Business Standard

Natural rubber price hike may make tyres more expensive

Related News

The recent rise in (NR) prices has prompted the country’s leading tyre companies to re-think their price strategy. A hike in tyre prices for the second time in a year seems imminent, say analysts.

In just over four weeks, the price of the benchmark grade, RSS-4, has increased 10 per cent to Rs 155 a kg.

According to sources, a price increase across categories is on the cards over the next couple of months. Tyre prices went up 2-7 per cent in January this year. Natural rubber accounts for almost 50 per cent of the total production cost of a tyre.

“Prices will go up further due to the rise in NR prices,” said Satish Sharma, chief of manufacturing & marketing at Apollo Tyres.

“The excise duty increase on will come into effect from April. We might consider a price hike after that,” he said.

The pricing strategy of competitors would also be taken into account before a final decision was reached, Sharma added.

“The prices have to be enhanced. You cannot manage production without increasing prices. The rubber price increase has not only affected tyre companies but also all other rubber-based industries across the country,” said AS Mehta, director (marketing), JK Tyres. Mehta said his company would take a decision on raising prices within a week.

The price rise comes at a time when the industry is facing serious threats from overseas companies that procure rubber at a much cheaper rate. The current local price of rubber is higher by Rs 5 per kg than the price in Singapore.

Read more on:   
|
|
|
|
|
|

Read More

Cotton yarn exports to touch record high in FY13

This financial year, cotton yarn exports are expected to touch an all-time high, owing to good demand from China. Textile Commissioner A B Joshi said ...

Quick Links

 

Market News

Why OMCs are the best play in markets right now

Lower crude prices, higher margins and falling subsidies make OMC an attractive bet

Nifty ends above 7,900 for the first time after record high

The Nifty and Bank Nifty ended at record closing highs of 7,913 and 15,819, respectively

Sensex hovers around 26,400; IT and banks gain

At 14.45 PM, the BSE Sensex gained 58 points at 26, 422 while the CNX Nifty was up 21 points at 7,921

Hotel Leela Venture climbs 6% on news clarification

Hotel Leela Venture has surged 6% to Rs 25 on BSE after the company issued a clarification on the media news item.

18 stocks now part of Rs 1-lakh crore m-cap club

Together command a cumulative valuation of Rs 39.5 lakh crore, which is about 43% of the Indian markets

Back to Top