Organizational Study

CHAPTER 1

Department of MBA, MSRCASC

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Organizational Study
1.1 INTRODUCTION Basically, an organisation is a group of people intentionally organized to accomplish an overall, common goal or set of goals. Business organizations can arrange an overall, common goal or set of goals. Business organisations can range in size from two people to thousands. The term organisation has been defined variously by various authors. According to JD Mooney, “Organisation is the form of every human association for the purpose of attaining a common objective.

Characteristics of an organisation: • • • • • Division of work Coordination Accomplishments of objectives Cooperative relationship Authority responsibility relationship

1.2

OBJECTIVE OF THE STUDY

The requirement to undergo training in an organization is a dynamic exposure to the management students during their course of study. The objective of the study is to: 1. Understand the structure and function of J.K TYRES. 2. Understand how the different departments function and the internal activities between them. 3. To know the strength & weakness of the company The study is to have an exposure into the functioning of the organization and its different departments.

Department of MBA, MSRCASC

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Organizational Study
1.3 SCOPE OF THE STUDY

Organisational study at J.K. INDUSTRIES LTD. helps to understand the various organisational functions. This study helps to analyze the modern organisational culture. It also gives us an idea about the mission, vision, objectives, various departments and product profile of the company.

METHODOLOGY OF THE STUDY The study was undertaken personally visiting the plant at Banmore Plant, Gwalior and was done over a period of 30 days. Both primary and secondary data are used for the completion of the organizational study. Primary data were collected through personal interview and secondary data were collected from the organizational manual and different department manuals.

1.4.1 DATA COLLECTION
1.4.1.1 PRIMARY DATA COLLECTION Direct personal interview with manager of concerned departments, detailed interview with department heads and lower level workers in the company.

1.4.1.2

SECONDARY DATA COLLECTION 1. Official records 2. Annual reports 3. Organizational manuals 4. Department manual. All these were put together in the preparation of this report.

Department of MBA, MSRCASC

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2. Confidential Documents The company was reluctant to reveal some official reports and documents as it is kept confidential. Ideally the working conditions of the employees during the evening and night shifts could also have been studied Department of MBA. The time allowed for completing the organizational study was 30 days. 3 Working Hours The study could be conducted only on the day working hours. MSRCASC -4- .Organizational Study 1. It was not possible to do an in depth study into the organization.5 LIMITATIONS OF THE STUDY The Major Limitations are 1.

MSRCASC -5- .Organizational Study CHAPTER 2 Department of MBA.

chemically a tyre consists of materials from long chain macromolecules usually different types of rubber.2 INDIAN TYRE INDUSTRY Indian tyre industry is two tier. mainly concentrating on production of small tyres (for two/three-wheelers etc.W.). original equipment manufacturers (OEM’s) and exports. reinforced by textile materials and tightened by metal rings. The demand and growth for the industry depends on primary factors like the overall GDP growth. In the year 1846. A tyre is an annular round shaped container made of elastic material. Tyre sector is experiencing a rapid improvement with the advent of newer technologies. Geometrically it is a torus. R. agricultural & industrial production.e. A pneumatic tyre is a fabricated structure. Department of MBA.Organizational Study 2. 2. of which the tyre Industry consumes over 60% of the total rubber produced. During the last 20 years tyre has been virtually reinvented with most modern technologies like steel radial tyres. a milestone in the tyre technology. MSRCASC -6- .growth in vehicle demand and secondary factors like the infrastructure development. which holds air that carries the load of the vehicle with which it is attached to. Thomson invented the predecessor of the pneumatic tyres of the modern age. tubes and flaps and the replacement market. The Tier-I players (top six tyre companies) account for over 85% of industry turnover containing a well diversified product-mix and presence in all three major segments i. Tier-II companies are small in size. replacement market. After the invention of the wheel by the Sumerians 5000 years ago it was refined over the ages. mechanically it is a pressure container. From there.1 HISTORY OF TYRES The most important application of rubber relates to the transport sector. the tyre industry has grown to be one of the largest industry of today. prevailing interest rates and financing options etc.

push both for natural rubber and crude oil linked raw material basket . In fact some of the major tyre companies are operating at break even situation. 13% in the year under review. The story on the demand front though looks good in medium term with the economy continuing to do well. 9 % in this area in the year under review. The year ahead still looks tough with no respite in the raw material prices. the truck and bus tyres segment volumes witnessed a healthy growth of approx. This has not really picked up pace. MSRCASC -7- . 2. In the year 2005-06. The cost. This was the third consecutive year of raw material cost. Department of MBA. Going forward. Passenger car segment tyres volumes grew by approx.push continues unabated and with the industry players reluctant to take large price increases. the transportation needs and the production of vehicles. 70% of industry turnover in terms of value and tonnage . nylon tyre cord.Organizational Study The truck and bus market is the largest segment of the industry accounting for approx. we expect it to gather some momentum but still levels of radialisation in this segment are predicted to be around 10% in five years time. 8%.a segment in which Apollo Tyres has maintained the leadership position amongst the industry players for quite a few years. synthetic rubber) have resulted in pressure on the margins of the tyre companies despite good topline growth. Tyre exports are increasing consistently and the industry saw a growth of approx. The fortune of this industry depends on the agricultural and industrial performance of the economy. carbon black.2. Steep rise in raw material prices with limited pricing flexibility impacted the profit margins of all the players. The radialisation in the important commercial vehicle segment is still at a mere 2%. the challenge on profit margins will stay.1 HIGHLIGHTS 1.Consistent rise in major raw materials costs (natural rubber.

250 crs  Total No. 4. the ratio of natural rubber to synthetic rubber is 30:70. In the last five years (1994-95 to 1998-99). 14. the unorganised sector holds sway in bicycle tyres. of Tyre Companies : 43  Industry Capacity Utilization : Estimate: 89%  Major Players : Apollo Tyres. MSRCASC -8- .2 KEY INDUSTRY DATA  Industry Turnover : Rs. However in the last fiscal the industry registered a growth of 7 per cent. Ceat. the industry managed to achieve a compounded annual growth of only 4.40 per cent. 5. JK. 67% by Revenue CHART NO: 1 Department of MBA. MRF  Commercial Vehicles : approx. While the tyre industry is mainly dominated by the organised sector.2. 2. Natural rubber constitutes 25 per cent of the total raw material cost of the tyres. The ratio of natural rubber content to synthetic rubber content is 80:20 in Indian tyres. 3.Organizational Study 2. whereas world wide.

K.4 J. Department of MBA. TYRE – About the Company J.K. J. MSRCASC -9- .K. is the country’s leading four-wheeler tyre manufacturer.3 FACTORY LAYOUT Main Gate Chief Security officer Administrative Office Reception Parking Area Diesel Storage Main Office Canteen First Aid & Ambulance Time Office Diesel Storage Static Water Tank Boiler Utility Shop Floor Fire Station Diesel Power Plant Scrap RFL Storage O/E Storage 2. Organization’s flagship company. and the 18th largest tyre manufacturer in the world. Set up in 1977.Organizational Study 2. Tyre.

which remains the nerve centre for providing cutting edge technology. we have a worldwide customer base in over 45 countries across all 6 continents. USA. QS 9000 and ISO 14001 certificates. This division produces and sells tyres and tubes under the brand name "J. registering growth rates of over double that of the industry average. Mysore in 1997.K. The company pioneered Steel Radial Technology in India in 1977 and continues to be the industry leader in the Radial segment in India. In a short span of time it has emerged as the 17th largest tyre manufacturer in the world an achievement in itself. Tyre racing ahead year after year. To keep pace with the market demand as well as technological leadership in Indian market. To stay at the forefront of technological advancements a state of art Research & Development Centre. Ever since its inception it has been J.K. Industries and Vikrant Tyres Limited are the only tyre companies in India to have received all three ISO 9001. Buses. Multi Utility Vehicles and Tractors. The company has a technical collaboration with M/s Continental AG.K. Light Commercial Vehicles. This indeed is a true reflection of our commitment to system oriented approach. There has been no looking back since then.K. J. Tyre is the largest manufacturer of truck and bus tyres in India.K. was set up. Industries acquired Vikrant Tyres Limited.K.K. Tyre was set up in technical collaboration with General Tyre international co. J. J. Jeeps. Tyre an Department of MBA. HASETRI. Tyre has consciously followed a policy of continuously modernizing and expanding its tyre manufacturing facilities to retain its edge in the market place. With three plants located in Rajasthan. MSRCASC . Tyre's belief in the value of technological superiority that has made it grow by leaps and bounds. Germany. The truck and bus tyres produced account for nearly 74% of the total tyre business in India. J.10 - . with J. Defence and State Transport Units. Tyre" for Truck. which is among the top five tyre manufacturers in the world to keep pace with latest technological developments.K. Madhya Pradesh and Karnataka.K. thus giving J. Besides India. J.K. Passenger Cars.Organizational Study foreseeing the advent of an automotive revolution in the country. Tyre is the only Tyre Manufacturer in the country to produce high performance 'T' & 'H' -rated steel radial tyres. Our customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in India together with Replacement Market for four wheeler vehicles. J.

LOCATION In 1991 J.K. Besides India they have world wide customer base. since it has been a symbol of quality for millions of people. Tyre is the only manufacturer of truck/ bus steel radial tyres. short of Gwalior on AB road.11 - Department of MBA.K. So. Banmore plant is located 25 Kms. Today it is very well known for its punch line “J. The quality control standards are adhere to. Additionally.K.Organizational Study undisputed position. and the second largest manufacturer of 4-wheeler tyres in the country. Banmore Tyre Plant manufactures and markets under the supervision of highly qualified technicians. defence and state transport undertakings. Market Their customer base covers virtually the entire original equipment manufacturers (OEM’S) in India together with replacement market for four wheeler vehicles. TYRE TOTAL CONTROL”. KEY CUSTOMERS Replacement Market COMPANIES/ INSTITUTIONS BUSINESS (%) BASE (Dealers/ 3500 – Spread all across the 53 . at this modern manufacturing unit equipped with advanced machinery and technology. its development keeps pace in changing needs and trends. Research is ongoing process at JK Tyre’s well equipped laboratory. MSRCASC . tubes and flaps of various ranges. Industries setup a plant at Banmore. J. PRODUCT PROFILE Product JK Tyre Manufacture tyres.

Organizational Study Distributors) OEM’S Export Institutions country MUL.K. Tyre is the leader in the Truck/Bus segment. The "Unique SEV System" in its Truck/Bus and LCV range of tyres ensures a highly efficient and uniform tyre curve the best option for a wide variation of road and load conditions under which trucks operate in our country. Fleets 4 Various Product Range J. Ashok Leyland 50 countries across the six 11 continents Defence.They Run More to Earn More. Telco. it has outpaced the industry growth rate and surged ahead of its competitors. Bajaj 32 Tempo. • • International Domestic Domestic • • • Truck / Lcv Passenger Farm Truck and Bus Tyre Range Truck and Bus Department of MBA. M&M. Greater Strength and Higher Retreadability .12 - . HM. STU. MSRCASC . The SEV System offers the outstanding advantages of Super Mileage. Our tyres are specifically designed in accordance to the different loading and application requirements of our valued customers. With its customer oriented state-ofthe-art product offerings.

MSRCASC .13 - .Organizational Study Bias Radial Department of MBA.

00-20 16PR JETKING-10 10.00-20 16PR STARLUG 10.00-20 16 PR JET RIB 10.14 - .Organizational Study Bias Semilug Lug 10.25-20 16PR JET ONE TRAK KING 10.00-20 18 PR JET ACE 10.00-20 16 PR.00-20 16PR JETSTAR 10.00-20 16 PR.00-20 16 PR.00-20 16PR JETTRACK XL 10.00-20 16PR JET PACE Department of MBA.00-20 16 PR SUPER TRACK KING 9.00-20 16 PR JET MILES 10.00-20 16PR TLUG 10.00-20 14 PR.00-20 18PR JET TRACK DX 10. 9.00-20 16 PR TRACK TUF DX 10. MSRCASC .00-20 16PR JET SPEED 10.00-20 16 PR VTL234 10.8. 9.25-20 14 PR TRACK KING 10. 9.00-20 16 PR.00-20 16 PR. 8.00-20 16PR JET XTRA 10. 9.

00R 20 18PR Jetway – JUH 10.00 R 20 16PR Jetway.00R 20 16PR JetstelLDH Department of MBA.00R 20 16PR Jetsteel-LDH 12. MSRCASC .JUH 10.Organizational Study Radial Lug 11.00 R 20 16PR Jetway – JUH 11.00 R16PR JetxtraJDM 9.15 - .00 R 20 16PR Jetxtra-JDM 10.00 R 20 Jetway – JBR 11.00 R 20 14/16PR Jetway – JUH 10.00R20 16PRJetsteelLDH 9.

Dept) Unit Head Tyre Engg. IR.welfare. RMS. QS-9000 Department of MBA. safety. ISO-9000. utilities Production Division head production Division head Technical Division head HR Assoc. Mech. Design & projects civil. Engg goods Systems PPC Division head Engg. compounding HR. costing.admini Industrial Engg Division head commercial Accounts. manager (Industrial engg. MSRCASC .16 - . heat engg.Organizational Study ORGANISATION STRUCTURE OF ATL Manager Purchase Manager Systems Manager PPC Purchase. FGS. time office. security. finance. Electrical&electroni cs insrumentation. excise Manager (Quality assurance) Quality assurance.maint.

Customer delight.Ethical Practices 2. 4.Respect for Associates E.Trust Mutually E.8.Organizational Study 2. MSRCASC . In the future there is a plan to manufacture tyres with matching colors to the vehicles according to the needs of the customers.8 2.1 APOLLO TYRES – VISION & VALUES VISION: “A leader in the Indian tyre industry And a significant global player. 3.8. the continued success will depend on its future plants.Care of Customers R. Operating margin improvements.Always Learning T.17 - . Providing customer delight And enhancing shareholder value. Department of MBA.8. 1.3 OBJECTIVES OF APOLLO TYRES LTD The corporate objectives of Apollo Tyres Ltd are as follows. Employee satisfaction. Revenue growth.” Though Apollo is presently one of the leading tyre companies. 2. 2. The company is laying steps for increasing production capacity.Excellence through Teamwork A.2 CORE VALUES CREATE It means C.

8. 2.Organizational Study 2.. which defines the way a corporate body functions and interacts with its environment. On the first path we have already launched a range of alloy wheels for new generation tyres that complement our high performance tyre offerings. to ensure customer proximity. Corporate governance is a broad framework.4 STRATEGIC VISION Apollo Tyres Ltd. aims to be the ‘supplier of choice’ for its entire customer base. corporate governance is all about the processes.8. Your Company is sincerely following the philosophy of good corporate governance by creating and holding strong business fundamentals and delivering high performance through relentless focus on the following: – Department of MBA. We have already commenced on the journey to going beyond being a mere tyre supplier to our consumers to becoming a complete solution provider for all their transportation needs.18 - . It is a combination of voluntary practices and compliance with laws and regulations leading to effective control and management of the organisation. which involve direction and control of affairs of the Company in a fashion that ensures optimum returns for the stakeholders. To reach out to newer customers we are constantly on the lookout for new products and fresh markets where we can make a difference. Technology Enhancement and Quality to ensure the superiority of our offerings in all aspects. More such related products and services are on the way. MSRCASC . We see growth along two paths: Offering a wider suite of products to our current customers and ensuring that an ever-widening circle of consumers gets to enjoy the benefits of an Apollo experience.5 COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE At Apollo Tyres Ltd. These markets could be serviced out of our existing facilities or new ones could be acquired or built. To achieve this we invest in Research & Development.

5. 4. Corporate social responsibility ensures that the Company contributes to society’s overall welfare by undertaking not-for-profit activities. which pays particular attention to the financial management process. which could benefit all or any of its stakeholders in society. MSRCASC . colleagues. Professionalisation ensures that the management teams at all levels are qualified for their positions. 3. have a clear understanding of their roles and are capable of exercising their own judgement.e. it chooses to use this freedom within the framework of effective accountability and full responsibility. Accountability whereby even though the management has the executive freedom to drive the enterprise towards growth. Trusteeship brings into focus the fiduciary role of the management to align and direct the actions of the organization towards creating wealth and shareholder value. 7. 2.e. keeping in view the Company’s interest. For this purpose. shareholders and general public. Department of MBA. i. maximum possible disclosures without hampering the Company’s and shareholders’ interests. showing mutual respect and acting with honesty and responsibility. i. Corporate Social Responsibility ensures the promotion of ethical values and setting up exemplary standards of ethical behaviour in our conduct towards our business partners.19 - . Continuous focus on training & development of employees and workers to achieve the overall corporate objectives. the Company has also constituted Audit Committee. without being subject to undue influence from outsiders.Organizational Study 1. abiding by the laws. Safeguarding Integrity ensures independent verification and truthful presentation of the Company’s financial position. 6. Transparency by classifying and explaining the Company’s policies and actions to those towards whom it has responsibilities.

in Kerala.‘H’ Speed Rated Car Radials. – November 17. Thus. MSRCASC . Dunlop South Africa is acquired Department of MBA. 2005 – April 13. accessible and consistent with communication and shares long-term perspective and firmly believes that good Corporate Governance practices underscore its drive towards competitive strength and sustained performance. 1995 – Acquired Premier Tyres Ltd.20 - . JointVenture with Michelin 2004 – Launch of Apollo Acelere. 2003 – Radial Capacity expanded to 6600 tyres per day. 1976 – Apollo Tyres Ltd. 1977 – Plant commissioned in Kerala with 49 TPD capacity.Organizational Study Your Company is open. Management and operational levels. 2. 2006 – January 30. Perambra Plant completes 30 Years. Raunaq Singh and his associates 1975 – April 13. was registered. Jacob Thomas and his associates 1974 – The company was taken over by Dr.9 KEY MILESTONES TABLE 1 1972 – The company's license was obtained by Mr Mathew T Marattukalam. 1982 – Manufacturing of Passenger Car Radial Tyres in Kerala. Perambra Plant Foundation stone was laid down. basic Corporate Governance norms have been institutionalized as an enabling and facilitating business process at the Board. 2000 – Exclusive Radial capacity established at Baroda. 1991 – The second plant commissioned in Baroda.

Design & projects civil. excise Quality assurance. manager (Industrial engg. IR. Dept) Division head commercial Manager (Quality assurance) Unit Head Tyre Engg. costing. utilities Production Division head Engg.Organizational Study CHART NO: 3 2. safety. Electrical&electroni cs insrumentation.10 ORGANISATION STRUCTURE OF ATL Manager Purchase Manager Systems Manager PPC Purchase. time office. Division head production Division head Technical Division head HR Assoc.admini Industrial Engg Accounts. FGS. security. ISO-9000. heat engg. QS-9000 Department of MBA. Engg goods Systems PPC Mech.maint. RMS.21 - .welfare. MSRCASC . finance. compounding HR.

22 - . MSRCASC .Organizational Study CHAPTER 3 Department of MBA.

Organizational Study HUMAN RESOURCES DEPARTMENT Department of MBA. MSRCASC .23 - .

1.2.24 - . 2. 3. 3. 5.2 268 138 177 1271 417 2416 28 28 41 99 94 60 2904 FUNCTIONS OF HUMAN RESOURCES DEPARTMENT 1. 7. Though the exploitation of natural resources. RECRUITMENT TRAINING TIME OFFICE INDUSTRIAL RELATIONS SAFETY SECURITY WELFARE 3. availability of physical and financial resources and international aid play prominent roles in the growth of modern economies. 4.1.1 RECRUITMENT Department of MBA.1 THE EMPLOYEE STRENGTH OF ATL TABLE 2 OFFICERS STAFF & SERVICE STAFF ENGINEERING WORKERS PRODUCTION WORKERS PRODUCTION APPRENTICE APPRENTICE CANTEEN LOADING & UNLOADING TTF WORKERS GENERAL CONTRACT WORKERS(Sr ) GENERAL CONTRACT WORKERS(Gr ) GENERAL CONTRACT WORKERS(Engg ) GRAND TOTAL 3. 6.1 HUMAN RESOURCES DEPARTMENT Human resources play a crucial role in the development process of the present economy.Organizational Study 3. MSRCASC .1. none of these factors is more significant than efficient and committed manpower.

3.1. A separate register is kept for different shifts. incentives. The human resource department selects candidates for training based on the advice of department heads. For this performance appraisal reports are considered. the significance of employee training has increased. Leave awaited Department of MBA. This has necessitated raising the skill level and adaptability of employees. payment of wages. 3. As of now there are no major constraints in attracting the right talent since the organisation is a reputed one and the compensation package is really attractive.25 - .2. Training program for managers consists of both internal and external program. Sometimes random selection of the candidates for training is also done. Candidates are called for interview and final decision is with the chief executive. A leave book is maintained and it contains: 1. The effectiveness of the training program can be adjudged by providing the trainees with a feedback format.Organizational Study Recruitment is done through advertisement and employment exchange.2.3 TIME OFFICE The department. The modern complex society has created intense pressure for organisation to readapt the produce and services produced as a competitive product. Leave credited 3. Other activities related are. MSRCASC .1. External training is done by deputation to professional training centers.2 TRAINING As jobs have become more complex. Apollo provides training for both managers and workers. A separate register is kept for recording the training activity the employee has undergone. However employees are of the view that personal interview should be conducted to assess the effectiveness of the training program. is concerned with registering the time in and time out of the workers. leaves etc. Leave balance 2. The workers undergo internal training programmes conducted by experts.

3. MSRCASC . In case of non-supervisory personnel cash payment is done in the following dates:  Staff and service staff: Last working day of the month  Production/engineering workmen: Seventh working day of succeeding month Department of MBA. Clock no.3. 8.m to 5 p.2 Salary Payment All supervisory personnel are required to open SB account with the South Indian Bank Ltd. Section department. Clock no.m to 6 a. shift engineer and shift superintendent/department head.2.1 Working Hours 6 a. 2.3. Shift 3.m 10 p.2. Scheduled shift 9. Human resource worked 7.m to 10 p.m 9 a. Date 4.m Over Time Current Working Time A Shift B Shift C Shift G Shift * Trainees will be generally put in general shift. Grade 6.1. Human resources worked The daily attendance report is verified by the supervisor. 3.1.26 - .m 2 p. 5.Organizational Study The daily attendance report for employees specifies the following: 1. Perambra and intimate the account number to accounts department who in turn will remit the salary.m to 2 p.

2.2. The security section regulates the entry and exit of the personnel and material to the factory.1. 3.3. ATMS (Apollo Tyres Mazdur Sangh) – with the political influence of BMS 4. The management and the employees jointly find the solutions for the problems. The management has introduced a long-term settlement (LTS) plan.3 Entry and Exit All employees are given photo identity badge and all outsiders entering are issued a Visitor badge. ATSWU (Apollo Tyres Staff and Worker Union) – with the political Influence of INTUC 3. The decisions taken jointly by the trade union and the management.3. 3. There are four main trade unions recognized by the company. MSRCASC .27 - . Out-pass system is also there. There exists a good relation between employer and employee. This process is repeated while leaving the factory also.Organizational Study 3. In case of materials.4 INDUSTRIAL RELATIONS A good industrial relation exists in the organization. Also as part of the HR initiatives employee Department of MBA.4 Attendance Procedure Identity badges with the photo of the respective personnel are supplied to the employees. ATWM (Apollo Tyres Workers Movement) The trade union which get at least 20% of vote of total strength are recognized by the management.1. ATEU (Apollo Tyres Employee Union) –with the political influence of CPM 2. which is nothing but a collective bargaining agreement. gate pass is necessary for both entry and exit.1. where the time for INS and OUTS are recorded by the security officer at the gate.2. On arriving for duty at the factory each person punches his/her attendance by inserting the badge in the electronic punching system provided at the time office. Attendance is crosschecked with the attendance report of the workman and the attendance register maintained at the various sections for the staff and managerial persons. 1.

All personal injuries are prevented. No major accident has occurred in the plant for the past ten years. Security staff headed by a chief security officer. 3. The personnel are given the safely equipment and the directions are given for the same.1. 3. 3. 2.5 SAFETY The organisation follows all the provisions under the Factories Act 1948.2. MSRCASC . Accidents resulting in personal injury and damage to property and equipment represent needless human and economic waste. There are safety directions displayed at noticeable points and around the plant premises. In Apollo tyres a separate safety book is given to each employee. The following are safety policy of ATL: 1. The protection of human lives demands a complete and continuing effort to eliminate accident injury.1.28 - . which must be prevented by every reasonable means available. Officers of all levels have as a primary responsibility for the safety and well being of all persons who report to him. It controls the movement of both material and men into the organisation. a social gathering such as factory day and other celebrations encourages Participation. which prescribe certain rules and procedures inorder to create a working environment free of accidents.Organizational Study involving them in productivity related issues such as quality circles and professional circle.2. work under 3 shifts.6 SECURITY The security division of ATL is very well managed. To facilitate the security Department of MBA. The amendment there in is also being followed here.

2. 1.1. games and other welfare activities among the members and to foster among them a spirit of mutual friendship. co-operation and understanding.1 STATUTORY ACTIVITIES (a) Employee Provident Fund and Family Pension Scheme The employee contribution towards PF (provident fund) and FPF (family pension fund) is 12% of monthly salary (Basic+DA) with monthly contribution by the company. single point entry is adopted to control visitors and material.7 WELFARE The aim and objective of welfare fund shall be to render financial assistance and to encourage cultural. 3. Further more there are periodical checks around the plant and security lights are provided at vantage points.1. The personnel are allowed to leave the factory only at the end of the shift except for other demanding reasons.2.Organizational Study measures. Non-Statutory or settlement grievances 3. Separate gate passes are issued for materials section-wise. sports. MSRCASC . super annuation or retrenchment can withdraw the amount accumulated in PF. The various sections to which gate passes are issued: 1) 2) 3) Raw material stores Engineering goods stores Finished goods scores Visitor’s passes are also issued. In the event of dying in harness the amount will be paid to the nominee.29 - . The employees are eligible for interest @ 12% on total contribution. social. Department of MBA. Statutory 2. It is calculated monthly.7. Welfare activities are of two types namely. The member in the event of permanent disability.

Employer will contribute 4. provides for pension at specified rates to the family of the deceased member.2 SETTLEMENT GRIEVANCES (a) Group Savings Linked Insurance Scheme (GSLIS) The employee pays the premium and the employer will only act as a Coordinator by deducting the monthly contributions from the salary/wage of the employees and remitting them to the LIC. MSRCASC . which extends to employee.7. The employees will get free treatment and compensation for the days they are absent due to illness or accidents. It is computed by dividing monthly salary/wage by 26 working days and multiplying the quotient by 15 days and no of years. minor sons.2. 3. and unmarried daughters. (c) Gratuity An employee is entitled to receive gratuity if he has completed 5 years of continuous service with the company. (b) Group Personal Accident Insurance Scheme (GPAIS) Department of MBA.30 - . It is applicable for both accidents and sickness. spouse. Medical assistance will be given to the employee and his family. Employees have to contribute 1. In the unfortunate event of death of an employee the Insurance amount will become due for payment.Organizational Study The coverage of FPF.75% of his wages to ESI fund. On cessation of service the entire accumulated amount with interest standing to the credit of the employee in his savings account will be refunded.1. (b) Employee State Insurance (ESI) Any employee drawing a salary less than 6500 per month (excluding the conveyance and washing allowance) will be covered by this scheme. The qualifying period of 5 years is not necessary in case where the termination of service is due to death or total disablement.75%.

This interest subsidy will be given only for the un-defaulted payments. Workmen who have not put in a minimum physical attendance of 240 days per year in three years during the immediate previous 5 calenders will not be entitled to this benefit. 3.00. These changes will be effective from 1st January 2000 onwards. No subsidy is payable for the period of strike/lock-out. children and parents of the employees subject to a maximum number of six persons per family. The subsidy will be withdrawn in cases where the loan repayment is defaulted for 6 months continuously in any year. The subsidy will stand withdrawn on leaving the services of the company. The amount of compensation payable will be equal to 100% of the capital sum insured.31 - .1.3 HR INITIATIVES Department of MBA. The company in the event of death or permanent total disablement due to accident pays the insurance premium. It is also agreed to extend the coverage of this scheme. Priority for this benefit will be based on service seniority and loan liabilities /repaying capacity. MSRCASC . Preference will be given to those employees who are not availing the company bus service.000 (maximum price of Rs 50.Organizational Study All employees outside the purview of ESI are insured for an amount equal to 48 months salary (Basic+DA). Interest accrued on defaulted payments will not be subsidised. (c) Group Mediclaim Insurance Policy (GMIP) The mediclaim policy coverage was revised from the existing Rs 15000 to Rs 20000 per member per year. spouse. The management agrees to reimburse 50% of the insurance premium per year payable for employees. (d) Two Wheeler Loan Interest Subsidy Scheme Management agrees to reimburse 70% of interest on Two wheeler purchased and owned by the employees as subsidy for a maximum loan amount of Rs 50. The subsidy re-imbursement will be applicable only for loans obtained from established agencies approved by the management. It is also agreed to extend the coverage of this scheme to the parents of the employees.000/ Two wheeler) each in every year till next settlement.

which gives information about the various activities of the HR department. 3.1. 3.1. Department of MBA.1.2 HR SPEAKS It is a bulletin board that is placed in the company. 3.32 - . There are around 12 task forces in the company. They visit the houses of employees who are habitual absentees and provide counseling to such employees.1 APOLLO VISION 'APOLLO VISION' is the in-house newsletter published by Apollo Tyres Ltd.1.3.4 LEAVE PLANNER These are used to help employees plan their leaves without affecting the activities of the organisation adversely. MSRCASC .3.3.3 TASK FORCE It has been formed to curb absenteeism in the company. This newsletter is aimed at the families of the employees of ATL. It covers the important events that has taken place in the company like training programmes. 3.Organizational Study In order to motivate employees and to increase productivity HR department has initiated a number of steps. meetings etc.3.1. which include: 3.3.5 PROFESSIONAL CIRCLE It consists of members from the management staff who meet regularly to sort out problems that are faced by them in the day-to-day operations of the company.

Organizational Study 3. In August 1992.6 ARTS AND SPORTS CLUB HR department regularly organizes programs in the company. 3. which would help the company to improve its operations. from the mechanical maintenance section participated in the all Kerala case study presentation competition conducted by National Department of MBA.15 Lakhs.1. is the first QC of the company from bead winding section. Apollo has been able to achieve considerable financial savings and also improve general discipline as a result of the QC.33 - . Some of the notes worthy achievements of the QC are given below: "Rose Circle". and at least 7 circles have presented full-fledged case studies to the top management so far.3. As on today Apollo has 30 active QC in operation covering about 10% of total workforce and the number is increasing every month.4 QUALITY CIRCLE CONCEPT The concept of quality circles was first introduced in Perambra plant as far back as 1988.3. Factory day is celebrated on 26th January every year. The system is very much vibrant. MSRCASC . 3. In April 1993) "Diamond Circle".1.1. evolved a system for the reduction of scrap which will fetch a saving of more than Rs. they presented this case study in the all Kerala competition conducted by the QCFORUM OF India. when the suggestions are fully implemented.7 SUGGESTION BOX Employees are encouraged to give their suggestions. However due to the lack of adequately trained facilitators and other teething problems the initial activities of the quality circles was carried on a rather modest scale.

One of the major problems faced by Apollo in 4roll calender was 'derailment of wind up stand' in the calendering operations. MSRCASC . 000/-per annum.Organizational Study Institute for Quality and Reliability.80.18 Lakhs/annum. Department of MBA. This study was rated as the best so far. The diamond circle members solved this problem effectively and saved Rs. This study was adjudged as the best case study in 1993 in the state level and second best in the national level. “Surya Circle” in vertical bias cutter section presented recently another case study to the top management. In this case the financial saving will be to the tune of Rs. The circle members eliminated the problem of "improper ply cut" in vertical bias cutter. which was one of the major scrap-contributing factors for the last 16 years. This case study was rated as the second best in the zonal competition conducted in March 1995.34 - .

manager Executives Department of MBA.Organizational Study CHART 4 3. manager Time office Executives Assoc.5 ORGANISATION STRUCTURE OF HUMAN RESOURCES DEPARTMENT Head HR & Admin Group manager security Manager personal & IR Manager Admin Executives Executives Assoc.35 - . MSRCASC . manager IR Executives Assoc.1.

36 - .Organizational Study PURCHASES & STORES DEPARTMENT Department of MBA. MSRCASC .

1 OBJECTIVES 1. B. A.Organizational Study 3. The department is provided with the latest communication facilities and computers. Make purchase competitively and wisely at the most economical price.2 ACTIVITIES OF PURCHASE DEPARTMENT 1. To act as an information centre on the materials knowledge. To develop good supplier relationship. to avoid hold up of production and loss in production and at the same time reduce the ultimate cost of finished product. To develop alternative sources of supply. This department is headed by senior manager and under him there are a number of officers and staff. 9. Adopt most advantageous method of purchase to ensure smooth delivery of materials. 1. Receipt of Purchase Requests Review of Pending Indents for Ordering (FOR STOCK ITEMS) Review of Normal Indents for Ordering (FOR NON-STOCK ITEMS) . general engineering and miscellaneous items other than raw materials. To sum up. 3.37 - Department of MBA. this will ensure the best terms of supply of materials. 5. Purchase proper quality of materials to have minimum possible wastage of materials and loss in production.2. 1. the basic objective of setting up a separate purchase department is to ensure continuous availability of requisite quality of materials. Purchase in reasonable quantities to keep investment in materials at minimum. 7. Continuous availability of materials 2. 4. 3. 6. MSRCASC . 8.2 PURCHASE DEPARTMENT This department is concerned with the purchase of both indigenous and imported materials.2. 3. It covers procurement of indigenous engineering spares. C.

3. Capital Goods Purchase Order c. Requests for Quotations and Receiving Quotations.2. 4. Dealers 3. details available on the nameplates of machines etc shall be used for the purpose. Indigenous Purchase Order Generation. components etc. Vendors are generally identified as 1. MSRCASC .38 - . components and consumables. Manufacturers 2.3 Review of Purchase Order Authorization of Purchase Orders Amendment to Purchase Orders Logistics for Material Delivery at EMS: Insurance of Goods in Transit Payment to Suppliers VENDOR SELECTION This includes a list of steps involved in selecting the right vendor for stack items identified as critical by the department to enable a smooth functioning of the plant. Information available on supplier's manuals. catalogs.Organizational Study 2. attempts are made to identify the manufacturer and source the items directly from them so as to get quality products or services at optimum cost. 1. Department of MBA. 2. spares. Normal Purchase Orders: b. Annual Rate Contract 6 7 8 9 10 11 3. Import Purchase Order Generation: 5. OCM (Original Component Manufacturers): For all spares. The indigenous Purchase Orders shall be categorized as follows: a. Firms offering various services Manufacturers are divided into two: OEM (Original Equipment Manufacturers): The OEM shall be identified as a vendor for the supply of equipment.

2. Department of MBA. Contract file: -Certain goods may be bought under a term contract if so. 3.3. Vendor Record: – List of all vendors & their complete mailing addresses 3. Further consideration for approval includes • Vendors supplying goods satisfactorily for last 5 years • All authorised dealers of OEM/OCM shall be treated as approved vendors • For the order of finished goods specified brands are approved.1 APPROVAL OF VENDORS All OEM vendors who have supplied the machinery equipments and instruments are approved vendors for sourcing the respective components and spares.39 - .2. the purchasing department must maintain a record of such contract. All original components manufacturers are treated as approved vendors. MSRCASC . 4.4 PURCHASING RECORDS 1. Purchase Order Record: – POs of all materials bought 2. Blue print and specification record Drawing: – Many items are purchased by blueprint specification are kept in separate files with index showing their location and where the copies have been sent.Organizational Study 3. Thus for repeat order to old supplier it is not necessary to send new copies of the specification.

3 STORES DEPARTMENT Inventory department is responsible for storing the raw materials. In Apollo Tyres Engg stores follows a centralized storing procedure for the spares. VED etc are used for maintaining an optimum level of inventory 3. Reduction in administrative cost 3. storage.3. house keeping. In this era of cutthroat competition companies cannot survive without a well-managed inventory.40 - . Reduction in requirements of personnel 5. Possibility of standardization of materials reducing the variety of items stored 4. co-ordination and co-operation. surplus stock. Reduced storage space and other incidental expenses Greater safeguard against pilferage and theft Department of MBA. MSRCASC . retrieval.Organizational Study 3. issue records. A number of Inventory control techniques like ABC. verification.1 ENGINEERING STORES The efficiency of the manufacturing operations largely depends on the efficient functioning of the receiving and stores operations. The main advantages of centralized storing are: 1. finished goods and spare parts required for the smooth functioning of the organisation. Reduced investment in inventories 2. The important functions of stores department are receipt.

it’s-order level etc. total number of item codes in Engineering store are 38500 approximately. After the receipt of materials the stores department does physical verification of the materials.41 - . If any problem is there with the material then it send back to the supplier.I. Department of MBA. once for Accounts and finance department and one for stores.Organizational Study CHART 5 ENGINEERING STORES FUNCTIONS Receipt of Materials Automatic indent for items that reach re-order level Verification of the Stores items Generation of S. Once the material is accepted three copies of the SIR is made. These had become a great help in engineering stores for tracking of materials. Once for purchase department.R Issue of materials to production on MR Inspection of items Accept quantity Identified by tags & stored in respective location Posting of GR ERP (SAP) is implemented in all the factories of Apollo Tyres. . If it is PR items (Items which are purchased on the request of respective departments) them it is directly issued to the respective user. to find out it's location.1. When the material is arrived stores receipt the materials.2 ENGINEERING MATERIALS At present. 3.3. Once items reached its re-order level automatic indent is generated. MSRCASC . If it is stock items then the next step is coding. Out of this 23500 items are spares and 15000 items are consumables.

which is common across plants 3. Item code for consumables will be common across all plants 2. 3. MSRCASC . The staff of final finishing will prepare a finished goods transfer-note in triplicate Department of MBA. All the items shall be brought under this codification schema.3.3. It is decided to 1. Equipments are varying from plant to plant by make and model. material classification in SAP will be used to trace the spares to common machines.It is decided to identify common codification schema for all consumable items.2. etc). Assign uniform code to equipment make and model wise.42 - .1 RECEIPT OF FINISHED GOODS All finished goods after final inspection are kept at the transferring area in each shift. Item code for spares will be plant specific with respect to common equipment code.2 FINISHED GOODS STORES 3. In general 1. Assign respective plant spares with code of equipment. belt.Organizational Study 1. However. Material Master Codification will follow the external numbering. Spares Spares are part of equipments. Identify common equipments by same make and model 2. Consumables (General stores items) Consumables (General stores items) are standard engineering items (bearing. 2.

2.Organizational Study which will be countersigned by the staff of FGS/TTF After verification. The destination to which trucks are required is arranged by marketing coordinator one day in advance. Store-man will keep the loads as per the load slip at the loading bay. duplicate will be given back to production as their file copy and triplicate will be issued to Production planning. will be removed to the loading bay and balance will be removed to stores for storage. A stock statement is made as of the closing of the day. MSRCASC . Security and representative of Department of MBA. Quantity. finished goods transfer-notice handed over to factory excise wing for recording and filing.43 - . after completing packing for required item. One staff each from production and FGS/TTF will separately verify the quantity. TTF.4 DISTRIBUTION OF FINISHED GOODS Marketing coordinator gives despatch schedule on day-to-day basis.2. 3.3. Load slips are prepared as per the plan made. Proper passage is left for access for periodical inventory. Description 3. finished goods transfer-note will be serially numbered and have the following details. size. After preparing the stock-statement. ply rating of the finished goods and compare against the entry in the transfer-note.3 HANDLING AND STORAGE Finished goods store is fully covered and protected from sunlight and rainwater. The original copy of the transfer-note will be issued to central excise wing after entering the details in stock statement. 3.2.3. Material code 2. after preparing the transferring-notes.3. 3. Staff of FGS. 1.2 REMOVAL OF FINISHED GOODS: The finished goods required for despatch kept at the transferring area. All the tyres to be stored are rolled from transferring area to stores and stored size-wise. The floor is cleaned to remove dust.

Inspect the TTF assembly for correct tyres and any loose flap/tube during despatch. kept separately for size. Strap the assembled tyre as per packing specifications. MSRCASC .2.3. After checking the load-slip will be signed by the staff and given for preparing transport documents and goods will be loaded on to the lorries. Fit the dust caps on the tube valve stem. Tyre.Organizational Study transporter will check the load. 3. ply and quantity.  Procedure Clean the inside of the tyre properly and insert the tube and flap inside the tyre. In case a consignment is rejected. 3. (SBR.44 - . Upon acceptance/rejection of the consignment. QA department shall organise for sampling and inspection of the goods received. synthetic rubber.6 PACKING HDPE (High Density Poly Ethylene) bags containing tubes and flaps shall be identified with month of production.2. A consignment of goods shall be used for packing after obtaining approval for use from QA department. TUBES AND FLAPS (TTF) Upon receipt of goods for TTF. FGS shall prepare a brought-out goods receipt report (BGRR) and it shall be forwarded to the head of QA department. 3. Polymers: . PBD. the same shall be tagged as "Rejected" by QA department.5 ASSEMBLING TYRES.3 RAW MATERIAL STORES Various raw materials used in the manufacture of tyres are as follows 1. QA department will return the BGRR with status of inspection marked on the same. Ensure that the flap does not come out from the assembly. as per the specification applicable for domestic supply. BUTYL etc) Department of MBA. Inflate the tube carefully up to the pressure just sufficient to hold the tube inside the tyre.natural rubbers. tube and flap shall be packed as a set.3.3.

3. i-ayon cord 10. carbon black. After recording the above details in the computerised weighing balance the vehicles shall be directed to the respective unloading bay. scrap flakes etc 3. The Weighment slip shall indicate the following: Serial no. MSRCASC .3. Pepticers for natural rubber mastication 9. time and date of receipt.3. The security guard and a representative from RMS shall record weighment of trucks jointly. description of item.1.1. no.Organizational Study 2. Process oil.1 RECEIPT OF RAW MATERIALS VERIFICATION OF DOCUMENTS AT SECURITY GATE 3. Department of MBA. challan quantity. gross weight with materials. plasticizers /tackifiers 4. date and time of arrival. challan no and date or LR no and date. Antioxidants/antiozonents (waxes) 7. colours.3.3. Serial no.1 The security inspector at main gate shall verify all documents pertaining to the consignments brought to the factory before allowing entry in to factory premises and note the following details. suppliers name. truck reg. Miscellaneous items like paints.45 - . Fabrics: nylon cord. Bead wire spools 11. In ATL weighment will be done in a weighbridge closer to the factory under the supervision of security and RMS personnel after ensuring that the weigh bridge posses a valid certificate from weight and measure department. date and time of departure. suppliers name. reinforcing clays 3. Retardors 8. crayon. 3. SIR no and date. Solvents for cements and solutions 12.2 WEIGHMENT (BY THE COMPUTERISED WEIGH BRIDGE) Security shall inform raw materials stores about the arrival of the vehicles at the gate. Curing agents/sulphur 5. Fillers.3. Accelerators/activators 6.

2 VERIFICATION OF DOCUMENTS AT RMS The receipt in charge shall verify the documents to ascertain the no of packages. The despatch documents include: Delivery challan /invoice. Each caged pallets will carry a maximum of 1500 kg of materials. MSRCASC . after checking the seal and dip reading and sample test by QA will be directly pumped into the storage tank.3.3. Caged pallets will be stacked one over the other. Before unloading the receipt incharge will make sure the availability in the storage tank. In case of non receipt of any of the above documents the consignment will not be unloaded unless and otherwise instructed by the competent authorities after compliance of all conditions stated above. In case of space constraints in the respective floors. Rejection items are identified by displaying a rejection tag by technical department.Organizational Study Both security and RMS personnel shall sign on the computerized weighment slip. Materials received in cankers. 3. bead wire. Caged pallets or platform pallets are used for storing of materials so far as possible to facilitate easy handling at the time of issue. wax etc in the 1st floor and fabric. latex etc in the ground floor.5 PRESERVATION Carbon black and chemicals are stored in the 2'"1 floor.3. LING STORAGE AND PRESERVATION All the incoming materials except the materials coming in tankers will be unloaded manually or with the help of forklift as instructed by the receipt incharge. the materials may be kept in the ground floor and other places as directed by the storage incharge. the materials will be unloaded as instructed by the receipt in charge and lead to the respective area. 3.1. natural rubber /SBR.46 - . LR/GC note. One copy of the weighment slip will be filed in RMS along with concerned delivery challan and the second copy will be returned by security department. In the case of rejection of voluminous quantities the materials are kept in Department of MBA. description of materials code and weight of the material. He in turn will take decision suitably.3.1. If any discrepancy is found the same shall be orally reported to the officer concerned before unloading. sales tax papers. packing list and duplicate copy for transporter of invoice for availing MODVAT credit.

MSRCASC . MANAGER (ENGG STORES) ASSO.47 - . MANAGER (PURCHASE) EXECUTIVES EXECUTIVES EXECUTIVES EXECUTIVES Department of MBA.Organizational Study respective areas till disposal. CHART 6 ANISATION STRUCTURE OF PURCHASES & STORES DEPARTMENT STORES GROUP MANAGER KERALA FACTORIES PURCHASE ASSO. MANAGER (FGS) ASSO. MANAGER (RMS) ASSO. while small quantities will be removed and stored in the rejection area duly displayed with the rejection tag.

4 3.4.Organizational Study PRODUCTION DEPARTMENT & PPC 3.48 - .1 PRODUCTION DEPARTMENT MANUFACTURING PROCESS Department of MBA. MSRCASC .

Polyester etc should be coated with specific amount of rubber latex in the cord-dipping unit.3 CALENDER All fabric is coated with specific compounds in the calendar. Cord fabric is coated on both sides with rubber layer.1. These cord fabric are passed through a liquid rubber solution called 'latex' and is heated under tension through special ovens.4.1.1 3. Division B and Division C.1 All polymers are mixed with filler.Organizational Study The entire production system has been broadly divided in to three sections. Nylon. and other chemicals are mixed in the Banbury along with rubber under specified temperature and time. Each type of fabric like rayon. Tyre meant for high way services and fast speed have different rubber formulation as compared to tyres for mining service. 3. Carbon black.4.4. Normally all rubber compounds are mixed in to two stages and natural rubber compounds in three stages. The mixed batch is then dropped on a batch off mill for further mixing to form the rubber compound and then in to a sheet form. large bales of natural rubber are cut into smaller parts by a bale cutter.1. where as square woven fabrics are normally Department of MBA. An essential characteristic of the Banbury is to give a good mix of fillers and chemicals with the rubber polymer.1. Each type of rubber compound is specifically compounded for tyre performance. requires mastication. 3.2 CORD DIPPING UNIT Rayon and nylon cord requires treatment in order to make them suitable for adhesion of rubber compounds.1. agricultural service etc.1. Fabric after passing through cord dipping unit is wound up in rolls and wrapped and packed in polyethylene in order to prevent absorption of moisture from the atmosphere. process oil and other chemicals to give different grades of rubber compounds in the Banbury. as natural rubbers being tough. namely Division A. process oil.1. MSRCASC . prior to mixing in the Banbury. DIVISION A BANBURY 3.4.49 - . The final stage in the Banbury is a critical stage when the sulphur and other curing agents are added. The rubber in sheet form is then passed through a conveyor and stacked on skids.

3. 3 roll calender makes a layer of rubber compound between the top and middle roll and squeezes the rubber layer on to the fabric on one side between the middle and bottom roll.Organizational Study frictioned and then they are coated on one side or both sides. After calendering.1. are fed in to the screw of the extruders from which with the help of dies. side walls. The word green denote uncured rubber (i.50 - ..4. Calenders are of various types. 3. and other strips as per specified dimensions and contours. width. a) SINGLE EXTRUDER Rubber compounds after being broken down and warmed up on Mills. non vulcanized) b) DUAL EXTRUDER Two separate set of mills on which two different types of compounds are broken down and heated and fed separately to two different screws. Calenders are also used to produce rubber layers to different widths and gauge that are required in the process of tyre manufacturing.4 dual type.4.2 DIVISION B EXTRUDERS Extruders are distinguished by the diameter of their screws and are a single or Department of MBA. Coating consists of applying a rubber layer to top and bottom surface of the cords.e.1. produces a green shape of treads. These strips are cooled in water sprayed conveyors and then cut out in to specified lengths with the help of skiver (rotary cutting knife) and booked in metal trays or wrapped in cotton liners. The 4-roll calender can coat on both sides of the fabric with rubber layers simultaneously. The advantage of dual extruder is that two rubber compounds of completely different composition can be extruded. The fabric is then to be run again through the three-roll calender in a similar process to get a coat on either side. fabrics are wound in cotton liners in order to prevent sticking. MSRCASC . The two compounds after extrusion are extruded together in a common head and with the help of performer and final dies. emerge in to a pre-determined shape. gauge and weights.1.

sidewalls. These rubber coated wire spools are then covered with rubberised cotton sq. This is the basic difference between the radial and biased angle tyres.1.4.3 TYRE BUILDING MACHINE All the necessary compounds like beads.1. Beads consists of a number of strands of copper coated steel wire which is coated with a layer of rubber compound and then wound to specified diameter depending on each tyre.2.51 - .1 BEAD WINDING SECTION The bead building machine manufacturers beads for all types of tyres. specified widths and angles. The functions of beads in a tyre are to anchor the tyre while mounting rims of vehicles. in the final stage the green tread.2 BIAS CUTTER Fabric after coating from the calender is run through bias cutter. The direction of rotation can also be changed. breaker fabric. The fabric layers are then applied to the drum along with the bead wire bundles.4. After building cord carcass on the drum. The tyre-building machine have a turret for holding different numbers of plies.4. the angle of the cords varies from 35inches to 45 inches from bead to bead. 3.1. which are in cylindrical form. MSRCASC . plies (cord fabric). which is brought together and coated on an extruder with a layer of rubber compound and then wound on a check which determines the final diameter. treads. which cuts the fabric to. breakers. woven fabric with necessary fillers or rubber compounds. The green tyres. The width depends on the type of tyres and the angle of-the cut depends on the type of tyre services required. chafer etc are brought to the tyre-building machine. sidewall and chafers are applied. The regular bias angle tyre. for each strand of wire spools. which can rotate at different speeds.2. Bead building machine consists of a lot of strands. are removed from the drum by collapsing the same. According to the size of the tyre to be built specified building drum is mounted in the shaft of the tyre-building machine. Tyre building machine itself consists of a shaft. which are compressed together with the help of different types of sticher wheels. Department of MBA. chafer rolls besides tread applying conveyor. 3.2.Organizational Study 3.

which gives the tyre a press shape. At this stage when the press is fully closed under high internal pressure and temperature. The tyre is then checked in the balancing machine.1. As the press starts to close. 3. MSRCASC . both the top and bottom halves of the moulds are in contact with each other). After vulcanization..1 TYRE CURING The green tyre from the tyre-building machine is prepared for vulcanization by the application of lubricants on the inner and outer surfaces for better moulding.1. The heat or temperature applied to different locations of the eyre compounds has to be as per the specifications. curing media like steam and hot water are passed through the bladder while the outer surface of the mould is heated by the steam.52 - .e.3 DIVISION C 3.4. (I. This process consists of mounting the tyre on specially designed rim and inflating the tyre to the required pressure while it is still hot for a period of time in order to help final process of vulcanization and maintain a proper shape. Less heat or temperature will cause an under cure condition and excess heat or temperature will cause deterioration in the rubber compounding fabric.3.4.1. CHART NO: 7 Department of MBA.2 TYRE INSPECTION All cured tyres are then physically inspected for visual defects and excess rubber flashes are removed. the tyre is removed from the press and in the case of nylon truck tyres. steam pressure is applied in to the bladder. as additional process of post cure inflation may be required.3. and the pressure is increased till the full shape of the tyre reached when the press is closed.Organizational Study 3.4. The Bagomatic curing press which is the latest design (no separate air bags are required) consists of a thin synthetic cured bladder positioned in the center of the bottom half of the mould over which the green tyres are placed. The internal pressure in the bladder is critical for the purpose of obtaining good moulding effects. The tyre after inspection and classification are taken to ware houses.

2 PRODUCTION PROCESS Banbury mixer Mills Calendar Dip unit Bias cutting Band building Bead building unit Tyre building Tyre curing Post cure inflation Extruder Thread skiver Final inspection Warehouse DIV. HEAD (PRODUCTION CHART NO: 8 3.3 ORGANISATION STRUCTURE OF PRODUCTION DEPARTMENT MANAGER DIV.Organizational Study 3. A MANAGER DIV. B MANAGER DIV. C GROUP MANAGER (QUALITY) SHIFT SUPDT ISO QS QC EXECUTIVES Department of MBA.4. MSRCASC .53 - EXECUTIVES EXECUTIVES WORKERS .4.

The department consists of a senior officer. one officer.Organizational Study 3. 4 junior officers and 4 production assistants. Bead winding units and tyre building units come under division B.5 PRODUCTION PLANNING AND CONTROL PPC is an important department of the company headed by a senior manager. 4 roll and 3 roll calendering units. dual extruder and cement house come under division A. The horizontal and vertical bias cutters. MSRCASC .54 - . C. For administrative purpose plant is divided into 3 divisions A. Banbury mixer. Department of MBA. Division C covers tyre curing section. dip chord unit. B.

Current lineup and manning 5. raw materials and equipment. Since there is a buffer for green tyres.5. Availability of feeding materials The daily plan will be received everyday and plan for 3 shifts are made. Production up to the day of the week and target for the remaining days. This would shift the focus from cured tyres to inventory of green tyres available. It takes 2 to 3 days to convert raw materials to finished goods.Organizational Study 3. Projected green tyre inventory for next 2 to 3 days. The PPC department receives monthly ticket from the management. 6. Output of each press in a shift 2.1 FUNCTIONS OF PPC The main function of PPC is to plan production in such a way as to make the best use of available resources so as to meet the target set by the Management. 3. Hence all the decisions on the components to be made in the next 3 shifts would depend on what is going to be the cured tyre production 2 to 3 days hence. Latest component wise inventory 4. PPC department also consider the following factors for visualising the next 3 shift production plan: 1. Priority based management decisions 6.55 - . Cured tyre production for 3 shifts 2. Machine availability data Department of MBA. Mould and machine availability\curing cycles and no of presses 4. This is converted to monthly production plan which in turn is distributed into a daily plan on the basis of the number of working days and lead time required for making each component. the inventory of green tyres should also be considered. MSRCASC . 5. The daily plan is made on the basis of factors like 1. Comparison of planned and actual production for the previous 3 shifts. Output of each building machine in a shift 3. Importance is given to best possible capacity utilisation in terms of manpower.

Similarly schedules are made for the bead preparation. based on the requirement of each preceding step the schedule for the next step is made. working progress. This is done in 4-roll calender. a schedule is prepared for the dip unit from where dipped fabric is obtained which is used for calendering. the schedule for the green tyres for that shift is made. finished goods.56 - . which includes bead winding. Plies are made from calendered fabric that in turn is made by coating sides of the dipped fabric with rubber compound. braker. experimental tyres. Since the requirement of plies is in the form of cuts. outside mixing and scrap. plies. So a schedule for the 4-roll calender is made on the strength of the inventory of the calender roll. Certain plies have restriction with respect to the choice of bias cutter. Each of these components has to be scheduled separately. Other functions include communicating mould changes to production department. based on this. To prepare schedules the personnel of PPC department have to take the physical inventory of the work in progress and finished goods everyday for each component involved in the tyre manufacture. sidewall. generating reports on production. a schedule is made for the dual extruder. The plies are cut in horizontal or vertical bias cutters. stock of raw material.Organizational Study First the schedule for the finished tyres is made. Similarly the number of plies required for each shift in each category is arrived from the tyre-building schedule. Besides a schedule for 3 roll and 4 roll calender machines.e. tillering and flipping. Thus schedules for the bias cutters have to be made on the basis of bias option and priority of ply. The requirement of each component is directly related to the stock on hand. Here we can see that bottom up approach has been used in generating the schedule i. Tread and sidewall are extruded from the dual extruder. So depending on the no of tyres to be made. MSRCASC . Besides the PPC department has to maintain the RM inventory from the RM store. a conversion factor is used. Since the tyre building process requires assembly of large number of components namely: tread. chaffer and beads. This is done in 3-roll calender. A tyre requires different plies of different sizes and width. The schedules that are Department of MBA. squeegee. This is because whatever is made in step 1 is consumed in step2 and so on. The components with least inventory are given high priority on the basis of their requirement. The plies cut in the bias cutters also need to go through a process called squeegee application in which a thin layer of rubber compound is pressed against the inner surface of each ply.

Computerisation 4. Manager Assoc. The factors that are crucial to the success of the schedule are 1. Timely receipt of ticket The management requires vital information relating to mould and machine availability. Mould and Machine availability 2.57 - . Manager Assoc.Organizational Study prepared are given to various production departments for deciding the final layout of the machines for production.5. daily inventory of finished goods and green tyres etc CHART NO: 9 3.2 ORGANISATION STRUCTURE OF PRODUCTION PLANNING AND CONTROL DEPARTMENT Group Manager Assoc. shift wise production details (scheduled and actual). Accuracy of daily physical inventory 3. MSRCASC . Manager Executives Department of MBA.

1 MAIN SUBGROUPS OF TECHNICAL DEPARTMENT: Department of MBA. Technical coordination meetings take place once in every 3 months. 3.6.6 TECHNICAL DEPARTMENT The Technical department plays a very crucial role in the organisation. reducing tyre shape problems etc.Organizational Study TECHNICAL DEPARTMENT 3. It is basically an R&T (research and technology) department. MSRCASC .58 - . The Technical coordination committee will consist of members from marketing field also. Technical department is mainly concerned with improving quality of tyres by methods like reduction in curing cycles.

6.6. It also includes troubleshooting.6.1. replacement of damaged tyres. modification of existing design and comparing with competitor's designs.6. 3. Passenger Car Tyres. STU (state transport units).1.1. It involves developing products according to the requirements of the market. problems of the tyre.2 ORGANISATION STRUCTURE OF TECHNICAL DEPARTMENT Division Head Manager Manager Manager Assoc. CHART NO: 10 3. Manager Executives Executives . MSRCASC Executives Assoc.6. testing.1. 3.59 - Assoc.2 R&D GROUP It is concerned with compound development.4 PLANT TECHNOLOGY GROUP This group implements the technology required for producing tyres according to the needs of the market at the plant level.3 PRODUCT GROUP CONCEPT The main function is to find out the needs of the market.1 DESIGN GROUP The main functions are development of new design. LCV. and RM development.Organizational Study 3. Exports. The main market includes original equipments manufactures. tubes and flaps development. Manager . According to the marketing needs quality products are delivered by strict quality procedures. Design part is mainly concerned with mould design 3. Manager Department of MBA.

heat engineering and related matters and this department has close contacts with the production department.Organizational Study Technical Department looks after tyre engineering.60 - . MSRCASC . Department of MBA.

production. For international trade transaction ISO Certification has become inevitable.7 QUALITY ASSURANCE DEPARTMENT Quality is the totality of characteristic of an entity that bears on its ability to satisfy. MSRCASC . installation and servicing. Quality is referred to as 'fitness for use' or 'fitness for purpose' or 'customer satisfaction' or 'conformance to requirements'. development. ISO 9001 (1994) covers the quality system and model for QA in design. Department of MBA. ATL has got the privilege to have ISO 9001 Certification.Organizational Study QUALITY ASSURANCE DEPARTMENT 3. stated and implied needs. QA is the well-planned and systematic activities implemented within the quality system and demonstrated as needed to provide adequate confidence that an entity will fulfill requirements for quality.61 - .

fillers and chemicals. HOLD point is a point beyond which the activity must not proceed without the approval of the designated department 3. after mixing in the Banbury. after dipping. it will be marked as 'HOLD'. They divided the whole plant in to three divisions. 2. In order to prevent defect or undesirable deviation. For each process there is an audit form. MSRCASC .1. Physical laboratory All rubber compounds in process are tested in the laboratory on each stage i. 3.2 TYRE TESTING Department of MBA. One of the purposes of quality audit is to evaluate the need for improvement or corrective action.7.1 OTHER FUNCTIONS 3.e.1. If any deviation is there.Organizational Study ATL Perambra has a well-functioned QA department. It is a systematic and independent examination to determine whether quality activities and related results comply with planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve objectives. and in the cured stage etc. says Supervisor.. Audit should not be confused with inspection activities performed for the purpose of process control. 1. Quality audit is taken by quality Auditor.7.1 RAW MATERIAL TESTING Quality of all the raw materials received are tested in the laboratory consists of three different sections. then they will take corrective action to eliminate the causes of an existing non-conformity with the concerned people or department (technical). 3. Fabric laboratory The laboratory tests all fabric and steel wires received. and at all stage of the process i.62 - . after extrusion. Each division comes under a Quality Auditor. and calendering and after curing. after calendering.7. Chemical laboratory This laboratory carries out tests for all polymers.e.

Organizational Study

Samples of cured tyres are tested indoors on a test wheel. The wheel simulates the running condition of a tyre, primarily used to detect carcass strength and heat generation. Tyres are also fitted on different vehicles to study the effects of different types of roads, loads and climate conditions.

CHART NO: 11 3.7.2 ORGANISATION STRUCTURE OF QUALITY ASSURANCE DEPARTMENT

Manager Process control & Audit Laboratory

Assoc. Manager Quality Engg. Systems product testing

Assoc. manager

Executives

Executives

Executives

Executives

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Organizational Study

INDUSTRIAL ENGINEERING DEPARTMENT

3.8

INDUSTRIAL ENGINEERING DEPARTMENT
Group manager is the head of this department and there are associate manager

and executives under him. The main objective of this department is to plan, design, implement and manage integrated production and service delivery systems that assure productivity, quality, reliability, maintainability and cost control to keep Apollo globally competitive.

3.8.1

FUNCTIONS

1. Conduct work-studies, improvement studies in various equipment and fixation of norms.

Department of MBA, MSRCASC

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Organizational Study
2. Capacity calculation in various equipment from time to time consequent to various changes. 3. Design, Implementation and follow up of incentive schemes in various zones. 4. Planning and assessment of manpower requirements of various departments periodically. 5. Studying plant layout and material handling systems and suggesting improvements. 6. Explore the possibilities of capacity expansion and prepare project reports. 7. Negotiations with unions regarding various issues like incentive schemes, productivity, expansion and labour issues 8. Analysis of capital expenditure request from various departments and make recommendations to Senior Management Committee. 9. Prepare budgetary planning for capital and cash flow requirement. 10. Prepare documents for long-term settlements, bonus settlements etc. and represent the management in the meetings with the Unions /Labour Departments. 11. Visit other Industries for getting information regarding LTS methods, practices and other developments. 12. Conduct various training classes for workmen, supervisors, other officers and new recruits. 13. Apply various Industrial Engineering techniques such as job evaluation, O&M (Organisation & Methods) studies, Kaizen, Line Balancing etc.

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Organizational Study 14. lost time. MSRCASC . 17. 20. scrap details. 18. 15. NITTIE. Associate with professional bodies like Productivity Council. Evolve best practices and processes through global benchmarking in the context of global competitions and intense customer focus. overtime etc. and Institution of Engineers etc. absenteeism. 16. work in progress and finished goods. Conduct daily audit on manpower. productivity.66 - . CHART NO: 12 ORGANISATION STRUCTURE OF INDUSTRIAL ENGINEERING DEPARTMENT Group Manager Assoc. Continuous improvement of methods and equipments design compatible to the best ergonomic standards. Optimise inventory levels at various stages such as Engineering Stores. Suggest various cost reduction programmes and implementation. Permit various other management information reports to the top management. Manager Executives Department of MBA. 19.

Organizational Study Department of MBA.67 - . MSRCASC .

Mechanical and utility division. passing through an ion exchange matrix etc.1 DEMINERALISATION OF WATER The water pumped from Chalakudi River is demineralised by a series of operation like filtration. MSRCASC .9 ENGINEERING DEPARTMENT This department consists of Electrical. 3.1.68 - .9. power.9. This is done to remove dissolved oxygen and minerals. The main functions of this division include: 3. Department of MBA. water and compressed air.Organizational Study ENGINEERING DEPARTMENT 3.1 UTILITY DIVISION The Utility division is the source of steam. It is then stored in a storage tank.

In the case of break down maintenance. Here pre-checking and necessary actions are done in order to avoid the break down.1. The maintenance activities mainly include break down maintenance and preventive maintenance. A stand by generator is available to met the emergency. Sections which required chilled water are: TCU. so that it is possible to take necessary actions. 3. Preventive maintenance includes developmental activities. The capacity of each chiller 115TR.2 BOILER AND UTILITY There are 3 boilers running to fulfill the present demand of steam. Mill etc. Tyre building.2 ELECTRICAL WORK SHOP The main job of this department is electrical maintenance including electronic instrumentation.3 CHILLED WATER PLANT There are 4 chillers and the medium used is FREON. The steam generated has a pressure of 15. and medium pressure(MP).69 - .9. The main management hierarchy is given below. The capacity of two boilers is 10 TPH(Tonnes Per Hour) and 14 TPH. Total electricity consumption is 105000 units.9.Organizational Study 3. Spare keeping function also included under preventive maintenance. Banbury. 3. It is again divided into high pressure(HP).1. MP is used for Banbury.9. The Boilers are flat tube type and furnace oil is used as fuel. a maintenance slip is given from the respective department to this department including the date and the type of maintenance work required. low pressure(LP). Dual extruder. Department of MBA. and Bias cutter sections(90psi) and HP is bused for Tyre curing unit and post cure inflation unit (150psi).9. Total strength of this department is around 50. LP is used for instrument purpose (60psi). MSRCASC . The temperature of the chilled water 55°F.1.5 Kg/cm2 3.4 COMPRESSOR HOUSE There are total seven compressors. All these are passed through the dryers to remove any moisture content.

70 - . The design of a control circuit includes the following steps 1. 2. Thus the control variable at any given time can be represented by a string of 1's and 0's. 4. It is actually a computer system with out the monitor and keyboard. 3. MSRCASC . certain operations are to be initiated while all others remains idle. The purpose of the control unit is to initiate a series of sequential steps of micro operations. During any given time.Organizational Study There is a programmable logic array (PLL) circuit for controlling the production process. The problem is stated An initial equipment configurations is assumed An algorithm is formulated The data processor part is specified Department of MBA. with in which all control information is permanently stored. control unit and memory unit. It contains a processing unit. The control memory is assumed to be ROM.

9.71 - .Organizational Study CHART NO: 13 3. MSRCASC .3 ORGANISATION STRUCTURE OF ENGINEERING DEPARTMENT DIV. HEAD ENGINEERING GROUP MANAGER (ELECTRICAL & ELECTRONICS) GROUP MANAGER MECHANICAL GROUP MANAGER (INSTRUMENTATION) MANAGER UTILITIES MANAGER (PROJECTS & DESIGN/ CIVIL) Department of MBA.

MSRCASC .72 - .Organizational Study ACCOUNTING AND FINANCE DEPARTMENT Department of MBA.

your Company realigned its relationship with Michelin and exited from the Joint Venture Company “Michelin Apollo Tyres (P) Ltd. 3.73 - . before interest and depreciation. Operating profit. better working capital management.656.10. The Company recovered almost its entire investment in the JV through sale of its 49% stake back to Michelin. aggressive marketing and overall cost reduction measures adopted by the Company.1 CURRENT FINANCIAL POSITION Sales from operations during the financial year ended March 31. 3. as radialisation in commercial vehicle tyres segment in Indian markets had not reached anticipated levels. depreciation.63 crore during the previous year. 78.2 PRODUCTION Department of MBA.10 ACCOUNTING AND FINANCE DEPARTMENT The corporate office situated at Gurgaon does most of the accounting and taxation jobs of ATL. 21. recording a growth of approx. This re-alignment would enable the Company to utilise the available resources better towards other growth opportunities in short to medium term. as against Rs. amounted to Rs. after providing for interest.12 crore as against Rs.81 crore during the previous year. 67. At Perambra plant there is a separate accounting and finance department. tax and exceptional items amounted to Rs. wages and costing.13%. 2006 amounted to an all time high of Rs.64 crore during the previous year. During the year. 223.27%. registering an increase of approx. This department deals with salary. 184.”. Excise duty of the raw materials also comes under this department. MSRCASC .Organizational Study 3.92 crore as against Rs.17 crore.10. 2. The strong performance of Apollo is a combination of high growth in sales alongwith enhanced operations management.002. 3. Net profit.

in Crs 1998-99 1154. There will be no tax deduction at source on dividend payments. your Company has achieved 12. MSRCASC . shall be payable to the shareholders registered in the books of the Company and the beneficial owners as per details furnished by the depositories.12 2002-03 2003-04 2004-05 2005-06 120.10 2314.Net Profits Year Rs.8 3002.63 78.4 TURNOVER AND NET PROFITS TABLE NO:3 Apollo Tyres Ltd – Turnover Apollo Tyres Ltd. 4. As a result of successful implementation of expansion programme.10.42 67.24 lac MT in the previous year. The dividend.00 2001-02 42.70 2000-01 25. 3.75 1999-00 76.52 lac MT as against 2.10.02 70.17 Department of MBA.06 2000-01 1458.3 DIVIDEND Your directors recommend for your approval a dividend of Rs.08 1999-00 1368.Organizational Study During the year 2005-06. but your Company will have to pay tax on dividend @ 14.31 2656. the total capacity across the plants has increased to 704 MT/day from 628 MT/day. 3. determined with reference to the book closure from 23-8-2006 to 25-82006 (both days inclusive). in Crs Year Rs.42 2001-02 1710. inclusive of surcharge.74 - .50 per equity share for the financial year 2005-06.2% growth in production tonnage by recording production of 2.02 1998-99 31.025%. if approved.40 2002-03 2003-04 2004-05 2005-06 2025.

HEAD ASSO.5 ORGANISATION STRUCTURE OF ACCOUNTS AND FINANCE DEPARTMENT DIV.Organizational Study CHART NO: 14 3.10.75 - . MSRCASC .KOCHI MANAGER (EXCISE) MANAGER (SECRETARIAL) EXECUTIVES EXECUTIVES EXECUTIVES EXECUTIVES EXECUTIVES Department of MBA. MANAGER (A/Cs & FINANCE) MANAGER AFD. MANAGER (COSTING) ASSO.

Organizational Study SYSTEMS DEPARTMENT Department of MBA. MSRCASC .76 - .

11. SAP was founded in 1972 by 5 people Wellen Reuthor. The simple structure of department facilitates speedy communication 3.11 SYSTEMS DEPARTMENT The system department is responsible for computerisation of different departments of ATL. Plattner & Tchira . Department of MBA. MSRCASC . Hopp. The bandwidth capacity of the leased line is 2Mbps by using OFC. 3.Organizational Study 3. The main function of this department. weekly and monthly for providing reliability in the SAP system. Haryana). operates and co ordinates all systems in the organization.2 MONITORING FUNCTION Security problems in the SAP were solved using Central Virus Scanning System and Firewall at the head office (Gurgaon. IBM is the implementation partner.11. 3. There are around 250 computers and 100 printers were placed in different departments. Regular backups were taken daily.3 MAINTENANCE FUNCTION The system department in the plant solved network problems as well as computer problems. Hector.77 - . HCL is the service provider of Apollo Tyres. SAP was installed in Perambra Plant in the year 2004. spread over the world geographically. which are connected to a Central Server in the Head-office (Gurgaon.1 SAP R/3 The third generation set of highly integrated software modules that perform common business function based on multi-national leading practices. HCL solve all the problems related to the network connection. Takes care of any enterprise however diverse it may be in operations.11. They provide VPN (Virtual Private Network) network through BSNL leased line. flow with in the department. Haryana).

Proper authentication was given to each department members using a user ID and a password. MSRCASC .4 ORGANISATION STRUCTURE OF SYSTEMS DEPARTMENT Division Head Executive Executive Department of MBA. .Organizational Study All the computers were connected using both point-to-point and star topology to form an Intranet inside the plant. CHART NO:15 3.11.78 - .

79 - . MSRCASC .Organizational Study MARKETING DEPARTMENT 3.12 MARKETING DEPARTMENT Department of MBA.

3.supreme.Amar anchor. 3.Traditional cars (Ambassador and Premier padmini) . There is no separate department for marketing in Kalamassery plant and in Perambra.12. The rest constitutes the personal transportation. Accent Ford ikon.80 - . To identify new segments.12. ADV(Animal Driven Vehicles) . 3. 3. To fix a reasonable price for the product. even taxis come under the commercial segment.2 SEGMENTATION ATL market segmentation is use based segmentation.BHIM and ADV plus Tubes 3. To carry out market research to collect information regarding price variations. Carry out promotional activities.Organizational Study Sustained growth of ATL in the recent period of time is the result of planned and focused marketing initiatives. 5.3 TYRES Amazer Quantum Tracto LCV Truck LCV . primarily cars driven for personal reasons. In fact. Krishak super andPower haul .Tata indigo. Fiat sienna. ATL has three corporate offices in Kerala (Cochin (Main office). Rider Mile star and Tropper .12. MSRCASC . . Marathon and Guard. which constitutes 90 per cent of the entire tyre market of India. export and analyzing the current market situations. Commercial constitutes light trucks. Cargo miller Cargo express. To satisfy customers by providing high quality products. and Calicut which does the market functions for company.Krishak.Hyundai Santro.4 TARGETING Department of MBA. 4. Trivandrum.12.Cargo Rib and Amar Amazer XL . ATL segregate the market as commercial and personal.Van (Mahindra Voyager and Toyota Qualis) .1 FUNCTIONS 1. heavy trucks and jeeps. 2.

12. This resulted in increase in goodwill and brand equity of ATL.81 - . 3. 3. they use a mix of media depending on the target group. Constant process is done at every stage of manufacture and the company performance. ATL advertise less for commercial vehicles because it is more face-to-face and interactive.8 ADVERTISING STRATEGY ATL use a mix of media for the target audience. Other promotional activities include printing of brochures.12. sponsoring of events and running various awareness campaigns. Department of MBA. For car radials.5 POSITIONING ATL has created an image in the minds of the customers regarding the quality of their product and its past performance. which are the rear tractor tyres. Launching of customer acquisition and retention programmes has helped in imparting knowledge to the dealers and enhancing dealer network.7 RETAILING Retail selling of ATL's products is through dealers. 3. Due to the increased competition and customer demand they also focus on radial tyres.12. 3. light truck commercial market and in the farm category. To produce truck/bus radials ATL and Michelin entered into a joint venture. ATL positions its products according to the product variety. MSRCASC .Organizational Study ATL mainly focus on truck segments (truck tyre market (replacement and OEMs).12.6 PRICING The price is fixed depending on the variation of the price of main raw materials and based on the market situations.

13 nos tyres were manufactured & sold. 3.250 dealers thus ensuring availability of the product through industry-leadingspread and depth across the country.33 Lakh nos 30.83 Lakh nos 48.82 - . which is twice the production achieved in 2001. Whereas in the year 2005 60.Organizational Study 3.86 lakh nos tyres were manufactured & traded. our end consumers through our 4. In 2001. The robust distribution network was further strengthened over the year by servicing our dealers through our 118 district offices and 12 distribution centres.58 Lakh nos 0 Mar 2005 29.68 Lakh nos 30. TABLE NO: 4 Product/s manufactured/traded Automobile Flaps Automobile Tubes Automobile Tyres Camel Black/Retreading Materials Scrap Mar 2001 16.54 Lakh nos 35.12.85 Lakh nos 32. every year the products manufactured and traded has increased tremendously.88 Lakh nos 0 Mar 2002 19.35 Lakh nos 36. Department of MBA.12.13 Lakh nos 0 0 0 0 0 Trend shows that.19 Lakh nos 53.9 TRENDS IN SALES QUANTITY (PRODUCTS) APOLLO TYRES LTD.67 Lakh nos 40.10DOMESTIC MARKETING The top line growth was registered on a foundation of taking the corporate journey of “Passion In Motion” into every aspect of our activities and operations to build greater customer satisfaction.37 Lakh nos 0 Mar 2004 28.25 Lakh nos 43.37 Lakh nos 0 Mar 2003 24. This is based on the principle that one delighted customer will be a customer for life and will also bring in ten more into the Apollo Tyres customer base. MSRCASC . 30.81 Lakh nos 60.

the ‘CNBC Autocar India Auto Awards’ and the ‘Business Today Knowledge Forum’. we launched the premium “Gold” range in the truck & bus segment that gave a clear product benefit proposition of greater mileage. our relationships with key automakers have become more collaborative and vibrant allowing us to conduct more profitable business with them and generate more replacement sales. On the service front. Interesting initiatives have also been undertaken in areas of communication and corporate properties by partnering in the ‘Apollo Tyres Top Gear Design Awards’. 162 tyre dealers across the country have been appointed to service tubeless passenger car tyres. ONGC ‘Oval’ and Tata Motors to market the range of Apollo Tyres through their networks. On the product front. 2006. a phone based facility to let our dealers have updates about critical aspects of their business is another industry first.Organizational Study While we continue to lead in the replacement market. Our expanding specialist network of ‘Apollo Pragati Kendras’ and ‘Apollo Tyre Worlds’ has been strengthened with the partnerships forged with Reliance Petroleum. our 3-day claim settlement regimen gained unprecedented appreciation from the end consumer. This Department of MBA. MSRCASC . The Acelere Wheelz range of high performance alloy wheels for passenger cars was expanded to offer the tyre dealer with an additional business stream while the car owner got a world-class product right here.83 - . further improving our reach and availability. The Acelere range of high performance passenger car tyres was expanded to cater to the latest cars being introduced in the country while the entire Hawkz range was also rolled out to cater to the growing popularity of sport utility vehicles (SUVs). This quest of your Company becoming a “tyres plus” marketer will continue through the years. These initiatives are in our quest to make your Company evolve into more than just a tyre maker and marketer by offering products and services that embellish the core tyre business through a one-stop-shop solution. your Company launched the ‘Apollo Acelere Tubeless Service Point’ whereunder till March 31. In our constant quest to innovate for greater customer delight. Apollo Mobile.

Organizational Study has helped positionyour Company’s brand as a leader and innovator among the decision makers in the automotive industry. among business partners and the end consumers. within the distribution network.84 - . MSRCASC . Department of MBA. The overall performance of delivering double digit growth while maintaining the premium position and price leadership is what gives your Company a unique leadership position in the industry.

0 4.85 - . STRENGTHS Department of MBA.1 SWOT ANALYSIS OF APOLLO TYRES LTD. MSRCASC .Organizational Study CHAPTER 4 4.

Organizational Study

 Continued Market Leadership in the dominant industry segment i.e. Truck / Bus tyres.  Global presence with acquisition of Dunlop Tyres International (Pty) Ltd in South Africa.  Robust Operation Center for managing IT operations across 140 Locations supported by ERP / Dealer Portal / Information Systems Security Control etc.  Presence in technology products in car radial segment.  Dynamic & Progressive Leadership.  Responsive to changes in market conditions and product profiles.  Product innovation and technical superiority.  Strong Brand recall in a price sensitive market.  Economies of transportation cost on account of closeness to natural rubber growing belt. 4.2 WEAKNESSES  No presence in two/three wheeler segment.  Declining profit margins due to raw material cost push. 4.3 OPPORTUNITIES  Continuous thrust in road infrastructure and construction of expressways & national highways. Creation of road infrastructure has given, and will increasingly give a tremendous fillip to road transportation in the coming years. Tyre industry will play an important role in this changing product mix of transport.  Leadership position in the commercial vehicle segment will enable the Company to leverage new and related business opportunities.  Access to global sources for raw materials at competitive prices due to economies of scale.  Steady growth in vehicle production in the immediate future leading to growing demand. Department of MBA, MSRCASC
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Organizational Study

4.4

THREATS  An increase in the flow of tyres from competitive sources like China.  Cheaper imports on account of import from countries which are signatories to Regional Trading Agreements (RTA’s).  With crude prices scaling upwards, pressure on raw material prices can be expected.  Continuous increase in the prices of natural rubber, which accounts for nearly one third of total raw material cost.

4.4.1

INTERNAL

 Rising cost of inputs  Tyre Industry is raw material intensive and a large share of raw materials and inputs are closely linked to the International crude oil prices. With crude prices scaling upwards during the current fiscal and with expected increases in the near future, upward pressure on raw material prices can be expected.  Price of natural rubber, which accounts for nearly one-third of total raw material cost has witnessed unexpected and unprecedented increase and the trend is likely to continue. 4.4.2 EXTERNAL

 Import of cheap truck radials in the Indian market from China and South-east Asian countries.  Development of cold process re-treading.  Integration with the global economy will necessitate lowering of import tariffs not only for raw materials but finished products, including tyres, as well. An increase in the inflow of tyres from cheaper and competitive sources like China can be expected.

Department of MBA, MSRCASC

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Organizational Study
 Increased thrust on Regional Trading Agreements (RTAs) will also facilitate cheaper imports into the country from countries that are signatories to the RTAs.  Higher transaction cost as prevailing in the country.

Department of MBA, MSRCASC

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1 FINDINGS Department of MBA.89 - . MSRCASC .Organizational Study CHAPTER 5 5.

 Workers health and safety are given prime importance.  Workers for the fear of loss of jobs resist modernization of plant  A fair wage system exists in ATL.90 - . Department of MBA.2 SUGGESTIONS  A bit more promotional activities could enhance building brand image.  Reaching better horizons by fostering new partnerships. 5. The management is sometimes forced to accept unreasonable demands made by the unions.  Trade unions play a vital role as bargaining agents.  Company should try to increase its market share in the radial tyre segment.  Their should be some classes or training arranged for better understanding of SAP.  Having strong position in truck and tractor segment.  More atomization should be done so as to reduce the number of workers.  Investment in R&D is meager.  Initiate major strategies towards empowering dealers.  Optimum utilization of workforce is not done.  Labour turnover is very low.Organizational Study  Industrial relations with local unions are fairly good and there is greater cooperation between management and employees.  A good coordination exists between different departments.  Increase production for increased profits. can explore passenger vehicle segment.  Employees are more or less satisfied. MSRCASC .

3 CONCLUSION Apollo Tyres Limited (ATL) is one of the leading tyre manufacturing companies and is slowly moving in the path of progress. It has strategic alliance with Michelin of France. this has enabled it to connect to a vast network of 140 centres by converting them into a single source data centre. industrial production and growth in vehicle demand. The demand and growth for the industry depends on primary as well as secondary factors. the dealer portal helps dealers to directly place their orders. The primary being the overall GDP growth. Apollo currently enjoys the largest market share in heavy.91 - . which is the key to its future growth.Organizational Study 5. commercial vehicles and light truck tyres. Apollo is quick in absorbing and adapting the latest technologies. Secondary factor like the infrastructure development. which is the No. The Apollo dealer network of over 4000 is the one of the largest in the country. Despite of all these challenges Apollo has done well in the past and with a booming economy and a focused and progressive leadership at the top. Apollo has also implemented APO (Advanced planner &optimize). Department of MBA. Soaring raw material prices with limited pricing flexibility impacted the profit margins of all the players. Apollo is UNSTOPPABLE. The year ahead still looks tough with no easing in raw material prices. check their financial statement and even sort out their claim status. as part of this SAP was implemented in the record time of 8 months. MSRCASC . prevailing interest rates and financing options.1 tyre company in the global market Company places a great deal of confidence on its excellent pool of HR. The industrial relation atmosphere was cordial and the focus is also on training at all levels including works men to new concepts of management in alignment with the overall corporate objectives.

MSRCASC .Organizational Study BIBLIOGRAPHY Department of MBA.92 - .

2005 – 2006 Annual Report of Apollo Tyres Ltd. MSRCASC .R.0 BIBLIOGRAPHY  Aswathappa K. 1999 Edition.apollotyres.com Department of MBA.  Prasanna Chandra Financial Management Theory and Practice Tata McGraw Hill publishers (2004)  C.93 - . N Production & Operations ManagementTata Mc Graw Hill Publishing Co. Human Resource & Personnel ManagementTata Mc Graw Hill Publishing Co. Ltd...Organizational Study 6. Ltd.2005 Company manual    WEBSITE www. Kothari Research Methodology Methods and Techniques New Age Publishers (2004) REPORTS Annual Report of Apollo Tyres Ltd. 2002 Edition. 2004.  Chary S.

MSRCASC .Organizational Study APPENDIX Department of MBA.94 - .

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