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Jk Tyres Material

Jk Tyres Material

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05/01/2013

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The founders

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Businesses:
The Principal business of the JK Organization includes Tyre, Paper, Cement, Drugs & Pharmaceuticals, Agri Genetics, Dairy and Food Products, Audio Magnetic Tapes, Sugar, Cosmetics, Woolen Textiles, Steel, Engineering Files, International Trading, Hybrid Seeds, Industrial Rubber Products, Material Handling System etc.

Jk Tyre and Industries is a mega corporate entity that is emblematic of excellence, diversification and pioneering new technologies. A part of JK Organization which ranks among the top private groups private groups in India, Jk Tyre and Industries is committed to self reliance and follows an ethic that views customer satisfaction as an index of achievement. Over the years, the company has expanded and diversified its business portfolio. It has developed into a multi product, multi-location corporate entity comprising of following business divisions

With a distribution network of over 4000 dealers and over 120 stocking points.About JK Tyre & Industries Ltd: JK Tyre & Industries Ltd. "Rajiv Gandhi National Quality Award". 1 in JD Power Customer Satisfaction Index in 2009 and is the first and only Tyre Company to be awarded ‘Superbrand’.JK Tyre. the Company has left a mark across every Indian road treading into every nook and corner of the country J. Highlights . the company operates in a huge distribution network with a large number of SKUs (stock-keeping units).K. With over 8. JK Tyre is India's leading four-wheeler tyre manufacturer and the 22nd largest tyre manufacturer in the world. understandably. Vikrant and Tornel. has been the leading automobile tire manufacturer in India since 1977. Tyres & Industries. It is the flagship Company of JK Organisation known for manufacturing leading tyre brands . JK Tyre & Industries has achieved innumerable feats including the top honours such as "The Brand Equity Award". has been ranked as No. "CII .K.7 million tires sold per annum. organization. As the pioneers of radial technology in India. the company has taken forward this revolution in the Truck/ Bus radial segment.Exim Bank Award" and several other awards. a part of the J. Over the years.

K. Tyres & Industries. its 4 plants and sales offices was causing information delays and discrepancies in sales and operation planning. Sharma. created on the basis of the production plan. A lack of co-ordination between heterogeneous systems across head offices. the company deployed 16 conventional and new dimension ERP modules. finished goods. demand visibility. Based on the demand. "The principle focus was to align supply chain objectives with business objectives." says S. J.The system creates transportation orders from plants to the SKUs and from the SKUs to the depots.86 crore over a period of one year.K. from all the plants are sent to the SKUs. S. But Sharma had to combat a few hurdles. collaboration and inventory management. . To optimize its supply chain function and bring in operational efficiency. post implementation. Tyres has raked in savings of Rs 6. The project encompassed complex planning processes that included change management and standardization of processes across plants. J. "We needed to make the business agile by making the right information available to the right person at the right time. stock is transferred from SKUs to the respective depots. chief GM-IT." says Sharma. The system creates transportation orders from plants to the SKUs and from the SKUs to the depots. forecast. These modules translated into a statistical demand forecasting system that gave rise to an accurate production plan. Today.

. 1200 crores in the next 3 to 4 years to fulfill the demand for quality tyres in the country. “Our all new green field plant will by far be a state of the art tyre plant in the country. It is understood that Govt. VIKRANT and TORNEL. therefore our new plant in Karnataka is part of our long term growth strategy. 2010. industry leader and manufacturer of well known brands JK TYRE. "JK Tyre has recently completed a Rs 315-crore expansion project to increase truck and bus radial tyre capacity from four lakh to eight lakh tyres per annum and is also planning to invest Rs 1. said” There is an increase in demand for commercial vehicles as well as for passenger cars in the country.P. JK Tyre will invest in the state to manufacture truck.200 crore in the next three-four years for capacity addition which includes setting up a new plant in Karnataka with an investment of Rs 800 crore. 18:46 IST Company to invest Rs 800 crores in the new plant and R&D facility to cater demand and drive growth. had announced undertaking substantial expansion of its operations in one of the southern states.200 crore in the next three to four years to fulfill the demand for quality .JK Tyre to Set-Up Green Field Plant in Karnataka Announcement / Corporate January 11. It will also provide substantial employment to the youths of the state.” he further added JK Tyre has recently completed expansion of Rs. principle secretary (Industries) yesterday in Delhi. In this connection Mr. V. Announcing the expansion plans. President. JK Tyre & Industries Limited. Mr. Arun Bajoria. of Karnataka has assured special incentives to the company for their forthcoming investments. bus and car radials to cater to both domestic and international markets. NEW DELHI: JK Tyre today said it will invest Rs 1. As part of company’s growth strategy of expanding its capacity and strengthening R&D. Arun Bajoria. President JK Tyre met with a team of senior officials of Govt of Karnataka lead by Mr. Baligar. 315 crores to increase its capacity of Truck and Bus Radial tyres from 4 Lac to 8 Lac tyres per annum and is further planning to invest Rs. They had shortlisted Tamil Nadu and Karnataka for this purpose. We had announced last year to undertake substantial expansion of our tyre operation. JK Tyre & Industries Ltd.

JK Tyre will invest in Karnataka to manufacture truck. bus and car radials to cater to both domestic and international markets and has earmarked an investment of Rs 800 crore for that.tyres. it added." Bajoria said in the statement. As part of company's growth strategy. "We had announced last year to undertake substantial expansion of our tyre operations. ." a statement quoting JK Tyre & Industries president Arun Bajoria said today. therefore our new plant in Karnataka is part of our long-term growth strategy.

the social life of people has improved. Tyres & Industries J. "Beside monetary gains.K. Tyres has raked in savings of Rs 6. schedule lines and suppliers have been created together with the roll out of raw materials for efficient functioning of the supply chain. Various modules for purchase order." S.Stakeholder Views "A complete project that cut costs and improved the work-life balance of my co-workers.S. JK Tyres chooses `360-degree' ad strategy -. According to Sharma. May 22 . They are now able to finish their jobs much faster and their work-life balance has improved significantly.Shifts account from Interact Vision to O&M Ratna Bhushan NEW DELHI. post implementation. J. Sharma." The business now interacts with its suppliers through the ERP Portal.86 crore over a period of one year.Chief GM-IT.K.

'' Mr. The advertising will begin rolling out in the first week of June across a cross-section of media with the objective of creating reasonable impact. JK Tyres has set aside a budget of Rs. will be upped from the current 75 to 130 by March 2001. officials at JK Tyres have said the switchover will result in a `marked change' in the overall advertising strategy.FOR a product that continues to be a reluctant and low-involvement purchase. ``These are salient features that our target consumers are largely unaware of. JK Industries Ltd told Business Line. ``There will be no great splurge in terms of ad spends. the flagship division of JK Industries Ltd. ``The exact strategy is still developing. The `customer delight' proposition will also take forward JK Tyre's concept of exclusive `Steel Wheels' retail outlets and its dial-a-tyre service. for example. the need to heighten the brand's presence and personality and stay ahead in the race were among the reasons the officials named that necessitated the shift. While the advertising spends will be roughly in the same region as last year. The ads will also talk of the brand's association with motor sports and go-karting. Kunal Banerji. . said. We want to give people proof statements of these facts.'' Mr. Sudhir Sahni. Client Services. is opting for an all-new ``360 degree communication strategy'' based on the objective of achieving `customer delight'. Though the advertising created by O&M is yet to break. Interact Vision.'' Mr. Vice President. JK Tyres. the officials revealed. Banerji said. The new advertising strategy comes in the wake of the company terminating its association with its ad agency of five years. how much does aggressive communication really impact its marketer's bottomlines? A lot. The key aspects that the communication will seek to highlight will be JK being leaders in tec hnology and the rigourous tyre testing that it undertakes. ``Customer satisfaction tracking studies revealed that certain areas of the communication needed improvement. we are looking at qualitative utilisation of the funds.'' Mr. An increasingly competitive market. but it will reflect the benefits of the brand bang-on. an internal restructuring of the budget is on the cards. and signing up Ogilvy & Mather (O&M) instead. General Manager (Advertising). Instead. Banerji said. The number of Steel Wheels. We want the feel good factor to come through to the consumer through more powerful communication. O&M. Along with below-the-line spends. The advertising will be consumer benefit-centric and will not involve celebrity endorsements. 30 crores for advertising. it would appear.

said. Of this. buses and light commercial vehicles tyres. economy and value-for-money. On the product front. A segmentation study. Our Strategy We have the following strategies to develop our business and continue to grow further: Consolidate leadership position in commercial vehicle tyre segment We are one of leading players in the commercial vehicle tyre segment in India. That the fresh communication strategy will boost brand share is an obvious fallout. potential tie-ups with corporates are being worked out. which began about four months back.Finally. the company is mulling the options of expanding its range within the next four months. JK (along with Vikrant) has a 22 per cent share. though he did not divulge exact targets JK Tyres is aiming for. Deputy General Manager (Marketing). is being undertaken wherein the tyres are being bracketed as premium. In this segment. As per the report published by ATMA. ``We want to radialise the jeep segment and introduce several new patterns. 74 per cent is accounted for by truck and bus tyres. Neeraj Bhatia. The overall tyre industry is estimated at Rs. Banerji said.'' Mr.000 crores. JK Industries. but the timing will depend on our state of preparedness. our production . which includes truck. 9. and these will not necessarily be linked to purchase. Mr.

02% and 62. Our brand name is well recognized and associated with quality and reliability.67% respectively of our net sales. comprising 97% of the passenger car tyre market and 6% of the truck tyre market during 2008. We are one of the leading manufacturers of truck and bus radials in India at present. We are seeking to capitalize on our first mover advantage and become a leading manufacturer of passenger car radial tyres in India. maintain and build on our distribution network. We envisage an increase in the demand for truck and bus radials in India in the coming years on account of economic growth and development of highways and road infrastructure in the country. improvise existing products and introduce new products to meet the requirements of our customers. Our portfolio of passenger car radials includes a comprehensive range of “S”.constitutes approximately 22% and 18% in the truck and bus segment and light commercial vehicles respectively of the Indian tyre market domestically in the period between April 2007 to March 2008. Capitalize on our first mover advantage in the radial tyre market and expand our market share in radial tyres We pioneered radial technology in India. jeeps and tractors. We have already produced “Z” rated radial tyres for motor sports which are ultra-high performance tyres and intend to commercially introduce ‘Z’ rated passenger car radial tyres in Indian market in 2008. Radial tyres are gaining market share in the Indian tyre market. Strategic sourcing of raw material and focus on strategic partnerships with key suppliers In Fiscal 2007 and for the six month period ended March 31. “H” and “V” rated tyres. We were the first tyre manufacturers in India to produce radials for the entire range of vehicles i. We intend to consolidate our leadership position and build on our brand equity in the commercial vehicles tyre segment by continuing to manufacture and supply high-quality tyres. “T”. raw material costs constituted approximately 69. light commercial vehicles. 6 . buses.e. trucks. 2008. We plan to increase production of truck and bus radials on a large scale and are scaling up our manufacturing activity by enhancing capacity in our existing plant at the Mysore Plant II. passenger cars.

Moreover. including cost models. We intend to continue focus on export of bias truck and light commercial vehicle tyres. China and Korea helps to ensure competitive pricing and better availability of raw materials. Highest Export Award to Latin American countries from the Indian Trade Promotion Organisation. nylon fabric. we have won numerous export awards including the National Export Award from the Ministry of Commerce. our exports have constituted over 25% of our bias truck tyre production. global supply and demand patterns. Additionally. We are currently exporting our products to over 75 countries. develop strategies to minimize the cost.01 crore tyres per annum at Mysore. Niryat Shree Award from the Federation of Indian Export Organizations. and optimize the quality of our sourced raw materials and to continue developing our internal knowledge bank. sources. Over the past 20 years. price analyses and forecasting. we have diversified into special application tyres or specialty tyres (including tyres used in skid steers and fork lifts in ports. Our key export regional directions are the Central and South America. We conduct regular meetings with our major suppliers. South and South East Asia. Australia and Europe. We will continue to monitor the prices of raw materials. We have implemented a strategy of using our purchasing power as a leading tyre manufacturer to source raw materials at competitive prices from domestic and global sources. creating and maintaining relationships with various domestic and international vendors. steel tyre cord. We plan to focus on creating strategic partnerships with our key suppliers to source more cost efficient raw materials. Thus. This . give them constant feedback and assist them in their quality management systems. Highest and Top Export awards from CAPEXIL. rubber chemicals and carbon black. Increase our exports in bias commercial and special application tyres For the period April 2007 – March 2008.The major raw materials required for tyre manufacture include natural and synthetic rubber. We believe that importing raw materials from countries like Indonesia. we invest our resources into identifying. the Middle East. Africa. We intend to scale up the manufacture of special application tyres to a capacity of 0. warehouses and factories) and commenced exports. we have developed an internal knowledge bank that stores a database on raw materials.

We have implemented a cost control system that includes the continuous . we also intend to upgrade and increase the number of tyre care centres and steel wheel outlets. Focus on the consumer replacement market We have been continuously offering and innovating new products in the market to meet the changing demands of our customers in the replacement market. especially in light of the recent sharp increases in raw material prices and energy costs. technology and cost competitiveness. We also offer various after sales services. 7 Continuous focus on cost control and operating efficiencies improvement We endeavor to produce tyres in a manner that is cost efficient and are constantly driven toward improving operating efficiencies. customer interaction programmes. Additionally. For instance. We intend to sell and offer various value added services through the internet by promoting e-business on our website. Furthermore. Europe and Australia. customer contact programmes. We intend to focus on building close working relationships with our customers and dealers through these services and plan to offer more services and products to enhance our presence in the replacement market. Strengthen our presence in the OEM segment We plan to increase our presence in the OEM segment by developing new OEM customers through product development. in the last one year. We are also in the process of offering additional services to our customers through fleet management by providing a package of value added products and services. we have introduced about 18 new tyres for sale in the replacement market across different product categories to enhance our presence in the consumer replacement market. joint promotion campaigns and service camps with major OEMs. dealer meets. we have introduced various customer relationship programmes with our existing customers to promote our tyres and have also launched programmes to create brand awareness about our products including setting up tyre care camps such as cool wheels (for service of passenger car tyres).niche tyre segment would be used primarily to boost our exports with a focus on the Central and South America.

and HASETRI. Additionally.P. We plan to continue to focus on cost control and improving operating efficiencies. Continental A. Emphasis on research and development and technology We have plans to enhance our research and development activities by incorporating various new evaluation equipments and new software to be able to meet the ever growing challenges in the product areas.e. i.G. Our overall strategy is to develop a technological edge considering the growth expected in the automobile sector in India. improvement in manufacturing efficiencies such as reduced wastages. Singhania Centre of Excellence. control of overheads and reducing in interest costs in terms of usage and rates. HASETRI and the R. construction changes. We plan to continue to invest in the business and product training of our dealers in order to maximize efficiency and promote high standards of our distribution network. which has been re-located from Kankroli plant to Faridabad. we have planned to further induct and develop scientists and engineers in our research and development centres. power and fuel consumption. We plan to further strengthen this pool of engineers by supplementing additional manpower and requisite equipment to be able to compete with our competitors. Additionally. We also intend to identify and utilize new and developing channels of distribution in the existing markets as well as the . technical improvements. production process and services. use of cheaper sources of fuel. The objective of our strategy is to introduce and incorporate new technologies into our products. such as reducing product weights. Our product development centre with a strong pool of product development engineers.monitoring and managing of the cost of various products and inputs. replacement of old compressors with energy efficient compressors. caters to development of new products by using the latest techniques adopted from our collaborator. Build on strength of distribution network We intend to retain and further strengthen existing relationships with our dealers by dealer friendly trade policies and offering them better business propositions in order to increase our share of total business. improving man power productivity. we are in process of introducing methods to reduce power and fuel cost and are investing in energy saving projects to optimize the production process in a cost efficient manner like upgradation of boilers.

.new markets. We intend to increase the number of area offices to further enhance our extensive distribution network.

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