Business Opportunity

Tyre Pyrolysis Project Scenario- A New Business Opportunity on blocks

Indian auto market to be third largest by 2020- The Indian automobile market is tipped to become the third largest in the world by 2020 according to estimates by JD Power and Ernst & Young. According to these estimates, quoted in the National Electric Mobility Mission Plan 2020, India’s share of the global passenger vehicle market will jump from 4% in 2010-11 to 8% in 2020. "In 2010-11 the total global demand for passenger vehicles was 73 million units of which India was 2.4 million units," said the report. By 2020 the scenario will change dramatically.

Global passenger vehicle demand is expected to hit 108 million units of which 50% or around 54 million units will come from the Asia, Pacific and Africa region. India’s passenger vehicle market is expected to hit 10 million units by 2020.

The demand spurt isn’t going to restricted to passenger vehicles alone. "In 2020 market/production for commercial vehicles, tractors and two wheelers in India is expected to reach 2.7 million, 1 million and 34 million respectively making India the third largest market with a turnover of $162 billion and the component industry attaining a turnover of $113 billion," said the report.

That’s a significant jump from the 2010-11 levels when the total turnover of the automotive industry in India was $73 billion of which the vehicle industry was $53.1 billion with a 26% growth on year-to-year basis.The component industry clocked a $40 billion turnover in 2010-11 while export of vehicles and components earned $6 billion and $5 billion respectively in that fiscal. That year the contribution of the auto industry to the national GDP was 22% while its excise contribution was 21%. Passenger vehicle export has gone from 198452 units in 2006-07 to 507318 units in 2011-12 at a 5-year compound annual growth rate of nearly 21%. Commercial vehicle exports in the same period have gone from 49537 units to 92663 units at a 5-year CAGR of 13.34%.

Indian Tyre Industry: On a Highway to Growth- The Indian tyre industry has been reporting good growth figures, over the past few years, spurred on by the rise in the automobile industry led by passenger vehicles and two-wheelers. The Indian tyre industry has emerged as one of the most competitive markets in the world and with the emergence of new technology, ultra modern production facilities and availability of raw materials,the sector is poised to grow further. A recent study states that the Indian tyre production is expected to reach almost 20 crores units by 2016-17.

In the previous financial year, the Indian tyre industry witnessed a turnover of Rs. 30,000 crores, producing 11.92 crores tyres, a total tonnage of 14.88 lakh metric tons. Currently India has 40 listed tyre manufacturing companies, out of which the top 10 account for over 96 percent of the country’s total tyre production. The tyre export market in India is valued at Rs. 3600 crores. While the tyre industry is largely dominated by the organized sector, the unorganized sector is predominant with respect to bicycle tyres.

Recycling of tyres- With the phenomenal increase in number of automobiles in India during recent years the demand of tyres as original equipment and as replacement has also increased from 22,846 thousand tyres in the year 1990-91 to 31,213 thousand tyres in the year 1994-95. As every tyre is destined to go to waste stream for disposal/recycling/reclamation, despite its passage through retreading process, the number of used tyres being discarded is going to increase significantly. Timely action regarding recycling of used tyres is necessary in view to solve the problem of disposal of used tyres keeping in view the increasing cost of raw material, resource constraints and environmental problems including fire and health hazards associated with the stockpiles of the used tyres. The problem has drawn attention of planners, environmentalists, consumers and industry in the developed countries in Western Europe, USA, Japan, Australia etc. where billions of used tyres are stock piled. These stockpiles are also direct loss of energy and resources in addition to fire & health hazard and other environmental issues.

Hence Tyre Pyrolysis Project gives us the opportunity to recycle waste or scrap tyres. Pyrolysis plants provide a alernate petroleum product which can be used as a substitute to industrial fuel. Thus pyrolysis plants are very effective & appropriate way that recycle tyres & extract valuable streams of industrial fuel which has a great demand in the market.