Retread Rubber Market Analysis

8087 Words Aug 30th, 2013 33 Pages
RETREAD RUBBER - MARKET ANALYSIS

Introduction

1. In the manufacture of a new tyre, about 75% of the manufacturing cost is incurred in Tyre Casing and remaining 25% in the Tread (The portion of the tyre which meets the road surface).Hence, by applying a new Tread over the body of the worn out tyre, a fresh lease of life is given to the tyre, at a cost which is less than 30% of the price of a new tyre. This process is termed as Tyre retreading and the materials used for process are known as Retread Materials.

2. With an estimated turnover of Rs. 2,700 Crore, the Indian tyre-retreading industry at present is a fraction of the overall tyre industry (with a turnover of about Rs. 37000 Crore) and is largely focused on commercial
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6. Buffing equipment also made tremendous advances. Up until this time, buffing was done either by using a hand-held rasp and rotating the tire a section at a time or by using a rasp wheel on a pedestal and placing the tirearound the worker’s waist. 7. In 1934 and 1935, 35 major tire companies entered the retreading industry in the world. Federal and state governments of Unite States experimented with retreads on trucks and official cars while private truck and bus fleets as well as individual motorists purchased them. By the end of the decade retreads accounted for 5 percent of the replacement passenger tire market and 20 percent of the replacement truck tire market

8. Synthetic rubber was invented to replace natural rubber and was used domestically in retread tread stock. Between 1942 and 1944 the retreading industry expanded 500 percent. Retreads met virtually all civilian passenger tire needs, since sales of new tires and tubes were strictly rationed during world war II.

9. The armed forces in US relied greatly on retreading and repairing, sponsored research and published numerous guidelines for proper repair and retread procedures. Unfortunately, the first synthetic rubber used during war time had poor adhesion qualities that resulted in a large percentage of tread separations. Memories of these retread failures still haunt the