Research Proposal for Tyre Retreading

and Treading Industry

November 2013
Prepared by:
Market Xcel Data Matrix Pvt. Ltd.
Market Xcel at A Glance
Market Xcel is a boutique market research firm that provides custom market research solutions to the clients. The strong
background of the leadership team and the employees allow us to deliver very high quality service. At the same time the
smaller size of our firm, translates into lower overheads, allowing us to provide the cost competitiveness that cannot be had
from the large market research giants.

MRSI
Component Details
• Market Research Society of India
Company Name Market Xcel Data Matrix Pvt. Ltd.

Established Nov. 1st 2000

ESOMAR
Offices India (8 Offices), Singapore, Cambridge (UK) • European Society of Marketing and
• Researcher
NEW DELHI | MUMBAI | CHENNAI | KOLKATA |
Offices in India BANGALORE | HYDERABAD | AHMEDABAD |
PUNE | LUCKNOW | PATNA AIMRI
• Alliance of International Market Research
International China, Japan, Korea, Indonesia, Vietnam, • Institutions (UK)
Affiliates Bangladesh, Nepal, Sri Lanka

181 AGMR
Number of Full time consultants : mid and senior level- 12 in • Associated Global Market Research
Employees number • (UK)
Part time consultants: senior level- 6 in number
Market Overview

The Indian tyre industry accounts for around 5% of the global demand as well as global supply of tyres generating revenues
of approximately INR 30,000 crore for 2010-11 with a production of 119.2 million units. Nearly 60% of the tyres, in value
terms, are produced for Truck & Bus category, though in volume terms, two-wheelers consume most of the production.
On an average, in India, 60% of the production is for replacement market, followed by 25% sold to Original Equipment
Manufacturer (OEM) directly and the balance is exported.

With an estimated turnover of Rs 2,700 crore, The Indian tyre- retrading industry at present is
a fraction of the overall tyre industry and is largely focused on commercial vehicles (heavy and
80% light) and off-the-road Tyres (OTR) tyres. Over 80% the Indian Retreading Industry fragmented 20%
and lies with numerous un-organized participant. There are approximately 15-25 tyre recyclers

Un-organized in India, compare to 36 tyre manufacturers. Organized

Market Market

Most retreaders in India do not have the retreading machinery to retread radial tyres. Radial tyres represent a significant
challenge for repairs and retreading since radial casings do not expand or contract like bias ply tyres and placing radial tyres
in bias ply mould's will damage the tyres.
The number of registered vehicles in Bihar has increased around five fold, from around 80 thousand in 2005-06 to 3.87 lakh
in 2010-11. The relevant segment of vehicles for tyre retreading and maintenance includes truck, bus, tractor, and trailer, the
numbers of which accumulate to 1.76 lakhs within the state.
Research Objectives

Research Objective

The core objective of the intended activity is to understand the market environment of Tyre re-trading industry
and also to know the market potential for Re-treading materials within Bihar State.
The sub objectives would include the following pointers:
 Market Overview of tyre retreading and trading market - Market Size, Market Share, Latest Trend, Competitive
Environment etc.
 To identify the major material used in tyre retreading
 Organized Vs. Unorganized
 To identify the key business areas & regions in Bihar State
 To Identify the Major retreading and treading companies in Bihar State
 Demand & supply of tyre treading material
 Distribution structure of treading Industry
 Price/margin break-up of these materials
 Opportunities and challenges

4
Study Framework
The current market dynamics of retreading and trading market

Usage Pattern
Demand and Supply
To track the Business Opportunity

Business
Market Trend &
Scanning Environment
Future Potential

• To understand the demand and supply (Trading Company)

Retreading Players Component Suppliers
by product type

Analysis

Research Findings &

Recommendations
Our Approach…

MX envisages a dualistic research approach. The starting point would be to undertake a situational analysis
by means of adoption of secondary research. Basis the outcome of the secondary indicators we will
undertake a detailed study with the industry stakeholders at different levels of value chain including key
consuming class.

Owing to the number participants involved and their varied roles in the market, different set of tools will be
prepared to gather information from various participants. The primary research would assume (In- Depth
Interviews) approach to information gathering and analysis.
…Our Approach
Hence the study is designed in to two stages:

Stage 2: Primary Intervention (In-Depth Interviews with

Stage 1: Use of secondary/desk research to collect
data from available published sources the category audience/stakeholders with the category
audience / stakeholders)
This would be an ongoing process to develop our
Primary Survey will be conducted through In-Depth
understanding of the working environment. Not only will
Interviews with the target audience through a prefixed
it act as a plank to develop further research tools but
appointment, semi structured instruments to capture data
will help confirm the findings of the primary data
as per the objectives revolving around brands, key
collected. The study will make extensive use of
customers, product offerings, major markets, identifying
secondary research through literature review including
traits, behavioral and purchase of key segments, market
industry reporting and database. The desk research will
trends, future potential, import scenario etc
involve collecting data from various secondary sources
The methodology broadly includes the following:
such as published reports, Industry associations,
 Undertaking semi structured interviews with
manufacturers’ product brochures, articles from leading
• Tyre Treading Companies (Component
journals, literature review, reports, etc (any, all,
Manufacturers/ Suppliers)
indicative). This stage will cover the information related
• Tyre Retreading Companies
to the market size, growth rate, major players/importers,
• Association (Automotive Tyre Manufacturers'
product usage & implications, key drivers & barriers,
Association)
future trend etc
Selection of Target Cities
Market Xcel proposes to identify stakeholder with the Bihar territory

Study Centers- Bihar

Example of selecting target cities

To Identify major clusters within the state

Listing of Retreading and treading companies for

each cities

In-Depth Interviews with each category in both

segment (Organized and Un-organized)
…Our Approach
Market Xcel proposes to complete the research in seven steps:

Step :1 Market Scan of tyre Retreading & Treading Companies

Step :2 To Identify major clusters within the state

Through Desk
Research

Listing of Retreading and treading companies for each

Step :3
cities

Fixing appointments and arranging meetings with major

Step :4 Through Telephonic
stakeholders Conversation

Step :5 Briefing to experienced researchers

Through Trained
Interviewer
Step :6 Primary intervention

Step :7 Analysis of data , report preparation and Submission of Final

Report
Through Experienced
Researchers
Sample Construct
The proposed sample will be 31 In-Depth Interviews with different categories. The detailed sample construct is given
below as:

Target Cities = 05
Per Cities In-Depth Interviews = 06 (Trading Companies and Retreading Companies )

Demand Side (End Users) Interviews

*Trading Companies/ Suppliers (05*3) 15

*Retreading Companies (05*3) 15

Association 01

TOTAL 31

*The split of organized and unorganized players will be

selected during desk findings

*The client proposes to conduct this study in Bihar state

Timelines
Market Xcel to take 45 working days for final report submission from the date for project commissioning

Activity Plan Number of Working Days

Day 1 Day 6 Day 18 Day 35 Day 40 Day 44 Day 45

Project Commissioning

Desk Research

Finalisation of Research
Instruments (Discussion
Guide, semi structured
questionnaire)
Submission of Interim
Report

Interview

Data Collection,
Transcriptions , Punching
Data Analysis & Report
writing
Submission of the final
report to Client
Cost Implications

Cost: The total research cost for conducting the study would be INR 540,000

Component Cost in INR

Secondary Research 75,000

31 semi structured Interviews@ INR 15000 4,65,000

Total 5,40,000

Terms of Payment:
• 50% advance at the time of commissioning the study
• 50% balance within fortnight of report submission
• Above cost is exclusive of service tax@12.36% (as per GOI) if
payment is made in INR
 “We at Market Xcel are Committed to Provide Reliable
Information and Insights”

Thank You!

Marke xcel
Market Xcel Data Matrix Pvt. Ltd.
16, LGF, Sant Nagar, East of Kailash,
New Delhi – 110065. INDIA
Ph. +91 11 4234 3500 | Fax +91 11 4132 5150 | Email info.delhi@market-xcel.com

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