The Indian Tyre Industry is an integral part of the automobile industry and its fortunes are interdependent on those of the Automobile players. Popular brands like MRF, Apollo, CEAT form an integral part of this industry. Over the last 9 years, this industry has grown by a good 15%.
After suffering a slowdown in FY09, the industry witnessed a significant recovery in FY10 backed by robust auto demand. However, in FY 11, high raw material (rubber) prices affected the margins and depressed the profits of the tyre companies.
So, going forward, should you invest in the tyre industry?
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