The outlook for the tyre industry has taken a
beating amid demand from domestic auto companies which are expected to fall
post festive season, while the replacement market holds little hope, which has
so far remained more or less stagnant. Outlook from global markets too looks gloomy
amidst drought in the US and weak economic activity in Europe.
A fall in domestic natural rubber prices help
raise operating profit margins and the recent decision by Competition
Commission of India to clear cases against six tyre makers on cartelisation
charges are seen as positives for the tyre industry. The Commission has found
that there is not sufficient evidence to hold a violation by the tyre companies
Apollo, MRF, J.K. Tyre, Birla, Ceat and ATMA of the provisions of section 3(3)
(a) and 3(3)(b) read with section 3(1) of the Act.
India and China will be holding the Strategic
Economic Dialogue in Delhi later this month with an aim of enhancing business
engagement between the two countries.
Read
lot more in Rubber4U – 1st December 2012 issue
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