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1) Bargaining power of supplier

Bargaining power of suppliers can be segregated in two parts according to the demand of industry.

Rubber

There are two reasons behind this being low first one is most of the tyre firms get150 days credit for buying the rubber from international market which is not the case if they buy it from domestic rubber growers. And the second reason is, this credit is being offered at LIBOR, which is the London Inter-bank Offered Rate. It is the rate of interest at which banks borrow funds from other banks.

Other Petro chemical based material (Carbon black, Nylon tyre cord etc.)

The power of suppliers is high in this category as India is limping back in case of Petro based raw materials like carbon black and chemicals which account low in quantity terms but are high cost generators. Also the price of NTC fluctuates in line with the prices of Caprolactam (a petroleum derivative)-it¡¦s main raw material. The prices of these materials are......

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Approximate Word Count: 618
Approximate Pages: 3 (250 words per double-spaced page)

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