Chapter 2 DETAILS OF THE ORGANIZATION

2.1 Introduction
2.2 The Organization
2.2.1 Products / Services and Processes/ Facilities
2.2.2 Organization Structure
2.2.3 HR Practices
2.2.4 Competition Analysis
2.2.5 Industry Analysis
INTRODUCTION

Apollo Tyres Limited

Type Public company

Industry Tyres

Founded 1972[1]

Headquarters Gurgaon, Haryana, India[2]

Key people Onkar Kanwar (Chairman

& MD)
Neeraj R S Kanwar (Vice-
Chairman & MD)

Revenue 127.5
billion(US$1.9 billion)[3]

Number of 16000
employees

Website http://www.apollotyres.com
Apollo Tyres was incepted in 1975 with its first plant commissioned in Perambra, Kerala. It is a
highperformance company and the leading Indian tyre manufacturer. Headquartered in
Gurgaon, a corporatehub in the National Capital Region of India, Apollo is a young, ambitious
and dynamic organization, which takes pride in its unique identity. Registered as a company in
1976, Apollo is built around the core principles of creating stakeholder value through reliability
in its products and dependability in its relationships.

Apollos present strength and market dynamism steps from its early years of strife in establishing
itself as a tyre manufacturer within the closed Indian economy. Over two decades, Apollo
worked on a portfolio of products, tuned to customer needs and an array of innovative marketing
initiatives to establish itself as a leader in its home market. Some of these include segmenting
customers by their load and mileage requirements, running tyre loyalty programmes, establishing
customer contact programmes which resulted in better health and driving habits, introducing
Indias first farm radials and Indias first range of highspeed tubeless passenger car tyres.

For the first time, in 2006 Apollo ventured outside India in its quest to test itself outside its home
comforts. Apollo acquired Dunlop Tyres International Pty in South Africa (since renamed as
Apollo Tyres South Africa Pty) and Zimbabwe, taking on southern Africa as the second
domestic market. The company holds brand rights for the Dunlop brand across 30 African
countries.

In 2009, Apollo acquired Vredestein Banden B V in the Netherlands, thereby adding Europe as
its third crucial market. In 2010, Tyre major Apollo Tyres entered the Bangladesh market by
partnering with Rahimafrooz Distribution, manufacturer and distributor of automotive and
industrial batteries. In the year 2011, the company entered into a supplementary Memorandum of
Understanding (MoU) with the Tamil Nadu government for increasing its investments in the
state to Rs 2,100 crore as part of its greenfield project, on the back of expected demand for the
product.

The company currently produces the entire range of automotive tyres for ultra and high speed
passenger cars, truck and bus, farm, OffTheRoad, industrial and specialty applications like
mining, retreaded tyres and retreading material. These are produced across Apollos eight
manufacturing locations in India, Netherlands and Southern Africa. A ninth facility is currently
under construction in southern India. The major brands produced across these locations are:
Apollo, Dunlop, Kaizen, Maloya, Regal and Vredestein.

In the three domestic markets of India, Southern Africa and Europe, Apollo operates through a
network of branded, exclusive or multiproduct outlets. In South Africa the branded outlets are
called Dunlop Zones, while in India they are variously named Apollo Tyre World (for
commercial vehicles) and Apollo Radial World (for passenger cars). Exports out of these three
key manufacturing locations reach over 70 destinations across the world, with key comprising
Europe, Africa, the Middle East and SouthEast Asia.

For Apollo Tyres, offering the right product to the right customer is essential. Special efforts are
made to understand customer needs and segment the market accordingly. After which, products
are developed for niche applications within a larger category to enable the company to provide
efficient, fuel and costsaving products to each customer segment. Innovation has always been
an integral part of the Apollo way of doing business, this applies as much to product
development and marketing as to how the company as a whole is focused on challenging existing
boundaries.

An integral part of the Apollo Tyres world is its community involvement and giving programmes
directly related to its business. In India, the focus has always been on finding ways to ensure
direct benefits to customer groups. For the commercial vehicle community the company runs
extensive HIVAIDS awareness and prevention programmes and has established Health Care
Clinics across the country to cater to the communitys health needs.

Subsidiaries of the company

Apollo Radial Tyres
Apollo Automotive Tyres
Apollo (Mauritius) Holdings
Dunlop Tyres International Pty, South Africa

Future plan
Apollo is one of the largest corporate investors in developing sporting talent through its Mission
2018, which is focused on nurturing and training youngsters in the sport of tennis to enable an
Indian to win a Singles Grand Slam Championship by the year 2018.
Products of the company
Passenger Car Tyres
Alloy Wheels
Sports Utility Tyres
Van Tyres
Passenger Winter Tyres
Heavy Commercial Tyres
Light Commercial Tyres
Small Commercial Tyres
Agriculture Radial Tyres
Agriculture Cross ply Tyres
OffTheRoad Tyres
Speciality Vehicles Tyres
Two Wheeler Tyres

Organization
Apollo Tyres Ltd, with its corporate headquarters in Gurgaon, India, is in the business of
manufacture and sale of tyres since its inception in 1972. Over the years, the company has grown
manifold, establishing its footprint across the globe.

The company has manufacturing units in India and The Netherlands. It is also setting up a new
manufacturing facility in Hungary, with a planned investment of 475 million. The company
markets its products under its two global brands - Apollo and Vredestein, and its products are
available in over 100 countries through a vast network of branded, exclusive and multi-product
outlets.

At the end of its financial year on March 31, 2015, Apollo Tyres had clocked a turnover of US$
2.08 billion, backed by a global workforce of approximately 16000 employees.
Apollo Tyres Ltd is traded in India on the Bombay Stock Exchange and National Stock
Exchange, with 56% of shares held by the public, government entities, banks and financial
institutions as on March 31, 2015.

Vision
A significant player in the global tyre industry and a brand of choice, providing customer delight
and continuously enhancing stakeholder value.

Values
The key to sustainable success lies in making the lives of all its stakeholders better. This is
Apollo's Noble Cause.

In its journey of over 3 decades, Apollo Tyres has globetrotted and absorbed the hues and
flavours of different cultures from across the world. The Apollo of today is an amalgamation of
some of the best people and cultural ingredients that exist in any organisation. In addition, there
are some distinct traits which are observed in, and expected of, all Apolloites.
The 'Apollo Way' captures these values in their simplest and purest form, enabling the unique
identity of Apollo and Apolloites in the mindscapes of consumers, business associates and all
other stakeholders. These values are

Customer First
Business Ethics
Care for Society
Empowerment
Communicate Openly
One Family
Organisational Structure
Its the typically hierarchical arrangement of lines of authority, communications, rights and
duties of an organisation.
Its very essential in determine the roles, power and responsibility are assigned, controlled,
coordinated and how the information flows from the between different levels of management.
Companys Organisation Structure
Organisation structure followed by Apollo Tyres now days on Oragadam plant
Flat is the word not just for the IT (information technology) firms. Even the manufacturing
ventures have begun to join the flat list'.
Apollo Tyres is among the first few in India to go on flat mode'.
The company has opted for a four-tier flat organisational structure for its state-of-the-art facility
at Oragadam near here.
A brainchild of its Vice-Chairman and Managing Director Neeraj Kanwar, the flat initiative' at
Oragadam is a consequence of the effectiveness of a flat structure at Apollo Vredestein BV, its
subsidiary in the Netherlands.
The Oragadam facility has four layers comprising team members, team leaders, group leaders
and unit head. About 80 per cent of the employees are team members, 15 per cent team leaders
and the remaining group leaders.
The plant has a sole head. There is no distinction between employees within a level. Typically, a
team leader will be one with more job-specific experience and not a boss.
In terms of career progression, this translates into roles which mature and expand horizontally,
according to Tapan Mitra, Chief of Human Resources at Apollo Tyres. This allows employees
to gain multi-disciplinary and cross-functional experience through job rotation, be it intra or
inter-departmental, he says.
A flat structure, he says, aids quick decision-making and implementation. Efficiencies too go up
as multi-tasking becomes a norm alongside on-the-job training and job rotation.
This also helps in creating a larger talent pool for the organisation, he says. Apollo Tyres, he
says, is keen on implementing this kind of a flat structure across all its facilities in India.
This will, however, be not an instant overhaul, he cautions. Stating that people need time to
adjust to this idea especially in a case where Apollo's other manufacturing units have yielded
exceptionally good results even with traditional management practices, he, nevertheless, claims
that we will get there eventually.
To a question, Mr. Mitra says, all the jobs here (at Oragadam) are white collar ones and there is
a concept of one management team among all employees.
In this context, he points out that Apollo Tyres has been hiring only diploma holders to run the
machines at Oragadam. Wage negotiation seems highly unlikely. A flat structure more or less
thrives on recognition of merit and subsequent reward, he says.

HR Practice
Human Resource is very crucial part of any organisation. Moreover development of this
department is the first step of any organisation. The future of any company depends on it. Its
very essential for even the single unit business and especially for the core FMCG Company like
Adani Wilmar which deals mainly in the oils, nuggets, besan etc which are generally used in
every home. A company is created by the ideas, thought, hard work of the people not by the
technologies.
Managements basic job is the effective utilisation of human resources for the achievement of
organizational objective by profitable operations and growth through the satisfaction of certain
needs of customer and society. Its through combined efforts of human resource or personnel that
technological, financial, physical and all other resources are utilized. The effectiveness with
which various kind of human resources are co-effectiveness with which various kind of human
resources are co-originated and utilized is responsible for success or failure in achieving
organizational objectives.
 Every aspect of firms activities is determined by the competence, motivation and general
effectiveness of its human organization, of all the tasks of management managing human
components is the central and most important task because all depends upon how well it is done.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Functions:

Managerial 1. Planning.
2. Organizing.
3. Directing
4. Controlling.
5. Staffing.

Operative 1. Employment.
2. Training & Development
3. Remuneration, working conditions
4. Motivation.
5. Personnel Records.

Advisory 1. Advice to top Mgmnt

2. Advice to departmental heads
HUMAN RESOURCE DEPARTMENT
Apollo Tyres Ltd has a good HR and Administration department which always look forward to
increase the efficiency of the employees.
HR department is concerned with the security, reception, time office, welfare, safety and
personnel

SIGNIFICANCE OF HRD
No organization can grow and survive in the present-day environment without the growth and
development of its people. In the view of fast development changes, the HRD must be viewed as
the total system inter-related and interacting with other systematic work the production, the
finance, the marketing, with which a business system function. HRD facilitates the integrated
 growth of employees. It helps employees to know their strengths and weakness and enable them
to improve their performance and that of the organization.

OBJECTIVES OF HRD

Assess future recruitment needs.

Formulate training programs.

Develop promotion and career development policies anticipate and, where possible, avoid
redundancies.

Develop a flexible workforce to meet changing requirements

Control staff costs whilst ensuring salaries remain competitive

Assess future requirements for capital equipment, technology and premises.

Function of HRD of Apollo Tyres

Learning & Development
Tie-ups with leading institute like IIMs, INSEAD, IMD Lausanne, for world-class programmes
on leadership development
Internal Trainers conducting functional and technical sessions, Superior R&D training in Tyre
Design, Process Manufacturing and Raw Material Testing
Strong training modules on competency development
E-Learning modules for a number of business related subjects

Performance Management
Transparent, online multi level review and feedback system
Direct linkage to company goals to ones own key result areas
Quarterly evaluation

Compensation Practices
Simple and effective compensation structure with employee friendly benefits
Flexi-benefit concept in order to aid employee in better tax planning
Competition analysis
Competitor of Apollo Tyres are

1. MRF

Among all tyre companies in India, MRF stands at first position with a market capitalization of
Rs 16,744 Crore. MRF is a leading tyre manufacturing company, which was
incorporated in the year 1946.

MRF is acclaimed worldwide for its high quality tyres, conveyor belts,
pretreads and other products. ZVTS, Wanderer, ZVTV, ZEC and ZLX are
some of the variants of tyre manufactured by the company.

Talking about the performance of MRF in the last financial year, the company generated revenue
of more than Rs 14,600 Crore from sales. Also, the profit generated by the company crossed the
mark of Rs 1,330 Crore.

Market Capitalization: Rs 16,744 Crore

2.BALKRISHNA INDUSTRIES LIMITED (BKT)

Balkrishna Industries Limited (BKT) is another leading tyre company, which was
established in the year 1987. The company manufacture tyres for heavy vehicles,
that include industrial vehicles and agricultural vehicles.

The company has 5 manufacturing sites in India that employ more than 6,000 people. The
company is known for making high quality tyres, which is exported to more than 100 countries
in the world.

Market Capitalization: Rs 6,557 Crore

3.CEAT
A leading tyre company in India, which was incorporated in the year 1958. Ceat is a part of RPG
Group that has businesses in different sectors like Informational
Technology, Pharmaceuticals, Engineering, Construction, etc.
Headquartered in Mumbai, Ceat has manufacturing sites in different places
in the country that together produces more than 95,000 tyres every day.
Ceat makes tyres for different vehicles that include Motorcycles, Commercial Vehicles, Tractors,
etc.
Talking about performance, Ceat in the last financial year shown a decent growth and generated
revenue of more than Rs 5,700 Crore. Ceat also has a strong network in India with more than
3,500 dealers and over 250 distributors, that cover more than 460 districts of the country.
Market Capitalization: Rs 3,571 Crore

4.J K TYRE

J K Tyre with a market capitalization of Rs 2,631 Crore is placed at

5th position in the list of top 10 best tyre manufacturing companies in
India. Established in the year 1974, J K is among the top tyre
companies in India and has 6 manufacturing plants in the country.

Winner of multiple awards, J K Tyre is known for providing high quality tyres for different
vehicles that include cars, commercial vehicles, farm vehicles and off road vehicles.

Market Capitalization: Rs 2,631 Crore

5.TVS SRICHAKRA

TVS Srichakra is next on this list, which is a part of TVS Group and
came into existence in the year 1982 and within a few decades has
emerged as a top tyre company in India.

The company manufactures tyres of different types that include motorcycle tyres, industrial
tyres, farm tyres, etc.

Market Capitalization: Rs 2,042 Crore

6.GOODYEAR

Goodyear with a market capitalization of Rs 1,425 Crore is ranked 7th in

the list of top 10 best tyre manufacturing companies in India. Goodyear
is an American Tyre Manufacturing Company, which was incorporated
in the year 1898.

Goodyear made debut in India in the year 1922 and presently stands among leading tyres
companies in India. The company is known for making quality tyres for different types of
vehicle like cars, farm equipments, commercial vehicles, etc.

Market Capitalization: Rs 1,425 Crore

7.PTL ENTERPRISES
With a market capitalization of Rs 284 Crore, PTL Enterprises is the
next tyre company in this list. Headquartered in Gurgaon, PTL
Enterprises was established in the year 1959 and started production in
1962.
Market Capitalization: Rs 284 Crore

8.DUNLOP INDIA

Next on this list is Dunlop India, a tyre company in India owned by

Ruia Group. The history of Dunlop India dates back to the year 1896,
when the company started marketing cycle tyres.

Dunlop India is presently a reliable tyre brand in India and hold a

decent share of this segment in the country. The company manufactures different types of tyre,
that include Farm Tyres, Motorcycle Tyres, Bus Tyres, Truck Tyres, etc.

Market Capitalization: Rs 148 Crore

9.MODI RUBBER LIMITED

An India Tyre Manufacturing Company known for manufacturing high

quality tyres. The company is growing swiftly and in the last financial year,
its total revenue crossed the mark of Rs 22 Crore.
Market Capitalization: Rs 76 Crore

Industry Analysis

The tyre industry in India is a highly competitive sector with a very cut throat competition
among the leading players. But still some of the manufacturers manage to have a unique
business model which strengthens its market presence.
MRF seems to be the market leader in the Indian Tyre Industry across all the segments.
Although the company is followed by Apollo Tyres and JK Tyres, it enjoys a massive
difference in the figures when compared to its nearest competitors.
 The five force analysis of the industry reveals the following facts.
1. Bargaining power of Buyers
2. Bargaining power of Suppliers
3. Competitive Rivalry
4. Availability of Substitutes
5. Entry Barriers

An overview of Indian Tyres Industries

No. of Tyre Companies: 39

No. of Tyre Plants: 60

Industry Turnover 2014-15 (est.): Rs. 50000 crore (US$ 8.5 Bn)

Exports 2014-15 (est.): Rs. 10500 crore (US $ 1.7 Bn)

Policy Environment:
All categories of tyres can be exported freely.
All categories of new tyres can be imported freely. No WTO Bound Rates for tyres and tubes.
Imports of Second hand/Retreaded tyres (major categories) is restricted under EXIM Policy and can be
done against an import licence.
Tyres imports under Regional Trade Agreements (Asia Pacific Trade Agreement, Indo-Sri Lanka,
SAFTA, India-Singapore, ASEAN, India-Malaysia etc) allowed at preferential rates of import duty.
All tyre industry related raw-materials can be imported freely (under OGL).
Tyre Industry delicensed in September, 1989.
Natural Rubber (NR) principal raw material of Tyre Industry, is in the 'Negative List` (i.e. not eligible for
any concession in Custom duty) under various Trade Agreements, i.e. India ASEAN Free Trade
Agreement, India Sri Lanka Free Trade Agreement, South Asian Free Trade Agreement (SAFTA),
India Malaysia Comprehensive Economic Cooperation Agreement (CECA), India-Singapore
Comprehensive Economic Cooperation Agreement and India-South Korea Comprehensive Economic
Partnership Agreement (CEPA).
SWOT Analysis of Apollo Tyres

SWOT Analysis

1. Wide product variety

2. Excellent Geographical coverage across Asian, European and
African markets.
3. Good financial position
4. Good Brand awareness about the product
5. Over 4000 dealerships in India, and over 900 in South Africa
Strengths 6. Has manufacturing plants at India, SA, Zimbabwe and Netherlands

1. Low presence in latest car models.

2. Low presence in two/three wheeler segment
Weaknesses 3. Brand yet to establish itself like the market leaders

1.Emerging markets and improved lifestyle

2. More tie-ups with Automobile companies as its mainly into B2B
market.
3. Improved Infrastructure has fuelled more and more transportation
Opportunities 4. Emergence of India as a hub for small car production
 1. Price wars
2. Stiff competition from national and international brands
3. Cheaper technologies
4. Volatility in prices and availability of raw material as indias rubber
production is less than its demand.
5. Government Policies w.r.t export duties, import duties, tax levied on
automobile industries and economic condition of nation as it determines
Threats the sale of automobiles.