What could be the impact on the domestic tyre industry, of the rounds of consolidation beginning to happen?
The market in India is worth about Rs 10,000 crore. It is in the hands of four big players, two medium players and few small players. The big four – and here I am assuming Vikrant and JK are merged – are likely to have a 2002-03 turnover of Rs 8,000 crore. The two medium players – Goodyear and Birla – should account for Rs 1,000-1,200 crore. The rest should notch up another Rs 1,000 crore. About 15 years ago, we were 12 big players. But in my opinion, we will see further consolidation and nobody should be under the illusion that he is big enough to be not gobbled up. I would expect in the next two years, the number of players from four plus two, to be reduced by at least one. One more player should get out of business in the next two years and every two years you should see a player getting out. Ultimately, it will be a business of just four players. I am not necessarily saying that the medium ones will go, because Goodyear will not – they have taken a decision to remain in the busines
