COMPANY PROFILE

VIKRANT TYRES LTD.

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COMPANY PROFILE
Vikrant Tyres Ltd-An Overview
VIKRANT TYRES LTD., (VTL) the company is situated in an area of 53 acres in the outskirts of Mysore VTL is a major tyre manufacturing company and one of the most successful industrial ventures in the state of Karnataka. In the year 1970 this company was conceived as a joint venture by the participation of South Indian Company Pvt Ltd., Madras for establishing an automobile tyres and tubes manufacturing unit at Metagalli industrial area Mysore. In 19787 the management was taken over by the Govt of Karnataka through Karnataka state Industrial Investment & Development Corporation Ltd., (KSIIDC) The Commercial production started from 19th May 1980. During 1985 a pilot plant was set up for manufacture of Radial tyres; Commercial production of Radial Tyre was started in Feb 1991 at the new Radial Tyre Plant. The company served the Prestigious ISO-9001, QS 9000, ISO-14001 & ISO/TS 16949:2002 certifications. For design manufacture & sale of automobile tyres, tubes, flaps & tread rubber in December 1994, for other two JK Industries Ltd., was inducted as strategic alliance partner (SAP) during May 1997 with a view of improve the over all performance of the company. Collaboration agreement was entered in to the M/s Continental tyres Germany in 1980. Vikrant Tyres Limited a JK tyres associate manufactures cutting edge innovative products that conform to the highest international standards. In 1977, JK Industries Ltd acquired Vikrant Tyres Limited, Mysore. VTL has the first truck/Bus steel Radial Tyre plant in India. This has state of the art technology in technical collaboration with continental A.G. Germanyu.

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Vikrant tyres have successfully launched high performance Steel Truck Radial Tyres in the latest international pattern for the Indian as well as international market. The continuous emphasis on quality system has led to VTL receiving the ISO-90001 certification, QS-9000 certification, ISO/TS 16949:2002 certifications towards quality management system for the design and manufacture of its entire range of products and the ISP 14001 certification for protection of environment and conservation of natural resources. The company is now racing ahead by focusing on exports. The synergy in sales and marketing operations with JK Tyre has enabled VTL to expand its distribution network. It is now exporting truck tyres to over 45 countries across 6 continents with DOT, IN METRO and SASO product certifications: tyres from VTL are supplied to international Markets including North Central & South America, and the Middle East & South East Asia. New markets are being continuously explored to expand the multi brand international sale. Share Capital: Rs. in lakhs Authorized: Equity shares (3,50,00,000 of Rs.10 each) 14% Redeemable cumulative preference shares (5,00,000 shares of Rs. 100 each) 4,000.00 Issued, subscribed and paid up: Equity shares 2.56.34.487 of Rs.10 each (1,34,09,148 shared are held by M/s JK Industries Ltd. The holding company & its subsidiary 2,563.45 3,500.00 500.00 .

2,563.45

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VIKRANT TYRES LTD. has its Administration office and factory (Main plant) at K.R.S. Road, Metagalli, Mysore-570016. It has its registered office at- “VIKRANT HOUSE”, No. 54, 1st Main Road, V.V. Mohalla, Mysore-570 002. It has its Radial tyre plant at No. 437, Hebbal Industrial Area, Metagalli Post, Mysore-570 016. Its communications are: Grams – VIKRANT TYRE Fax – 0821 2582404 E Mail – Vikrant@blr.vsnl.net.in, hrd@Vikrant.com Website-www.vikrant.com and www.jktyre.com MISSION:  To be the largest most profitable Tyre company in India.  To retain # 1 Position in Truck and Bus segment and to be amongst Top 2 in all 4 wheelers Tyre segment.  To make Truck/Bus Radial operations Profitable and Retain Leadership in the passenger Radial Market.  To be the largest Indian Tyre exporter continues to be a significant player in the world in the truck Bias segment.  To be a customer obsessed company. 4

 To develop a highly motivated team with a sense of Ananda.  To excel as a value driven organization.  To be the most preferred Tyre Brand in India.

Objectives of the Company: 1. Customer Satisfaction 2. Produce High quality of Products. 3. To be the No.1 Tyre company in India 4. profit Maximization 5. To be the large Tyre Export company in India 6. To be a customer obsessed Company. 7. To enhance value to share Holders and Service to all stake holders. 8. To attain global standard through continuous improvement in the products and services in order to maintain market leadership. 9. Accident free safe production. Products: The company manufactures product such as Automobile tyres (Nylon tube type, Radial tube type and tubeless), Tubes and Flaps. Vikrant Tyres Limited is engaged in design, development, manufacturing and marketing automotive pneumatic tyres, tubes. The product range includes the following.  Cross Ply and Radial Tyres for Trucks and Buses.  Cross Ply and Radial Tyres for light Commercial vehicles.  Cross Ply Tyres for Passenger Cars. 5

 Cross ply Tyres for Agricultural Vehicles.  Cross Ply Tyres for Off-The-Road Vehicles.  Automotive inner Tubes for Trucks, Buses, Light Commercial vehicles, passenger Cars and Agricultural Vehicles.  Flaps for Trucks, Buses and Light Commercial Vehicles.

The company has following Marketing Networks: The head office at Mysore is connected with various Regional Offices, District Offices, Branch Offices and Carrying and Forwarding Agents throughout the country. The common Marketing Organization (CMO) manages the marketing of Nylon Bias Tyres of both VTL and JK. The head of the CMO is at New Delhi. The Truck Radial Group (TRG) manages the marketing of All Steel Truck Radial Tyres. The Head office of TRG is situated at Bangalore. The exports of the company VTL exports its products to over 6ountries. The major countries include United States of America, Australia, United Kingdom, New Zealand Hong Kong, Netherlands and host of Middle East African and Asian countries. The management of the company: The company was under the control of Government of Karnataka right from its inception in the year 1979. The chief promoter has been KSIIDC however, consequent to the Memorandum of understanding signed between KSIIDC and JK industries Limited the majority of shares have been vested with JK Industries Limited. As such Vikrant Tyres has remained a separate entity, but it is under the control of J.K. Industries Limited. The technical collaboration of the company:

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Formerly Vikrant Tyres Limited had Technical collaboration with Techno Export Foreign Trade company Limited, Praha, Czechoslovakia, for the manufacturing of conventional tyres and subsequently with AVON Technical services, Melksham, United Kingdom (2 subsidiary of AVON Tyres Limited) for the manufacturing of conventional / Radial Tyres. Presently the company has foreign collaboration with M/s CONTINENTAL TYRES, Germany effective 1998.

The Milestones of the Company are as follows: In November 1970 the Government of India issued a letter of intent to the South Indian Export Company Private Limited, Madras, to establish an automobile Tyres and Tubes manufacturing factory at Mysore. Vikrant tyres Limited was conceived as a joint venture by the participation of Karnataka State Industrial Investment and Development Corporation Limited, as another Promoter. The factory is situated in an area of 53 acres in the outskirts of Mysore city, by the side of the road leading to the famous Brindavan Gardens. The land was obtained from the Karnataka Industrial Areas Development Board on lease cum sale basis. In February 1973, collaboration agreement was entered into with the Techno-Export Foreign Trade Company Limited, Praha, Czechoslovakia. In July 1973, Industrial license was obtained for the manufacturing of 4 lakhs tyres and tubes per annum. In October 1973, Vikrant Tyres Limited was commissioned as a Public Limited company. In July 1974, Construction works at the site started. Arrangements were made for the purchase of machinery. In 1976, imported machinery reached Madras Port. In 1977, the Management was taken over by Karnataka State Industrial Investment and Development Corporation (KSIIDC) as the private promoter had resigned. In March 1978, the Government of Karnataka and KSIIDC revived the project.

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In June 1978, machines and equipments were moved to the site and commissioning of machines started. In November 1978, the Financial Institutions re-appraised the project post and agreed to finance the revised capital. In December 1978, the project was appraised again. In June 1979, Industrial License was obtained for the manufacturing of 5 lakhs Tyres and Tubes per annum. In September 1979, the trail production of tyres started. The first tyre rolled out on 14tth September 1979. In May 1980, Commercial production of tyres started that is on 19th may 1980. In December 1980, Industrial License was obtained for manufacturing of 7.5 lakhs tyres and tubes per annum. In February 1981, The Technical Collaboration with Techno-Export Foreign Trade Company Limited, Czechoslovakia ended. In May 1982, Technical collaboration agreements were entered into with AVON Technical Services of England for the manufacturing of Radial Tyres.

In January 1989, foundation stone was laid for the construction of Radial Tyre Plant in an area of 27.4 acres in Hebbal Industrial Area in Mysore City, for the manufacturing of All Steel Radial Tyres. In August 1991, Commercial production of Radial Tyre plant started. In March 1992, The Union Minister of Finance dedicated radial Tyre Plant to the Nation. In December 1994, the Company secured the prestigious ISO 9001 Certification from the International Organization. National Quality Assurance-Quality Systems Registrar (NQA-QSR), for design, manufacturing and sale of automotive tyres, tubes flaps and tread rubber. In May 1997, the J K Industries Limited, (JKI) inducted as a strategic Alliance Partner (SAP) with a view to give a turn around to the Company as a profit making unit. In the year 1998, Collaboration agreement was entered into with M/s CONTINENTAL TYRES, Germany. 8

In the year 1999, the company secured the prestigious QS 9000and ISO 14001 certifications. In the Year 2002, the Company has decided to implement ISO / TS 16949:2002 Quality Management System and achieve Certification by March 2003. VTL has a marked reputation in exporting All Steel Truck Radial Tyres. It is the first Tyre Company in India to manufacture All Steel Truck Radial Tyres. VTL has devoted work force of around 2,184 persons. Among them 1538 are workers, 169 are staff and 477 are executive. It has a net work of 2,000 dealers scattered all over the country. The Financial institutions assisting VTL are:-Karnataka State Industrial Investment and Development Corporation Limited. -Industrial Development Bank of India -industrial Credit and investment Corporation of India Limited -Industrial Finance Corporation of India -Life Insurance Corporation of India -Industrial Rehabilitation Bank of India -Government of Karnataka -Unit trust of India. -H.D.F.C. The Bankers assisting VTL are:-Indian Bank -Syndicate Bank -State Bank of India -Punjab National Bank. -Vijaya Bank -State Bank of Mysore. -Corporation Bank. Competitors:

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National Market: MRF, Good year, Falcon, CEAT, Apollo, etc. International Market: Bridgestone, Michelin, Pirelli, Cooper, Sumitomo, etc.

The important raw materials of VTL are:       Natural Rubber Synthetic Rubbers. Carbon Blacks Process Oils Chemicals Nylon and Steel Tyre Cords. Copper coated Steel Wires etc.

The main departments of VTL are:Production, Engineering Technical Production Planning, Quality Assurance, Materials, Human Resource Development, Personnel and Administration Secretarial, Internal Audit, Electronic Data Processing, Industrial Engineering, Finance, Marketing and Technical Services.

SHIFT TIMINGS: FIRST SHIFT SECOND SHIFT THIRD SHIFT 7.00 AM TO 3.00 PM 3:00 PM TO 11:00 PM 11:00 PM TO 7:00AM

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FOURTH SHIFT

8:45AM TO 5:00 PM

WEEKLY HOLIDAY is on Sunday for administrative departments and other staggered off.

JK Industries (VTP) Board of Directors: Chairman Vice Chairman & Managing Director LIC Nominees Hari Shankar Singhania Raghupathi Singhania Arvind Morotoom Lalbhai Arvind Singh Mewar Bakul Jain B.G.Jose Om Prakash Khaitan Dr. Vinashil Gautam Bharath Hari singhania Vikrampati singhania Swaroop chand Sethi Lodha & Co chartered Accountants.

IDBI Nominees Managing Director Deputy Managing Director Whole-time Director Auditors

Product Certification and Export Awards: Product Certification:

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“ISI” for Cross Ply Nylon Truck and Non Truck Tyres “IN METRO” for Cross Ply Nylon Tyres and All Steel Truck Tyres. “E “Marking for all Steel Truck Radial Tyres. Export Awards: “CAPEXIL” from chemical and Allied Products Promotion council. “STATE AWARD XFOR EXPORT EXCELLENCE” from VTTC (Vishweshwaraiah Industrial Training Centre).

Laboratory Policy of the Company: LABORATORY POLICY: Vikrant tyres limited are committed to provide comprehensive services to its internal customers for calibration and material testing by competent personnel with valid instruments at required accuracy level as per set quality requirements. Safety Policy of the Company: SAFETY POLICY: We, the employees of Vikrant tyres limited, shall assure that the rules and regulations framed by the company and instructions issued by the management in pursuance of achieving higher safety standards will be followed without jeopardizing the safety and health of one self of other person. Working without accident is the principle goal of every employee and this shall be achieved by practicing safe operation procedures by adhering to safety rules and regulations using personnel protective equipment and proper training on safety and health at all levels. We shall ensure protection of environment by taking all reasonable measures in our manufacturing operations.

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Since its inception Vikrant Tyres Limited is committed to the cause of quality. It is contributing in its own way to the Transport Industry by making the investment on tyres more profitable. It is prestigious Organization in the garden city of Mysore. Quality policy of the company: QUALITY POLICY: We the employees of Vikrant Tyres Limited shall assure the quality of our products by ensuring strict compliance with the approved quality standards and documented materials and components as also proper upkeep of our machinery.

The principal goal for every Vikrant Employee will be customer satisfaction. We shall reach this goal by proper training of personnel at all levels, continuous technology up gradation and minimization of waste. Environmental policy of the Company. ENVIRONMENTAL POLICY: Vikrant tyres Limited are committed for Environment protection in all our activities, products and services in order to do justice to the needs of the growing world’s population and society. We shall achieve this by: Resource conservation to the optimum level. Pollution prevention Enhancing the awareness & commitment towards environmental protection, among all Employees and subcontractors. Complying fully with all the applicable environmental regulations. Continuously improving the effectiveness of environmental management system. Setting challenging objectives, targets and continuously reviewing and updating the same. We shall make our policy and commitment open and accessible to the public.

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GROWTH OF SALES: Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. Year 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 Value in Crores 24.06 58.07 58.44 70.82 69.91 121.71 159.42 144.51 200.64 219.32 246.32 285.59 288.28 327.81 332.29 380.60 371.78 377.58 385.96 377.40 419.39 563.00 745.00 805.00

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INDUSTRY PROFILE

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CHAPTER-2 INDUSTRY PROFILE TYRE INDUSTRY IN INDIA INDUSTRY PROFILE The Tyre-A Brief introduction The rubber industry in the world made its beginning in 1887. It was because of the invention of the processing of rubber, vulcanization by Charles Goodyear. The growth of the industry however received a good boost by century end when John Boyd Dunlop succeeded in making of vulcanized rubber tyres into inflatable pneumatic tyres. Since then the tyre industry has continued to be a major segment of rubber industry all over the world. Even in India, automobile tyre and tubes account for a major part of Indian rubber product industry. Indian Tyre industry Past and present: The Indian tyre industry is about 55 years old. It is to be noticed that the tyre industry was covered under essential commodities Act. The pre dominance of foreign multinationals prevailing in our country till 1960’s has been considerably reducing now due to development of technology.

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The Indian tyre industry’s past can be studied under the periods 1920to 1935, 1960 (MNC manufacturing in India selling domestically and exporting), 1961-74(the entry of Indian companies into this sector) and 1975 onwards the broadening of the base production as well as sales by Indian industries. Firestone was the company that started the selling of tyres first in our country. They were then, followed by good year in 12022 and later by Dunlop 1926. The first MNC tyre industry was set up at Saharjung-West-Bengal, in the year 1939 by Dunlop. In 1936, Firestone setup its factory in Bombay At present there are more than 20 licensed companies and 25 factories, which include 11 large-scale sectors manufacturing the full range of tyres and tubes. The Indian tyre companies are having collaboration with giant tyre companies of U.S.A. U.K, West Germany, France and Japan, etc., significant changes have occurred in the tyre industry’s manufacturing processes change from Rayon to Nylon and the introduction of Radial Tyres of both steel belt and fiber glass. The tyre industry in India has a range of tyres for trucks, busses, light trucks and busses, cars, jeeps, trailers, short and long, tillers, off road vehicles heavy and light, earth moving equipments, dampers, defense vehicles aircrafts and specially designed vehicles and two wheelers. The large tyre unit in India Apollo, Bombay Tyre international, Ceat, Madras Rubber Factory (MRF), Dunlop, Good Year, JK Tyre, Birla Tyre and Vikrant Tyre etc., The company that manufactures tyres primarily for the two wheeler segments are TVS Srichakra, Falcon, Metro Tyres, Ceat MRF, Stallion and S. Kumar’s. The production of tubes by the large and the medium sector of is 80% of the tyre production tubes manufactures from natural rubber as well as imported Butyl rubber. The inner rubber is covered under packaged commodities act. The government for the tyre industry, way Back in 1955, setup various commodities that tariff commission is the best example. The major thrust of this commission was the decentralization of the tyre industry.

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In May 1974, the governments setup the committee on tyre industries with Mr. M. Satyapal as chairman. This committee submitted its report to the government in 1985. Present Status of Industry: Automotive tyre Manufacturer’s Association (ATMA) was setup in 1975 as representative body of automotive tyre industry in India. The association constitutes of companies manufacturing tyres ranging from animal driven vehicles to aero tyres and tyres of defense applications. The association’s represents approximately 90% of the tyre production in the country the association interest with the government on a continuous basis and function as a link between government and the tyre industry. According to ATMA demand for the tyre was estimated at 242 lakhs tyres in 1991 and 1992 against the installed capacity of 296 lakhs tyres. The demand estimate for 1994-95 was 287.16 lakhs tyres against the production of 308 lakhs and still growing at the very steady pace. MRF, CEAT, DUNLOP, APOLO AND MODI Rubber dominate the industry together accounting for a major share of the total output. Among the individual companies MRF is moving into aircraft tyres and formula racing tyres, manufacturing in collaboration with Uniroyal Goodrich. The total capacity of ceat Tyres has gone up to 45 lakhs with commencement of nylon cord tyres. Modi rubber tyre industry has modernized the Modipuram plant and modinagar plant is under implementation. Vikrant tyres with a new plant for all steel radial tyres for trucks and busses fare the first company in India with such a state of art technology. Vikrant tyres after taken over by JK Tyres are having a major supper of tyres to various countries and are no way short of foreign companies in terms of quality and quantity. Basic Data on the Tyre Industry: Number of tyre companies Factories Installed capacity Capacity Utilization Investments Turnover (estimated) 40 47 605 lakhs no’s 85% 2800 (crores) 12350 (Crores)

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Exports Production in 2002-03

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1100 (Crores) 515 lakhs units

Peculiar Features of the Tyre Industry: 1. High Capital Cost: The sector is a capital intensive. A 1.5mm tyre per annum radial tyre plant costs Rs.8 bn, while a 1.5mn cross ply tyre would cost Rs.45 million. 2. Large Distribution Network: For replacement market efficient and capable workforce for the OEM market with typically higher margins in the replacement market, companies need to invest in brand building and distribution network which acts as an effective entry barrier. A nation wide distribution network and strong brand recalls are factors critical to tyre sales. Domestic companies enjoy the advantage of an existing distribution network. Thus new entrants will have to spend higher on marketing distribution and advertising to maintain brand visibility among foreign majors. 3. Demand is Cyclical Nature: Due to high minimum economic size, demand supply mismatches constantly exist. Tyre industry has a derived demand due to dependence on a cyclical auto industry. Prices of petrochemical based raw material and natural rubber also ten to be cyclical. 4. Technology Intensive: Technology has assumed greater importance in the tyre industry with the advent of radial tyres. Basically operating in a highly competitive market, gyre companies can achieve cost effectiveness only through adopting sophisticated technology rather than compromising on the quality of raw materials. 5. Rising cost of Raw-materials: Due to the support price provided by the Government the prices of natural rubber has gone by almost 75%

Trends in market share of tyres: Sl. No. Company’s Name No. of Tyres Produced Ranking (%)

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(2002-03) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. MRF Ltd. CEAT Ltd TVS Sri Chakra J.K. Industries Apollo Tyres Falcon Tyres Modi stone Ltd Good Year Birla Metro TOTAL 11201696 5845202 5495342 5143554 4981722 4722334 3981786 3652481 2454922 2351459 49930498 22.43 11.71 11.01 10.30 9.98 9.46 7.97 7.52 4.92 4.71 100.00

Source: Financial Express Oct 2003. Trends in Market share of Tubes: Sl. No. 1 2 3 4 5 6 7 8 9 10 Company’s Name No. of Tyres Produced (2002-03) 12201700 7245210 6895342 6243554 5481722 3869838 3781786 3452481 2905628 2651459 54728720 Ranking (%) 22.29 13.24 12.60 11.41 10.02 7.07 6.91 6.31 5.31 4.84 100.00

MRF Ltd. CEAT Ltd TVS Sri Chakra J.K. Industries Apollo Tyres Falcon Tyres Modi stone Ltd Good Year Birla Metro TOTAL

Source: Financial Express Oct 2003

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APPLICATION OF McKINSEY’S 7S MODEL

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APPLICATION OF McKINSEY’S 7S MODEL Introduction to 7S Model: The 7s framework has first appeared in the book “The Art of Japanese Management” by Richard Pascal and Anthony Athos in 1981. The two authors were looking at how Japanese industry had been so successful, at around the same time Tom Peters and Robert Waterman were exploring what made a company excellent. The 7S Model was born at a meeting of the four authors in 1978. It then appeared in the book “IN search of Excellence” by Peters and Waterman in 1982. Subsequently, it was taken up as a basic tool by the global Management Consultancy Company McKinsey to diagnose the cause of organizational problems and to formulate programs for improvement, then on it became famous as McKinsey 7S Model. The Model starts on the premise that an organization is not just Structure, but consists of 7 elements with a complex relationship between them.

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Structu re

Strateg y Shared values

System s

Skills

Style

Staff

For the successful implementation of strategy- large of small the management needs to take account of all seven factors. They are all interdependent, if one element changes then this will affect all the factors. For example, a change in HR- Systems like internal career plans and management training will have an impact on organizational culture (management style) and thus will affect structures, processes and finally characteristic competencies of the organization.

1. Strategy:
Strategies are the actions a company plans in response to or anticipation of changes in its external environment. It also includes purposes, Mission, Objectives, Goals and major action plans and policies. Jk Industries Ltd. (Vikrant Tyre Plant, Mysore) is governed by the following MISSION:

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 To be the largest most profitable Tyre company in India.  To retain # 1 position in Truck and Bus segment and to be amongst Top 2 in all 4 wheelers Tyre segment.  To make Truck/Bus Radial operations profitable and retain leadership in the passenger Radial Market.  To be the largest Indian Tyre exporter continues to be a significant player in the world in the truck Bias segment.  To be a customer obsessed company.  To develop a highly motivated team with a sense of Ananda.  To excel as a value driven organization.  To be the most preferred Tyre Brand in India.

The Objectives of Jk Industries Ltd. (Vikrant Tyre Plant, Mysore) are as follows: 1. Customer Satisfaction 2. Produce High quality of Products. 3. To be the No.1 Tyre company in India 4. profit Maximization 5. To be the large Tyre Export company in India 6. To be a customer obsessed Company. 7. To enhance value to share Holders and Service to all stake holders. 8. To attain global standard through continuous improvement in the products and services in order to maintain market leadership. 9. Accident free safe production.

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JK Industries is successfully operating because of its plans which are implemented in each individual activities, it may be short term or long term. All activities of the Jk Industries run by major goals and objectives. Quality Policy: The people of JK tyre have an organization committed to quality in every thing they do. They continuously anticipate & understand customer’s requirement convert these into performance standards for their products & services & meet the standards every time. Environmental policy: JK tyre is committed to protect, consume and restore natural habitat and conduct all their activities in an environmental friendly manner. environment.  Complying with al legal environmental requirements.  Taking measures to protect the environment y being proactive & innovative way.  Conserving natural resources and energy by optimizing efficiency minimizing waste & supporting environmental friendly programs.  Enhancing effectiveness of the environmental management through reviewing its objectives and targets.  Increasing environmental awareness amongst their employees and sub contractors.  Commit to communicate this policy to all employees & to make it available to the public on request. Safety Policy: The employees of JK industries, VT unit assure that the rules and regulations framed by the company and instructions framed by the company & instructions issued by the management in pursuance of achieving higher safety standards will by followed without jeopardizing the safety & health of one self or the other person. 25 They continually improve

Working without accidents is the principal goal of every employee and this shall be achieved by practicing safe operating procedure by adhering to safety rules of regulations using personal protective equipments and proper training on safety & health at all levels. They shall also ensure protection of environment by taking all reasonable measures in our manufacturing operations. 2. Structure: Organizational structure refers to the relatively more durable organizational arrangements and relationships. It prescribes the formal relationship among various positions and activities. Arrangements about reporting relationship how an organizational member is to communicate with other members. What roles he is to perform and what rules and procedures exist to guide the various activities performed by members are all part of the organizational structure. It has been observed that in Jk Industries Ltd.(Vikrant Tyre Plant, Mysore) both the formal and informal type of organizations are following. The informal organization exists in the form of a social relationship which is developed through social interactions between the employees at the work place. The formal organizations are well defined. Jobs, each has a definite measure of authority, responsibility and accountability. The structure is consciously designed to enable the organizational members to work together for accomplishing common objectives of the company. Functional Departments of JK Industries There are the functional departments at JR Industries (Vikrant type plant) [JK] (VIP)] And they are follows. 1) 2) 3) 4) Production Engineering Technical Quality Assurance

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5) 6) 7) 8) 9)

Materials Human Resource Management Production Planning Personal & Administration Secretarial Internal audit

10) Electronic Data Processing (EDP) 11) Industrial Engineering 12) Finance 13) Marketing 14) Technical services. 1. Production Department The production department has 1532 workers who are looking after production of tyres, tubes & Flaps at VTP. VTP presently has a production capacity of 10.30 lakhs tyres per annum and 8.10 lakhs tubes per annum. It has entered into a collaboration agreement with M/S continental tyres, Germany in 1998 for technology up gradation. 2. Marketing Department : Products of J.K. Tyre have good acceptance both in domestic and international markets. Broadly, the customers are categorized into & segments like:  Original Equipment manufactures (Domestic & Exports)  Overseas Markets  Institutional sales &  Replacement Markets. It has been the supplies for tyres for VOLVO, ASHOK Leyland and Tata Motors. It is the largest exporter from India accounting 30% of the total quantity exported. Exports:

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JK industries are exported to over 68 countries. Major countries include United States of America, Australia, United Kingdom New Zealand, Hong Kong Netherlands and most of Middle East, Africa and Asian countries. Marketing Strategy J. K. Tyres has adopted Total control campaign beginning with print campaign, which will focus on the company’s research and development The Company has targeted 17 top cities which accounts for more than 60 percent of radial tyre sales for its outdoor media involving billboards and double Decker buses in Mumbai. For joint promotions, JK Tyre will partner with Maruti Udyog Ltd Brands, Tata India & Fiat Uno for cars & Ashok Leyland & Tata for trucks, among others. Moreover, it will intensely pursue customer contact program and organize go-Karting events in 13 cities like Delhi, Indore, and Ahmadabad & Hyderabad. 3. Human Resource Management : The main functions of HR Dept- of JKI at VTP is  Recruitment and Selection  Training & Development  Performance Appraisal  Implementing Incentive Schemes  Co-Ordinating among different departments.  Maintenance of Industrial Relationship. 4. Finance Department Finance and Accounts  Preparation of MIS & BRR (Business Review Report)  Finalization of monthly, quarterly, half-yearly and annual reports of the company.  Co-ordination with statutory auditors & tax auditors

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 Finalization of cost accounts.  Cost reduction and cost of quality report.  Review of books of accounts  Preparation of trial balance  Overhead position of BRR.

Structure of Finance Department:

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Unit head

Head Commercial

Commercial Manager I [Capital equipment]

Commercial Manager II [Coordination & license

Finance manager [Accounts]

Finance manager [MIIS]

Finance manager [Costing]

Finance manager [Bank and treasury]

Finance manager [Bill passing]

Finance manager [Imports &exports

5. Quality Assurance Department:

QA-HEAD QA Manager-3

Persons
EMS [Environmental management services]

QMS Manager

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The people of JK Tyre will have an organization committed to quality in everything they do. They continuously anticipate and understand customer’s requirements, convert these into performance standards for products and services and meet these standards every time. Full customer satisfaction is the motto. 3. Systems: Systems in the 7S framework refer to all the rules, regulations and procedures both format and informal that complement the organization structure. It includes all the processes and information flows that link the organization flows that link the organization together, consisting of management information system, production planning and control systems, cost accounting procedures, capital budgeting systems recruitment, training & development systems, planning & budgeting systems, performance evaluation systems. Management information system at JK industries Ltd., [Vikrant Tyres Pant, Mysore] has a well-defined information network. They have fully equipped technical information department, which is called as information system group. The most essential function of this department is to make the strategic & operational level information at all times. Every department in this organization has a net work of computer-integrated serves by which the day to day information and data storage is managed efficiently by this group. All the departments namely project and marketing, purchases, quality control stores, finance etc has computers programmed and are interlined via LAN. The information system group is responsible for smooth functioning of all the day-to-day activities, which are computerized in all the departments. These activities include equipment stock order generation, bill of material generation, indent generation, raising purchase orders. Stores management and other production related activities.

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4. Style: The style if an organization, according to Mckinsey from work refers to the “reporting relationship” between the superiors and he subordinates. It also conveys the flow of communication between them. Referring to the organization structure of JK Industries Ltd. (Vikrant Tyre Plant, Mysore) it can be said that the company is following the type of “Line and staff” organization. Reporting relationship at JK Industries Ltd follows a formal channel. The communication follows the routes formally laid down in the organization structure and deliberately associates with the status or the position of the sender and the receiver. Both downward and upward communication follows the path of formal channel. The activities like quotation processing, equipment stock order generation, bill of material generation, indent generation, raising purchased orders, stores management and other production related activities generated a number reports which are communicated from one department to the other through formal channel. 5. Staff: Staffing is the process of acquiring human resources for the organization and assuring that they have the potential to contribute to the achievement of the organization’s goals. It includes selection, placement, training and development of appropriately qualified employees. At Jk Industries Ltd. (Vikrant Tyre Plant, Mysore) for its staff all the facilities arte given. Up gradation work, process, technology etc are doing day by day. Recently all departments are computerized at all levels, so company is giving computer training to all its employees and staff, There is lot of scope and career opportunities in the firm for the staff.

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6. Skills: The term skill include those characteristics which are developed over a period of time and a results of the interaction of a number of factors, performing certain tasks successfully over a period of time, the kind of people in the organization,, the top management style, the organization structure etc. Technical Skills:A technical skill refers to the ability and knowledge in using the equipment, technique and procedures involved in performing specific tasks. At JK industries Ltd. (Vikrant Tyre Plant, Mysore) employees, both supervisors and workers, working in all the production related department posses the technical skill such as engineering skills, computer skills, etc. which are needed to handle work related tools, machines and equipments.

Human Skills: Human skills consists of the ability to work effectively with other people both as individual and as member of a group, At JK industries ltd. (Vikrant Tyre Plant, Mysore) employees and staff are expected to have human skills so that they can work cooperatively with one other and build effective teams spirit, which in turn helps in achieving the organization goals. 7. Super ordinate goals: Super ordinate goals refers to set of values and aspirations that go beyond the conventional formal statement of corporate objectives, they are the fundamental ideas around which a business is built. Vision: “TO BE AMONG THE ADMIRED COMPANIES IN INDIA, COMMITED TO EXCELLENCE”

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Values:  Customer driven,  Result oriented with professional work culture.  Growth balanced with environmental protection and enrichment.

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SWOT ANALYSIS

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SWOT ANALYSIS OF TYRE INDUSTRIES Strength:  Over six decades of experience in tyre manufacturing  Self sufficient in tyre production  Successful & fast absorption of international technology to suit Indian condition & needs.  Well knit distribution network.  Tyre is easily available & serviced even in remotest parts of the country. Weakness:  In comparison with the global standards, smaller size of plant & hence less economic units.  Lower productivity of labor in comparison to world standards.  Out dated labor laws  Proliferation of units  High cost of raw materials. Opportunities  Robust economic growth, particularly vehicle production growth resulting in health demand growth for tyre in the feature.  Export culture inculcated enabling participation in world tyre market.  Excellent brand equity of Indian cross ply/bias truck Tyres in the world market can open market opportunities for radial tyre.  Emergence of Indian as a hub for production of small car is expected to give a thrust to auto component & tyre segment.  Improved road infrastructure especially on the golden quadrilateral & north-south, cast-west national highway project will result in significant increase in movement of goods & passenger traffic through roads with resultant growth in demand for tyres.

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Threats  Faster pace of opening up of the economy will increase import of tyre.  Reduction in important duties will lead to high volume of type imports.  Multinationals with financial muscle setting do manufacturing facilities in the country.  Concessional import tariffs for countries like china & South Korea under regional trade agreements will lead to additional imports.

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LATEST ANNUAL REPORT OF COMPANNY

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Company Annual Report Balance sheet as at 30-9-2006 Schedule 30.9.06 Rs in crores (10 mil) 30-9-2005

Sources of funds Share holders funds Capital Reserve & surplus Loans Secured loans Unsecured loans

1 2 3

30.79 560.93 591.72 724.77 219.10 943.87 1535.59 2084.22 860.03 1224.19 22.51 1246.70 61.46 1.61 1013.52 796.86 216.66 9.16 1535.59

37.46 745.14 782.60 67.28 159.22 830.50 1613.10 1938.72 764.74 1173.98 61.63 1235.61 250.04 3.05 812.83 701.37 111.46 12.94 1613.10

Application of funds 4 Fixed assets Gross block Less depreciation Net block Capital work in progress Investments 5 Deferred tax Current assets 6 Loans & Advances Less current Liability & Provision Net current assets Miscellaneous expenses

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Profit & Loss Accounts. Income Sales Less excise duty Other income Increase or decrease in finished goods Expenditure Material manufacture Employees Fright & Transport Other expenses Operating profit(BIDE) Interest Profit before tax Depreciation Transfer from capital reserve Profit before tax Provision for current tax MAT Credit entitlement Deferred tax Provision for fringe benefit tax Provision after tax Additional excise duty Less transfer from general reserve Schedule 2952.69 343.48 8 9 05-06 2609.21 17.61 92.16 2718.98 10 11 12 13 2150.32 155.70 88.70 155.38 2550.10 168.88 76.15 92.73 97.50 26.57 21.80 0.47 (0.47) 1.44 3.31 17.05 2383.82 304.74 04-05 2079.08 16.44 22.52 2117.84 1611.30 142.66 83.24 149.10 1986.30 131.54 64.45 67.09 90.22 26.57 3.44 (14.52) 1.20 16.76 36.70 36.70

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Tax provision for earlier years Debenture redemption reserves no longer required Surplus from provision year

0.28 3.35 1.01

41.53 61.93

40.32 57.81

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LEARNING EXPERIENCE

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LEARNING EXPERIENCE Vikrant Tyres Limited has got certification of TS 16949 and this fact proves that the company is providing quality related training at all levels for its employees. Based on the analysis of the data it can be concluded that the company’s professionally conducting training and Development & Management Development program to constantly upgrade the skill & knowledge of its employees. In the modern competitive business environment every company should try to increase the productivity and maintain quality of its products. In order to be competitive in the market the company should constantly upgrade IN Training & Development program. The present study has thoroughly looked into the various aspects of Training & Development initiated b the company. The study points that the efforts made by VTP to maintain competitive edge in the industry are very encouraging. A significant majority of the training program offered by the company has helped the employees to increase their knowledge & skills. And it is also observed that management is providing efficient training program for its employees. Due to this it ahs achieved greater heights of success. The study has helped the researcher to understand the functioning of a major Tyre company like Vikrant Tyres Ltd., located at Mysore. The company has been able to maintain a competitive edge through its various development & training program. The fact that the company has been able to get the triple ISO certification proves its efficient handing of Human Resources Management. The success of organization is lies in Co-Ordination between the management and workers. The relationship between the management and the workers directly decides the development of organization. If the management and workers mutually co-ordinate then nothing can prevent them from success.

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The study of different working situations gave the knowledge of importance of the enthusiasm in workplace and our work. The success of any organization is lies in the efficiency of their human resource. Laziness, negative attitude towards work, always to escape from responsibilities instead of taking new responsibilities will take the organization to failure. Different people and visiting new places will help to know how people behave in societies and in organization, how the environment of a work place will play a vital role in development, success and effective performance of organization. When organization bound to make and consider the interests of its people they will get the double return of what they give. When the friendly environment is created in working place, people will like to work more and survive in same organization. From the study we came to know that management can play a vital role in every organization. When the management is efficient in its performance there is obscene of lock out, strike, fear of loss and other managerial problems. I also learned that people’s attitude towards his job and organization plays a major role in the success of every organization. The people should feel their work as their own work and should maintain good attitude towards their job, this attitude will provide more support to the development of the organization. If the people who are appointed by the company work for the sake of getting salary and other benefits then it will result in inefficiency and failure of o9rganisation.

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BIBLIOGRAPHY:  Human resource management- Subba Rao.  Induction manual- J.K Tyre Company.  hrd@VTP.jkmail.com hrd@vikrant.com. Website-www.vikrant.com and www.jktyre.com

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