CHAPTER-1

INTRODUCTION

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The project on “A STUDY ON RETREADERS ATTITUDE TOWARDS MIDAS
TREADS IN TERMS OF MARKETING MIX”. The study was conducted in MIDAS
PRECURED TREADERS PVT.LTD, Kottayam as a part of my academic curriculum in
the 4th semester of MBA course. MIDAS TREADS (INDIA) Ltd is a company in the
heart land of rubber country where research and development and customer orientation
have come together to manufacture and supply the highest quality retreading materials.

MIDAS has chosen to develop as a group of small scale industries unit as far as production is
concerned. The small scale unit are at Kottayam, Ettumanoor and Kariakal. The head office
at Kottayam controls the group

During the study the searcher extracted information regarding the external factors that affect
the preference of the customers. The retreaders say that Quality, Availability and
Distribution provided by the company are best. But none of them are satisfied with the
promotional activities and credit period services offered by the company.
The survey conducted was quite successful revealing many facts providing valuable amount
of information. Majority of the retreders responded well.

1.1 IMPORTANCE OF THE STUDY

At present, the retreading market is highly competitive. The study is related to Retreading
industry in Kottayam district. So many local players exist in Kottayam district. The
extracted information regarding information regarding the external factors that affect the
preference of the customers. The retreader’s opinion about Quality, Availability and
Distribution provided by the company.

1.2 OBJECTIVES AND SCOPE OF THE STUDY

1. To understand the Retreaders attitude towards MIDAS in trem of various parameters like
the price and quality of different treads.
2. To find out customer’s preference.
3. To compare credit policies of various companies.
4. To suggest strategies for improving the existing business in terms of marketing mix.

1.2.1 SCOPE OF THE STUDY

The study is conducted to get a clear view about the Retreaders Attitude adopted in
MIDAS Treads in Kottayam. The study is limited to 100 retreaders. This study will help to
know how the organisation evaluates this program.

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1.3 STATEMENT OF PROBLEM

To study about the retreaders preference towards the organisation

1. The study helps to find the retreaders opinion about MIDAS

2. The reason for preference is also considered in the study

1.4 RESEARCH METHODOLOGY

Definition of the Methodology

A research methodology defines what the activity of research is, how to proceed, how to
measure progress, and what constitute success.

Research methodology is a science. It is a method that can be used to solve the research
problems. It helps in studying how research is done scientifically. It provides various steps
that can be adopted by the researcher in study his research problem. It has many
dimensions. The scope of research methodology is wider than that of research methods. It
includes not only researches but also considers the logic behind those methods.

1.4.1 Research Design

A research is a plan of proposed research work. The research design is simply a specific
presentation of the various steps in the process of research design means adopting that type
of technique of research which is most suited for the research and study of the problem

There are three basic types of research design.

(a)Exploratory

(b)Descriptive and

(c)Experimental

In this, exploratory research is absolutely essential in order to obtain a proper definition of

the problem in hand and hence the exploratory research design is used.

1.4.2 Sample design

Sampling design of the study consists of two steps

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a) Study area: The survey is carried out in one district in Kerala named Kottayam. The
sample consist of only retreaders who are using the products of MIDAS.
b) Selection of the sample: Since the survey is intended to find out the retreaders
attitude, census sampling technique has been adoptes for this study.

1.4.3 Sampling procedure

Nature of universe- The population for the study is all MIDAS Retreaders in Kottayam
district.

Sample Size- The survey was conducted taking all the 35 Retreaders in Kottayam district-
Census sample

1.4.4 Data Collection Method

Both primary and secondary data was used for the study . The source of primary data was
direct interview with the respondents using questionnaire. The field survey was conducted
in MIDAS PRE-CURED TREADS PVT LTD KOTTAYAM. In order to achieve at
substantial conclusion with regard to the topic of the study. It is necessary to adopt a
suitable mode of study is the survey method. The collected data analysed and interpreted by
choosing chi-square analysis and expressed in the form of tables, bar diagrams etc.
secondary data are collected from magazines, journals, reference book, internet etc.

1.4.5 Primary Data

Primary data are those collected by the investors him for the first time and this original in
characters. They are collected for particulars purpose. Since they are collected for the first
time for the purpose of a study it is primary in nature primary data can be collected by three
methods.

1. Observation
2. Experimentation
3. Survey.

1.4.6 Secondary Data

Secondary data are those which have been collected by some others persons for his purpose
and published, so a researcher is said to make use secondary data is he make are of data
already complied by some other person. Secondary data are usually in the scope of finished

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products. In this secondary data are collected from company journals, magazines, record
etc.

1.4.7 Data Analysis and Interpretation of Data

In order to extract meaningful information. From the data collected, the data analysis was
carried out. The data was first edited, coded and tabulated from the purpose of analysis. The
analysis was done by using simple percentage method

1.5 LIMITATIONS OF THE STUDY

1. The main limitation is the time factor. It was very difficult to conduct a research study
within a small span of 22 days.
2. Prejudices of the respondents were another limitation.
3. The Retreaders were very busy; hence the data given by the may be biased.
4. Some customers were not at Retreading shop; some others were not ready to give some
personnel information.
5. There may be bias from the respondents and the interviewer’s part.

1.6 REVIEW OF LITERATURE

Reviewing of literature on the area of research is a preliminary step before attempting to

plan study. It is essential to review all the relevant material connected with the problem
chosen. It is necessary to show how the problem under study related to previous research
studies. It is equally important to show how this work is different from the existing
literature. This research is first of its kind and attempt to analyse the marketing strategies
adopted by the manufacturing of cement in the domestic market, to study hypothesis stated
by the earlier workers are reviewed and their usefulness is evaluated in the part as a basis
for further research.

Richard J.Darder (1988):An assessment of casino dealers’ motivational attitude was

conducted at three Las Vegas casinos. Dealer’s attitudes were assessed through a
motivational hygiene survey questionnaire, casinos supervisors’ perceptions of the dealers
attitudes were also assessed and compared. Both the dealers and supervisors survey result
were compared to previous studies of hospitality and general industry employees. Dealers
exhibited different attitudes than employees of previous studies.

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Rajiv Budhraja (2009);The Indian tyre industry is crying for correction of the anomalous
duly structure that has eroded its domestic and global competitiveness. Although the
economic stimulus plan of the government has perked up growth impulses, for sustaining
tyre demand more investment needs to be made in infrastructure. The cheaper loans, excise
duty cuts and lower fuel costs will definitely help in fuelling demand in the short term, but
the long term growth for tyre industry will come only from infrastructure development.

Dundec Scotland (2001);Public resistance to retreaded tires is an ongoing one, caused

mainly by the public’s misperception that all tire debris comes from retreads. As long as the
motoring public believes that all tire debris on roads and highways comes from retreads, the
problem will persist. The retread industry must rise to the challenge by continually
countering negative mentions of retreads in the media and by promoting the environmental
and economic advantages that are offered by the use of retreaded tires.

Quality is everything- None of our efforts mean a thing if the quality level of a retreaded
tire is lowers than that of a comparable new tire. I will not insult your intelligence by stating
that all retreads are of a superior quality. Unfortunately, there are bad apples in every bunch,
including retread manufactures. Every tire that is retread by a shabby operator is a problem
waiting to happen, and thus contribute to the image problem we already fight every day.

Gray L Frazier & John O Summers (1986);Data from a field study of the automobile
distribution channel are used to examine how dealers perception of their manufactures
power are related to the later use of coercive and no coercive influence strategies. Dealers
report about their manufactures reliance on the various influence strategies also are related
to the dealers attitude toward manufactures and the dealers on use of selected influence
strategies.

Gary. L Frazier (1986) ;Power is the context has been defined consistently as the ability of
one of channel members to influence decision variable of another channel member, a
potential for influence on another, beliefs and behaviour, where as influence strategies
refers to the alternative means of applying power that can be used by a firm’s boundary
personnel in their influence attempts with associated channels members. The term
“boundary personnel” refers to those employees of the firm whose position involve
facilitating product, service, and information flows within the distribution channel through
personnel contacts with associated channel members.

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Charles Hollomon (1994);The evidence regarding the safety, economic and environmental
advantages of retreads is overwhelming. Tires fail and come apart for many reasons, the
most important being under inflation, whether the tire is new or a retread. To blame retreads
for all tier failure is the same as blaming a vehicle for an accident caused by a drunk driver.
Retreads offer truckers a safe, economical and environmentally friendly alternative to
higher priced new tires. Thanks to retreads, consumers save millions of dollars every year.

Kumar, Nirmalya; Scheer, Lisa K; Steenkamp, Jan Benedict E M (1995);Because marketing

channels are sets of interdependent organisations involved in the process of making product
available to the end user, dependents is a crucial concept in channels research. The
pioneering channels work on dependents examines relationship between on firm’s
dependence on its partner, their use of influence strategy, and their associated attitude.
Some research (eg: Brown, Lusch, and Muchling 1983; Frazier, Gill and Kale 1989)
indicates that a firms dependents on its partner increases conflict and the partners use of
coercion, where as others studies report an opposite effect (e.g.; Frazier and Rody1991). In
keeping with Frazier and Rody (1991) insight that some contradictory results might be
explained by different interdependence.contexts,our study focuses on the effect or perceived
interdependent on channel firm attitudes.

Recent empirical investigations of interdependent within channel dyads have incorporated

both firms depentends, either from one partners perspective (eg; Anderson and Narus 1990;
Buchanan 1992 Frazier and Rodi 1991 ;) Heide 1994; Noordewier,John and Nevin 1990) or
by querying each partner about is respective dependents (Ganeshan 1994).Anderson and
Weitz(1989) provide empirical evidence supporting Stem and Reve’s (1980) proposition the
channel relationships that are asymmetric in dependence and power are more
dysfunctional ,less stable and less trusting than symmetric relationship. However , all
symmetric relationships are not identical; Buchanan (1992) found that increasing total
interdependent in symmetric relationship enhance asymmetry from total interdependent
consequently we explore how the dealer’s perception of (1) interdependent asymmetry and
(2) total interdependent affect the development of interfirm conflict, trust and commitments.

1.7 CHAPTERIZATION

The entire project report is divided into five chapters, described below:

Chapter 1 – Introduction

This chapter is classified into seven different parts and they are

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1.1 Importance of the Study

1.2 Objectives & Scope of the Study

1.3 Statement of the problem

1.4 Research Methodology

1.5 Limitations

1.6 Review of literature

1.7 Chapterisation etc

Chapter 2 – Industry Profile

This chapter describes the details about pipe industry as a whole with details on global as
well as Indian industrial scenarios.

Chapter 3 – Company Profile

It gives an idea about the company’s activities, Products, Market etc.

Chapter 4 – Data Analysis, Results And Interpretations

Presentation of the relevant data and analysis and discussion thereon from the main body of
the report.

Chapter 5 – Findings, Suggestions And Conclusion

It contain findings that are logically derived and suggestions based on that. The final part is
a conclusion of the whole study conducted.

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 CHAPTER 2

INDUSTRY PROFILE

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Rubber natural, synthetic and reclaims constitute the major and the most important raw
materials of the vital rubber industry and hold a strategic position in the country’s economy.
Rubber products are exclusively made out of natural rubber or synthetic or any two or all
three rubbers depending on the properties required to the products. Tyres and tyre products
are made out of rubber and they are manufactured by the moulding methods.

2.1 GLOBAL SCENARIO

Be automobile industry is one of the dominating sectors because many economic activities
rely on and are linked to automobile production. If you include suppliers, car services,
garages or retailers, a total of about 5 million employees depend on the success of the
automobile industry. With changing technologies, production concepts, strategies and
products, the automobile industry is often an initiator of innovations in other related
industries as well.

As the world tries to come out of economic recession, the first sector to witness positive
movement has been the Automobile sector and since its linked to related sectors like tire
industry, plastics industry and metal processing, all the sub sectors are slowly witnessing a
silent revival. As more and more people look at buying automobiles slowly, the tire industry
is also set to attain a positive movement from the pits, where it has been for most of last
year. The recession had people reducing spending across the board, which meant that they
had been putting of those new tires on hold until things start to look a little better on the
economic front. Now as the economy is moving out of the red slowly, tire sales are
witnessing a welcome revival even better than the Automobile companies and a lot of
second hand car owners have also been investing in the new set of tires instead of buying a
new automobile altogether.

Tire shipments in 2010 are projected to increase by approximately 3 % or approximately 7

million units to 267 million units, according to the Rubber Manufacturers Association. Total

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shipments experienced an 8 % drop in 2009 to 259.7 million units. The increase in tire
shipments reflects the onset of the economic rebound, an increase in vehicle miles traveled
and a slight up tick in auto sales. As a result, this rebound is projected to extend into 2011,
reaching approximately 275 million units as the economic recovery gathers momentum.

 Tire companies were first in the early on 20th century, and grown in partnership
together with the automobile business. In the present day, above 1 billion tyres are created
annually, in over 400 tire factories, with the three top tire makers commanding a 60% total
marketplace share.

 The US tire manufacturing industry alone consists of about 100 companies with
combined annual revenue of about $15 billion. The industry is highly concentrated and the
top four companies generate more than 75 % of revenue. Major companies include
Goodyear, Bridgestone, Michelin, and Cooper.

 Tire manufacturing has become extremely technical and forward-thinking as

manufacturers look to push the boundaries of what can be achieved through new
technologies. Whether it’s improvements in fuel economy, handling performance or safety,
technological developments in the tire world are making a big difference.

 As the world fights strong economic recession, people are more prone to buy and
use older cars rather than buying new ones. No matter if the vehicle is old or new, the need
for tire remains a constant and with number of second hand vehicle sales increasing and as
compared to new vehicles, the worldwide consumption of tires is estimated to be more than
automobiles.

 With developing nations churning the growth engines of the world, commercial
vehicles (vans, utility and light trucks) are much in demand in both developed and
developing nations; such vehicles require both more and larger tires than passenger cars.

Correlation of Tires and Rubber: In the history and the application of various materials,
few have made as large an impact globally as natural and synthetic rubber. The source of
the material stretches from plantations in Malaysia and Indonesia to factories on all
continents. The making of rubber into tires and non-tire goods involves a series of
sophisticated manufacturing processes. The finished products are then distributed through

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thousands of warehouses and dealers in large cities and small villages, practically in every
country.

Rubber Demand and Supply: Rubber originates from two distinct sources. Natural rubber
comes from tropical plants. Major producing countries are Malaysia, Indonesia, and
Thailand. Both small and large rubber plantations supply the liquid latex. Synthetic rubber
is manufactured in various plants around the globe to different specifications, although
generally attempting to emulate the physical properties of the natural kind.

Because rubber is used widely in both tires and non-tire applications, its future is tied to the
global economy. The growth rate for rubber should outpace those for motor vehicle
production and motor vehicle registration in the next ten years. Non-tire applications
account for the majority of rubber usage at 52 to 54 percent of the total, with little change
expected.

Tires Supply And Demand: The demand for rubber in tire applications will be hindered by
longer tire lives. Drivers now expect longer tread life, and tire companies have responded.
However, this means slower growth for replacement tires. Another negative factor is the
slowing in the rate of growth in motor vehicle registrations, especially in industrialized
nations. But positive signs are evident as well. Commercial vehicles (vans, utility and light
trucks) are much in demand in both developed and developing nations; such vehicles
require both more and larger tires than passenger cars. There is also strong demand for
performance or specialty tires in the USA; such tires not only require more elastomer per
unit, but they also have a shorter tread life than normal tires.

 Tire Production Process: The basic tire-making process consists of mixing rubber

and various additives in a large mixer called a Banbury machine, then cooling the mixture,
rolling it flat, and cutting it into strips. Tires are assembled as layers of rubber strips along
with reinforcing materials and adhesives on a tire-building machine to produce a green
(uncured) tire. The tire is then heated in a curing press at a high temperature, which
vulcanizes the rubber and produces the final shape. The process is capital-intensive, uses a
fair amount of energy, and produces polluting vapors. The primary raw materials used are
synthetic rubber, carbon black, natural rubber, various chemicals and reinforcing
components such as steel wire, steel cord, and polyester. Both synthetic rubber and carbon
black are derived from petroleum or natural gas. Other components used in manufacturing

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synthetic rubber are styrene and butadiene. Natural rubber is collected as sap from rubber
trees on large plantations in Indonesia, Malaysia, Thailand, and Brazil.
 As many as 200 separate raw materials are used in the construction of one tire. The
grooves and tread sipes on the shoulder of the tire are specially designed to channel water
away from the surface of the tire, maintaining maximum wet grip. Different rubber
compounds are used for tires to make them suitable for different vehicles and driving
conditions. For example, racing cars have tires that can work at very high temperature
ranges with optimum grip, enabling prolonged usage at high speeds on the track. These tires
wear more rapidly than typical road tires that are balanced to provide optimum steering,
braking, road holding and wear capabilities.

Top Global Tire Manufacturers:

 Pirelli: Pirelli tire is the world's fifth largest operator in the tire market and is
involved in the design, development, production and marketing of tyres destined for various
types of vehicle. Pirelli tires are synonymous with quality, emotion and ultimate
performance. Pirelli is one of the world’s best known Italian brand names, thanks above all
to the widespread distribution of the tires produced in 24 manufacturing plants in 12
countries and a commercial presence in more than 160 countries. In particular, Pirelli is the
world leader in the field of tires for high performance cars, in both the original equipment
and aftermarket segments. Pirelli's tire Sector has a marketing network covering over 120
countries around the world and boasted sales of over Euro 2.831 billion in 2001.
 Michelin: The Michelin Group is active on all continents and in more than 170
countries, from China to Brazil and from The United States of America to Germany and
Russia. Michelin manufactures and sells tyres for all kinds of vehicles, including cars, vans,
4X4, SUV and many more. In 2006, Michelin produced 190 million tyres and continues to
provide industry leading technologies in over 170 countries around the globe. The company
was founded in 1889 by the Michelin Brothers and remains in family ownership to this day.
It operates in over 170 countries and has manufacturing interests throughout the world. It
was the first western tire manufacturer to invest heavily in China and is in partnership with
India's Apollo Tires to develop the Radial tire market on the domestic front.
 Continental Tyres: Continental Tires was founded in Germany in 1871 and has
been making tires for over 130 years. Since then, it has grown to become one of the world's
major automotive component suppliers and the company's comprehensive know-how today
includes the manufacture of tires for all kind of vehicles. The German player in the global

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tire market has been through the financial mill in the last few years, but has regained some
of its old stability by focusing on its core business. The tires it produces are amongst the
best in the world and are fitted as OE on most European manufactured cars, including
BMW, Mercedes and Volvo.
 Bridgestone Tyres: Based in Japan, Bridgestone is the world's largest tire and
rubber company. Operating on a global scale, the company is at the forefront of tire and
rubber technology. Bridgestone was founded in the 1930's by Mr Shojiro Ishibashi, a
forward-thinker who realised that the road to success in global markets lay in an English
brand name. He took a literal translation of his own name, "Stonebridge", and created the
Bridgestone brand. The company now employs over 105,000 people in 150 countries and
has production facilities and test and research centres around the world. The Bridgestone
tire founder, Mr. Ishibashi, produced his first tire in Japan in 1930, soon after Bridgestone
tyres were being sold throughout Europe. Mr. Ishibashi said "Serving society with superior
quality" is the company motto. This motto and the mission remain the same today.
 GITI: GITI tire Group, headquartered in Shanghai, is China's largest manufacturer
and supplier of top quality tires, with five manufacturing plants in that country. It produces
a comprehensive range of GT Radial brand tires including car, van, SUV and 4X4. The
Company distributes its products through an extensive sales network in China and exports
to over 80 countries around the World.
 Goodyear: By volume, Goodyear Tire and Rubber Corporation is the largest tire
manufacturer in the world with interests in Dunlop and many other regional and second line
brands around the globe. Goodyear is involved in every area of the rubber market and was
founded by the Seiberling brothers who used the name of the American discoverer of the
vulcanising process as the brand for their company. The Goodyear tire & Rubber Company
was founded in the late 19th century by 38-year-old Frank Seiberling, with just 13 workers
Goodyear production began on the 21st November 1898. Today, Goodyear is one of the
world's leading tire companies; No. 1 tire manufacturer in North America and Latin
America.

 Dunlop: Dunlop opened its first tire plant in Dublin, 1889. Since then, Dunlop has
grown to become one of the world’s biggest and most respected tire brands. By the 1920s,
Dunlop had developed tyres for cars capable of speeds over 200 mph - heralding a
longstanding relationship with motorspot.

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 Firestone: The Firestone legacy of motorsports accomplishments began more than
nine decades ago when Harvey Firestone decided to showcase his tires on the race track.
Since then, the Firestone tire brand has appeared in thousands of competitions around the
globe, recording a remarkable variety of wins and honors.
 Tire Negatives: Lack Of Waste Management
One of the key issues facing governments and environmental agencies is the increasing
problem of solid waste management -- in this case, the disposal of waste tires. The debate is
most intense in nations or regions with high car densities: USA, Japan, and Western Europe.
To date, no comprehensive solution has come forth. Waste tires can be shredded and
incinerated as a fuel source or used as filler material for asphalt. Waste tires are also being
used as artificial reefs in the Caribbean and elsewhere to encourage underwater aquatic life.
But none of these applications is sufficient to absorb the huge quantity of discarded tires,
which suggests that further regulation is imminent

Global Tyre Industry witnessed a marginal growth during 2012-16, predominantly due to
prevailing effects of Eurozone Crisis and slump in the crude oil prices which impacted
the global automobile industry. These factors cumulatively resulted in weak demand for
tires across Europe, Africa and Middle-East, which restricted the growth of global tire
market over the last five years. However, the tire market in Asia-Pacific region exhibited
a steady growth during the same period. Apart from the increasing penetration of flagship
tire brands such as Bridgestone, Michelin, Goodyear, Continental, Yokohama, Kumho,
etc., the global tire market is witnessing increasing inflow of Chinese tire brands across
all major geographies. Demand for Chinese tires has been growing across the globe over
the last five years, majorly due to lower prices of Chinese tires compared to flagship tire
brands. Additionally, increasing per capita income and anticipated increase in new
vehicle launches are few of the other factors expected to drive global tire demand over
the next five years.

2.2 INDIAN SCENARIO

The origin of the Indian Tyre Industry dates back to 1926, when Dunlop Rubber Limited
set up the first tyre company in West Bengal. At present, there are 40 listed companies in
the tyre sector in India. Major players are MRF, JK Tyres, Apollo Tyres , CEAT, BIRLA,
and GOOD YEAR which account for 63 percent of the organized tyre market. Current level

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of radicalization includes 95 percent for all passenger car tyres, 12 percent for light
commercial vehicles and 3 percent for heavy vehicles (truck & bus). Restrictions were
placed on the import of used/ retreaded tyres since April 2006. Import of new tyres and
tubes is freely allowed, except for radial tyres in the truck/bus segment which has been
placed in the restricted list since November 2008.

Indian tyre industry produces the complete range of tyres required by the Indian
automotive industry , except for aero types and some specialized tyres. Domestic
manufacturers produce tyres for trucks, buses, passenger cars, jeeps, light trucks, tractors,
( front, rear, and trailer ),animal drawn vehicles , scooters, motor cycles, mopeds, bicycles,
and off – the – road vehicles and special defence vehicles.

The productivity of rubber in Kerala is the highest in the world. According to Rubber
Statistics 2006 published by the Rubber Board of India, the mean annual productivity is
1726 kgs/ha, which is highest in the world. For a long time now, domestic prices of rubber
are much lower than international prices. India has signed the ASEAN agreement. As per
the industrial clauses of the project, the Union Government will be compelled to take away
the import duty of the rubber. As Kerala contributes to the major chunk of the rubber
production, Kerala will be compelled to face competition from countries like Malaysia. Key
tyre categories tariff to be brought down to 5percent by 2016. Select raw materials of tyre
industry eligible for Nil/Concessional Customs duty from 2013 onwards. Indian tyres have
good acceptance in global market. The Compound Average Growth Rate ( CAGR) of tyre
exports in last one decade has been 8 percent. Export to highly quality conscious US market
is 17 percent.

2.3 INDIAN TYRE INDUSTRY: DEVELOPMENT AND STRUCTURE The Early Phase :
( 1936 – 1959 ): Genesis of Indian Auto Tyre industry The Automotive industry is one of
the more important components of the Rubber manufacturing industry as it accounts for just
under three quarter of the total net value of the industry . The Indian rubber industry is of
comparatively recent origin. The end of the first world war signalled the genesis of the
industry . The first rubber plant in the country was commissioned in 1920 for the
manufacture of certain technologically less complex non – tyre products like water proofing
of fabrics. Thereafter a few concerns grew in quick succession in the Bengal presidency and
elsewhere. But it was only in the second half of the 1930’s that commercial production of
tyres commenced in the country.

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Dunlop Rubber Company was the first to start commercial production of tyres in the
country; their plant was set up at Calcutta in 1936. Dunlop was soon followed by a US
based MNC by name Firestone Tyre and Rubber Co. , with a plant at Bombay in 1939. In
addition to these , two other manufacturers , who were also subsidiaries of MNC s, viz.,
Good Year and India Tyre and Rubber Co.( hereafter ITR ) also entered the fray. Of these ,
ITR was a subsidiary of Dunlop’s parent firm and it became a wholly owned subsidiary of
Dunlop India only in 1979. Both Good Year and ITR were getting their tyres manufactured
at Dunlop’s plant. In fact this mutual interdependence between the firms in an explicit
manner was common business reaction to the economic vicissitudes of the depression years
and could be found elsewhere. For instance , Good Year had arrangements with Dunlop in
respect of several markets according to which one of them manufactured tyres and tubes for
the other where it had a prominent position.

The second phase : ( 1960- 1974 )

The characteristic feature of this phase is the licensing of new units, especially the Indian
companies with foreign technical collaboration and the consequent interaction between the
established MNC s and the new Indian companies. Though the entry of these new firms
would have made the industry more competitive ( domestically speaking) , the collusive
arrangements between the firms for fixing the prices and sharing the output continued to
play an important role , but this time with an important difference .The commencement of
this phase approximately corresponds to the beginning of the Third five year plan . The
target for the plan period ( i.e., the likely capacity that would be created by the terminal year
of the plan [ viz ., 1965 – 66] ) was fixed at 3.7 million tyres. Subsequently , five new units
were licensed. Of this, Good Year ( which was already operating in the country as a trading
company using Dunlop’s manufacturing facility ) and Ceat were subsidiaries of MNC s and
remaining three ( viz., Madras Rubber Factory , Premier and Inchek ) were promoted by
Indian entrepreneurs in technical collaboration with foreign companies. Among them ,
Madras Rubber had a minority equity participation by its foreign collaborator. The two
existing companies and Good Year could implement their licences much before the new
companies could, in view of the former’s command over financial and technical resources.
As a result of these substantial expansions and the new units going into commercial
production , there was a temporary glut in the tyre market during the period 1963 through
1967 . The consumer preferences was for the established brand names and as a result the
new units found is extremely difficult to establish.

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The modern phase : ( 1975 – 1988 ) The distinguishing feature of this phase is the large
scale entry of units belonging to Indian Business Houses and the nature of vertical and
horizontal acquisitions . Here happens the exit of MNC s mainly due to external conditions,
( viz., adverse performance of their respective parent companies as a result of severe
recessionary conditions in the western tyre industry ) which saw the exit of the companies
from Indian scene. The industry underwent a succession of changes which influenced the
pattern of intraindustry competition as well as affecting the market power of certain firms.
There are essentially seven new entrants into tyre industry during the period .Of these , four
large tyre manufacturers ( viz ., Modi, Apollo, J.K and Vikrant ) and three were specialized
manufacturers of smaller – sized tyres like Scooter / Motor cycle (viz., Falcon , Srichakra
and KTC ). Most of these units belong to various Indian Business Houses (or MRTP ) like
Modi, Raunaq Singh , J.K and T.V.S . This was also the when there was direct participation
by the state in tyre production (e.g ., Vikrant) . Modi was the first to commence commercial
production by 1974 .Within a period of two years or so , i.e ., by 1977 , the company was
able to achieve a significant share of the truck tyre market ( which is by far the most
important segment ) and emerge as the third largest manufacturer of truck tyres.

MARKET BEHAVIOUR

For anyone connected with the rubber sector, is an impeccable source of industry trend and
analysis, relied on for forecast and price trends, particularly at this time when prices are
soaring to dizzying heights. “Many market participants had not expected such a quick
recovery in demand. After the perceived worst crisis in many decades, accompanied by
problems on the supply side, the market is now faced with this high level of NR prices. Has
been involved in analysing and forecasting supply and demand of NR and synthetic rubber
(SR) for the past many decades. This was done both at the Economic and Social Institute of
Free University, Amsterdam, and during his tenure as Secretary-General of the International
Rubber Study Group (IRISG), 2005-2009.Duri ring these years, he had concentrated on
setting up and improving models for forecasting demand, supply and prices of NR and SR.
Today busy using his vast international exposure and 35 years of experience in modelling
and forecasting to provide services such as in-depth analysis and outlook for rubber supply,
demand and prices at country, regional or world levels. Outlook for the rubber economy at
in-company seminars besides offering in-house training in analysing and modelling the
rubber economy. Dr. Smit’s consultancy work, is designed to help stakeholders in the

18
market to better understand the current situation, as draws up scenarios for the future and
shows the consequences for NR and SR demand, supply and prices.

RETREADING

As the tyre moves on the road, the tread portion wears off gradually. The process
of removing the old worn out tread and replacing it with a tread surface is called
retreading. Tread rubber is the material used to replace the wearing surface on the tyre.
The old useless tyre can be made run for at most equal mileage as a new tyre by
retreading within the cost on exceeding 1/3rd of that of a new tyre. Virtually all types of
tyre can be retreaded including passenger cars, truck, motor cycle, tractor etc. Usually
tyre can be retreaded many as to 4-5 times, depending on the cased strength. In
retreading industry, commonly two methods are adopted, cold processing and hot
processing tyre of retread. The cold processing type of retreading and hot process is
known as conventional retreading.

ADVANTAGES OF RETREADING:

Retreading saves money-when a retread gets worn out the tyre won’t be discarded. Like
resoling a pair of shoes, for just 1/5th of the cost of new can retread our tyre. Retreading
absolutely safe and reliable those even aircraft tyre are now retread without subjecting
the

tyre to high stress was earlier.

OTHER BENEFITS

 Retreading offers more Mileage.

 Retreaded materials are less prone to punctures.
 Retreading offers less down time.

19
CHAPTER 3

20
 COMPANY PROFILE

Sri.George Varghese , who is a creative thinker and industrialist who recognised the
importance of Retreading well before the retreading sector became popular in common ;
founded the present ‘Midas Group’.

Mr. George Varghese presently heads the midas group and his wife mrs.Mariamma
Varghese heads the unit in Tamil Nadu. The MIDAS Group was started as a small tread
rubber unit in Ettumanoor industrial estate near Kottayam District , which is known as “The
Rubber Land of Kerala”. Mr. George Varghese started this small unit in 1969 with an
investment of Rs.65,000. With this dynamic leadership and innovative ideas , he turned this
small unit into a leader in the field . In 1985 July 31 st ,MIDAS PRECURED PRIVATE
LIMITED company was established as a small-scala unit at Ettumanoor. It was mainly
engaged in manufacturing of procured tread rubber.

21
The company has the total capacity of producing 200 tonnes per day . The company had the
capacity for producing 1800 to 2000 tonnes of procured tread rubber per month.

MIDAS produces world class rubber products. Such as procured treads, camel back tread ,
vulcanizing cement , cushion gum, curing bags and curing envelops, bonding gum etc . the
high quality control efficiently maintained at every stage, which is from procurement of raw
material to the production of finished goods is making MIDAS products much above the
lines of normal standards.

Now the company has got 36 treads manufacturing units , 26 in Kerala and 8 in Pondicherry
aid turnover is 100 crores.

Quality wise and revenue wise it is the No:1 company in field . India’s largest rubbers
compound to many of Indians majors. Tyre companies like Apollo tyres , cent, J.K tyres
and Vikrant as oer their needs.

MIDAS marketing and management services co-ordinates the groups marketing and
management function. The group has got an excellent marketing network, which market the
products all over India and in the international market. The major revenue for the from the
sale of produced treads rubbers and its market is entirely outside Kerala.

MIDAS dealers network is very important. MIDAS sells its products in the open market
directing through group of MIDAS marketing and network dealers. MIDAS find that the
customers do not want to be tried down with a single manufacture as a result they prefer the
open market system along with a dealers by this system in the future as well.

Maharashtra 6, in Kerala one the dealers M.M Chandy and Co., sell about 125-150 tones
per month which is about 20% of the Kerala market in the Western India states MIDAS has
maximum dealers due to the size of economics in those states

MIDAS is exporting mainly to developing market of South East Asia, Africa. The company
is targeting an export of about 100 tones in the five years . More over Midas has planned to
from dealers network in the international market . The immediate planes are to be double
with export every years . To achieve a target at least 300 tones in the next couple years .
Last years MIDAS participated in various shows organised in Chaina, Italy, Brazil and
Singapore.

3.1 MANAGEMENT

22
Mr. George Varghese heads the group and his wife Mrs. Mariamm Varghese handles the
management of the unit in Tamil Nadu . Professional managers in the group look after the
company’s day-to-day operations. Mr. George Varghese takes decision only on policy
matters.

The directors of the company are Mr. John K. Abraham, Mr. John Abraham and Mr. Koshy
Varghese . They are well experienced in rubber based industries.

3.2 MIDAS DEALER NETWORK

Midas has not adopted a Franchisee system to market its products like majors such as Elgi,
M.R.F,Indago but prefers to sell its product in the open market directly through Group
Company ‘MIDAS’ Marketing and a network of dealers. They find the customers do not
want to be tied down with a single manufactures if the same quality is available at a
competitive price. As a result, they prefer the open market system along with a dealer
network and would expect to operate by this system in the future as well.

MIDAS has 30 dealers in India with Kerala having only one dealer, Gujarat-5,
Maharashtra-6, Punjab, Hariyana, West Bengal-I more dealers does not mean that they are
selling more in that states as the Kerala dealer alone sells about 100-125 tonnes per month,
which is about 20% of Kerala market . In the western Indian states of Maharashtra and
Gujarat, Midas has maximum dealers due to the size of the economies in those states .
Maharashtra is the Midas’s biggest market over all with Tamil Nadu, Andra Pradesh, Kerala
and Karnataka are the god market in the south.

3.3 MARKET POSITIONING

Midas aims to price its products competitively compared with hiend majors like Elgi,
M.R.F,Indago . The Indian market is mainly categorized between high priced , middle
priced and low priced . Midas is a major player in the middle priced segment . Their product
is not highly priced as Elgi/Indag neither low as local manufactures, their quality is
comparable with hi-end players .

3.3.1 DOMESTIC MARKET

In the domestic market , MIDAS has, until now, focused mainly on productquality
rather than on marketing and distribution . The company’s immediate plans are to increase

23
its dealer network by appointing dealers in new market , particularly in states which are not
covered as yet . Even where it is not selling through dealer network, MIDAS is selling
directly in the open market . So customer can get its product everywhere in the market.
MIDAS is now gearing up to penetrate deeper in the Karnataka market , where it is not well
represented.

3.3.2 EXPORT MARKETS

MIDAS is a major player in the domestic market but has negligible exports share . Despite
this , the company has definite plans to enter the international market in a big way.
Surprisingly,MIDAS has not strengthened its global clientele much over the years with
exports as low as 130 tonnes in the last Fiscal 2006-07. MIDAS is exporting mainly to
developing markets of South East Asia, Middle East, Africa and South America. The
company is targeting an export of about 1000 tonnes in the next five years. Their immediate
plans are to double the exports every year to achieve a target of at least 300 tonnes in the
next couple of years . More over MIDAS has planned to form a dealer network in the
international market . As far as entering the developed markets of North America and
Europe is concerned, this would be the company’s next step before strengthening the
network in existing markets . The immediate plans are to consolidate its present position
and build up its export further . At present MIDAS has a small export to only one country in
Europe, this being Turkey. Participating in international fairs is also a part of the company’s
marketing initiative to globalize the products. Last year , MIDAS participated in various
shows organised in China,Italy,Brazil and Singapore.

3.4 PRODUCT PORT FOLIO

MIDAS product port folio includes procured tread rubber , mould cure rubber, custom made
rubber compounds, curing bags and curing envelopes , tyre flaps, custom designed pre
cured tread rubber(for export only), cushion gum and bonding gum and vulcanizing
cement . The company has the proven capability to supply customized rubber compounds ,
undertaking job work mixing , and contracts job work mastication of raw rubber and
provides assistance in purchase of raw materials. The MIDAS Group company , G eneral
Rubbers (GR) also holds ISO 9002 certification for the manufacture and supply of procured
and conventional tread rubbers.

3.4.1 PRODUCT PROFILE

 RUBBER

24
Natural, Synthetic and reclaim constitute the major and the most important raw materials of
the vital rubber industry and it also holds a strategic position in the country’s economy .
Rubber products are exclusively made out of natural or synthetic rubber. Sometimes any
two or all the three rubbers are used depending on the properties required to the product.
Tyres and tyre products are made out of rubber and they are manufactured by the moulding
method. Tyres are used in vehicles for comfortable ride and low power consumption.

 TREAD

Tread is the wearing surface of the tyre, which comes in the contact with the road surface. It
is applied in the raw state as an extruded slab of rubber compound. N cross section it is
substantially rectangular across the centre tapering down into every fine edges.

 RETREADING

As the tyre moves on the road, the tread portion wears off gradually. The process of
removing the old worn out tread and replacing it with a tread surfaces is called as
retreading. Tread rubber is the material used to replace the wearing surface on the tyres. The
old useless tyre can be made to run for almost equal mileage as new tyre by treading within
the cost not exceeding 1/3rd of that of new tyre. Virtually all types of tyres can be retreaded
including passenger car, truck, motor cycle, farm tractor etc. Usually tyres can be retreaded
as many as 4-5 times depending on the casing strength. In retreading industry , commonly
two methods are adopted – Cold Process Retreading and Hot PROCESS Retreading . The
cold process retreading is called as the Pre cured Retreading.

 PRECURED RETREADING

Pre cured retreading is the method of retreading in which already cred tread rubber-having
tread patterns is adhered to the already buffed tyre casing by means of Vulcanizable cushion
gum. Here the importance and the need of Pre cured tread comes.

 BONDING GUM

Bonding gum is used in both conventional and procurs processing. It is used as an adhesive
to fix the tread into the tyres. It is available for 990c, 1500c, and operations. Different types
of gum are available . It can be used to fill nail holes and repair injured parts of casing.

 BLACK VULCANISING SOLUTION

25
This is an associated product used for retreading. Midas manufacture high quality
vulcanizing solution for 990c, 1250, 1500c, operations. It is also compatible for both
conventional and procured process.

 TYRE FLAOPS

Midas is producing highly heat resistant and extra durable flaps for retreading purposes.

 CURING BAGS AND CURING ENVELOPS

The company is manufacturing high quality butyl curing bags specially designto maximise
cures. The company is also producing resistant envelops for the easy use and long life.
 ROPE RUBBER

Rope rubber is used in extrunderguns to repair rasping areas. It helps to provide excellent
process safety and tack.

 CUSTOM DESIGNED PROCURED TREAD RUBBER

The company is also manufacturing custom made tread design exclusively for potential
customers. Moulds will be made to design and size specification.

3.4.2 HISTORICAL BACKGROUND

Tyre is the most important and widely used engineering product made out of polymers .
Tyre manufacturing comes into existence as described by Good year and Hancock as solid
tyre for animal driven vehicles in the 18th century.

Robert Thomson invented the automobile tyre in 1846. This invention was neglected since
1888 where J.S Dunlop developed the pneumatic tyre set .

In modern life , the automobile vehicles are increasing day by day and the need of tyre is
also increased . But the cost of automobile tyre is very high and can be manufactured only
in large scale . Because of these reasons retreading is essential in automobile industry.

3.4.3 DEVELOPMENT OF PRECURED RETREADING

Germans just priror to World War II first introduced procured process.Bandage introduced
the Precured retreading into North America in 1957. In this system, an elastic band of metal
around the circumference of the retreaded tyre as the pressure member and curing was done
in a hot air chamber.

26
The present system evolved from the one previously described and make use of flexible
rubber envelop covering exterior of the tyre from bead to bead and scaled to the rim on
which the tyre is mounted by means of flanges which press the envelop against the lower
side wall of the tyre .

3.4.4 ADVANTAGES

1. Retreading as an industry has become very important in the nation’s effort to reduce
the energy consumptions. In 1975, approximately 10,59,00,000 gallons of crude oil were
saved by the retreading industry of tyre instead of the production and the usage of new
tyres.
2. Radial tyres can be retreaded through the cold process . Because the temperature of
this process is below 100^0C , WHEREAS According to hot process nylon , casing of the
radial tyre would buckle inside at the higher temperature.
3. If Precured treads are used for retreading , no tread moulds are needed as opposed
to the hot process where the tyres , which are fitted into the tread alone , can be retreaded.
4. If Pre cured treads are used in retreading, the over-curing problem of the tyre body
can be avoided . Because the already cured tread is applied to the tyre can be avoided .
Because the already cured tread is applied to the buffed surface by means of cushion gum.
But in the hot process , the tyre body is again undergone curing along with tread . This will
cause over curing problem to the tyre body and the life of the tyre will be reduced.

Considering all the above factors the use of Precurd treads is economical.

3.4.5 PROCESSING

The process of manufacture of Pre cured tread involves the mastication, mixing
,extrusion,moulding and buffing steps.

I. Mastication
Open roll mixers or internal mixers are aroused for this. Natural rubber is first masticated
and brought to the same viscosity level of synthetic rubber and then synthetic rubber is
added to it.
II. Mixing
The masticated rubber is mixed with the various compounding ingredients and the
temperature of mixing not exceed above 90^o c. The well-mixed compound is
sheeted,coded,dusted and left for maturation

27
III. Extrusion
The matured compound is warned and cut into strips and fed into extruder hopper. The
extruded materials are taken to water tanks and after cooling; the water and moisture are
removed by using compressed air.
IV. Curing
The curing is done by compression moulding method . The compound is filled and placed
into the previously designed and precheated moulds maintained precured temperature and
pressure . After required time the cured tread is taken and allowed for post-curing.
V. Buffing
The cured tread is buffed on the base side to present a clean surface that is properly
prepared for adhesion to the tyre casing by means of bonding layer of cushion gum.
In Precured retreading this tread is used which has no further curing during the process.

3.4.6 PRODUCT RANGE OF THE COMPANY

1. Precured Tread Rubber ( PCTR)

Premium quality Precured Tread rubber with MIDAS MILEAGE is available in a wide
range of designs and sizes to suit the various needs . MIDAS has a quality control system ,
which ensures that after machine buffing every strip of PCTR is hand – finished and
inspected before being packed.

2. Mould Cure Rubber(Conventional Tread Rubber)

MIDAS HIGHMILER mould cure rubber with cushion backing has been formulated and
developed in their labs to give tyres extra mileage. Tread Rubber with MIDAS MILEAGE
is available in every size and gauge.

3. Custom Made Rubber Compounds

MIDAS also manufactures custom made rubber compounds master batches for a wide
variety of uses, mixed to companies specifications in K-4 intermixes.

4. Curing Bags and Curing Envelops

MIDAS has newly introduced high quality curing bags and curing envelops in awider range
of sizes.

5. Tyre Flaps

28
 Tyre flaps with extra long life are available in selected range of sizes.

6. Cushion Gum and Bounding Gum

Fast curing and slow curing repair material and vulcanizing gums are made to suit
99^o,125^o and 150^0 c temperature levels.

7. Vulcanizing Cement

Vulcanizing Cement or solution in fast drying solvent oil based is available for 99^o,125^o
and 150^0 c temperature levels.

8. Customs Designed Pre cured Tread Rubber (EXPORT ONLY)

Custom made tread designs will be manufactured exclusively for potential customers.
Moulds will be made to design and size specification.

3.4.7 PROCESS OF MANUFACTURE

The important steps involved in the manufacture of Pre cured tread are described below.

 Mastication and Mixing

 Maturation
 Pre-warming
 Extrusion
 Cooling
 Weighing
 Moulding and Vulcanization
 Post curing
 Buffing
 Inspection and Packing

1. Mastication and Mixing

The compounding ingredients and rubber are weighed as per received. The material is
firstly masticated on a 2-roll mixing mill for reducing the viscosity and increasing the
plasticity after attaining a certain level of plasticity. The mill temperature is kept at 70=2^0

29
C by passing cold water trough the core of the rolls . To the masticated rubber , other
compounding ingredient are added which get dispersed easily.

After mastication, the activator and stearic acid are added and cross cuts are made on the
band formed around the front roll using a cutting knife. After the incorporation of activator,
the filler and process oil are added. Then cuts are given on the band the strips are again fed
to the nip.

2. Maturation
The sheeted compound is kept for 24 hours for maturation. This process is done to get
technological properties to the compound. During maturation, the ingredients are well
immersed in the rubber to get good technological properties.

3. Pre-warming
Pre-warming is done on a 16” X 42” mill. The matured compound is stiff, during this
operation the temperature and plasticity of the compound increases. This facilities easy
extrusion through the dye. At the end of preparing , the nip is adjusted to 15mm and small
strips are directly fed to the extruder.
4. Extrusion

Extrusion is the processing operation intended to shape the compound in the required shape.
In the production of Pre cured tread, small srips of the mixed compound is fed to the
extruder and it is forced through the dye and the material comes out in the dimension 7 inch
width and 22 mm thickness. At the starting of the extrusion process, the dye is heated and
when the process is progressing, the temperature of the barrel may increase resulting in the
vulcanization of the compound. In order to prevent this, pass cold water through the
extruder controls temperature.

5. Cooling
This continuously extruded slab is passed into a tank containing cold water, which helps to
decrease dye’s level. After a certain time, the slab is taken and cut into a length of128
inches. It is wrapped in a thin polythene film. This is to avoid sticking problem when the
slab is weighed and the subsequent handling operation.
6. Weighing
The polythene wrapped slab is weighed to the required weight. A 50% excess weight is
taken for flash. Then it is taken for moulding.

30
7. Moulding and Vulcanization
The weighted slab (10.5kg) is then transferred to the moulding section. The polythene sheet
is removed and the green compound is loaded in the pre-heated lubricated mould (1600c),
which is having the tread pattern in it. A silicone emulsion is used as the mould-releasing
agent. This helps the easy stripping of the cured slab. The mould is then closed and it is then
transferred to the platens of the hydraulic press (144” X 34”) and then the pressure is
applied . The maximum pressure applied for the production of procured tread is 2250 Atm.
At a temperature 1600c, the suggested compound will have a cure cycle of 12-14 minutes.
After curing, the press is opened and from the mould, the strips of cured tread are taken
after finishing operation.
8. Post curing
Post curing is carried out to improve the technological properties and also help to complete
the curing process. This can be done in two ways, either by exposing the tread to 600c for
3-4 hours or keeping the product in room temperature for 24 hours. The proposed product
is post cured in room temperature for 24 hours.
9. Buffing
The cured tread is buffed on the base side to present a clean surface, which is properly for
adhesion to the casing by means of a bonding layer of cushion gum. It is compactable to
both tread and the wide variety of tyre compound to which the tread is adhering and this
cane be done on a buffing machine.
10. Inspection and Packing
The buffed tread is inspected for ensuring the quality. The hardness is checked and visual
inspection is done where there is any air bubbles in the tread. Check all the dimensions of
the tread . After this the packing is done. For this the tread is covered within polythene film
and it is rolled and put in the cardboard box and sealed. A label pasted on the box, which
indicates the tread name and size of the tread. It is then transferred to the consumer.

3.4.8 QUALITY CONTROL MEASURES

For ensuring good quality of procured tread the following tests are usually carried out.

a. Testing of Raw rubber and Ingredients

The rubber and the compounding ingredients are tested for confirming the pre-determined
specifications.
b. Test on the finished Tread

Atmospheric condition of testing:

31
Unless otherwise specified all tests except the ageing test shall be carried out in the
temperature of 27=/ 2^0c and at an atmospheric pressure of approximately 760mm of
mercury.

1. Weight

The weight of the finished tread is taken with a platform balance and ensuring that the
weight is an agreement with the customer’s requirements.

2. External Measures

The external measure of the Precured tread is tested. Width and thickness is measured. A
dial gauge measures thickness and a Vernier scale measures width.

3. Hardness
The hardness of the tread is measured at different portions by means of a durometer to
ensure that it is 60:t1 shore a units. For this hand style without stand, round type on stand
and pencil type durometer can be used.
4. Tensile Properties
Tensile strength and ultimate elongation are useful for a compound development, for
manufacturing control and for determining a compound’s susceptibility to deterioration by
oil , heat , weathering and the like . For this a sample of the tread compound is taken and
dumb bell samples are made and tested in a tensile tester and the results are evaluated.
5. Ageing Tests
For this test, the dumbbell samples are aged in an air oven at 100^0c for 6-7 days and after
that the tensile properties are determined. The depreciation value from the original values
can be calculated from this.
6. Abrasion Test
Abrasion resistence is defined as the resistence of a rubber composition in wearing of
contact with a moving abrasive surface.
Dina boarder is used for determining this property. A sample of the compound is takenfrom
the mix and it is cured in a small slab form. A test piece is cut from it and its abrasion loss is
determined and compared with standard results.
7. Resilience
In rubber, resilience may be defined as the ration to the pressed energy. Heat build up is a
measure of amount of impressed energy that is absorbed. Lukpke Impace Resilio meter is
used to measure this property. The test procedure is that when the pendulum is released

32
from a catch at the point marked 100 on the scale and rebound reading are taken after the
impact when thermal equilibrium has been established in the sample.
The scale at the point of rebound is read directly according to the energy covered percent
and the difference between these reading and 100 is there for percent of energy loss.
8. Heat Build Up
Heat build up is measured using flexo meter. This test will give an indication of uniformity
of rubber compound. For testing, the sample is heated or 500c and it is flexed for a given
time (up and down motion by an applied load) After flexing the temperature is noted. The
increase of temperature can be calculated.
9. Determination of Cure Time
Monsanto Rheometer is used for this purpose. It consists if two platens and a rotor. When
the platens are closed, achamber is formed around the rotor. The rotor
can oscillate at 1^o,3^o and 5^o. For tread, the oscillation is fixed 3^o and the range of the
torque is adjusted to 100. The temperature of the test is 150^oc and pressure 50 PSI. When
the compound is placed around the rotor and closed and motor is started, a torque is
developed and this is plotted on a graph and from the graph we can determine the cure time
and cure index.
Cure time- Time required to attain the 90% of the maximum torque

Cure Index= 100/ Tc (X)-ts (x) where

Tc (x) is the cure time at which x presents of the full torque development is
achieved.

3.5 DEPARTMENTS

3.5.1 Human Resource Department

Determining company policies and procedures as they relate to personnel is another

important aspect of the personnel management process. HR functions often include drafting
vacation, sick leave, and bereavement policies that apply to all employees of the company.
The personnel management team often is also responsible for managing the health care
program provided to the employees as well. Midas group as well as the company does not
have a Human Resource development departments as well as personal department.

33
3.5.2 Finance Department

Finance is the life blood of the business. For every activities related to business finance is
required. Finance may be defined as the money at the time when it is wanted. His efficiency
of production and marketing operations is directly influenced by the marketing which the
finance function of the enterprise is performed by the finance division

3.5.3 Production Department

Production is the inevitable part in a manufacturing firm. It involves the total

responsibility of the produced goods in case of its quality. The factory manager and the
production manager are assigned for quality control. The absolute quality controls are
properly checked in the research and development group

3.5.4 Marketing Department

Marketing concept was born out of the awareness that a business to start with the
determination of consumer wants and ends the satisfaction of those who wants.
Marketing is the economic process by which goods and services are exchanged
between the markets and the users, and there value is determined in terms of money
price.

3.5.5 Sales Department

The concept of sales is that the company has to promote and push. Their product
aggressively sold in the market. It cannot expect the product to get picked up
automatically by the customer.

3.5.6 Purchase Department

The company purchase of raw materials from approved suppliers only. The approved
given on the basis of quality text of raw materials price negotiations and delivery. The
company does make forecasting on purchase. The major purchase raw materials like

34
carbon, natural rubber are bought based on the principles of purchase. The company
adopt mainly just in time purchase.

3.5.7 Research And Development

The base of all present quality products belongs to the research & development
of Midas R & D. R & D comprises of major three functions that include product
development quality checking and control & research. Apart from this after sale
services are also done as part of research and development. It can be called as Testing
Centre. Midas has a well-equipped laboratory which we used to develop new product
and carry out quality a daily production. It constantly develops new compounds for
various uses, and for improved mileage and properties. Midas value the customers
feedback on how their products performs on the road to help improve it in the future.

3.6 ORGANISATION CHART

Managing
Director

35
 GENERAL DIRECTOR DIRECTOR DIRECTOR GENERAL
MANAGER PURCHASE PRODUCTION R&D MANAGER
FINANCE MARKETIN

MANAGER MANAGER MANAGER . MANAGE MANAGER

MANAGER PURCHASE FACTORY R&D R SALES ACCOUNTS
FINANCE

OFFICE MANAGER
LAB.TE
ASSISTANT DEPARTMENT
ACCOUNT CHNIC
CASHIER IANS
ANT
DIRECTOR HR

MANAGER MANAGER
MANAGER PRODUCTION
ACCOUNTS ADMINISTRATION
STOCK
ASSISTANT

ACCOUNTS MANAGER MANAGE

ASSISTANT ADMINISTRATI R HR
ON
SHIFT LOAD.SUPERVIS
SUSUPERVISOOR OR
SOR EXECUTIVE
COMPANY EXECUTIVE
ASSISTANT

WORKERS
STAFF
STAFF

36
 CHAPTER 4

DATA ANALYSIS, RESULTS AND INTERPRETATIONS

INCOME OF RESPONDENT

Table no:1

37
 Income Frequency Percentage

Below 5000 0 0
5000-10000 1 2
10000-20000 3 6
20000-30000 15 30
More than 30000 31 62
Total 50 100

Figure No : 1

INCOME OF RESPONDENTS

Income
Below 5000
5000-10000
10000-20000
20000-30000
More than30000

Interpretation

62% of respondents earn income more than 30000 per month. 30% of the respondents earn
an income between 20000 and 30000 and 6% earn an income between 10000 and
20000and the rest 2% respondents earn an income between 5000 and 10000. No one earn
below 5000.

YEARS OF EXPERIENCE OF RETREADERS WITH MIDAS

Table no:2

38
 Experience No.of respondents Percentage of
respondents
Less than one year 7 14
1-5 Years 10 20
6-10 years 21 42
11 years and above 12 24

Figure No : 2

Less than one year

1-5 Years
6-10 years
11 years and above
Total

Interpretation

From the sample retreaders, 14% of retreaders are dealing with Midas less than 1 year.20%
of retreaders are dealing with Midas for 1-5 years, 42% of retreaders are dealing with Midas
for 6-10 years and 20% of retreaders are dealing with Midas for 11 years and above.

METHOD OF RETREAD PREFERRED BY CUSTOMERS

Methods No. of respondent Percentage of

respondent

39
 Precured 34 68
Conventional 12 24
Both 4 8
Table no:3

Figure No : 3

Precured
Conventional
Both

Interpretation

From the sample retreaders, 68% of retreaders opined that procured is preferred by
customers, 24% of retreaders opined that conventional method is preferred by customers
and 8% of them opined that both are preferred.

40
SALES--- DIFFERENT SEASONS

Table no:4

SEASONS No.of respondent Percentage

Summer 40 80
Winter 6 12
Monsoon 4 8

Figure No : 4

40

35

30

25

20
No.of respondent
15

10

0
Summer
Winter
Monsoon

Interpretation

From the sample retreaders, 80%opined that during summer season sales reach its peak
.Most of the consumers prefer summer . 12% of the customer prefer winter season. And
only 8 % are prefer to buy in monsoon.

TIME TAKEN TO DELIVER THE PRODUCTS

41
Table no:5

Days Frequency Percentage

1-2 days 45 90

3-5 days 5 10

6-8 days 0 0

More than 87 days 0 0

Figure No : 5

45

40

35

30

25

20
Frequency
15

10

1-2 days
3-5 days
6-8 days

Interpretation

From the retreaders, 90% opined that delivery time is 1-2 days and the rest 10% opined that
the delivery time is 3-5 days.

PROMOTIONAL ACTIVITIES UNDER TAKEN BY THE COMPANY

42
Table no:6

Promotional activities No.of respondent Percentage

Excellent 3 6
Good 10 20
Average 21 42
Poor 16 32

Figure No : 6

PROMOTIONAL ACTIVITIES UNDER TAKEN BY THE COMPANY

25

20

15
PROMOTIONAL ACTIVITIES
10

0
Excellent
Good
Average
Poor

Interpretation

Out of 50 retreaders, 6% opined that the promotional activities under taken by the company
is excellent. 20% opined that the promotional activities are good, 42% opined that the
promotional activities are average and the rest 32% opined that the promotional activities
undertaken by the company is poor.

ADVERTISEMENT INFLUENCE ON CUSTOMERS

Table no:7

43
 Advertisement influence No.of respondent Percentage of
on customers respondent
Yes 10 20
No 40 80

Figure No : 7

Advertisement influence on customers

Yes
No

Interpretation

From the sample retreaders, it is revealed that 80% of the retreaders says that there is no
influence of advertisement in choosing the tread and 20% of the retreaders says that
advertisement is influencing them for choosing the tread.

SATISFACTION LEVEL OF RETREADERS TOWARDS THE AVAILABILITY OF

MIDAS TREADS

Table no:8

44
 Satisfaction level No.of respondent Percentage of
respondent
Extremely satisfied 10 20
Very satisfied 20 40
Moderately satisfied 20 40
Slightly satisfied 0 0
Not all satisfied 0 0

Figure No : 8

Availability of Midas treads

20
15
10
5 Column1
0

ed ed
tisfi sfi ed
sa ti sfi d
sa ti fie ed
ely ry sa tis
sfi
m Ve ly sa ti
tr e
at
e tly sa
Ex er gh all
od Sli No
t
M

Interpretation

From the sample retreaders20% are highly satisfied with the availability of Midas treads,
40% are very satisfied and the rest 40% are moderately satisfied.

RETRAEDERS SATISFACTION LEVEL TOWARDS CREDIT TERMS

Table no:9

Satisfaction level No.of respondent Percentage of

respondent
Extremely satisfied 0 0

45
 Very satisfied 46 92
Moderately satisfied 4 8
Slightly satisfied 0 0
Not all satisfied 0 0

Figure No : 9

Extremely satisfied
Very satisfied
Moderately satisfied
Slightly satisfied

Interpretation

Above figure showed that 92% of retreaders are satisfied with the credit terms of the dealer.
And only 8% are not satisfied with the credit policy. Its means that they are offering good
credit terms to its customers.

BRAND LOYALTY TOWARDS MIDAS

Table no:10

Specification No.of respondent Percentage

Yes 16 32
No 34 68

46
Figure No : 10

Yes
No

Interpretation

From the sample retreaders, 68% of retreaders says that vehicle owners don’t specify brand
still 32% of vehicle owners specify the brand. They have less loyal customers.

The brand value of the product is comparatively less.

QUALITY OF MIDAS PRODUCTS

Table no:11

Quality No.of respondents Percentage

Excellent 16 32
Very good 22 44
Good 12 24
Poor 0 0
Very poor 0 0

47
Figure No : 11

25

20

15

10 No.of respondents

0
nt
le le od No.of respondents
c go od or
Ex r y Go Po
r
Ve poo
r y
Ve

Interpretation

From the sample retreaders, 32% of retreaders said that quality of Midas products are
excellent, 44% of retreaders said that quality are very good and 24% of retreaders said that
Midas have good quality products. They have potential in their quality.

PRICE OF MIDAS TREADS

Table no:12

Price No.of respondent Percentage

Very high 5 10
High 11 22
Competitive 28 56
Low 6 12
Very low 0 0

Figure No : 12

48
PRICE OF MIDAS TREADS

Very high
High
Competitive
Low
Very low

Interpretation

From the sample retreaders, 56% of retreaders feel the price as competitive, 22% of
retreaders feels price was high , 10% of retreaders feels price was very high , 12% of
retreaders feel price will be low. The majority of retreaders feels price as competitive .

FACTORS INFLUNENCING PURCHASE

Table no:13

Factors No.of respondent Percentage

Quality 13 26
Price 9 18
Service 10 20
Design 8 16
Availability 10 20

Figure No : 13

49
FACTORS INFLUNENCING PURCHASE

14

12

10

6
Column2
4

0
Quality
Price
Service
Design
Availability

Interpretation

From the above data 26% of retreaders preferred quality. Secondly, respondents pointed out
service as the major parameter. Rest of the parameters are ranked less. They offering good
quality of product. And also other factors are competing each other.

DIFFERENT MODE OF PAYMENTS PROVIDED TO THE RETREADERS

Table no:14

Payments No.of respondents Percentage

Cash 27 54
Cheque 6 12
Online payment 2 4
Credit 15 30
Advance 0 0

Figure No : 14

50
 30

25

20

15
Percentage
10

0
Cash
Cheque
Online payment
Credit
Advance

Interpretation

From the sample retreaders , 54% of retreaders have cash transactions with the company.
Only 12% have cheque transactions, 4% of retreaders have only online payment and 30%
have credit transaction. No one having advance type of dealings.

TIME GAP BETWEEN PLACING THE ORDER AND RECEIVING

Table no:15

Days No.of respondents Percentage

1-2 days 15 30
3-5 days 29 58
6-8 days 6 12
9-12 days 0 0

Figure No : 15

51
 Time gap between placing the order and receiving

1-2 days
3-5 days
6-8 days
9-12 days

Interpretation

From the sample retreaders, it is found that 30% of retreaders receive goods within 2 days.
58% of retreaders receive goods within 3-5 days and 12% gets between 6-8 days. Majority
of the retreaders get goods within 3-5 days.

SPECIFY THE SATISFACTION LEVEL OF MIDAS

Table no:16

Satisfaction level No.of respondents Percentage

Extremely satisfied 10 20
Very satisfied 31 62
Moderately satisfied 8 16
Slightly satisfied 1 2
Not at all satisfied 0 0

Figure No :

52
 35
30
25
20
15
10
Percentage
5
0
d
sfie ed
sa
ti
tisfi ed d
a sfi fie
ely r ys sa
ti
tis ed
m
Ve sa sfi
tre tely ly ati
Ex er
a ht ll s
d ig t a
o Sl ta
M
No

Interpretation

From the sample retreaders, 62% of retreaders satisfaction level is high, 20% of retreader’s
satisfaction level is very high,16% of retreader’s satisfaction level is average and 2% of
retreader’s satisfaction level is poor.

53
 CHAPTER-5

FINDINGS, SUGGESTIONS AND CONCLUSION

The investigator has collected all the data from retreaders in Kottayam district to analyse the
market and data is analysed with the help of simple percentage analysis. This study
encompasses retreader’s attitude towards the company, favourable and unfavourable factors
in the market and the relationship that exist between the retreaders and company. The
analysis leads to the following findings.

54
FINDINGS

 66% of the retreaders have experience with MIDAS for more than 5 years. It shows
the familiarity with the company and its products.

 The analysis reveals that 68% of the customers prefer pre-cured than conventional

 26% of consumers prefer quality of the product is very important product feature.

 The study reveals that the summer season is the peak season of sales

55
 100% of the retreaders opined that the quality of Midas tread is good.

 Most of the retreaders opined that the price of Midas tread is competitive.

 Most of the retreaders are having cash transactions than credit with the company. No
one have advance type dealings.

 Retreaders opined that influence of advertisement on customers is very poor.

 Most of the retreaders opined that satisfaction level of midas products was high.

 Majority of the retreaders are not satisfied with the promotional activities of the
company.

 Most of the Retreaders are not satisfied with the cash and carry policy of this
company.

SUGGESTIONS

From the analysis the following suggestions were made.

 The findings reveal that there is more demand for pre-cured than conventional. So
concentration must be given to widen the operation to capture the entire market.

 The company should add at least one more dealer in Kerala because most of the
Retreaders didn’t get treads according to their requirement. One dealer in Kerala is
inadequate and they were always busy.

56
 Even though quality is high , company should try to keep consistency in quality and
service to face strong competition prevailing in the market.

 More offers and discounts must be widened. Advertisement in television, news

papers, radio etc…. is better way to promote the product and to create a brand image
in the minds of customers.

 The company should reinforce its distribution setup.

 There must be an effort from the part of the company in providing commission and
incentives to retreaders based on their performance.

 The company should try to send their marketing personnel to retail units to inform
about new designs as well as collecting retreaders suggestions.

 Even though MIDAS has very high brand image, the performance of the retreaders
plays a major role in building the image. If the retreader falters, it will affect the
goodwill of the company. So the company should advice main distributors to
conduct frequent inspection among Retreaders at least twice in a week. This will
also help the company to get to know the pulse of the market.

 The company should strengthen their sales promotion activities to attract the end
user.

 Most of the retreaders are not satisfied with the cash and carry policy of this
company. Hence, the company should take adequate steps to offer cash discounts
on payment.

57
CONCLUSION

At present, the retreading market is highly competitive. The study is related to retreaders
attitude towards Midas industry in Kottayam District. Midas is now India’s most popular
brand of tyre retreading materials more than 2500 tons of sales per month. It was
established in 1969 and has lots of experience in tyre retreading processes. Now Midas is
the market laeder in this field and has satisfied customers allover the world. The company is
striving its level best to maintain its consistency in producing quality products and services.
But its position is now being threatened by the local players who offer the quality treads
with less price. If the company does not take adequate measures, its might lose its
relationship in the market.

58
In the light of this background, this study has made an attempt to throw more light on issues
of concerns and also given valuable suggestions to swim against the current situations.

BIBLIOGRAPHY

Books
 Marketing Management by Philip Kotler
 Research Methodology by Kothari
 Marketing Management by Ranjan Saxena
 Modern Marketing Management by B.S.Bhatia & G.S Batra Rajiv Budhraja,
Director General of New Delhi – based Automotive Tyre Manufactures Association
Journal – Tyre Asia
Volume – May 2009

59
Page no – 20
 Dundee, Scotland, March 2000
Journal – Retread Tyre Information Packet, Tyre Retread Information Bureau,
November 2000
 Charles Hollomon
Stockbridge
Journal – Understanding Retreading, International Tyre& Rubber Association, 1994
 Kumar, Nirmalya; Scheer, Lisa K; Steenkamp, Jan-Benedict E.M.
Article from: Journal of Marketing Research / August 1, 1995

WEBSITES
www.midastreads.com
www.wikipedia.com
www.scribd.com
www.retread.com
www.roadgater.com

60
 APPENDIX

QUESTIONNAIRE (RETREADERS)

1. Name of treading unit:

2. Income of the respondent
Below 5000 [ ] 5000-10000 [ ] 10000-20000 [ ]
20000-30000 [ ] More than 30000 [ ]
3. How long you are dealing with Midas products?
Less than one year [ ] 1-5 years [ ] 6-10 years [ ]

61
 11 years & above [ ]

4. Which method of retread is mostly preferred by customers?

Precured [ ] Conventional [ ] Both [ ]
5. During which season the sales reach it peak
Summer [ ] Monsoon [ ] Winter [ ]
6. Delivery time

1 to 2 [ ] 3 to 5 [ ] 6 to 8 [ ] more than 8 days [ ]

7. What is your opinion about sales promotion activities of Midas?

Excellent [ ] Good [ ] Average [ ] Poor [ ] Very poor [ ]

8. Influence of advertisement on customers

Yes [ ] No [ ]
9. Are you satisfied with the availability of Midas treads

Extremely satisfied [ ] Very satisfied [ ] Moderately satisfied [ ]

Slightly satisfied [ ] Not at all satisfied [ ]

10. Satisfaction towards credit terms

Extremely satisfied [ ] Very satisfied [ ] Moderately satisfied [ ]
Slightly satisfied [ ] Not at all satisfied [ ]
11. Do the vehicle owners specify the brand
Yes [ ] No [ ]
12. Midas offers quality products !
Excellent [ ] Very good [ ] Good [ ] Poor [ ] Very poor [ ]
13. What do you feel about price of Midas treads
Very high[ ] High[ ] Competitive[ ] Low[ ] Very low[ ]
14. Which of the following parameter is most important influencing factors in
customers in purchase decisions

Quality [ ] Price [ ] Service [ ] Design [ ] Availability [ ]

15. What is your mode of payment?

Cash [ ] Cheque [ ] Online payment [ ] Credit [ ] Advance [ ]

16. What is the time gap between placing the order and receiving goods?

62
 1-2 days [ ] 3-5 days [ ] 6-8days [ ] 9-12 days [ ]

17. Rate your satisfaction level about Midas.

Extremely satisfied [ ] Very satisfied [ ] Moderately satisfied [ ]

Slightly satisfied [ ] Not at all satisfied [ ]

18. Suggest the areas that needs improvements

………………………………………………………………

Thank you for your co-operation.

63