Not MRF, not Apollo: The ‘skeleton’ stock inside every 2nd car in India |
The next time you are cruising at 100 kmph on an Indian highway, remember this: the only thing keeping your tyres from flying off your flashy metal rims is a thin, invisible circle of high-tensile steel. Yes, it is a part of your car, but you cannot see it and you will never replace it.
Yet, without it, every vehicle from a midsize family car to a Boeing 747, would be a useless piece of scrap. This invisible yet most important hero is called Bead Wire. Something most people driving a car might not even know about.
No matter what brand you go to for tyres, bead wire is not optional. It is called the “Tyre Skeleton” for a reason. Now to the most important part. What if you could find one company that is a leader in the bead wire space, so much so that it has over 50% market monopoly?
Rajratan Global Wire Ltd is engaged in the manufacturing of bead wire, a high-carbon steel wire utilized in the production of tires. Additionally, the company produces drawn steel wire, referred to as black wire, which is used in various industries such as automobile, construction, and engineering.
With a market cap of Rs 2,392 cr, the company has an international presence across the USA, Canada, the Czech Republic, Italy, Finland, Turkey, Sri Lanka, Bangladesh, Vietnam, Malaysia, Indonesia, South Korea, the Philippines, and Australia.
The company’s key customers include MRF Ltd, Apollo Tyres, CEAT Ltd, and Bridgestone Tyres in India, and it also has clientele in Thailand, such as Sumitomo Rubber (Thailand) Co. Ltd and Yokohama Tire.
What is it that helps the company maintain its leadership position? To understand that you must know about what exactly a Tyre Skeleton is and why is it so difficult for competition to sustain in the industry.
While we often think of tyres as just rubber, they are an engineering marvel. In fact, a very complex........