Tyre Sector is India’s Second Best Performer

An analysis of India’s manufacturing sectors, reported in Indian daily The Financial Express, has revealed that the tyre sector, after electronics, was the best performer during the July to September 2007 period. The total net profit figure of the eight tyre companies under the spotlight grew by 139.9 per cent to Rs 1.175 billion (£14.56 million) during the three month period, as opposed to Rs 489.90 million (£6.07 million) during July to September 2006. Of these eight firms, CEAT showed a particularly significant growth in net profit, increasing by 565.8 per cent to RS 255 million (£3.16 million) from Rs 38.3 million (£474,600) a year earlier. The total sales of this group of tyremakers increase by 4.52 per cent during the same three-month period.

An analyst from within the industry was quoted by The Financial Express as saying, “With increasing agricultural and industrial activity, rising vehicle demand, infrastructure development, the demand for high quality tyres for high speed operations has already started growing.”