Motor cycle & Auto Rickshaw Tyre“Financial & Marketing Aspects A Case Study”

View With Charts And Images

Financial & Marketing Aspects: a study of Motor cycle & Auto Rickshaw Tyre in Bangladesh

Executive Summery

This is an internship report prepared by an IIUC student while undertaking an internship program at Uttara Motors Ltd. an enterprise of Uttara Group of Companies. Uttara Group of Companies is a company that was established to serve the beloved motherland with its new invention. In order to maintain its market position, company constantly seeks for quality products.

This is an exploratory research work. Although other secondary and primary date was used for the completion of this project, this is mainly a secondary data base report. The primary data was collected from existing customer while secondary data mainly from UML- Business profile.

Bangladesh witnessed rapid growth in transport industry since independence. The overall annual growth rate for the year 2007 was 13% for passenger transport. The average growth of motor vehicle in Bangladesh is 10.11% and for Dhaka City it is 9.37%. In comparison to growth rate of other industry in Bangladesh, this sector is more attractive to offer investment opportunity.

In our study I have tried to give an overview of the market and the size of potential demand for a new comer. Whether the size is feasible enough in comparison to the investment, is a subject to study under financial feasibility. It was also found that in motor vehicle tyre industry a company produces different sizes and types of tyre. If we want to decide on the feasibility of manufacturing or initially trading tyre, we have to consider the comprehensive demand of different sizes.

There is no manufacturer of motorcycle tyre in Bangladesh so far. The market size is attractive and prospective. The only consideration is the variety sizes. The number of tyre

required in every size may not be significant, but if we concentrate on particular sizes like, 250-18, 275-18, 300-17, 300-18 the demand is significant. If Uttara Group wants to get the market of motorcycle tyre, they have to consider the market of motorcycles imported as CKD basis.

APG & Gazi already proved that local tyres could replace the imported tyre market for 400-8. Still there is a gap of significant number of tyres every year. So, there is a good opportunity of manufacturing 400-8 tyre in Bangladesh.

1. Introduction:

Bangladesh is one of the largely populated countries where new roads are still under construction and various types of vehicles are playing on the road. So, supplying tyres for these vehicles are one of the most attractive opportunities to invest. As the capital required for this industry is high an intensive study is essential for investing in this industry.

Till to date only two companies are manufacturing tyres in Bangladesh in specific sizes. But the market is mostly served by the imported tyres from different origin and different suppliers.

Normally a Motorcycle or Auto rickshaw is used to solve the communication purpose. In Bangladesh different kinds of Motorcycle or Auto rickshaw are used and bajaj brand is one of them, which Uttara Group of Companies has introduced. Uttara Group of Companies was established in March 1973. This group is one of the leading industrial, trading & agency house. It represents country’s largest automobiles sector, which mainly holds the distributorship of Japanese & Indian origin automobiles. These automobiles mainly various types of basic vehicles contribute towards the fulfillment of demand of the country’s transport and communication sector. In this report I have mainly concentrated on the Super Kinag tyre which will be known as Uttara tyre. This study will identify the market aspect of marketing Super King tyre and also financial impact.

Uttara Group is one of the leading business conglomerates in Motor Vehicles industry with diversified investments in multiple industries. Uttara Group identified this opportunity and wants to have a preliminary study on the marketing feasibility of different tyres. We are talking about marketing feasibility & financial viability because the other aspects like technical feasibility is beyond the scope of this study. I hope this study will provide required outcomes for decision making for manufacturing or trading different size of tyre.

2. Objectives

The demand for any tyre is derived from the number of vehicles sold in a year and frequency of tyre replacement i.e. how many number of tyres are sold as replacement. A large share of market relates to the new vehicles (especially Motorcycle) importers and another share lies to the only tyre importers. So, studies the marketing feasibility of different category of tyres also requires a study on the related industry and responds to the questions of followings.

· Number of Motorcycle & Auto-Rickshaw in Bangladesh and its growth.

· Yearly market requirement of different size Motorcycle & Auto-Rickshaw tyre.

· Market share of different brand of Motorcycle & Auto-Rickshaw.

· Different size of tyres used by different brand of Motorcycle & Auto-Rickshaw.

· Average replacement time of Motorcycle tyre.

· Information on the available brands of Motorcycle tyre.

· Pattern of tyre (For front and rear of a Motorcycle& Auto-Rickshaw).

In addition to the above mentioned requirements this study hav considered the following requirements:

Market profile on 400-8 size tyre

Market profile includes following data on each segment:

· Present size of the market

· Growth rate of the market

· Price comparison

· Market information regarding manufacturer & supplier.

3. Methodology:

Both primary and secondary data is required for attaining the objectives of the study. Data on market share has been collected from company’s dealers’ conference report, which is justified, by our market survey in different location of Dhaka City.

Secondary data has been collected from BRTA, Company’s publications, Business consulting group & Statistical Bureau Report.

Under probability simple random sampling method has been utilized to collect primary data. For the ease of understanding and application simple random sampling method have selected. The researcher select potential customer, by picking up every second name from the customer list of Uttara Group. The population of this study is not general in type. Specific group/persons may need to be selection as the sample for getting the needed data.

After collecting data, qualitative analysis has used. The response of the respondents has been entered into the computer for tabulation and analysis.

Sampling Method:

Units: Customers 7 dealer who used bajaj product

Extent: The study conducted only in Dhaka City because of time & financial constrain.

Sample Frame: The Company was given the customer list about last 06 months.

Sample Size: In this study 70 existing customer & dealer has picked & 70 are minimum size of sample for Qualitative research. However, in some cases sample size are extended to 300 to find out exact scenario of the present market.

4. Scope:

During conducting the research, I have got introduce with real life marketing arena. For the said reason, I had to work with retailers, dealers, tyre shop & high officials of Uttara Group. It gives a practical idea present tyre market. I have gathered relevant information regarding landed cost of tyre from commercial department of Uttara Group to assess financial viability of this study.

5. Limitations:

Internship report usually has some limitations. This study is also limited for the following reasons:

· Its sample size is limited taking in consideration a huge number of populations in Dhaka City & Bangladesh.

· Researcher has limited access to the related literature review due to lack of journals available on the measured variables as well as restricted access to the internet & software based library.

· The data that will be collected at a particular period.

· The sample is limited in terms of its size & composition.

· The study conducted only in Dhaka City because of financial constrain.

· The study do not necessarily considered IRR as different opinion of technical personnel regarding project cost.

· Technical feasibility is beyond the scope of this study

6. Findings and Analysis thereof:

6.1 Company & Product information:

a) Company Profile:

Uttara Group of Companies was established in March 1973. The group is one of the leading industrial, trading and agency house and also represents country’s largest automobile sector. Uttara Group of Companies is a bunch of private limited company offers wide range of multidisciplinary trading and marketing services in aimed at the fully geared to achieve a sustainable break-through in the business world. The treading sector; mainly holds the distributorship of Japanese and Indian origin automobile manufacturers and various type of basic vehicles, which contribute and fulfill the demand at a large, extend of country’s transport & communication sector. The industrial activities fairly include assembling of Truck, Buses, Auto-rickshaw, Motor Cycle and manufacturing of Luxury Coaches and exports of Apparels, knit wear, sewing thread.

Uttara Group of Companies (UGC) is deeply committed to fulfill customer’s demand and cares about customer’s desire & taste. Placing emphasis on this important aspect UGC has initiated a new edge of business activities bridging a two-way traffic between the manufactures and the ultimate consumer in the present competitive world market. To protect valued customer’s interest, saving, safety, security, comfort and satisfaction the Group has also introduced and investment financing scheme.

b) Product information:

Government approved automobiles marketing company, sole distributor of Isuzu, Suzuki vehicles from Japan, Swaraj Mezda & Maruti vehicle from India. Parts & accessories, Sawafuji generator from Japan, Scott & English industrial generator from Singapore.

c) Product lines:


· 3-wheeler Bajaj Auto-rickshaw.

· 2-wheeler Bajaj Motor Cycle.

· Isuzu Commercial Vehicle (Bus, Truck, Pickup)

· Swraj Mazda Commercial Vehicle (Bus, Truck, Pickup)

Sole Distributor:

· Suzuki Vehicle

· Maruti Vehicle

· Isuzu Vehicle

· Swraj Mazda Vehicle

· Sawafuji, Scott & English generator

· Bridgestone Tyre


· Knit Fabrics

· Knit & woven Garments

· Sewing Thread

· Pharmaceuticals

· Re-treading Tyre.

d) Company’s aim:

The sky is not the limit for them but their expectations are within limit. Their imagination soars beyond conventional barriers. They share their destiny with their beloved motherland they want to serve her the better in the greater quest for nation; economic emancipation.

e) Market position & competitors:

Uttara Motors Ltd. sole distributor of Bajaj Auto Ltd. has achieved highest market share in the last financial year, achieving 53% share company had to face tuff competition. About 12 automobiles companies are involved with 2-wheeler marketing and they are offering attractive package of price and features to their potential customers.

The main competitors of Bajaj are Hero Homda, TVS, Yahama etc. Beside these several number of Chinese Brand are available in this market are achieved a remarkable market share. As a heist market shareholder UGC will have to try to grip the share first position and expand their product line.

6.2. Literature Review:

a) Transport sector in Bangladesh:

An adequate and efficient transport system is a pre-requisite for both initiating and sustaining economic development. Investment in improving transport efficiency is the key to expansion and integration of markets-sub-national, national and international. It also helps generation of economies of scale, increased competition, reduced cost, systematic urbanization, export-led faster growth and large share of international trade.

The transport system of Bangladesh consists of roads, railways, inland waterways, two seaports, maritime shipping and civil aviation catering for both domestic and international traffic. Presently there are about 80,915 of paved roads. Bangladesh witnessed rapid growth in transport industry since independence. The overall annual growth rate for the year 2007 was 13% for passenger transport. Even then the transport

Intensity of the Bangladesh economy is considerable lower than that of may developing countries. Number of motorized vehicles in Bangladesh and in Dhaka City is shown in the following table (As registered in BRTA)

Year Bangladesh Growth (%) In Dhaka Growth (%) Remarks
1999 552,001 229,184
2000 580,765 5.21 246,441 7.53
2001 623,275 7.32 267,006 8.34
2002 678,152 8.80 287,973 7.85
2003 737,400 8.74 303,215 5.29
2004 786,602 6.67 324,686 7.08
2005 852,480 8.38 351,465 8.25
2006 932,785 9.42 385,428 9.66
2007 1,054,057 13.00 422,370 9.58

Table 1: Total number of Motor Vehicles in Bangladesh & in Dhaka City

The average growth of motor vehicle in Bangladesh is 10.11% and for Dhaka City it is 7.95%. In comparison to growth rate of other industry in Bangladesh, this sector is attractive.

If we consider the fifth five-year plan of the Government, the growth of road transport is more emphasized over rail and inland waterways. Completion of Dhaka Eastern By-pass, Mongla/Khulna-Northwest corridor, Asian High Way will offer additional prospect to invest in transport sector.

The actual number of motor vehicle in Bangladesh (Specially motor cycle) may differ from the number registered under BRTA for the purpose of the study we will consider the data of BRTA.

b) Tyre for motor vehicle:

Every year new demand for tyres is created for the new vehicles, which may register, or not in our country. On the other hand there is a demand for tyres for existing vehicles as replacement of old tyre. The replacement depends of kilometers ran by the vehicle, loading, condition of the road etc. So total demand for tyres is demand for new vehicles and the demand for existing vehicles.

A large number of tyres required for these entire vehicles are supplied mostly by Indian, Indonesia, Japan, China, Thailand and some other countries. Apex Polymer Group is pioneer in manufacturing of motor vehicles tyres in Bangladesh. Thy started with tyres for 3-wheeler (Auto Rickshaw) and successfully took the place of imported tyres up-to their capacity. Another renowned company Gazi Tyres started their production and commercial supply of Auto-Rickshaw tyre in the year 2000.

With the success in first motor vehicle tyre Apex Polymer Group focused on other sized and eventually they identified the light truck category. They started to produce 750-16 and so far they have obtained a good faith in customer.

Till to date there is no manufacture of motorcycle tyre in Bangladesh. So the prospect of manufacturing motor vehicle tyre in Bangladesh is still an attractive arena to search.

Motor vehicles tyres are imported under certain H.S. Codes. We have concentrated on following motor vehicles tyres:

H.S. Codes Description

4011.20.20 of a kind used on busses or lorries of rim size 15 and above namely 560-15, 590-15, 640-15, 670-15, 710-15 (All ply Rating), 700-15 (6-8 PR), 600-16, 650-16, 700-16, 750-16 (7-8 PR)

4011.40.00 of a kind used on motorcycle

6.3 Motor Cycle sector:

Motorcycle is the single most used personal vehicle in Bangladesh. According to recent data of BRTA a total of 525,751 motorcycles registered in Bangladesh and among them 1,73,637motorcycles only in Dhaka City upto the year 2007. The actual number plying in the roads may be higher, as in border areas some motorcycles are used without registration and some other with fake registration. For the purpose of the study we will consider official data as a basis of study.

The total supplies of motorcycles are based on import. Some of them are imported as CBU (Complete built-up) and some as CKD (Complete knock down) i.e. imported as accessories and assembled locally. A list of importers is presented in appendix-I.

a) Market share of different brands:

Different brands of motorcycles are running on the road from different origin. Average life (Replacement time) of a motorcycle from Japan origin in higher that Indian origin. The market share of different brands shows the picture of the number of motorcycle running on the road and certainly not the reflection of present sales.

2005-2006 2006-2007 2007-2008
BAL (Bajaj) 12,953 23,084 38,998
HERO HONDA 18,775 19,443 24,930
TVS 4,268 4,947 5,600
YAMAHA 2,100 3,800 4,000
LML 1,450 840 0

b) Motor Cycle Tyre:

Till to date there is no manufacturer of motorcycle tyres in Bangladesh. The total market is served by imported tyres of different origin. There are a wide variety of motorcycles in the country. Tyre sizes vary also with the model of motorcycles. Again sizes of front and rear tyres also vary in a particular motorcycle. So, a cautious study is required to decide on the feasibility of motorcycle tyre.

During the study we identified a large variety of motorcycle tyres in terms of there sizes, brand and origins. A table has been attached in appendix-II; you will be able to get a picture of variety of brands, tyres sizes, tyre brands from that table.

c) Demand for Motor Cycle Tyres:

Demand for motorcycle tyre is derived from the number of motorcycles. While motorcycle is imported on CBU basis there is no opportunity of supplying a new tyre for those motorcycles. But when motorcycles are imported, as CKD basis there is a potential market for supplying motorcycle tyres for those motorcycles.

From the survey it was found that the replacement time of motorcycle tyre (though depend on frequency of use) is 24 months. So, the demand of tyre as replacement is not negligible.

So, the demand for motorcycle le tyres can be calculated as follows:

Yearly demand D = No. of motorcycle x 2 x Replacement multiplier

Year Total Motorcycle in Bangladesh No. Of Tyre Required Adjusted for replacement factor (20%) Growth Rate
1999 232,181 464,362 371,490
2000 246,795 493,590 394,872 6.29
2001 271,204 542,408 433,926 9.89
2002 300,251 600,502 480,402 10.71
2003 321,347 642,694 514,155 7.03
2004 346,288 692,576 554,061 7.76
2005 389,514 779,028 623,222 12.48
2006 440,620 881,240 704,992 13.12
2007 525,751 1,051,502 841,202 19.32
2008 627,326 1,254,652 1,003,722 19.32
2009 748,525 1,497,051 1,197,641 19.32

Table: Yearly Requirement of Motorcycle Tyres

So, the projected demand for motorcycle tyres (in quantity) is 11,97,641 pcs by the year 2009.

Sizes of motorcycle tyres vary with the model of motorcycle. Front and rear tyre in the same motorcycle also varies. From the survey it was found that for some specific sizes there are higher demands. If we calculate the total demand according to size the number is not impressive enough. But if we concentrate on particular sizes the demand is significant.

Summary of Front Tyre Size
Sl No. Tyre size No. of samples Percentage
1 90-18 3 1.00
2 225-17 18 6.00
3 250-17 20 6.67
4 250-18 90 30.00
5 275-17 15 5.00
6 275-18 82 27.33
7 275-21 5 1.67
8 280-18 4 1.33
9 300-10 3 1.00
10 300-17 7 2.33
11 300-18 40 13.33
12 350-10 4 1.33
13 Others 9 3.00
Total 300

Table: Result of sample survey on size of Motor Cycle front Tyre

As front tyres of motorcycles, demand for 250-18 and 275-18 is high. There is also some demand for 300-18.

Summary of Rear Tyre Size
Sl No. Tyre size No. of samples Percentage
1 250-17 25 8%
2 250-18 27 9%
3 275-17 36 12%
4 275-18 57 19%
5 300-10 4 1%
6 300-17 47 16%
7 300-18 73 24%
8 350-10 4 1%
9 410-18 6 2%
10 Others 21 7%
Total 300

Table: Result of sample survey on size of Motor Cycle Rear Tyre

For the rear tyre different sizes were found as momentous like 275-17, 275-18, 300-17, 300-18.

As we can see from the above analysis that 250-18, 275-18, 300-17, 300-18 are mostly used tyre sizes both in front and read position.

d) Market Share of Motorcycle Tyre According to Brands

A lot of brands were found in Motorcycle tyre market. As the number of brands is so high, it is insignificant to identify share of any particular brand. Same brand is also coming from different origins.

Among the brands, Bridgestone, Dunlop, MRF, Golden Boy, Goodyear are occupying the share of market respectively. The reason behind wide range of brands is tyres are mostly imported along with the motorcycle, where the brand becomes insignificant.

e) Market Share of Motorcycle Tyre According to Origin

The data collected from the study shows that the motorcycle tyres are coming mostly from India. Japanese tyres are occupying the second position in the market. Among other countries Pakistan, Indonesia, Korea, China are supplier of motorcycle tyre respectively.

Sl No. Origin No. of samples Percentage
1 China 32 5%
2 India 324 54%
3 Indonesia 60 10%
4 Japan 91 15%
5 Korea 37 6%
6 Pakistan 51 9%
7 Others 5 1%

Table: Market share of Motor Cycle Rear Tyre

Overview of Market Price of Motor Cycle Tyre According to Origin & Brands:

Size Brand Origin Price
250-18 MRF India 1,100
Dunlop India 1,140
Bridgestone Japan 1,850
Panther Pakistan 1,180
Sino China 770
275-18 MRF India 1,200
Dunlop India 1,265
Bridgestone Japan 2,100
Panther Pakistan 1,300
Sino China 1,000
300-17 MRF India 1,400
Dunlop India 1,275
Bridgestone Japan 2,300
Panther Pakistan 1,300
Sino China 800
300-18 MRF India 1,400
Dunlop India 1,275
Bridgestone Japan 2,300
Panther Pakistan 1,300
Sino China 900

Table: Market Price of Motor Cycle According To Origin & Brands

6.4 Auto Rickshaw Or Three Wheeler Tyre

400-8 tyre specifically used on a particular vehicle Auto Rickshaw, mainly used as a passenger transport. In some rural areas a special type of vehicles namely “Nosimon” used both for passenger transport as well as goods transport also uses such tyres.

Al these vehicles were two-stroke, which pollutes the environment in a high rate. Up to 2000 such vehicles were imported and the market was growing. As the concern for pollution was increasing and there was a movement against environmental pollution world-wide, in 2001 Government imposed bar on importing two-stroke vehicles. A four stroke Auto-Rickshaw with same tyre size replaced the two-stroke vehicles and the market again began to increase from 2002. So the demand for 400-8 tyres still prevailing and increasing, but the source of demand switched to four strokes from two stroke.

Demand for 400-8 Tyres

According to BRTA a total of 129,758 Auto Rickshaw were running all over the country upto 2007, among them 13,521 Auto Rickshaw running in Dhaka City. At the end of 2003 Government removed 26,429 two stroke three wheelers from Dhaka City. However, these two-stroke auto rickshaws are running in the nearest district of Dhaka. The scenario can be more depicted from the following table:

Year Total Auto Rickshaw in Bangladesh Growth rate
1999 75,612
2000 78,747 4%
2001 79,144 1%
2002 84,623 7%
2003 98,479 16%
2004 107,453 9%
2005 112,330 5%
2006 119,228 6%
2007 129,758 9%
2008 141,436 9%
2009 154,165 9%

While looking into this table we have to consider:

Demand for Auto-Rickshaw all over Bangladesh is increasing on an average 7.07%

For Dhaka City the demand is fluctuating, the government ban significantly affected the number of vehicles in 2001 but again it begin increase from 2002. As two stroke vehicles removed from Dhaka City in 2003, the total number of vehicles dropped in 2003.

After removing the two stroke vehicles from Dhaka City, Chittagong has also removed two stroke vehicles, which is again replaced by four strokes Auto-Rickshaw.

Uses of Auto-Rickshaw in rural and semi urban areas are increasing with the development of new roads.

It was found from the study that on the average a tyre is replaced with 4 months in Dhaka, Chittagong and other urban areas where the roads are in better shape. But for other areas the areas the average replacement time is 3 months.

From the considerations above we may conclude that there is a fixed market for 400-8 tyres as replacement demand and the growth opportunity will remain around 7%.

The demand for 400-8 tyre may be calculated as;

Demand for 400-8 tyre D = No. of vehicles x 3 tyres per vehicle x replacement Multiplier

Year Total Auto Rickshaw in Bangladesh No. Of Tyre Required Adjusted for replacement factor 30% Growth Rate
1999 75,612 226,836 294,887 0%
2000 78,747 236,241 307,113 4%
2001 79,144 237,432 308,662 1%
2002 84,623 253,869 330,030 7%
2003 98,479 295,437 384,068 16%
2004 107,453 322,359 419,067 9%
2005 112,330 336,990 438,087 5%
2006 119,228 357,684 464,989 6%
2007 129,758 389,274 506,056 9%
2008 141,436 424,309 551,601 9%
2009 154,165 462,496 601,245 9%
2009 26,429 79,287 103,073 Two stroke

Table: Yearly Requirement of Auto rickshaw Tyres

b) Demand & Supply Gap

As an ambitious projection there is a demand for 704,318 tyre per year by 2009.

As we mentioned earlier Apex Polymer Group (APG) and Gazi Tyres of Bangladesh are manufacturing 400-8 tyres. So far they have obtained the faith of customer through quality, price and availability. Apex Polymer Grkoup has switched their focus on bigger tyres from 400-8 but still they are producing and selling 400 tyres a day with their full capacity. On the other hand Gazi is delivering 200 tyres every day with the utilization of full capacity. Following table shows the demand situation in 2009. If APG and Gazi supplies to their full capacity, still there will remain a gap for 494,318 tyres in 2009. The total gap is being served by imported tyres mostly from India and partly China.

Particular Quantity
Total demand for 2009 (3 Stroke) 6,01,245
Total demand for 2009 (2 Stroke) 103,073 704,318
Locally supplied:
Apex Polymer Group 140,000
Gazi 70,000
Total Local Supply 210,000
Supply Gap for 2009 494,318

Table: Demand & Supply Gap 400-8 tyres

c) Market Share of 400-8 Tyre According to Brand:

A lot of brands were found in 400-8 tyre market. To get the real picture samples have also been collected from Dhaka City where Auto rickshaws are running.

Sl Brand Name Origin Sample Qty Percentage
1 Dunlop India 17 8.50
2 BKT India 18 9.00
3 Triangle China 16 8.00
4 Gajah Tungal Indonesia 11 5.50
5 Ceat India 21 10.50
6 Gazi Bangladesh 15 7.50
7 Hussain (Apex) Bangladesh 27 13.50
8 MRF India 59 29.50
9 Others 16 8.00
200 100

The two local brands Gazi & Hussain (Apex) are occupying 21 % market share. The imported portion is mostly by MRF brands. Like motorcycle tyres India is the largest seller in 400-8 market.

Overview of Market Price of 400-8 Tyre According to Brand:

Brand Origin Price
MRF India 1,450
Dunlop India 1,200
Gazi Japan 920
Apex Pakistan 950
Ceat India 1,300

6.5 Distribution Channel for Motorcycle & Auto-Rickshaw

Manufacturing quality tyre may not be the ultimate goal until & unless ensure better distribution channel to deliver the product to end user hassle free. One of the major concerns of the end-user in Bangladesh is the lack of proper repair facilities.

Any manufacturer or distributor of tyre who has up-to-date repair facilities in main cities will have competitive advantage over competitors’ satisfied customer based.

Customer will be happy because they know that distributor cares for their tyres. If at ant time it gets punctured or damaged it can be repaired professionally but latest technology through reliable vulcanier.

Furthermore, repair business will complement company’s current line of business.

Manufacturer: Uttara Group Of Companies

End- Users

6.6 Financial Viability:

In our study I have tried to give an overview of the market and the size of potential demand for a new comer. Whether the size is feasible enough in comparison to the investment, is a subject to study under financial feasibility. It was also found that in motor vehicle tyre industry a company produces different sizes and types of tyre. If we want to decide on the feasibility of manufacturing or initially trading tyre, we have to consider the comprehensive demand of different sizes. However, in this report I feel it appropriate to provide financial viability statement of trading various type of tyre rather manufacturing as investment required for tyre manufacturing plant is high & another factor for consideration which is a subject of Technical Feasibility.

Landed Cost of different size of tyre:

Sl Particulars Tyre size
400-8 300-18 300-17 275-18 250-18
a FOB Benapole. $ 7.25 $ 6.50 $ 6.50 $ 6.00 $ 5.85
b Freight/ Carrying 3% on (a) $ 0.22 $ 0.20 $ 0.20 $ 0.18 $ 0.18
c C & F value (a+b) $ 7.47 $ 6.70 $ 6.70 $ 6.18 $ 6.03
d Insurance 1% on (a) $ 0.07 $ 0.07 $ 0.07 $ 0.06 $ 0.06
e CIF value (c+d) $ 7.54 $ 6.76 $ 6.76 $ 6.24 $ 6.08
f PSI Commission 1% on (e) $ 0.08 $ 0.07 $ 0.07 $ 0.06 $ 0.06
g CRF Value (e+f) $ 7.62 $ 6.83 $ 6.83 $ 6.30 $ 6.14
h Duty 25% on (g) $ 1.90


The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.