Industry Analysis Presentation

1. FLOW OF PRESENTATION
About rubber
Types of rubber
Research methodology
Usage of rubber
PEST Analysis
Porter’s Five Force Model
OT analysis

2. WHAT IS RUBBER?
 "Rubber" they don't usually specify what kind. There are many different kinds of rubber, but they all
fall into two broad types: natural rubber (latex—grown from plants) and synthetic rubber (made
artificially in a chemical plant or laboratory).

3. TYPES OF RUBBER?
 1, Natural Gum Rubber - Superior resilience, tensile strength, elasticity, and abrasion resistance.
 2, Natural Latex Rubber - Ultra-elastic has excellent strength and stretch ability. Has exceptional tear
resistance.

4. RESEARCH METHODOLOGY
Research Objective
 To Analyze current scenario of Rubber industry in India.
 To Interpret role of Rubber sector in economic growth.
 To find out the challenges ahead of the rubber sector.
 To study Industry’s Driving force.
 To find out opportunity and threats in Indian Rubber Industry.
Research Design
Exploratory Research Design
Data Sources
• Catalogues
• Websites
• Magazines
• Books
• Newspapers
• Article
• Government institutions

5. CONT…
Data Analysis
 PESTEL analysis
 SWOT analysis
 GE Nine Matrix
 BCG Matrix
 Port’s five force model analysis
 Strategic group mapping model
 Key success factor
Limitation of Study
The first limitation of our project is the project is the time constraint, as we have to complete
this project in limited time period.
The project is wholly based the secondary data, which is less reliable than primary data.

6. USAGE OF RUBBER
 Custom rubber molding
 Transfer molding
 Compression molding
 Injection molding
 Turn key capabilities with machining capabilities
 Part form prototype to high volume
 Material & design assistance
 Mold design and creation
 Rubber to metal bonding
 Fabric reinforced to rubber molding
 Cured-on wheels
 Forklift seats & forks
 Rubbers spacer
 Solid press on tyres
 Polyurethane wheels

7. PESTLE ANALYSIS
(A) Political Factors
Rubber Administration Regulation
All the rubber products manufacturers and producers are under the control of rubber Administration Regulation.
Human Rights Issue
Multinational corporations are facing different human rights issues, rules, regulations, laws and policies of different
governments in operating countries.
Waste management and public concerns
 Increasing environmental consciousness is most important to growing legislation. The firm’s operation is
exaggerated by federal legislative applications that concentrate on the four objectives.
 Decrease the quantity of material inflowing the nation’s solid waste management system.
 Diminish the consumption of natural scarce resources.
 Increase the reuse and recycling product packaging materials.
 To shelter the natural environment and human health from undesirable effects related with the dumping
of product packaging materials.

8. (B) ECONOMIC FACTORS:-
 Commodity prices
 Foreign exchange & global economic conditions.
 There are many tree cutted then also directly impact by environment issues.
 Many complication are there in environment.
 Foreign exchange & global economic conditions
 Operating in global environment is not as easy as operating in local market, because it involve the
exposure to currency exchange rates variations. This generally affects the interest rate, economic growth,
government actions inflation and other economic factors.

9. (C) SOCIO-CULTURAL FACTORS:-
 Now-a-days consumers are not brand loyal as they were previously, now they can easily switch to another
product. Consumer choice for Solid Press-On Tires Solid Industrial Tires Is affected by two major
characteristics such as ethnicity and age. Due to quality reason, age factor plays very important role when
choosing a Solid Press-On Tires. Some studies have been conducted and found that in general may result
profit problems specially, kidney stones. In compare to adults, house specially teens and twenties have
fewer interest spans for products and have a preference of products that seems different and to be fun.
Now players in rubber industry changes to non rim products for instance Mold Design and Creation,
Rubber to Metal Bonding, Fabric Reinforced to Rubber Molding, Cured-On Wheels etc.
 The country is saving over Rs.2000 crores annually in foreign exchange through production of about six
lacks tons of NR, a very vital strategic raw material needed for the industrial progress".
 Allowing manufacturers to import rubber under Advance License Scheme till February 1999
 Permission to import polyurethane
 Low Bound Kate of 25% for rubber as per the WTO Agreement
 Unabated import of NR even after the cancellation of Advance License Scheme in February 1999

10. (D) TECHNOLOGICAL FACTORS:-
 Technological advancement in manufacturing and new quality improvement concepts such JIT, Six Sigma
etc. are the significant providers to improve efficiency of bottling operations and quality of products.
Advancement in technology also helps to introduce new product lines for example new product launch
brands that meet changing customer style, preferences and uses.
 In rubber industry distribution process is a big challenge because process can be able to place the right
products at right time.
 In tire industry technology can provide a competitive advantage, if it is applied in area such as logistic
products into stores less extravagantly and costs beyond the distribution pipeline while increasing sales
information availability.

11. PORTER’S FIVE FORCE MODEL
THREAT FROM THE NEW ENTRANTS
 Capital Requirement
 Demand Side Benefits of Scale
 Customer Switching Costs
 Customer Loyalty
 Government Policy
BARGAINING POWER OF SUPPLIERS
 Number of firms
 Firms can’t influence market prices
 Switching Cost
 Differentiation of Inputs of Suppliers
 Backward Integration

12. CONT…
BARGAINING POWER OF BUYERS
 High buyer profit
 The Switching Cost
 Brand Preference
 Bargaining Power of Buyers
RIVALRY AMONG COMPETITORS
 Number of Firms
 Product Differentiation
 Exit Barrier
 High fixed Costs

13. OT ANALYSIS
OPPORTUNITIES
 Growing Economy
 Growing Automobile Industry
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of
India has come a long way. During its early stages the auto industry was overlooked by the then Government
and the policies were also not favourable.
 Growing OEM demand
Traditionally, the replacement market has been the main growth driver for the Rubber industry, as also the
major segment that consumes Rubbers; however, with the recent escalation in auto sales, OEM demand too,
has been on a substantial increase, thus enlarging its share in the sales pie. Auto sales have been growing at a
CAGR of 15.8% during 2002-06, which has driven the growth in the Rubber industry, keeping the OEM
demand buoyant.

14. CONT…
THREATS
 Continuous increase in prices of natural rubber, which accounts for nearly one third of total raw material
costs so it become a big threats again industry.
 Cheaper imports of Rubbers, especially from China, selling at very low prices, have been posing a
challenge. The landed price is approximately 25% lower than that of the corresponding Indian Truck/ LCV
Rubbers. Imports from China now constitute around 5% of market share with crude prices scaling
upwards, added pressure on raw material prices is expected.
 Threat from imports
 The increase in import of cheap Chinese Rubbers last quarter has resulted in the fall of Rubber prices by
over 25 per cent in the market. Rubbers majors, including MRF and Metro, may oppose the entry of
Chinese Rubbers, but the world’s top Rubber makers.
 The recent easing in import norms for Rubbers is another bother for local Rubber producers. There is
hardly any major duty differential between the import of Rubbers and Rubber-inputs.
 As a result, local Rubber producers face the threat of cheaper imports.
 Local producers have been working, and have also managed, to match international companies in terms of
product quality.
 It has also decided to market imported Rubbers from its overseas parent. Industry sources also point out
that Michelin has started marketing its product in India, albeit in a very low-key fashion.