Tyre

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Annual Review

Cost Analysis

This chapter discusses the details of the cost structure and the trend that has been observed in the tyre industry. Raw materials form approximate 70-75 per cent of the total cost and thereby all the players focus on this component to improve their margins. This chapter also deals with other cost factors like employee cost, energy cost, selling & distribution expenses etc.

  • Raw material prices continues to soften on account of subdued demand
  • Employee cost witnessed spike during FY13
  • Energy cost continues to remain stable
  • Selling and Distribution (S&D) cost increased marginally during FY13

Impact Analysis

  • Replacement demand to keep tyre rolling in near term

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