Transcript Pirelli in India

Pirelli in India
September 2005
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Pirelli in India
A Federal Republic larger
than Europe with...
• Enormous distances
• Largely unpaved roads
• Non electrified railways
(three gauges)
• Geographical Obstacles
• Periodical difficult climate
conditions
Difficult and costly
transportation across
the territory
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Pirelli in India
AUTOMOTIVE MARKET EVOLUTION
1990’s AND EARLY 2000’s
FUTURE TREND
Poor road conditions
Vehicle overloading
Low speeds
New infrastructures
(golden quadrilateral)
High speeds
Protected market
(high import duties and excise)
Open market
(WTO)
The market is increasingly demanding for higher quality and more
performing products
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Pirelli in India
THE “GOLDEN QUADRILATERAL”
5,846 km of four/six lane
expressways connecting
Delhi, Mumbai, Kolkata and
Chennai
A 6 billion USD project
boosting the Indian
automotive and
construction industries,
and sustaining the
Country’s economic growth
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Pirelli in India
INDIAN AUTOMOTIVE SECTOR
A STEADY DOUBLE DIGIT GROWTH:
PASSENGER CAR/VAN
PRODUCTION (2004)
1,080,000 units
+20%
(2004 vs. 2003)
TRUCK/BUS VEHICLES
PRODUCTION (2004)
188,000 units
+25%
(2004 vs. 2003)
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Pirelli in India
TYRE MARKET EVOLUTION
Indian tyre Producers are facing new challenges:
• Growing quality standards and performance required by the market
• Growing risk of foreign competition as market barriers are being
lowered in accordance with WTO directives
Most Producers are looking for technology updates to face these
challenges, i.e. technology agreements or JV’s with Western and
Japanese Companies
Consolidation process among producers is likely
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Pirelli in India
ATTRACTIVE POINTS
• Highly skilled technicians and open minded managers with international
background
• English widely spoken at all levels
• Weak cultural barriers (as compared to China)
• English common law
• Biggest Democracy in the world, stable Government
• GDP now growing 7% per year
• Interest rates are lowering (7.5% against 16%in the ’90s)
• High internal transportation costs
• Difficult to import used machinery
• Living conditions not easy in developing areas for Europeans
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Pirelli in India
PIRELLI’s TECHNOLOGY IN EMERGING COUNTRIES
Car + Light t.
Truck.
Motorcycles
Steelcord
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Pirelli in India
THANK YOU...
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