1) Develop new product: TYRE FINANCING Tyres off take by different automobile segments directly reflect the pace of economic activities in a country. The performance of commercial vehicle tyres is directly linked to the country’s economic development. India, being the world’s second most populous and seventh largest country in area, has been seen a tremendous GDP growth for the last few years which transform into the dynamic developments of various industries, including automobile and tyres. The top tyre companies almost account for over 85% of total tyre production including, MRF, CEAT, APOLLO, JK, Bridgestone India, Goodyear India and Falcon Tyres. The total number of tyre dealers, geographically spread all over the country is over 5,000 - serviced through over 500 depots of tyre companies. A vast majority of dealers handle Multi-brands of tyres. Tyre companies also have exclusive retail distribution outlets. Potential Customer Segments Our potential customers are our existing group of customers, who are in the segment of Tractor LCV&HCV CE In Hubli branch there is approximate 1800 contracts, in which 61 CV customer are there. And there is 677 tractor customers. And 174 auto 1
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1) Develop new product:
TYRE FINANCING
Tyres off take by different automobile segments directly reflect the pace of economic activities in a
country. The performance of commercial vehicle tyres is directly linked to the country’s economic
development. India, being the world’s second most populous and seventh largest country in area, has
been seen a tremendous GDP growth for the last few years which transform into the dynamic
developments of various industries, including automobile and tyres.
The top tyre companies almost account for over 85% of total tyre production including, MRF, CEAT,
APOLLO, JK, Bridgestone India, Goodyear India and Falcon Tyres. The total number of tyre dealers,
geographically spread all over the country is over 5,000 - serviced through over 500 depots of tyre
companies. A vast majority of dealers handle Multi-brands of tyres. Tyre companies also have
exclusive retail distribution outlets.
Potential Customer Segments
Our potential customers are our existing group of customers, who are in the segment of
Tractor
LCV&HCV
CE
In Hubli branch there is approximate 1800 contracts, in which 61 CV customer are there. And there is 677
tractor customers. And 174 auto other than 3 wheelers, Gio ,Maximo contracts.
Therefore these 912 customers are our potential customer.
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TRACTOR74%
CV7%
AUTO19%
CUSTOMER MIX
(Above chart shows percentage of our existing customers.)
The tyre wear and tear depends upon how driver will use vehicle and soil type and geographical
conditions. Above given price are average price calculated on the market price.
Economy: The district falls in Tropical Region, which is largely affected by monsoons. This explains
that the district is an agro-based economy, and also that agriculture is the main occupation in the
whole of rural area of the district. The prestigious University of Agricultural Sciences at
Dharwad has discovered new species of cotton and chillies, which is the first of its kind in the
world. The existence of this prestigious institution has boosted the agro-based industries in the
district.
Therefore other activities of economy, i.e., trade and commerce are completely dependent on
agriculture. As monsoon is highly uncertain in nature and as there is no major irrigation project
or any hydal power generating station in the district, there is high degree of dry-land farming.
The mineral wealth is not quite impressive and forest wealth is equally unattractive.
Manufacturing industry, particularly agro-based industry makes a significant contribution to the
economy. Hubli-Dharwad is two of the major commercial centres in the State.
Of the total population, 39% makes up for working class. This consists of 26% of those
engaged in agriculture sector. Till today, agriculture is a labour intensive enterprise. Many
labourers largely depend on seasonal employment. The per capita income at current prices is
Rs.14861 and at constant prices [93-94] it is Rs.10462. The State level per capita income at
current prices is Rs.14909. The main kharif crops are; cotton, chilies, sugarcane and groundnuts,
and the main Rabi crops are jowar, wheat, rice etc. Out of total cultivated land, only 12.10% is
irrigated [as per the 4th Economic Survey – 1998]. On the industrial side, it is seen that there are
50602 industrial units existing in the district. The district has as many as 216 banks and 535
ration shops.
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SCHEME DETAILS
Who can apply for our Tyre Finance scheme?
EXISTING CUSTOMERS WHO ARE:
Fleet operators – big or small / retail
Corporates who own light/medium/heavy commercial vehicles including buses
Other existing customers who have good track with us.
How does our Tyre Finance scheme work for you?
A credit limit is fixed based on your fleet size, activity level, and the security offered
Finance can be drawn as and when a requirement to purchase tyres arises, within the fixed credit limit
Benefits of our Tyre Finance scheme
Finance up to 70-80% of the invoice value
Flexibility of finance for any brand of tyres
Any number of tyres with a minimum of 2 tyres for HCV’s and 4 tyres for LCV’s.
Advantages of our Tyre Finance scheme:
Your fleet’s working capital requirement is eased considerably
We have a Pan-India network of more than 500 branches from where you may avail the finance scheme
Repayment in 3 convenient EMIs
How long will it take for you to receive your tyres?
Not more then 2-3 days at the maximum. Simple documentation and quick processing shortens the time for you to receive the tyres.
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Price list of MRF
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TYRE FINANCE SCHEME:
Tyre financing scheme should be introduced for our existing customers who have good track record for
our HCV as well as CE customers. Tyre financing will serve the purpose of top up instant loan and
fulfill the temporary financial needs of the customers.
Benefits of Tyre Finance scheme:
Finance up to 70% of the invoice value. Flexibility of finance for any brand of tyres which will be an add-on service. Up to 70% funding on the invoice price. Tenure: maximum of not exceeding more than six months.
Rate of Interest:
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FOR CES PROFILE CUSTOMERS:
ROI: 18%
FOR SUS PROFILE CUSTOMERS:
ROI: 20%
FOR FTU PROFILE CUSTOMERS:
ROI: 22%
Processing fees: Rs.1000/-
DOCUMENTS REQUIRED
All KYC Documents Original Invoice Photographs Bond Paper (Rs.100/-)
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DESIGN A STARTEGY
A. Product Market and competitions:
Product Market:
Product Market:
As per SIAM (Society of Indian Automobile Manufacturers)
The classification of segments are done as per length of the vehicle, (Passenger car segment)
A1 - Mini - Up to 3400mm (M800, Nano)
A2 – Compact - 3401 to 4000mm (Alto, wagon r, Zen, i10, A-star, Swift, i20)