Supply Chain of Tire Industry

4178 WordsMay 16, 201117 Pages
Abstract This project provides a framework for scrap tire management; based on the description of the key technologies in a tire supply chain. The main actors and technologies in a tire supply chain are described. India have no legislation for the disposal of used tires as of now, but very soon the need will arise for such legislation. Also, dumping of used tires from other developing nations is a major issue. In the wake of these issue a proper supply chain for the scrap tire management is developed, which will have economic as well as environmental concern. Introduction The tire industry is global and mature, it is estimated that the industry generates worldwide around one billion new tires each year. The countervailing fact is that…show more content…
The Industry Overview: India A typical passenger car tyre contains 24-28 percent of Carbon black, 40-48 percent of natural rubber (NR) and 36-24 percent of synthetic rubber including Styrene Butadiene Rubbers (SBR) and Butyl Rubber (BR). These need to be recovered back from tyres lest they are wasted away. Currently, India produces 90,000 metric tonnes (MT) of reclaimed rubber, which is sold at Rs 25-30/kg but does not produce Carbon black, Butyl Rubber and oil from used tyres. Now the Indian tyre industry (specifically) imported 39,000 tonnes of Carbon black and 54 percent of its Butyl Rubber requirements in 2008-09. If we could produce even a small amount of that import ourselves, we would be saving a huge amount for the exchequer. Current tyre production stands at 11.75 lakh MT for the year 2008-09. With the projected growth of 50 percent, you can easily estimate the potential of the opportunity. Even though it’s a 40 year old industry in India with the oldest player being Gujarat Reclaim, the number of players nationally is very small, approx 15-25 tyre recyclers in India, compared to 36 tyre manufacturers. The major players number only about four or five. They are mainly located in North India and Maharashtra. Prominent names include Gujarat Reclaim, ELGI Group, Balaji Group, Rishiroop and Swani. Gujarat Reclaim has an annual turnover of over Rs 15 crore from its Haridwar tyre recycling plant, with a production of 20 tonnes of reclaim rubber per day.
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