Indian Tyre industry missing opportunity

India’s outsourcing boom is likely to have little impact on the tyre industry that has huge potential. The tyre industry needs to source rubber at global prices. Availability of rubber at par with international majors like Continental, Pirelli or Yokohama would lead to development of India as a base for manufacturing, according to Anil Sampat, an industry analyst and former rubber industry insider.

India’s largest player MRF is still one fifth in size of global companies. The only way the Indian tyre industry can grow and reach global scale is to attract investments from international tyre majors as the industry is capital intensive. The small size of Indian companies is a source of worry, says Sampat.