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Tyre volume demand was expected to grow by seven to eight per cent during FY18' and FY19' on the back of higher OEM demand and stable replacement demand, a ICRA report said.
"Tyre volume demand is expected to grow by seven to eight per cent during FY18 and FY19 boosted by higher OEM demand and stable replacement demand, the report said.
Carbon black companies were also on expansion mode based on the growth projections for the tyre demand.
Country's largest carbon black producer, Phillips Carbon Black will pump Rs 300 crore for brownfield expansion and evaluating greenfield unit in south India, where new tyre capacity is likely to come up.
Replacement demand for the truck and buses (T&B) is likely to pick up to five per cent in FY18' following the 0-3 per cent decline witnessed in FY17 (Provisional), the report said.
Though demand in Q1 of FY18' suffered due to destocking by dealers before GST rollout, this is a short term aberration and volumes should recover in H2 FY18, the ICRA report said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)