama - they are about $2-2.5 billion. So, we are still one-fifth the size of medium players globally. But on the other hand, if you reach $1 billion, you will be in the top 10.
So what is Ceat's strategy here? •
Strategy won't be any different for Ceat. For all, it hinges on three factors - topline, then technology - it changes every 4-5 years
and
most
Indian
players
are
not
prepared
for
technology changes. They will have to look for outside help in the form of collaboration or partnership. •
Modernisation and minimum critical mass is the other factor. If you try to do some of these things early - like we tried to set up a radial plant in league with Goodyear long time back but were doing it ahead of time - we lost heavily as a result and had to pull out of the joint venture.
•
Likewise, everyone is thinking when to get into radials; but when India will radialise is a million dollar question.
•
JK is attempting it, they have a radial facility in Vikrant; but they are unable to utilise that capacity. They have I think 20,000 plus capacity, but are able to sell around 3,000 in India. Apollo has announced they will put up a pilot radial facility in Vadodara and they will come up with production early next year.
•
All this is very nice to hear. If you go deep, you won't find clear answers from any company because it depends a lot on Government policy, how infrastructure comes up. If roads are not good, radials won't come.
Are you looking for a technology partner? •
I think everybody is! I won't say we are looking for a partner; we are looking for an association. It is clear for JK, Modi and Apollo because they have a collaborator.
•
But in the case of MRF and Ceat, there is no clear signal because we don't have a technology partner today. I am sure over time both of us will figure out who can be our technology partner.
Does a technology partner imply an equity partnership? •
Most of the tyre companies abroad are not well placed for equity participation. Bridgestone lost a lot of money in the US after which they are not keen to set up plants.
•
Michelin does not operate in partnerships, they like 100 per cent ownership or majority ownership with the rest held by the public. They don't like to have a big local partner anywhere. The European economy has not done well, so the earnings of European tyre companies are down and they are not keen to invest.
•
The weakness with Indian companies is technology. But they are wary of joint ventures or partnerships.
•
On the other hand, retained earnings at our tyre companies is poor, Rs 10-20 crore a year. You can't get technology for that price! So, it is not a simple jigsaw puzzle to be fixed.
Ceat plans to set up Rs 250-cr truck radial unit Our Bureau CHENNAI, June 9 CEAT Ltd plans to invest Rs 250 crore to set up a unit to manufacture radial tyres for trucks, according to Mr Kalyan K. Paul, Vice-President, Sales and Marketing, Ceat Ltd. He said that the unit would have the capacity to manufacture 50,000 to 60,000 tyres per month. •
Mr Paul said that internationally the market was moving towards radials and the company expected the Indian market would also grow in that direction, especially with the proposed investment into the road sector, which was expected to bring in better roads. The company has imported radial truck tyres from China to test the market, with the first consignment of
300 to 350 tyres coming in two months ago. The company manufactures radials for passenger cars and this capacity is expected to be ramped up from 35,000 to one lakh tyres per month. The investment in the expansion is around Rs 75 crore to Rs 80 crore in the current year, Mr Paul said. •
In the two and three-wheeler segment, the company, which has followed a policy of outsourcing, has increased production capacity from 60,000 to five lakh tyres per month, he said. The company has chalked out an aggressive sales strategy to increase market share and planned to tie up with leading original equipment manufacturers. It also plans to increase its imports from the Sri Lankan unit. At present, the imports from Sri Lanka account for almost 5 per cent of the turnover.
•
Ceat plans to spend Rs 15 crore on advertising this year, Mr Paul said. He said that the company is also actively getting into building relationships with the transporters and is spending Rs 1 crore on AIDS awareness and other lifestyle issues which are centric to this sector. This campaign is expected to cover almost all the transport hubs in the country, Mr Paul said.
CEAT Limited continued on its turnaround plan by registering a PBT of Rs. 9 crore and Operating Profit (PBIDT) of Rs.27.3 crore (up 58 percent) during the First Quarter ended 30th June 2002. The sales of the company’s products grew by 9.7% to Rs. 352 crore as against Rs. 321 crore for the corresponding quarter last year
Announcing
the
Q1
Results,
Mr.
Paras
K.
Chowdhary,
Managing Director, CEAT Limited said, "These results are a confirmation of the turnaround of our company, which has been brought about by the CEAT team through greater customer focus and increased operational efficiencies. CEAT is targeting to become a Rs. 1500 crore business this year. We will achieve this Improves Market Share in Truck & LCV (Light Commercial Vehicles) Tyres Truck tyres constitute the largest segment in the Indian tyre market. Maximum growth has been recorded by the company in this segment, where several new products were launched to increase the market share to 17%, up from 13% last year. In the LCV tyre segment, CEAT’s market share increased to 18%, up from 13% last year. To meet the growing demand, the company has also started outsourcing Truck tyres from its subsidiary company in Srilanka, CEAT Kelani and from TCIL (Tyre Corporation of India Limited), Kolkatta. Combined with CEAT’s own capacities, this would help in further improvement in the market share in the large Truck Tyre segment.
To strengthen in Two - Three Wheeler Tyres •
CEAT is aiming at doubling its market share in the rapidly growing two wheeler segment, over the next twelve months. To achieve this, CEAT has started outsourcing its products in this segment from two new modern manufacturing facilities at Hyderabad and Vadodara. The product range is also being geared up to meet the rapidly growing demand for motorcycle tyres. The Hyderabad facility has already started manufacturing motor-cycle tyres, while the Vadodara facility is expected to be operational by the last quarter of the current financial year.
•
Ceat Limited is a major player in the Indian Tyre market. It is present in all segments of the tyre market. It has ISO 9000 approved manufacturing facilities at Mumbai and Nashik. It employs nearly 4800 employees. Ceat is a part of the Rs.6700 crore RPG Enterprises, amongst the leading industrial groups in India.
Bibliography SL. NO.
BOOKS
1. KOTLER
Marketing Management
2. RASTOGI
Marketing Management
AUTHOR PHILIP
Dr.PANDAY
