48774762-apollo-os

APOLLO TYRES LTD

CHAPTER - 1

INTRODUCTION

APOLLO TYRES LTD

INTRODUCTION

Apollo Tyres is one of the largest tyre manufacturing companies in India.

The company was incorporated in 1972 and commenced its production in

1977. It was the first company to receive ISO9001 accreditation in Indian tyre

industry.

The company can be traced back to the 70’s when hard-nosed MNC’s and

Indian tyre major dominated the tyre industry. Apollo set up its very first

manufacturing unit in Perambra, Kerala in 1977, with a very huge production capacity

of 185 tonnes. It was in 1982, that Apollo formulated and put into action a series of

pragmatic project generating policies that led towards a turn around. A dynamic new

management team under the leadership of Vice-Chairman and MD, Mr. Onkar S

Kanwar took over the helm of the company affairs. Objectives were redefined and

service aggressive market penetration and expense containment became order of the

day.

Apollo Tyres Ltd. is the leading Indian tyre manufacturing with annual

revenues of over US $ 1 billion. In fact it is the first Indian tyre company to reach this

milestone. In 2006, Apollo acquired Dunlop Tyres of South Africa. The company has

its operations in India, South Africa and Zimbabwe with a network of over 4,000

dealerships in India alone. Sometime in January, the company also announced its

plans to start its operations in Hungary.

My project at Apollo tyres ltd. Perambra in Thrissur is a humble effort to

understand and comprehend its organization. The project is intended to access and to

acquire the knowledge regarding the functional as well as the management aspect of

the firm.

OBJECTIVES OF THE STUDY

The organization study is to familiarize ourselves with the working of various

departments for a particular period, so that one can have an exposure to the practical

side.

The objectives include:

1. To understand the organizational structure of Apollo tyres

2. To understand the various key functional areas of the company

3. To get an idea about existing business operations at Apollo tyres

APOLLO TYRES LTD

4. To interact with managers at various levels of the organization hierarchy

5. To analyze the practical aspect in relation to the theoretical aspect of the

organization

6. To gain a clear picture about the challenges and activities faced by the

organization

7. To observe the work culture existing in the organization

8. To identify the strength and weakness of the organization

9. To analyse competition within the industry.

SCOPE OF THE STUDY

Apollo Tyres, Perambra has all those function areas such as production,

finance, personal, and marketing etc. The study is focused on the functioning of each

department of the organization giving emphasis to their working.

METHODOLOGY

To conduct the study, different methodologies have been adopted. The study

was undertaken by visiting the plant. Both Primary and Secondary data are used.

DATA COLLECTION

1. Primary Sources

o Direct interview with the department heads

o Discussion with the divisional heads

o Interaction with workers in the company

o Data collected by observing the function of the organization

2. Secondary Sources

Annual reports of the company

Department manuals

Periodicals, books, etc. published materials by the company

Internet websites (www.apollo.com, www.google.com)

APOLLO TYRES LTD

LIMITATIONS OF THE STUDY

The time period available for the study was limited

The study was conducted only during the day shift and hence the

working conditions of those employees working during the evening

and night shifts could not be examined

CHAPTERISATION

Chapter 1

Introduction – Objectives, Scope of the study, Methodology, Sources of data,

Limitation of the study, chapterisation

Chapter 2

Industry Profile – History of tyre industry – World scenario, Indian Scenario, State

Scenario, Global position of Apollo Tyres.

Chapter 3

Company Profile – Organisational goal, History of company, Company’s

vision, Company’s Mission, Objectives of company, corporate social responsibility,

Achievements, Banks of the company. Product Profile – Truck, Light commercial

vehicles, Passenger car radials, Farm. Market Profile – MRF, APOLLO TYRES, JK

industries, CEAT, GOODYEAR INDIA

Chapter 4

Organisational Structure – Organisational chart

Chapter 5

Analysis of functional departments

Chapter 6

SWOT Analysis – Company’s Strength, Weakness, Opportunities & Threats

are explained.

Chapter 7

Porter’s five force in Apollo

Chapter 8

Findings, conclusion & suggestions

Bibliography

Appendix

APOLLO TYRES LTD

CHAPTER – 2

INDUSTRY PROFILE

APOLLO TYRES LTD

WORLD SCENARIO

Worldwide, the automobile industry is the single largest consumer of natural

rubber in the form of auto tyres and tubes certain other parts and accessories. For

instance, Japan’s Bridgestone Corporation is the world’s third largest producer of

tyres. It consumes 3 lakh tones of natural rubber annually to produce 68 different

types of tyres. Italy’s Pirelli SpA consumes 120000 tonnes of natural rubber in the

production of tyres. Economic recession anywhere first hits this industry before any

other industry. Therefore, the world price of rubber goes through a cycle o few years

of busts with the state of world economy.

The engineers forecast that tomorrow’s tyres will have possibly have inflation

with gases, which is heavier than air to prevent inflation loss. The advent of computer

has revolutionized the tyre technology and tyre industry. The tyre industry was grown

to one of the largest industries in the world.

WORLD RUBBER & TYRE FORECASTS FOR 2011 & 2016

The world tyre industry is worth around US $ 70 billion. The industry is

marked by the presence of around half a dozen major players who together occupy to

70% of the world market share. The global demand is to rise 4% annually through

2011. World rubber consumption is forecast to increase 4.0 percent annually to 26.5

million metric tonnes in 2011. Gains will directly benefit from solid growth in world

motor vehicle production, as well as a strong global economy. Countries like the US,

China and Japan dominate global rubber consumption, and will continue to do so,

collectively accounting for more than half of the market in 2011. China has become

the leading consumer of rubber worldwide, following more than a decade of strong

growth in motor vehicle production and industrial goods manufacturing. The country

overtook Japan as the second largest rubber market in the late 1990’s and by 2001 had

essentially caught up with the US as the world’s leading consumer. While China will

continue to extend that lead, the US and Japan will remain leading markets

worldwide, because of their extensive motor vehicle and tyre industries.

APOLLO TYRES LTD

The strongest gains are forecast for China, though the double digit annual

gains that characterized China’s rubber market from 2001 to 2006 are forecast to slow

significantly as its domestic market matures and motor vehicle production decelerates.

The Chinese market will be sustained primarily by expanding demand for industrial

rubber products such as hoses, belts and gaskets, offsetting slower, though still solid,

growth for tyre rubber. Above average gains also are forecast for most of the

Asia/Pacific region, excluding Japan, which will benefit from strong economic growth

and rising motor vehicle production. In addition the growing tyre industries in these

nations will support demand for rubber. Among the major developed regions, the

large North American, West European and Japanese markets will all see gains below

the global average. Each of these regions will suffer from a weak outlook for the

regional motor vehicle industry and competition from nations with lower labour or

raw material costs.

MARKET SHARE OF VARIOUS COMPANIES

COMPANY MARKET SHARE (%)

Michelin 19.4

Bridgestone 19.4

Goodyear 16.6

Continental 7.1

Sumitomo 4.9

Pirelli 3.9

Yokohama 3.5

Kumho 1.7

Others 23.5

(Table No : 2.1)

The tyre industries were classified under three heads. The first generation

industries viz. Dunlop and Firestone (new Bombay Tyre International Ltd) were set

up in the last 30’s and early 40’s.The second generation companies came up in 60’s

are MRF Tyres, CEAT, Goodyear Tyres and Premier Tyres.

APOLLO TYRES LTD

The third generation companies that were set up in 70’s are JK Tyres,

Vikrant Tyres, Apollo Tyres and Modi Rubber. Ever since the first Indian company

Dunlop Rubber Company was incorporated in 1926 the tyre industry is growing

rapidly and today its turnover is 100000 million and earning an income of Rs. 1000

crore per annum for exports. The industry had a growth rate of 11% over last decade.

Indian tyre industry comprises 12 major companies, 13 minor ones and 34

minor plants manufacturing low technology products, such as small tyres, tubes and

flaps. There are top players in this field having 69% of market share.

MARKET SHARE OF LEADING TYRE COMPANIES

COMPANY MARKET SHARE (%)

MRF 21.2

JK Tyres 17.1

Apollo 16.2

CEAT 14.5

Dunlop 7.0

Goodyear 6.0

Others 18.0

(Table No 2.2)

Tyres are basically two types:

Cross ply

Radial

In cross ply tyres, nylon or rayon tyre cords are arranged diagonally across. In

radial tyres, polyester, nylon, fibre glass or steel cords are arranged perpendicular to

the circumstances.

Radial technology is an improvement over cross ply and radial tyres are priced

at (of 25-30%) premium. They are long lasting and have lower incidence of flats.

In domestic industry market demand for cross ply tyre is more because of

rough conditions and also it is cheaper than radial. India is still in the in the cross play

age when developed countries are into radial and tubeless tyres. The tyre industry in

India is predominantly dependent on natural rubber as against synthetic rubber.

Analysis by Experts reveals that the ratio of natural rubber usage to synthetic rubber is

80:20 in Indian tyre and 30:70 in worldwide.

APOLLO TYRES LTD

Indian tyre industry even though in its infant stage has been striving hard to

establish itself in the global market. There are threats from global players who enjoy

substantial economies of scale dominant market. The fortune of the tyre industry

depends on the agricultural and industrial performance of the economy. The

transportation needs tyres and vehicles. Hence, this is a very sensitive industry, which

has to adopt itself to a highly volatile environment.

INDIAN SCENARIO

The origin of the Indian Tyre Industry dates back to 1926 when Dunlop

Rubber Limited set up the first tyre company in West Bengal. MRF followed suit in

1946. Since then, the Indian tyre industry has grown rapidly.

Transportation industry and tyre industry go hand in hand as the two are

independent. Transportation industry has experienced 10% growth rate year after year

with an absolute level of 870 billion ton freight. With an extensive road network of

3.2 million km, road accounts for over 85% of all freight movement in India.

The Indian tyre industry is mainly dominated by the organized sector and

consists of four major players who together account for approximately 85% of the

industry’s turnover –Apollo Tyres Ltd., MRF Ltd. JK Tyre & Industries Ltd, and

CEAT Ltd. These companies have a presence in all the major segments of the tyre

industry – the replacement market, Original Equipment Manufacturers (OEMs) as

well as exports and consequently, offer the consumer a well diversified product mix.

There are many other companies, some in the unorganized sector and mostly smaller

in size, with a focus only on one or two categories of tyres, tubes and flaps primarily

for the replacement market.

Unlike the international tyre industry where passenger car radials dominate the

market, in the Indian industry commercial vehicle tyres take the lead and account for

approximately 70% of the industry’s turnover. As a result, the growth of the entire

tyre industry depends on primary factors like agricultural growth, overall GDP

growth, industrial production, growth in vehicle demand and secondary factors like

infrastructural development, prevailing interest rates and financing options. For the

last 10 years, Apollo Tyres has maintained its leadership position in the commercial

vehicle tyres segment.

Although the automotive sector in India saw negative growth in the medium

and heavy commercial vehicle segments, this downward trend was in contrast to the

APOLLO TYRES LTD

strong demand witnessed by the tyre industry. Led by replacement market growth of

over 10%, the tyre industry registered a high single digit growth. The tyre industry is

highly raw material intensive and a major consumer of rubber. With raw material

costs accounting for 70 % of the cost of production, any change in the price of rubber

or the crude basket has a direct impact on the cost of production. The comparatively

stable raw material prices in the first half of FY 2007-08, coupled with price increases

undertaken by the industry in FY 2006-07, resulted in all the major players reporting

improved operating profit margins. This was after tour consecutive years of raw

material cost-push, both for natural rubber and crude oil- linked raw material basket.

The second half of FY 2007-08 again saw an upward trend for all major raw

material prices and the same is anticipated for the year ahead. As a result, margins are

once again under pressure, even while the demand-supply situation continues to be in

favour of the industry.

Salient features of Indian tyre industry

Adaptability and absorption

Exports

Innovation

Indigenous and ready availability

Technology progression

Wide product range for diverse use

Self sufficiency and vibrant marketing setup

INDIAN TYRE INDUSTRY HIGHLIGHTS

The Indian tyre industry is a 9000 crore industry

The fortune of this industry depends on agricultural and industrial

performance of the economy, the transportation needs and the production of

vehicles

The tyre industry is mainly dominated by the organized sector, the

unorganized sector holds away in the bicycle tyres

The ratio of natural rubber content to synthetic rubber content is 80:20, in

Indian tyres the ratio of natural rubber to synthetic rubber is 30:70.

DEMAND AND SUPPLY FACTORS

APOLLO TYRES LTD

The drivers of demand in the Tyre industry are

Industrial and freight activities

Personal purchasing power

Economic activity

APOLLO (in the Indian scenario)

Apollo Tyres Ltd. is the leading Indian tyre manufacturer, with annual

revenues of over US$ 1.2 billion (2007-08). It was founded in 1975. Its first plant was

commissioned in Perambra in Kerala state. In 2006 the company acquired Dunlop

Tyres International of South Africa. The company now has four manufacturing units

in India, two in South Africa and two in Zimbabwe. It has a network of over 4000

dealerships in India, of which over 2500 are exclusive outlets. In South Africa, it has

over 900 dealerships, of which 190 are Dunlop Accredited Dealers. In early 2008, the

company announced plans to open a manufacturing plant in Hungary.

Apollo Tyres Ltd.” has been a pioneer in the implementation of “Six

Sigma” among all the tyre companies in India, and is in the list of top 15

manufacturers of the world in terms of Revenues.

120 sales, services and stock points

19 state offices

4000 + business partners

2100 + Apollo tyre world

190 + Apollo Radial world

160 + Tubeless service points

60 + Apollo Paragati Kendras

STATE SCENARIO

Apollo had secured Fifth place in the state of Kerala. In the state of Kerala

MRF has secured the first position with 30% o the market shares under its control.

This is followed by JK with 24% of the Kerala state shares. CEAT, Good Year follow

JK with 17 and 12% respectively. Apollo holds the fifth position with 10% of the

market shares in Kerala.

APOLLO TYRES LTD

CHAPTER 3

COMPANY PROFILE

ORGANIZATION GOAL

APOLLO TYRES LTD

‘You can’t stop the power of thought, nor can you stop the people behind it’.

HISTORY OF THE COMPANY

Named after the Greek Sun God, Apollo, the company Apollo Tyres has

created a niche for itself in the Indian tyre market. After three decades of consisted

growth, today it is the premier tyre manufacturing company of India.

“PEOPLE DELIVER INNOVATION

INNOVATIONS DELIVER SUCCESS

A FEW OF THE DIFFERENCES OUR PEOPLE MADE”

The history of the company dates back to the early 70’s. In 1972, license was

obtained by Mr. Mathew T Marattukalam, Jacob Thomas and his associates. The

company was taken over by Dr. Raunaq Singh and associates in 1974. It is one of the

flagships companies of Raunaq group. The plant is situated at Perambra 50kms north

of Cochin. Total area covered was 97 acres which was bought from the people who

stayed there at a cheaper rate. At the starting time the production capacity was 54

tonnes per day.

The Apollo Tyres Ltd. owned by Raunaq group of industries plays an

important role in the world tyre industry. The products include tyres, tubes and flaps

for all kinds of vehicles. The head office of the company is at New Delhi and the

registered office is at Cochin. The main marketing activities are concentrated in New

Delhi and 2400 exclusive dealers for Apollo cover the entire area of India.

During 1977 to 1981 the company was under a heavy loss. The capacity

utilization was only 40 to 50 percentages. The emphasis is given on growth, quality

and objectives were re-defined when Mr. Onkar. S Kanwar took over the company’s

affairs. Company began to earn profits and accumulated losses of 26 crores were

wiped out within a short span of time.

Their second plant was installed at Limda village at Baroda in Gujarat, which

started production 1991 having capacity of 6.5 lakh tyre per annum. This is the most

modern plant. The R&D centre is also functioning at this location.

The third plant at Kalamassery was taken over by Apollo Tyres from Premier

Tyres. While taking over this plant, it was a sick unit. After the take over Apollo spent

APOLLO TYRES LTD

a large amount in modernizing the plant and now it is a profit earning unit. The fourth

plant was commissioned in 1996 at Pune for manufacturing tubes. The entire

requirement of tubes for all plants of Apollo is done from here.

In truck tyres it has more than 30 percentage market share. The brand XT7

became the largest selling truck tyre in the country. The vision of the company is to

be a leader in the Indian tyre industry and a significant global player.

APOLLO TYRES PERAMBRA

YEAR OF

INCEPTION

1976

LAND AREA 97 ACRES

BUILDING AREA 69,500 SQ.MTS

PRESENT

CAPACITY

300 MT/DAY

PRODUCT

RANGE

Truck,

LCV,

Rear

Tractor,

Farm

Radial,

Passenger

& ADV

Tyres

(Table no 3.1)

APOLLO TYRES OUTLOOK

Business Activity: Manufacturers and sale of tyres

Allied Businesses: Tread rubber for commercial vehicle tyres and distribution of

alloy wheels for passenger cars.

AcelereWheelz: Premium alloy wheels, first from a tyre company in India.

Apollo Dura Treads: India’s best pre-cured tread rubber.

Apollo Dura Tyre: India’s first branded re-treaded tyre, dedicated retreading plant

which is launched in May 2007.

APOLLO TYRES LTD

South Africa: Distribution of Cooper Tyres and steel wheels for commercial

vehicles.

Financial Year: April 1 to March 31

India Net Sales Turnover FY 2005-06: Rs. 26.3 billion (22.3) or US$ 503 million

(495), Rs 15.2 billion or US$ 332 million.

South Africa CY 2005: Rand 1339 million or US$ 210 million, Rand 792 million or

US$ 117 million.

No. of employees: 10000+

Corporate Headquarters: Apollo House, 7 Institutional Areas, Sector 32, Gurgaon,

Haryana122001, India. Phone: +91-124-2383002 to 10. Fax: +91- 124-2383021/ 17

South Africa Office: 265 Sydney Road, Durban 4001, KwaZulu Natal, South Africa

The Registered Office: 6th Floor, Cherupushpam Building, Shanmugham Road,

Cochin, Kerala 682031, India. Phone: +91- 484-2381902, 2381903

Manufacturing Facilities: Three (India), Two (South Africa), One (Zimbabwe)

Product Range: Truck, Bus, Light Truck Radial and Cross- Ply, Passenger Car

Radial, Farm Radial and Cross- Ply, Off- The –Road, Earthmover Industrial

Overall Capacity: 314000 tonnes/ year

Key Brands: Apollo, Dunlop, India Tyres, Kaizen, Regal Tyres

Other Brands Manufactured: Novex, Master Steel, Milestone, TYfoon, and

Velocity.

APOLLO TYRES LTD-PERAMBRA PLANT IN FOCUS

ATL Perambra Unit is the mother plant of Apollo family

It is the single largest truck tyre plant in India

Fastest growing plant in Apollo Family

7th fastest growing tyre company in the world

First tyre company to obtain ISO 9001 certification

Present production capacity of 307 MT/ day

It has nearly 2700 employees

Four different trade unions

Growth of the Organization

APOLLO TYRES LTD

Apollo Tyres Ltd. have 4 manufacturing plants in India is having a market all

over the country. Indian passenger car radial tyres have also been gaining acceptance

in the developed markets. India is leveraging its cost competitiveness to emerge as a

major player in the segment of industrial tyres.

Head Quarter : Gurgaon

Plants : Baroda, Cochin (2), Pune

Zonal Offices : Bangalore, Kolkata, Delhi, Jaipur

& Mumbai

Redistribution centre : Baroda, Coimbatore, Delhi, Ichapuram,

Indore,Jaipur,Hubs in Kolkotha,

Guahati and Patna.

However, the large and growing domestic market has meant that the export

portfolio has always contributed a smaller portion of revenues. This is more so given

that realizations are better in the domestic market.

In recent years, exports have been a growth area for Apollo Tyres, even

though it comprises only 8% of overall revenue. Products exported primarily include

truck bias, light truck bias and passenger car radial.

The key export markets include South America, Africa, Middle East and

South East Asia. Inroads are now being made into Europe and Australia with high

performance passenger car radial tyres. Apollo tyres recently acquired Dunlop tyres

South Africa and started its operation over there.

DREAM OF APOLLO

To become a 9000 crore company by the year 2010

COMPANY VISION

“A significant player in the global tyre industry and a brand of choice

providing customer delight and continuously enhancing stakeholder value”

COMPANY MISSION

“To become a USD 2010 million company by the year 2010”

“To create the first Indian Singles Grand Slam Champion by the year 2018”

OBJECTIVES OF THE COMPANY

APOLLO TYRES LTD

High volume, high market share, cost effectiveness in all segments.

High quality, technically superior products.

Consistent production through harmonious industrial relations.

Achievements of customer delight through benchmarking global practices.

Strengthen supply chain management.

Revenue growth.

Operating margin improvements.

Employee satisfaction.

HUMAN CAPITAL

Labour No. of people

Management staff 213

Permanent staff 1924

Workmen trainees 113

Contract workmen 453

Total 2703

(Table no: 3.2)

GOAL OF APOLLO

Learning and Development

Employee safety

Family Focus

Hygienic Factor

Employee Involvement and Cultural Building

Employee satisfaction

Customer delight

Revenue growth

Operating margin requirements

QUALITY PLEDGE

APOLLO TYRES LTD

“We the people of Apollo Tyres Ltd will create an enterprise committed to

quality. It is our policy to design, manufacture and services our products to provide

the level of quality and valve that meet every customer’s need.

We will aim to generate customer enthusiasm through continuous improvement in our

products and services”.

APOLLO ONE FAMILY

Arts Day

Sports Day

Factory Day

Safety Day

Onam Celebration

Summer Camps

APOLLO -A RESPONSIBLE CORPORATE

Indirect -5000 persons

Direct -2703 persons (1500 are locals)

PLANTS IN INDIA

Sl.No PLANTS

1 APOLLOTYRESLTD, PERAMBRA

KERALA

2 APOLLO TYRES LTD ,

KALAMASSERY, KERALA

3 APOLLO TYRES LTD , BARODA

GUJARAT

4 APOLLO TYRES LTD, PUNE

MAHARASTRA

5 APOLLO TYRES LTD, CHENNAI

TAMIL NADU

(Table no 3.3)

PLANTS ABROAD

APOLLO TYRES LTD

Sl.No PLANTS

1 APOLLO TYRES ,

BULAWAYA,

ZIMBABWE

2 APOLLO TYRES,

LADYMITH SOUTH

AFRICA

3 APOLLO TYRES,

DURBAN SOUTH

AFRICA

(Table no 3.4)

GLOBAL POSITION OF APOLLO TYRES LTD

YEAR POSITION

2004 17

2005 16

2006 15

2007 14

2008 14

(Table no 3.5)

APOLLO’S CORPORATE SOCIAL RESPONSIBILITY

By giving back to society in every way possible, one builds synergies with the

core business, leading to a sustainable effort. Apollo Tyres believe true sustainability

is only ensured by the positive impact of business practices. The company has

invested in efforts to build awareness about AIDS and has undertaken to bring

solutions to the problems of the community at large. Recognizing that an optimistic

and progressive environment not only enhances productivity, but also promotes a

feeling of well being, all around, our initiatives in Corporate Social Responsibility are

an integral part of the business activities and not outside them. The principles of

APOLLO TYRES LTD

sustainability are inherent in our vision statement focusing on ‘continuously

enhancing stakeholder value.’

CSR is recognized as a key strategy to manage the business and operational

challenges. The organization’s strategy is to build key partnerships and linkages to

optimize the existing resources in reaching out to more people. The organization is

conscious of the triple bottom line concept and is working towards putting advanced

and integrated management system on environment, health & safety and social aspect.

Being a people centric business, at the onset, Apollo Tyres undertook to bring

awareness and solutions to the problems effecting those members of the public that

are in closest contact with the company- the trucking community. From then on, the

CSR activities have expanded to include women, children and the disadvantaged, in

collaboration with NGO’s and other external agencies.

The current and planned CSR programs are primarily focusing on health and

education, in broad alignment with Millennium Development Programs of UNDP. All

programs, except HIV-AIDS, are currently in the domestic market. As the

geographies of operations expand, CSR programs will be undertaken after due needs

assessment of the location. Some of the planned activities will require local NGO

support.

HIV-AIDS initiative is the biggest an most comprehensive programs at

Apollo. The organization recognizes it as a development and workplace issue

and has a detailed action plan covering key stakeholders. Apollo Tyres Health

Care Clinics (for customer’s i.e. truckers) have been established in and around

cities like Uttar Pradesh, TamilNadu, Maharashtra, Rajasthan, New Delhi, and

other large transportation hubs in India. Run by qualified doctors, counsellors,

pharmacists, and outreach workers, the Clinics focus on diagnosis and

treatment of sexually transmitted diseases, condom promotion and effective

communication to promote behavioural change- Workplace programs

(employee) in India and SA. Training and leveraging supply chain in taking

the message forward in line with Apollo Tyre’s commitment to capacity

building. Sample surveys were also carried out to record the knowledge,

attitude, behaviour and practices.

APOLLO TYRES LTD

Emergency Medical Services (EMS) around our manufacturing locations in

India.

Established highway rescue project in Gujarat and city EMS in

Vadodara

Plan to launch in Kerala.

Health Camps & Medical assistance in the villages surrounding the

manufacturing location generate awareness about deadly diseases like

HIV/AIDS, Malaria, TB, Chickengunia, etc. Health camps on HIV/AIDS, TB

and Malaria are panned for truckers in the Highway regions as well as in the

remote villages.

Provision of artificial limbs to war wounded soldiers.

Adult Literacy classes for villages.

Skill development for women in villages with a view to making them self

sustained members of the community. Tailoring classes are arranged on an

ongoing basis and an Anganwadi (crèche) was also provided to take care of

the children from economically underprivileged families.

Primary education in keeping with Millennium Development Goal in the

villages involved awarding scholarships to support bright students from

economically backward sections of society.

Maintenance of school building in the villages.

Provision of computers to the schools in the villages.

Provision of water tank for the village as well as laying a pipe line to bring

supply of drinking water for the 500 students of the Government Girls High

School, Kodakara, Perambra.

Opportunity of self employment / entrepreneurships to war wounded soldiers

resulting in revenue generation for them and the organization.

Customer promotion on safe drive environment

Conducting Safe Drive Campaign on the national expressways, which

included checking the tyres for damages or wear patterns to ensure that they

were safe for an expressway journey.

Customers were also given Safe Drive booklets.

20 such Safe Drive campaigns have already taken place across the country this

year. Twenty more are planned.

APOLLO TYRES LTD

Wind Energy project initiated six months back along with Suzlon, has enabled

tapping in to a 8 Megawatt Capacity of wind power, with an expected

generation of approximately 1.70 million units of power every year.

Technology Up gradation along with waste heat recovery has resulted in

approximately 39,000 CERs being granted by UNFCCC.

Dunlop, South Africa has launched the ‘War on Waste’ campaign, a company

–wide initiative to responsibly dispose all waste generated in factories and

offices, in an effective and environment friendly manner.

Steam energy to replace use of RLNG under an agreement with GAIL. The

project, based on Waste Heat Recovery System from GAIL’s Gas Turbines

exhaust, is conceived as a Clean Development Mechanism (CDM) project

under Kyoto Protocol. This initiative would enable Apollo Tyres to generate 4

MW of power and allow the two companies to save around 935 Million Kilo

Calories of energy in producing process steam, thereby also avoiding

formation of 55,000 tonnes of CO per 2 annum.

Activities are continuously redesigned and shaped to suit the dynamic

requirement of various programs. Some activities will need to be managed through

expert NGO’s. For the future, Apollo Tyres aims to further develop its alliances with

the business community, educational institutions, social organizations and community

gatherings to spread awareness and take action.

Infrastructural Facilities

Perambra Plant (Kochi)

Apollo Tyres’ first manufacturing unit located in Perambra in Kerala and

began its commercial production in 1977 with a capacity of 54 tonnes. Currently the

production capacity is 245 tonnes a day. It is manufacturing truck, LCV, tractor tyres.

The plant is having following certifications:

QS -9000: 1998,2004 certifications for Quality Management Systems

Registered with DGS&D and Defence (CQAV)

Registered with DOT (Department of Transportation, USA)

ECE Certification

In-Metro (Brazil) Certification

SASO (Saudi Arabia) Certification

ISO 9001 Certification

APOLLO TYRES LTD

Initial capacity of the Plant : 49 tonnes per day

Existing capacity of the Plant: 300 tonnes per day

Number of People :2416(including contract employees)

GOLDEN ACHIEVEMENTS OF THE COMPANY

Apollo Tyres Ltd. Perambra unit was ranked the first among large scale

industries for productivity and energy conservation in the year 2002-2003 by

Kerala state in year 2005 & 2007 at productivity council

Apollo Tyres received the pollution control award by the central government

during the year 2003-2004

Apollo tyres received the National Safety Council Award in the year 2005 &

2007

Apollo Tyres acquired the Energy Conservation Award in the year 2006

Apollo Tyres received the award for Road Safety in 2006

Apollo Tyres acquired the Quality Circle Award in 2006

First tyre company to get ISO 9001 CERTIIATION (Octo1 1995)

One of the few tyre manufacturers with QS 9000 certification (March 2001)

Consistently rated as excellent in quality audit by collaboration M/S

continental AG

Manufacturing facility and tyre testing laboratory certified by ‘Inmetro’ of

Brazil

BANKS OF THE COMPANY

State Bank of India

Bank of India

Bank of Baroda

Punjab National Bank

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

ICICI Bank Ltd

Union Bank of India

Apollo key differentiation to other firms

Superior product quality

Strong brand equity

APOLLO TYRES LTD

Committed marketing team

High consumer loyalty

Product segmentation in truck tyres

Benched marked for planning efficiency parameters

Power consumption

Quick response to market needs

Least scrap generation.

MILESTONES OF APOLLO TYRES

1972 The company's license was obtained by Mr Mathew T Marattukalam, Jacob Thomas and his associates.

1974 The company was taken over by Dr. Raunaq Singh and his associates.

1975April 13, Perambra Plant Foundation stone was laid down.

1976 Apollo Tyre Ltd. was registered.

1977Plant commissioned in Kerala with 49 TPD capacity.

1982Manufacturing of Passenger Car Radial Tyre in Kerala.

1991 The second plant commissioned in Baroda.1995 Acquired Premier Tyre Ltd. in Kerala.2000 Exclusive Radial capacity established at Baroda.2003 Radial Capacity expanded to 6600 tyre per day.

November 17, JointVenture with Michelin.

2004Launch of Apollo Acelere- 'H' Speed Rated Car Radials.

2005 April 13, Perambra Plant completes 30 Years.2006 January 30, Dunlop South Africa is acquired.2007 Launch Dura Tyre (Retarded Tyre) for the first time

in India2007 Launch Regal truck and bus radial tyres2007 Launch “Apollo Tennis Initiative & Mission 20182008 Announce public Greenfield plant to be ready by

2010 for the European markets2009 Announce the acquisition of VBBV Tyres ,

Netherlands (Table no 3.6)

PRODUCT PROFILE

TRUCK

APOLLO TYRES LTD

Overload Technology Loadstar Super Loadstar Super Hercules Loadstar Super Gold

Kaizen 50LLoad & Mileage Technology

XT 7 XT 7 Haulug XT7 Gold Amar Amar Deluxe Commando Kaizen 36L Kaisen 99 plus Kaisen 77R

Premium Mileage Technology

XT-9 XT9 Gold Amar Gold

Kaizen XTDMileage Technology Segment

Champion Champion DXL Champion Gold Amar AT Rib Kaizen 27L

( Table no 3.7)

LIGHT COMMERCIAL VEHICLES

Load and mileage Technology

Mile Star

Overload Technology Load Super StarPremium Mileage Technology

Amar Delux Amar Gold Rib XT9 XT9 Gold Duramile(radial)

Regular Mileage Champion (Table no 3.8)

PASSENGER CAR RADIALS

Tubeless Radial passenger Car

Acelere Amazer Lx

Tubeless Radial MUV & SUV

Hawks

APOLLO TYRES LTD

Tube Type Radials For Passenger Car

Amar Amazer XL Quantum

Tube Tyre Radial For MUV & SUV

Amar Amazer XL Storm Hawks

Passenger Car & Jeep Bias Armour Panther Gripper Maha Trooper

(Table no 3.9)FARM

Cultivation Krishak Super Sarpanch

Haulage Power HaulMultipurpose Farm King (Radial)

Krishak Premium (Bias)Tractor Trailer Type Dhruv

Hunter (Table no. 3.10)

MARKET PROFILE

1. MRF

MRF is the market leader among tyre manufactures in India, with a 24%

share in terms of revenues.

Its leadership position coupled with its strong brand recall and high quality, MRF

commands the price – maker status. MRF has a strong presence in the T & B segment,

the largest segment of the tyre industry, and commands around 19% market share in

the segment. It is the leader in the 2/3 wheeler segment (including motorcycles) and

tractor front tyres and holds second place in the passenger cars and tractor – rear tyres.

Exports accounts for around 12% of the gross sales in the MRF. The company has a

distribution network of 2500 outlets within India and exports within India and exports

to over 75 countries worldwide.

2. Apollo Tyres (ATL)

Apollo tyres is the second largest in the Indian tyre industry, with a market

share of 22% in terms of revenues, and largest player in the T & B segment, with

around 22% market share and 82% of its product

APOLLO TYRES LTD

mix coming from this segment. It also enjoys a strong brand recall. ATL derives 80%

of its revenues from the replacement market. ATL is a strong player in the domestic

market, with just 2% of sales coming from exports.

3. JK Industries

JK industries have a 17% market share, in terms of revenue making it the

third largest player in the industry. The company ranks first in the MHCV and

Passenger Car Tyre segments with 79% and 7% of its product mix coming from these

segments respectively. Exports account for approximately 17% of its gross sales.

4. CEAT

CEAT has a 14% market share in terms of revenue and is an average

player.68% of its product mix comes from MHCV segment. Its leading brands in the

T & B segment are Lug XL, Mile XL and Rub XL, Secure in two wheelers and

Formula – 1 in passenger radials. In terms of profitability, CEAT has lower margins

compared to its peers, in spite of deriving 60% of its revenues from the replacement

market.

5. Goodyear India

Goodyear India with its presence across the globe has a market share of 6% in

the Indian Tyre Industry in terms of revenues. It has a significant market share in the

tractor tyres segment, with 22% in tractor – front tyres and a 30% share in tractor –

rear tyres. It derives 45% of the product mix from the MHCV segment and 31% from

the tractor tyres segment.

APOLLO TYRES LTD

CHAPTER - 4

ORGANISATION STRUCTURE

APOLLO TYRES LTD

ORGANISATION STRUCTURE

Chart no: 4.1

APOLLO TYRES LTD

CHAPTER – 5

FUNCTIONAL DEPARTMENT

APOLLO TYRES LTD

1. PURCHASE DEPARTMENT

The main function of purchase department is to provide right material at right

time in right place at right quantity.

STRUCTURE OF PURCHASE DEPARTMENT

(Chart no 5.1)

This department is concerned with the purchase of both indigenous and

imported materials. It covers procurement of indigenous Engineering and

miscellaneous items other than raw materials. This department is headed by senior

manager and under him there are a number of officers and staff. The department is

provided with the latest communication facilities and computers.

The main items of purchase are:

Engineering spares

Consumables

Furnace oil

Diesel

Chemicals

Lubricants

Some raw materials

GROUP MANAGER

ASSO.MANAGER ASSO.MANAGER ASSO.MANAGER

EXECUTIVES EXECUTIVES EXECUTIVES

APOLLO TYRES LTD

The purchase may be corporate purchase or plant purchase. Under corporate

purchase the raw material is purchased after considering what the market require for

the month. Under plant purchase, purchase may be of stock item or of non stock item.

Stock items are purchased for regular use. They are having material codes.

They are purchased after considering the reordering level, reorder quantity, lead time

etc. For non stock items there is no regular purchase. Different departments have to

prepare purchase requisitions. The items purchased are engineering items, oils and

lubricants, local raw materials, import of spares etc.

Objectives:-

To ensure continuous availability of material.

Make purchase at most economic price.

Develop good supplier relation.

Ensure alternate source of supply

Ensure quality products to reduce wastage and material loss.

1. Purchase requisition is formed

What required

Where required

How much required

2. Vendor analysis based on

Quality

Price

Time of delivery

Purchase Process:-

1. Receiving purchases requirement.

2. Ensuring sources of supply and choosing suppliers.

3. Preparation and execution of purchase order.

4. Receiving and inspecting of materials.

5. Checking and passing of bill of payments.

APOLLO TYRES LTD

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. Vendors are generally identified as

1. Manufactures

2. Dealers

3. Firms offering various services

Manufactures are divided into two

1. OME(Original Equipment Manufacture

The OME shall be identified as a vendor for the supply of equipment, spares,

components etc.

2. OCM (Original Component Manufactures):

For all spares, components and consumables, 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. Information available on supplier’s manuals, catalogs,

details available on the nameplates of machines etc shall be used for the purpose.

The capital purchases and raw material purchase is done through centralised

purchasing i.e by the corporate office situated at New Delhi. Each item of the

engineering stores will have a serial number along with code number. They are

identified with that number.

The products to be purchased are automatically generated by the help of

computer and this process id called MRP (Material Requisition Plan).A reorder level

will be fixed for each and every item (spares) and whenever the stock is below the

reorder level the MRP will be run and the order is placed to the vendor (supplier).

The purchase order will be placed for the total quantity i. e if the stock is 10 and the

reorder level is 4, out of which 8 were taken to the plant then the order will be placed

for entire 10 items and not balance 8 items. At this stage the stock will be above the

actual stock i. e 12 as above situation.

When the goods for purchase are without product code then these items are

purchased when the required departments will have to place the order manually. The

purchase department will take decision on such purchase order by calling a meeting.

APOLLO TYRES LTD

And if the decision is taken regarding the order then a tender will be issued for the

purchase of goods. The lowest rate quoted will be fixed. The products so purchased

will have to be collected by respective departments manually from the factory gate

(other purchase items i. e items with product code will be unloaded at respective

departments).

On receipt of the goods the respective department will have to prepare a goods

receipt (GR) and should be send to purchase department.

PURCHASING RECORDS

Purchase Order Records Record pf all materials purchased

Vendor Records List of all vendors, their mailing address,

and other details.

Blueprint and

Specification Record

Drawing

Many items are purchased by blueprint

specification and are kept in separate files

with index showing their location and

where the copies have to be send.

Contract Files Certain goods may be bought under a term

contract. In such cases the purchase

department must maintain a record of such

contracts.

Table no 5.1

APOLLO TYRES LTD

2. STORES

FLOW OF AUTHORITY

RANK DESIGNATION DUTY TO BE PERFORMED

1 Manager Managerial functions

2 Associate Manager

Stores

Coordinate all activities of various

stores like RMS, FGS AND EMS.

Coordinate with transporters supply

chain management of Delhi depot,

excise and OE customers.

3 Sr. Officer stores Despatch and receipts of in and out

various materials.

4 Jr. Officer Receipts and related documentation

of incoming materials

5 Jr. Officer Despatch documentation and

account keeping

Table no 5.2 RAW MATERIAL STORES

Process:-Receipt handling, stores, packaging, forwarding and delivery of material

to internal and external customers with proper documentation to meet their

requirements.

Purpose:-To supply right material in right time to produce right quality product

without any interruption.

Scope:-Receipt, handling, storage and issue of raw materials and to the customer.

SIPOC

S – Supplier = Corporate purchase.

I – Input = Raw materials.

P – Process = Receipt handling, storage, preservation & issue of raw materials.

O – Output = Confirming RM receipt, storage & delivery.

C – Customer = Manufacturing, mixing centres other unit of ATL & internal customers.

APOLLO TYRES LTD

RAW MATERIAL HANDLING PROCESS

1. Verification of documents at security gate – The security officers will check the

various documents like

Serial number

Suppliers name

Description of item

Truck registration number

Date and time of arrival

Date and time of departure

2. Weightment of the truck is taken after passing the gate. A computerized

weighment machine is maintained.

3. Verification of documents at the Raw Materials Stores – Various documents

submitted at RMS will be examined and verified, which includes delivery Chelan,

sales tax papers, excise papers, packing list, duplicate copy for transporters of

invoice for availing modvat credit.

4. Testing – The various raw materials are tested at the lab and only then the raw

materials will be unloaded on the plant store or in the tanks.

5. Handling and storage – All materials except materials in tankers will be unloaded

manually. Caged pallets or platform pallets are use for storing of raw materials.

Each caged pallet will carry a maximum of 1500kg of materials. Those items in

the tankers will be directly unloaded to respective tanks.

6. Preservation – The various raw materials are preserved as follows:

Carbon black and chemical are stored in 2nd floor.

Natural rubber, wax etc stored in 1st floor.

Fabric, bead wire, latex etc stored in ground floor.

Materials received in tankers will be pumped in storage tanks.

7. Rejection – If the items are tested are displayed with a rejected tag by the

technical department then if the item is small quantity then it will be kept in

rejection area and if the quantity is large it will be kept in the same area till the

disposal.

APOLLO TYRES LTD

VARIOUS RAW MATERIAL USED IN THE MANUFACTURE

OF TYRES

POLYMERS – Natural rubber, synthetic rubber, carbon black, reinforcing

clays

Fillers

Curing agent

Process oil

Curing agents / sculpture

Accelerators / activators

Antioxidants / antiozonents (waxes)

Ret ardors

Pepticers for natural rubber mastication

Ret order

Bead wire

Fabrics

spools

Solvent for cement and solutions

Miscellaneous items like paints, colour, crayon, scrap flakes etc.

Procedure for handling outside mixing operations

Purpose: To define a procedure for identifying sources of executing contracts,

arranging for transportation

and maintenance of records.

Scope: All operation regarding outside mixing to be carried out by stores department

are consolidated in the Procedure.

Responsibility: Head of the Department.

Resources: Mixing Centres, Stores Departments, Technical production planning

control and production.

RECEIPT OF RAW MATERIALS

APOLLO TYRES LTD

VERIFICATION OF DOCUMENTS AT SECURITY GATE

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. Serial no, suppliers name, description of item, Challan

quantity, challan quantity, challan no and date or LR no and date, truck reg no, date

and time arrival, date and time departure.

WEIGHMENT (BY THE COMPUTERISED WEIGH BRIDGE)

Security shall inform raw material stores about the arrival of the vehicles at

the gate. The security guard and a representative from RMS shall record weighment

of truck jointly. The weighment slip shall indicate the following:

Serial no, time and date of receipt, suppliers name, gross weight with

materials, SIR no and date. After recording the above details in the computerised

weighting balance the vehicles shall be directed to the respective unloading bay. 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.

Both security and RMS personnel shall sign on the computerised weighment

slip. 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.

VERIFICATION OF DOCUMENTS AT RMS

The receipt in charge shall verify the documents to ascertain the no of

packages, description of material code and weight of the material. If any discrepancy

is found the same shall be orally reported to the officer concerned before unloading.

He in turn will take decision suitably. The dispatch documents include: Delivery

challan/ invoice, sales tax papers, packing list and duplicate copy for transporters of

invoice for availing MODVAT credit. In case of non receipt of any of the above

documents the consignment will not be unloaded unless and otherwise instructed by

the competent authorised after compliance of all conditions stated above, the materials

will be unloaded as instructed by the receipt in charge and lead to the respective area.

APOLLO TYRES LTD

HANDLING 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 in charge.

Caged pallets or platform pallets are used for storing of materials so far as possible to

facilitate easy handling at the time of issue. Each caged pallets will carry a maximum

of 1500 kg of materials. Caged pallets will be stacked one over the other.

PRESERVATION

Carbon black and chemicals are stored in the 2nd floor, natural rubber/ SBR,

wax etc in the 1st floor and fabrics, bead wire, latex etc in the ground floor. In case of

space constrains in the respective floors, the respective floors, the materials may be

kept in the ground floor and other places as directed by the storage in charge.

Materials received in tankers, after checking the seal and dip reading and sample test

by QA will be directly pumped into the storage tank. Before unloading the receipt in

charge will make sure the availability in the storage tank.

Rejection items are identified by displaying a rejection tag by technical

department. In case of rejection of voluminous quantities the materials are kept in

respective areas till disposal, while small quantities will be removed and stored in the

rejection area duly displayed with the rejection tag.

ENGINEERING STORES DEPARTMENT

Engineering goods stores is responsible for storing the necessary spare parts,

components required for smooth functioning of the plant. On receipt of indent from

production department, the engineering stores arrange for its release. The inventory

management technique used is VED Analysis. Almost all the activities of this

department are computerized. The purchase department is initiated whenever reorder

level is reached. A buffer stock is always maintained in the store. Another system

followed in the engineering stores is VMI – Vendor Maintain Inventory. In this the

vendor supply the raw material in large quantities and payment is made only for

consumed items.

The engineering store keeps record and stock of engineering materials and

consumables. The actual stock and item list are maintained by the computer. The

APOLLO TYRES LTD

various types of items in the engineering store are tools, glows, mask etc which are

required for the work to progress.

A reorder level is maintained for each item and when the stock is either equal

or less than the re order level the computer will automatically place the purchase order

by running the MRP (material requisition program).The purchase department will see

to it and place s the order to the regular suppliers. If new suppliers enter the market

the best quoted price will be taken. The materials to the engineering department will

be sealed by the security at the gate and the actual stock and order will be verified. If

the materials received is correct the goods received receipt is prepared and sent to the

purchase department. If there is any shortage then it is also informed to the purchase

department.

ENGINEERING MATERIALS

The total number of item codes in engineering stores is 38500 approximately,

out of which 23500 are spares and 15000 are consumables.

1. Consumables (General stores items)

Consumables (General stores items) are standard engineering items (bearing,

belt etc). It is decided to identify common codification scheme for all consumable

items. All the items shall be brought under this codification scheme.

2. Spares

Spares are parts of equipments. Equipments are varying from plant to plant by

make and model. It is decided to

Identify common equipment by same make and model.

Assign uniform code to equipment make and model wise, which is common

across plants.

Assign representative plant spares with code of equipment.

In general the item code for consumables will be common across all

plants and item codes for spares will be plant specific with respect to common

equipment code. Material classification in SAP will be used to trace the spares to

common machines. Material master codification will follow the external numbering

FINISHED GOODS STORES

APOLLO TYRES LTD

Finished goods stores (FGS) is the place where the final goods are stored from

where these are taken away from the plant. All finished goods after final inspections

are kept at the transferring area in each shift. The staff of final finishing will prepare a

finished goods transfer note in triplicate which will be countersigned by the staff of

FGS/ TTF. After verification finished goods transfer note will be serially numbered

and have the following details.

Material code

Description

Quantity

The original copy of the transfer note will be issued to central excise wing

after entering the details in stock statement, duplicate will be given back to the

production as their file copy and triplicate will be issued the production planning.

One staff each from production and FGS/ TTF will separately verify quantity, size,

ply rating

Removal:

The finished goods required for dispatch kept at the transferring area, after

preparing the transferring notes, will be removed to the loading bay and balance will

be removed to stores for storage, after completing packing for required item.

The various processes to be performed for handling, preservation and storage are

listed below:

a) Application for Non – OR (Non Original Equipment)

Finished goods stores is fully covered and protected from sunlight and rain water.

Tyres are rolled from transferring area to the stores and stored on size wise. Each

stack with maximum of ten for truck tyres, 8 for RT and 12 for LT/passenger.

All tubes are packed in HDPE bags and bought to the storage area directly by tube

production.

Flaps are bundled and transferred using trolley.

All seconds tyres stored in FGS are identified using a white band and tyre using a red

band.

A stock statement is made as on the closing of the day. This is made based on the

receipt and despatch.

After preparing the stock statement the finished goods transfer note is transferred over

to factory excise wing for recording and filling.

APOLLO TYRES LTD

b) Application for OE (Original Equipment)

Truck OE tyre if not despatched within 24 hrs should be stacked in the warehouse.

Bottom most tyre will be stacked with tube value facing upwards and for others with

tube value facing downwards (same practice is followed while loading the tyre in

truck also).

FIFO system is followed

Truck inspection is carried out before loading the tyres.

In case of higher inventory levels it is not possible to store all the tyres in the godown,

temporary sheds will be restored for storing those tyres.

Stock levels of FGS are controlled by supply chain management at head office level.

DISTRIBUTION OF FINISHED GOODS

Main responsibility is for the head of department.

Supply chain management department give the despatch schedule day to day basis.

Destination to which trucks are required is arranged day in advance.

Load slips are prepared as per the plan made.

Stores men will keep the loads as per the load slips at the loading bag.

Staff of FGS, security and representative of transported will check the loads.

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.

The lorries will be inspected for cleanliness of the platform to ensure that there are no

items which will damage or dirty the tyres. All trucks are despatched to outstation are

covered using tarpaulin and tied safely before leaving the factory premises

Despatch documentation is made.

Sales tax, road permit are handed over to the transporters.

Invoice distribution

a) Original – Buyers

b) Duplicate – Transporter

c) Triplicate – Assesse

d) Quatriplicate – Extra copy

List of serial number of tyres being despatched will be provided when ever necessary.

All documents required for transportation are prepared and handed over to the

transporters after getting paper acknowledgement and lorry receipt from him.

APOLLO TYRES LTD

All finished goods after final inspection are kept at the transferring area in each shift.

The staff of final finishing will prepare a finished goods transfer note in triplicate

which will be countersigned by the staff of FSG. After verification finished goods

transfer note will be serially numbered and have the following details:

Receipt

Material Code

Description

Quantity

Removal

The original copy of the transfer note will be issued to central excise wing

after entering the details in stock statement, duplicate will be given back to production

as their file copy and triplicate will be issued to production planning. One staff each

from production and FSG will separately verify the quantity, size, ply rating of the

finished goods and compare against the entry in the transfer note.

The finished goods required for dispatch kept at the transferring area, after

preparing the transferring notes, will be removed to the loading bay and balance will

be removed to stores for storage, after completing packing for required items.

3. HUMAN RESORCE DEPARTMENT

APOLLO TYRES LTD

Human Resource and Administration department is one, which facilitates

smooth working of the organisation by looking into the human resource side

and also the overall administration of organisation.

HR department is divided into three sections namely Industrial and

Personal Relations, Security and Administration. Heads of each section are in

direct contact with the department head. Among the three sections Industrial

Relations is the biggest section having four subsections looking into Personnel

and Industrial Relations, Employees Arrival and Departure, Time , Health and

Safety.

VISION OF HR DEPARTMENT

Our HR vision is to be a strategic partner to the business and create

value for the organisation by developing the human capital.

MISSION OF HR DEPARTMENT

To create HR policies and process which are employee friendly.

To built a culture which is warm forthcoming and professional with a

sense of ownership and pride.

To encourage innovate thinking.

To encourage transparency and teamwork.

To develop leaders at all levels with general marketing skills.

To create a learning organisation.

To develop competencies and skills through training and development.

To constantly raise levels of employee productivity.

To create HR brand.

To work towards a attaining and sustaining the best the best employer

status.

APOLLO TYRES LTD

STRUCTURE OF HR DEPARTMANT

Chart no 5.2

The major functions of HR Department1. Recruitment.

2. Selection.

3. Training.

4. Industrial Relations.

5. Welfare.

6. Time office.

7. Security and Safety.

1. RECRUITMENT

HAED – HR & ADMINISTRATION

MANAGER - HR

ASSOCIATE MANAGER

ASSOCIATEMANAGER

ASSOCIATEMANAGER

EXECUTIVEEXECUTIVE

GROUP MANAGER-HR

EXECUTIVE

MANAGER ADMINISTRATION

EXECUTIVE

EXECUTIVE

EXECUTIVE

APOLLO TYRES LTD

Recruitment is done through advertisement and a good opportunity is

given to the child of worker. This increases family loyalty towards the

company. They are call for the interview and the Chief executive takes the

final decision.

2.SELECTION

a. Management staff.

Technical – B. Tech, Graduate Engineer trainee.

Non technical – CA/ICWA/MSW/MBA/MA (PM): Executive Trainee.

After training, they are absorbed as officer.

Criteria include. Consistency in academic performance.

Group discussion.

Personal interview.

b. Employee children skill development scheme.

Three year production apprentice.

One year training in production.

Dependant of employees.

Minimum qualification -8th standard.

Physical fitness (height-168Cm, weight-50Kg) .

c.Indction Plan.

Workers - 2 days induction training.

Associate managers - 7 days.

Management staff - 15 days to 1 month.

3.TRAINING

APOLLO TYRES LTD

The organisation provides training for both managers and

workers. Training program for managers consist of both internal and external

program. A three dimensional skill frame work is used to identify the training

needs of workers as conceptual skills, functional skills and human skills.

The training system includes;

Need identification.

Setting objectives.

Training design.

Training implementation.

Training evaluation.

Training impact assessment.

Areas covered include:

For management staff.

Conceptual.

Functional.

Cross-functional.

Behaviour.

For workers.

Systems.

Technical aspects.

Work culture.

Specialised training for trade unions.

TRAINING AND DEVELOPMENT PROCEDRE

APOLLO TYRES LTD

Training and development of ATL Perambra aims to accomplish the

following objectives:

To equip the personnel with conceptual, functional and behaviour skills

those are necessary to perform the job at hand.

To provide a nature for the work is to down of an individual where in

he/she can explore and optimally use his/her innate and talent

potentialities leading to his/her individual growth and development.

To create a culture of continuous leading among the all employees

through systematic training with the ultimate objective of making ATL a

performance driven organisation.

TRAINING RECORDS

3 types of training records will be maintained by HR Department.

Training cards.

The training card will contain the details of all training programme

that are attended by an individual employee. The card will be maintained in

the prescribed from FR-06-A-04.

Organisational training programme monitor.

In order to consolidate and mention various training programme

conducted, an organisational training programme maintained as per from FR-06-

A-05

Individual training programme monitor.

For those programmes attended by more than 5 individuals, the list of

participants will maintained in the individuals training programme in the

prescribed from FR-06-A-06.

TRAINING PROGRAMMES.

APOLLO TYRES LTD

Training on communication and interpersonal skill programmes for

associate managers and managers.

Training on Jyotirgamaya for blue collared employees.

Safety and fire training conduct for blue collared workmen.

With a view to develop multi skill among engineering trainees, they are

given exposure to engineering, production and technical fields.

TRAINING IN THE FORM OF THEME CENTERED

INTERACTION.

JYOTIRGAMAYA:

On each working day about 6-7 employees are selected for training in

a classroom atmosphere, about the productivity, quality & scarp reduction. The

employees are provided training specialty about the company and the tyre

industry in general.

Jyotirgamaya provide information regarding the changes happening in the

industrial field. It’s objective is to give training for all the employees in the

unit within a period of 1 year.

SIX SIGMA :( introduced on April 16th 2007)

Six sigma is basically meant for increased production and for running

the organisation profitability. I t is for finding out areas where unneeded

expenses are occurring and for reducing. It using scientific techniques with a

disciplinary approach. A six sigma organisation means the defects in the

production of 10 lakh parts must be below 3.34%. When the employees

become aware of six sigma and they come into contact with the machineries

used for this, then the organisation will achieve an unexpected growth. This

helps to find out the defects in production and for finding out remedy. It also

helps to understand the fact that consumers are the owners and also to

produce quality products.

4. INDUSTRIAL RELATIONS

APOLLO TYRES LTD

There exists a good relation in the company. The management and the

employees jointly find the solution for the problems. There exists a well

maintained relation between the employees and employers.

Trade Unions

ATEU - Apollo Tyres Employees Union.

ATWM- Apollo Tyres Workers Movement.

ATSWU-Apollo Tyres Staff and Workers Union.

ATMS -Apollo Tyres Mazdoor Sangh.

5. WELFARE

The organisation provides good welfare services to its employees. The

company runs a subsidised canteen on contract basis. Rest rooms with locker

and washing facility, arts and sports club, and well maintained library are other

facilities provided.

A well transportation facility is given to all the employees from

different destinations for which they have to pay a very less amount. All

employees drawing a salary below Rs.6000 are covered under group accidental

policy and medi claim policy.

The various schemes for the employees are:

1. Employee deposit linked insurance scheme.

2. Workmen’s compensation scheme.

3. Group hospitalisation scheme.

4. Canteen facilities.

5. Transportation facilities.

6. Housing loan interest subsidy and so on.

Taking the health aspects of employees those who in the night shift get

200ml of milk packets. It is given to retain their lost energy in the night shift

and give motivation to the employees to come for night shifts.

APOLLO TYRES LTD

Apart from its soaps is distributed for the cleanliness of employees.

Each worker gets soap fully off cost and those who work in their production

units 3 in number per month.

Welfare activities are of 2 types;

Statuary.

Settlement grievances.

Statuary welfare activities. ESI

Gratuity

Some of the settlement grievances are; Group Saving Linked Insurance Scheme (GSLIS).

Group Personal Accident Insurance Scheme (GPAIS).

Group Mediclaim Insurance Policy (GMIP).

Management staff

Group hospitalisation scheme.

Group personal accident policy.

Two wheeler scheme – 40% borne of the company.

Car scheme – Asst. manager & above - 40% borne of the company.

Super annuation – Asst. manager and above.

Employee self development scheme.

Workers

Group personal accident policy.

Medical claim.

Housing loan interest subsidy-50%.

2 wheeler interest subsidy-70%.

Financial assistance co-operative society.

Periodically medical check up.

APOLLO TYRES LTD

The aim and objective of welfare fund shall be to render financial

assistance and to encourage cultural, sports, social games and other welfare

activities among them a spirit friendship , co-operation and understanding.

6.TIME OFFICE

This is concerned with registering the time in and out of the workers.

Other activities related to payment of wages, incentives, leaves etc....Different

registers are kept for different shifts for the effective functioning.

A leave book is maintained & it contains,

Leave balance.

Leave credited.

Leave waited.

The daily attendance reports for the employees specify the following:

Section/department.

Shift.

Date.

Clock no.

Grade.

Hours worked.

Schedule shift.

Apart from it , a punching system is maintained. Each employee has to

punch his badge in the electronic punching system while arriving for duty. The

same is repeated while leaving the factory premises.

Attendance is cross checked with the attendance report of the workman

and the attendance register maintained at various sections for the staff and

managerial persons. Performance reports are maintained at various sections for

the staff and managerial persons. Performance reports are maintained in each

section. These are done with a view to reduce the absenteeism in employees

and motivate them to increase production. A leave book is maintained and it

contains leave balance, leave credited and leave awaited. The daily attendance

APOLLO TYRES LTD

report is verified by the superior , shift engineer and shift superintendent

department head.

SHIFTS OF WORKERS

Shift Working hours

A 6am-2pm

B 2pm-10pm

C 10pm-6am

D(General) 9am-5pm

(Table no 5.3)

7.SECURITY AND SAFETY

SecuritY

The security is concerned with the physical movement of men and

material. Security staff headed by the chief security officer works at all the

shifts. To facilitate the security measures, single point entry is adopted to

control visitors. For materials, separate gate passes are issued.

Job description :-

- Be responsible for security of men, machinery , finished goods, raw

materials , process materials , highly sophisticated equipments etc.... Their

inward and outward movement is monitored as per the system prevailing.

- Developments of security staffs in line with the requirement of the

organisation and to keep a high morale of the forces.

Principal accountabilities of chief security officer.

APOLLO TYRES LTD

1. Monitor and control all inward and outward movement of vehicles , material and personal.

2. Deploy of contract workforce to various department for routine as well as project work.

3. Maintain the data base of all indirect workforce including contract workmen.

4. Ensure high degree of liaison with police , local administration , fire force and government authorities.

5. Upkeep of environment management system , including housekeeping of plant.

6. Keep strict vigilance , gather and assimilate intelligence for smooth functioning of the plant in an unionised environment.

Event management:-

The security department plays a significant role in factory day, safety

day, Onam/Christmas celebrations and plant visit by important officials.

Safety

The organisation follows all the provision under the Factories Act 1948.

The plant is well equipped with safety machines and directions are given for

the same. Safety directions are placed at noticeable points in and around the

plant premises. Fire extinguishers are placed reachable points and employees are

well trained to use if necessary comes. Those who work in production

department are given masks , safety gowns and shoes. In Apollo , a separate

book is given to each employee , which prescribes certain rules and procedures

in order to create a working environment free of accidents. No major accident

was occurred in the plant for past 10 years.

ABC of safety

A-Always

B-Be

C-Careful

FIRST AID

APOLLO TYRES LTD

Medical officer : -

There are 2 doctors in Apollo Tyres Ltd, Perambra plant to cater to the

medical needs of the company. One among them is a general surgeon . The

various services provided by the medical officers are listed below.

a) Causality services – The main purpose is the causality function. The injured will

be provided first aid by the medical officers. All the facilities available within

the company will be utilised and when further treatment is required the

patients will be referred to nearby hospitals. If the injured require any leave or

rest , then a brief investigation report will be prepared and submitted.

b) Medicines – Basic medicines will be available in the first aid counter itself and

other medicines will be prescribed to the patients to be purchased from

outside.

c) Record keeping – A chart called the ‘L chart’ is maintained for the

employees where all details regarding the various diseases of the employee will

be recorded.

d) Advisory services – Advisory and counselling services are provided the

employees with regard to their physical as well as mental problems.

e) Classes and Seminars – Medical officers conduct classes and seminars

regarding the harmful effects of alcohol , drugs , smoking etc... and make them

understand the ways in which this will affect the health of the company.

f) Posture and exercises - A healthy mind and strong body is required for

the company to perform successful. The quality of work depends on the

individual. Therefore the medical officers also advices regarding good posture to

be maintained, exercises to be performed to maintain body and mind healthy

and activity

Emergency plan:-

Emergency is a situation warrented to seek external help or

resources for controlling an eventuality which adversely affect the environment ,

man and material or objectives of emergency plan are to assign the individual

roles and duties to perform in an emergency situation.

APOLLO TYRES LTD

a) To avoid panic and confusions.

b) To effective utilise the available resources.

c) To equip them.

But if the facilities not enough , then advance intimation shall be

passed to hospitals for immediate receipt of patients. The procedures to be

performed for such a situation are listed below:

a) The details of the causalities that are taken to the hospitals will be

intimated to the welfare officer.

b) He will also inform the Apollo Tyres Ltd head , engineering head , HR

and administration head , finance head , safety manager , security manager and

medical officers over the phone.

c) Welfare officers shall co-ordinate with hospital to give utmost care and

attention to the victims.

Incident controller shall prepare a brief accident report (FIR) to be

submitted to the management immediately after the situation has come under

control.

OTHER ADMINISTRATIVE ACTIVITIES

1. Selection Procedure.

2. Induction Plan.

3. Performance Appraisal.

4. Absenteeism Management.

1. Selection Procedure

a. Management staff.

Technical : B.Tech, Gradate Engg Trainee

Non-Technical : CA/ICWA/MSW/MA(PM):Executive Trainee

After – trainee absorbed as officer criteria

Consistency in academic performance

APOLLO TYRES LTD

Group discussion

Personal interview

b. Employee children skill development scheme

1 year training in production

Dependents of employees

Minimum qualification – 8th std

Physical fitness

2.Induction Plan

Workers : 2 days induction training

Management staff : 15 days induction

Quality Pledge

Safety procedure

Welfare measures

Interaction with all department heads

3.Performance Appraisal Employee Development Review(April-March)

Three – Tier system

Helps in setting individual/team goals

Rated in respect of the achievements

Mid – year review of the goals

Personal attributes considered

4.Absenteeism Management

Absenteeism among workmen has been a cause for concern for the

company; production has suffered heavily in this account recently. It has

therefore been decided to fight against the absenteeism contains among the

regular workmen and production apprentices through attendance monitoring

mechanism.

The control measures are

APOLLO TYRES LTD

a. Attendance, Discipline & Development Programme

Introduction of ADD programme effective in ATL

- An effort to improve the attendance of chronic absentees

- To maintain consistent production

Operations of the scheme

o Chronic absentees numbering 192 are brought under small group of 5 person.

o 192 workmen are brought under 23 groups, under each mentor, drawn from

purchasing and other financial areas, on a daily basis oversee attendance to

ensure availability of his group members for work.

o HR department monitor the attendance and stops those who absent from duty

continuously for 3 days.

o After 15th of each month, attendance data of the group members are generated

and circulated among the groups.

o HR department publishes list of absentees during 1st half of the month to give

them a chance for improvement during the second half of the month.

o In the 1st half of the succeeding month, the attendance for the previous month

is published and committee meets and decides the course of action against

defaulters.

o Advisory/warning /suspension/pending enquiry etc... are issued based on the

gravity of each case.

o Individual appreciation letters signed by the mentors are sent to the residence

in cases where remarkable improvement is shown.

b. System

o Daily follow up

APOLLO TYRES LTD

o 3 days – meet HR

o 6 days – stoppage

o 10 days – home visit

o 20 days (accident) home visit

c. Task force

o Constitution (1HR +1Line Personnel)

o 12 task forces for 116 members

o Achievements : 10 absentees were covered to 100% attendance

o Individual Problem solving

o 34% habitual absentees shows improvement

d. Training and counselling

o 2 days training module

o Individual counselling

e. Leave Planner

o 12% permissible limit or work station

o Festival leave plan

o Leave sanctioning and monitoring

Salary Payment

All supervisory personnel are required to open a SB account with South

Indian Bank, Perambra and intimate the accounting department who in turn will

remit the salary.

In case of non – supervisory personnel cash payment is done in the following

days;

Staff and service staff – Last working day of the month.

Production/engineering – 7th working of the succeeding month. Employees focus (SHE)

1. Safety Aspects : Primary importance

APOLLO TYRES LTD

2. Health

Full time doctor

Ambulance

Dispensary

Medical check - up

3. Environment

Eco – friendly surrounding

Pollution free work practice

Business focus

Production linked bonus

Production linked LTS(Long Term Settlement)

Zero over time

Expansion of capacity

Right sizing

Promotion

Promotion is purely based on attendance , seniority and performance.

They are all recorded in a systematic way. There is computerised punch card

system followed in the company. Each entry and exit to the plant is recorded.

Apart from this is a well maintained payroll system too. Absenteeism is being

found out and proper reasoning is obtained. The attendance of the workers also

account for their promotion.

Thus HR department is the strongest department of Apollo Tyres Ltd ,

Perambra, which have seven subsections which are mentioned above. It has a

well established industrial relation and this department gives more important to

the welfare and safety of the employees , also the time management is very

good here. All these sections are under the direct control of the HR Manager.

APOLLO TYRES LTD

4. PRODUCTION DEPARTMENT

MANUFACTURING PROCESS

APOLLO TYRES LTD

Production department is required for the operation, maintain quality and

optimum level of production department of ATL, Perambra consist of 2 zones,

namely zone 1 and zone 2.All the production activities are classified under these two

zones. The production planning starts with receipt of production ticket from Delhi

which contains the quality required for branches. The requirement is then processed in

the planning department and then converted into equivalent for production, and then

the production schedule is finalized.

STRUCTURE OF PRODUCTION DEPARTMENT

(Chart no 5.3)

PRODUCTION PROCESS

PRODUCTION HEAD

DIVISION A HEAD

DIVISION B HEAD

DIVISION C HEAD



APOLLO TYRES LTD

(Chart no 5.4)

Raw materials used in the manufacturing process

Main raw materials used for the tyre manufacturing are,

Materials used for various rubber components.

Banbury mixer

Mills

Calander Dip unit Dual extruder

Bias cutter

Brand building

Thread skiver

Thread

Tyre building

Tyre curing

Post cure inflation

Final inspection

Warehouse

Tyre building

Bead building unit

APOLLO TYRES LTD

Materials used in for tyre reinforcement.

Auxiliary materials.

Materials used in rubber components

The essential ingredients in rubber components are as given below:

Raw rubber or natural rubber.

Vulcanized rubber

Carbon black

Zinc oxide

Accelerators

Activators

Reinforcing agents

Process oils or Aromatic oils (makes easy the mixing)

Anti – degradents

Anti – oxidants

Fillers

Process aids

Special additives

Raw rubber:

Rubber as such is a soft semi – solid material which does not have any

properties required for tyre components like elasticity, hardness, resistance etc.

Natural rubber occupies the top position as the general rubber. It gives good strength,

tear, wear and flex resistance, good process ability and low heat build up and good

abrasion resistance.

Synthetic butadiene rubber (SBR) is the first synthetic rubber developed. It

offers good strength and tear, good crack, initiation, resistance, well whether

resistance and fine process ability. SBR is also recommended for bead compounds for

higher hardness.

Vulcanizing

Raw rubber when heated with vulcanizing agents become elastic, stronger

and harder and this process is called vulcanizing. During vulcanizing, the long chain

APOLLO TYRES LTD

rubber molecules are cross – linked to form a network thereby making it elastic. The

cross links are generally achieved by adding sulphur and sulphur donors.

Accelerators

To increase the speed of vulcanization, accelerator is used. Accelerators are

classified on the basis of the speed of the vulcanizing imparted by it.It is also

classified as Primary accelerator and secondary. A secondary accelerator is the one,

which is used as the booster to the primary accelerator.

Activators

Activators are used to improve the efficiency of accelerator and it improves

the elasticity and the strength of vulcanizing agent. The general activators are zinc

oxide and stearic acid.

Reinforcing agents

A vulcanizing thus made of raw rubber, vulcanizing agents, accelerators and

activators is still soft like rubber band. For improving the strength, hardness, tear and

wear and flex properties suitable for a tyre compounding, reinforcing agent are used.

Reinforcing agents are carbon black and silica.

Material used for tyre re – enforcement

Carcass and bead materials used in a tyre are called tyre re – enforcement.

Textiles in the form of continuous filaments are the primary material for the tyre

carcass. To form a ply, sufficient number of continuous filaments is twisted together.

Cords are then woven into fabrics in special looms, with cords in longitudinal

direction called wrap and thin cotton filaments in the opposite direction called weft.

Bead wire is a special alloy steel wire with bronze plating used as a bead wire for tyre.

Process oils

APOLLO TYRES LTD

Incorporation of re – enforcing agents in a rubber is often difficult and to

facilitate easy incorporation process, oils are used. These are also used to improve

compound process ability at calendar and extruder.

Anti – degradents

Most of the rubbers are highly susceptible to degradation when subjected to heat,

flex, and weather and to take care of these anti – degradents are added.

Fillers

Often, through not common, low cost substance called fillers are added to

reduce compound cost.

Process aids

Process aids are those substances that are added to rubber compounds for

reducing viscosity of the stock and for improving process safety.

Special additives

Sometimes special additives like bounding agents, hardening agents, and

corrosion inhibitor etc are added for specific vulcanization properties.

Auxiliary materials

Major auxiliary materials used in the tyre manufacturing process are dip solution,

chemicals, solvents, lubricants and seperants.

Manufacturing process activities

The entire production system has been broadly divided into three

sections , namely Division A, Division B, Division C.

Division A – Takes care of assembling activities.

Division B – Takes care of building activities.

Division C – Takes care of the curing activities.

DIVISION-A

APOLLO TYRES LTD

1. COMPOUND MIXING

A compound is made by mixing the required additives into rubber. This

mixing is accomplished in two or more steps using a Banbury mixer. This mixing

is done in the chamber of the Banbury mixer under high shear and pressure using

the rotors of the machine so that the ingredients and uniformly dispersed inside

the rubber matrix. Different rubber compounds (differing in the recipe) are used in

the different compounds of the tyre.

The rubber compound is then used for the preparation of different

components in subsequent stage of manufacture.

1. Tread

2. Sidewall

3. Tread cushion

4. Plies

5. Chafer

6. Flipper

7. Filler

8. Bead

9. Squeegees

10. Breakers

Naturally the compounds prepared in the Barbary go to the respective

equipment and process for further processing.

2. CEMENT PREPARATION

Various cements, solutions, lubricants and paints are prepared in the cement

house sing rubber compound solvents and other raw materials. These are then

used at various stages of tyre manufacturing.

3. FABRIC DIPPING:

A raw fabric (Rayon and Nylon) is having very poor adhesion to the rubber

compound and has poor dimensional stability. During the dipping process an adhesive

coating (eg. Resorcinol, formaldehyde,VP latex dip) is applied to the surface of the

fabric to improve adhesion. The fabric is also stretched and hot set to increase the

APOLLO TYRES LTD

dimensional stability. Dipping is accomplished in the dip unit and the dipped fabric is

then used for the preparation of the different compounds as mentioned above.

4. EXTRUSION:

Here compounds of the tyre like tread and sidewall are prepared from the rubber

compound using a Dual extruder. Extruder is the process by which the rubber

compound is given definite continuous shape. A thin sheet of rubber compound

prepared using a small 2-roll calendar is applied to the bottom side of the tread. This

compound is called tread cushion. The continuous profile is then cooled and cut to

required length which is used in the assembling of tyre at tyre building.

EXTRUDERS

Extruders are distinguished by the diameter of their screw and are a single or dual

type.

a) SINGLE EXTRUDER

Rubber compounds after being broken down and warmed up on Mills, are fed in to

the screw of the extruder from which with the help of dies, produces a green shape of

treads, sidewalls, and other strips as per specified dimensions and contours, width,

gauge and weights. These strips are cooled in water sprayed conveyors and then cut

out into specified lengths with the help of skivers (rotary cutting knife) and booked in

metal trays or wrapped in cotton liners. The word green denote uncured rubber (i.e.

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. The two compounds after

extrusion are extruded together in a common head and with the help of performer and

final dies, emerge into a pre determined shape. The advantage of the dual extruder is

that two rubber compounds of completely different composition can be extruded.

5. CALANDER

APOLLO TYRES LTD

Fabric calendaring is the process of coating both sides of dipping fabric using

rubber compound. This is accomplished using a 4 roll ‘Z’ type calendar. The coated

fabric is cooled and wound in liner (in continuous length) to avoid sticking. This goes

to the next stage of ply cutting.

6. PLY CUTTING (Horizontal and vertical Bias cutting)

For cutting a tyre several plies are required. For e. g a 16 PR nylon truck tyre

used 8 plies and 2 breakers. Each ply is cut from the coated fabric rolls prepared by

calendaring. This process of ply cutting is accomplished in a bias cutter. Each ply is

cut at specified widths and angles. The width depends on the type of tyres and the

angle of the cut depends on the type of services required. The cut plies then go to 3

roll for

squeegee application. Components like chafer and flipper are also made at bias

cutters. These are further slit using a slitter into small widths and would into rolls.

Chafer rolls from slitter go to the tyre building and flipper goes to the bead flipping.

7. SQUEEGEE CALENDARING/SQUEEGE APLICATION

Squeegee calendaring is the process of making thin sheet of rubber compound

usually by using a 3 roll or 4 roll calendars. Squeegees are used at the inner most layer

of the tyre (drum squeegee) and also in between the different plies (ply

squeegee).Drum squeegee is prepared in the 4 roll Z calendar. It is in liners this

squeegee roll is sent to tyre building for assembling. The ply squeegee preparation

and its application on to the cut plies are accomplished simultaneously at the 3 roll

calendar after squeegee application the plies are sent to tyre building for assembling.

DIVISION – B

APOLLO TYRES LTD

8. BEAD PREPARATION

It consist of three stages:

Bead winding

Bead Fillering

Bead Flipping

a)Bead winding

Here several wires are passed through the head of a bead extruder and coated with

rubber compound. The coated tape so formed is wound into bundles of definite turns

and strands and of definite diameter. The process is accomplished using a machine

called the bead winding machine.

b)Bead Fillering

Here a triangular shaoed continuous rubber profile (called bead filler) is extruded

using a cold feed extruder and applied on the bead bundle using a fillering machine.

c)Bead Flipping

The flipper fabric prepared at the bias cutter and slitter is applied around the

fillerd bead bundle. This is accomplished using a bead flipping machine.

9. TYRE BUILDING

It is the process of assembling various components into the semi finished product

called a ‘green tyre’. This is accomplished by a tyre building machine. The

components like drum squeegee, plies (with squeegee applied on it) are assembled

using a tyre building drum. The flipped beads are applied from the ends and locked in

using the ply ends; breaker and chafer are applied next. Finally the tread and sidewalls

are applied. The assembly (green tyre) is taken out after collapsing the drum.

The different components that make a green tyre are the following:

APOLLO TYRES LTD

Plies

Breakers

Chafer

Beads

Tread

Sidewall

DIVISION – C

10. TYRE CURING

The green tyre inspected and they applied with a lubricant inside and an anti-

blemish paint on the outside sidewall area. The green tyre is also availed to facilitate

easy removal of trapped air during the final shaping and moulding operation. The

green tyre is shaped and given the final contour using appropriate tyre curing moulds

(fitted to tyre curing presses) by the application of pressure and temperature. The

rubber compound gets vulcanized during curing and becomes tough and elastic and

provides all the desired properties required in the tyre. The curing times vary

depending upon the size of the tyre varying from 42 minutes for a passenger car tyre

to ane hour for truck tyres.

11. POST CURING INFLATION

Nylon tyres after press curing are kept under high pressure inflation to help

shape retention and to reduce growth in service. This process of cooling tyre under

high inflation pressurenis called post cure inflation (PCI).

12. INSPECTION

The tyres after PCI are subject to vend trimming. The tyres are then inspected

100% for visual effect. The tyres are also statistically sampled and tested for

conformation to BIS specification and warehoused.

APOLLO TYRES LTD

MAJOR LOSSES DURING PRODUCTION

Break down of machineries

Loss of time for setting up of machines

Loss due to difference of machine speed

Loss due to stoppage of production

Loss due to mistakes and correction of mistakes

TOTAL PRODUCTIVE MAINTANANCE (TPM)

8 pillars of TPM are as follows:

1. Autonomus maintenance

2. Equipment and process improvement

3. Planned maintenance

4. Education and training

5. Quality maintenance

6. Initial control

7. TPM in office departments

8. Safety, health and environment

Production facility is the backbone of any manufacturing based

organisation. Apollo Tyres is very much improved in production capacity. The per

day production of Apollo Tyres Ltd is 270 tones. This achievement is only

possible because of hard work of employees.

APOLLO TYRES LTD

5.QUALITY ASSURANCE DEPARTMENT

Quality is the totality of characteristics of an entity that bears on its ability to

satisfy, stated and implied needs. Quality is referred to as

Fitness for use

Fitness for purpose

Customer satisfaction

Conformance to requirements

STRUCTURE OF QUALITY ASSURANCE DEPARTMENT

(Chart no 5.5)

Quality Assurance is the well planned and systematic activities

implemented within the quality system and demonstrated as needed to provide

adequate confidence that an entity will fulfil requirements for quality.

QUALITY ASSURANCE

(Chart no 5.6)

GROUP MANAGER - Quality assurance

EXECUTIVE – Finished products

EXECUTIVES – Quality system & capability studies

EXECUTIVE - Lab

SHIFT-IN-CHARGE-Purchase / Production

QUALITY ASSURANCE

LAB

PROCESS CONTROL & AUDIT

APOLLO TYRES LTD

o LAB All raw materials that come to RMS are released for production only after lab

approval. For that samples of raw materials (Rubber, Carbon, Chemicals and Fabric

etc) are given to lab. In lab these raw materials samples are tested. If the test result are

within the required specifications above material is released for production. If the

result is not ok, material is rejected.

In the same way processed material samples are also given to lab for testing

(e. g : Mixed Rubber Compound, Dipped Fabric, Calendared Fabric etc). These

materials are realised for further processing only if the test result is OK. If the test

result is not OK, processed material will be held up for technical disposal.

o PROCESS CONTROL AND AUDIT :

In shifts, all the production areas will be audited by Quality Assurance will

check whether the processing is done within the required specifications. If any

abnormality is noticed, necessary corrections will be done and the defective processed

materials will be held up. Finished product (cured tyres) will be also checked by

Quality Assurance. If any defect is noticed on finished tyre it will be held up. Only

OK tyre will be released to warehouse.

Samples of cured tyre are tested indoor on a test wheel. The test wheel

simulates the running condition of a tyre, primarily used to detect car ass strength and

heat generation. Tyres are also fitted on different vehicles to study the effect of

different types of roads, loads and climate conditions. For Original Equipment (OE)

there is 100% inspection by quality assurance. The different methods used for

checking are Dimension, Pulley wheel and Puncher.

APOLLO TYRES LTD

6. SYSTEMS DEPARTMENT

The system department is responsible for computerized of different

departments of Apollo Tyres Ltd. The main function of this department, operates and

co – ordinates all systems in the organisation. The simple structure of department

facilitates speedy communication flow with in the department.

(Chart no 5.7)

MONITORING FUNCTION

Security problems in the SAP (Systems Application and Products) were solved

using Central Virus Scanning System and Firewall at the head office (Gurgaon,

Haryana).HCL solve all the problems related to the network connection.

MAINTENANCE FUNCTION

The systems departments in the plant solved network problems as well as

computer problems. Regular backups were taken daily, weekly and monthly for

providing reliability in the SAP system.

All the computers were connected using both point to point and star topology

to form an Internet inside the plant. Proper authentication was given to each

department members using ID and a password.

Apollo makes 250 different types of tyres today. IT helps them to keep track

of every product, its demand forecast and production cycle. The way the automobile

sector is growing, they will need IT to map their production and ensure they don’t

lose new or present customers.

EXECUTIVE - SYSTEMS

GROUP MANAGER – SYSTEMS,PPC & IE

APOLLO TYRES LTD

7. PRODUCTION PLANNING AND CONTROL DEPARTMENT

The resources in terms of machines, men, material etc are used in the tyre

plant run into several crores and it is necessary to make best possible use of these

resources to achieve maximum economy in production costs. The main objective of

production planning control is therefore to ensure optimum utilization of those

resources as well as the capital looked up in work in progress inventory.

STRUCTURE OF PRODUCTION PLANNING AND CONTROL DEPARTMENT

(Chart no 5.8)

ASSOCIATE MANAGER - PPC

EXECUTIVE

MANAGER PPC

EXECUTIVE

GROUP MANAGER – PPC, IE & SYSTEMS

APOLLO TYRES LTD

The major activities of Production Planning and Control could be enumerated

as follows:

1. Scheduling of machines

2. To ensure that machines are bought out, required components are

ordered at the right time to fit in with the plan of work schedule for the

shop floor.

3. To ensure that the proper man is doing the proper work in specified time

consuming specified material at specified quality.

The major responsibilities and functions of Production Planning and Control

could be enumerated as follows:

- Establishing production program in consultation with marketing

departments.

- Planning and control of production schedule.

- Ensure adequate production and inventory.

The Production Program of Production Planning and Control is prepared based on the

following:

Machine capacity

Labour required

Raw material requirements

Equipment and other tools required for manufacturing (moulds, drums etc).

Raw materials

Liaison with material control and technical departments for requirement of

raw materials as per the consumption pattern. Authorise RMS for issue of raw

materials to production floor.

Scheduling

Machine scheduling includes day to day scheduling machine loading in the

most optimum level. Review of progress and initiation of action to remove bottle neck

planning and control of in process inventory at optimum level etc.

Machines

APOLLO TYRES LTD

Review of machine capacity and its limitation with respect to production

programme to initiate corrective actions. Access of material handling equipment and

storage systems and arrange for procurement whenever necessary.

Scheduling in brief is determination of

1. When a job will be done.

2. Where to do this job (incase where is more than one machine)

3. How much to do in one lot

Production planning and control is an important department in any

manufacturing company. Production planning will mainly consist of the evaluation

and determination of production inputs such as labour (man power), machinery and

equipment, materials and utilities to achieve the desired goal.

APOLLO TYRES LTD

8.INDUSTRIAL ENGINEERING DEPARTMENT

Industrial engineering department helps to maintain the machines which

has been using for the production process. Thus this department helps to avoid the

disturbance during the production process.

(Chart no 5.9)

Objectives:

The main objective of this department is to plan, design, implement and image

integrated production and service delivery system that assure productivity, quality,

reliability, maintainability and cost control to keep Apollo globally competitive.

Functions:

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

of norms.

2. Capacity calculation in various equipments 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 man power 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 report.

7. Negotiation with unions regarding worries, issues like incentive schemes,

productivity, expansion and labour issue.

DIVISION HEAD

MANAGER

EXECUTIVES

APOLLO TYRES LTD

8. Analysis of capital expenditure request from various department and make

recommendation 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 meeting with the union/labour departments.

11. Visit other industries for getting information regarding LTS methods, practice

and other developments.

12. Conduct various training classes for workmen, supervisors, other officers and

new recruits.

13. Apply various industrious engineering techniques such as job evaluation, O &

M (Organisation and methods) studies, kaizen, line balancing etc.

14. Suggest various cost reduction programmes and implementation.

15. Associate with professional bodies like productivity council, NITTIE etc and

institution of engineers etc.

16. Conduct daily audit on man power, productivity, lost time, scrap detail,

absenteeism, overtime etc.

17. Furnish various other management information reports of the top management.

18. Involve best practices and processors through global bench marketing in the

context of global competitions and intense customer focus.

19. Optimise inventory levels at various stages such as engineering store, working

progress and finished goods.

20. Continues improvement of methods and equipments designed compatible to

the best economic standards.

21. Preparation and presentation of daily review report on critical parameters.

22. Preparation of machine utilization report.

23. Computation of kilogram/man hour.

24. Computation of indirect incentive earning rate.

25. Computation of various data and submission of application for various awards.

26. Computation of plant performance report on a daily basis and display.

27. Extent the support to the line function term regarding manpower details,

norms, new products etc.

28. Incentive earning computation and releasing of incentive earning list.

APOLLO TYRES LTD

29. Incentive allowance computation and advice to finance and time office for

payment.

9.FINANCE DEPARTMENT

The corporate office situated at Gurgaon does most of the accounting and

taxation jobs of ATL. At Perambra plant there is separate accounting and finance

department. This department deals with salary, wages and costing. Excise duty of the

raw materials also comes under this department.

STRUCTURE OF FINANCE DEPARTMENT

(Chart no 5.10)

Sales is performed and maintained by the corporate office of Apollo Tyres

Ltd. The fund for acquiring raw materials will be provided from the corporate office

to Accounts and Finance Department.

When, with regard to export of tyres they will be directly unloaded into the

Cochin Shipyard premises rather than unloading to the corporate office godown and

then to the port. An annual cost audit is also conducted along with the company audit

every accounting year i. e, April 1st to 31st March.

Gross sales during the financial year ended March 31, 2008 amounted to an

all time high of 42,469.83 million as against Rs.37, 743.43 million during the

DIVISIONAL HEAD

MANAGER MANAGER

ASSO . MANAGER ASSO . MANAGER

EXECUTIVES EXECUTIVES

APOLLO TYRES LTD

previous year, recording growth. The strong performance of Apollo is combination of

high growth in sale along with enhanced operation management, better working

capital management, aggressive marketing and overall cost reduction measures

adopted by the company.

SECTIONS UNDER FINANCE DEPARTMENT

1. Accounts

2. Costing

3. Payroll

4. Excise

5. Raw material stores

6. Finished goods stores

7. Engineering stores

8. Purchasing of engineering goods

OBJECTIVES

To arrange adequate funds for the business

To ensure proper utilisation of funds

To increase profitability of business

To maximise the value of the firm

To do the analysis and appraisal of financial performance

To anticipate the financial needs

To maintain good relations with suppliers and monitor their performance

Physical location and stocking of materials

Minimization of damage

FUNCTIONS

Financial forecasting and planning

To advise top management on all financial matters and to suggest various

alternative solution for any financial difficulty

Co- ordination and control

Help in tax administration and tax planning

Preparation of audit report

Storage of raw materials, finished goods and engineering goods

Handle scrap disposal

APOLLO TYRES LTD

SHARE HOLDING PARTNERS

Foreign holdings 25.67%

Government or Financial institutions 29%

Corporate bodies (non covered above) 4.07%

Directors and their relatives 32.43%

Other including Indian public 8.84%

Finance is the backbone of every organisation. So finance

manager plays an important role, at the same time he has also some responsibilities.

The role of finance manager is to prepare the accounts and auditing of all the financial

transactions of the company and have the advisory function in the financial and

establishment matters. The fundamental decision making areas of financial manager

are capitalisation decision, investment decision decision, financing decision.

APOLLO TYRES LTD

CHAPTER - 6

SWOT ANALYSIS

APOLLO TYRES LTD

Strengths:

Continued market leadership in the dominant industry segment of truck and

bus tyres.

Global presence with the accusation of Apollo Tyres South Africa (pty) Ltd.

(Formerly known as Dunlop Tyres International(Pty)Ltd.

Extensive distribution network in India and South Africa.

Strong brand recall in a price sensitive Indian market.

Responsive to changes in market conditions and product profiles.

Global quality standards, international process and system certifications.

High usage of information technology systems to hasten the flow of

information and leverage opportunities across 140 locations in India.

Dynamic and progressive leadership, willing to implement change.

Economies of transportation cost, on account of closeness to natural rubber

growing belt.

Global sourcing of raw material.

Weakness:

No presence in two and three wheeler segment.

Capital intensive business.

Maintain a healthy relationship with trade unions

More training facilities must be given to employees

The company should invest more on advertisement.

Opportunities:

Leadership position in the commercial vehicle segment will enable the

Company to leverage new and related business opportunities.

New product segments like Truck/Bus Radial (TBR), Off The Road tyres

(OTR, retreading and allied automotive services.

Growth in Overseas markets like Europe.

Threats:

APOLLO TYRES LTD

Imports from neighbouring countries at competitive prices.

Raw material price volatility.

CHAPTER 7PORTER’S FIVE FORCES

ANALYSIS

APOLLO TYRES LTD

A MODEL FOR INDUSTRY ANALYSIS:

Porter's five forces analysis is a framework for the industry analysis and business

strategy development developed by Michael E. Porter of Harvard Business School in

1979. It uses concepts developed in Industrial Organization (IO) economics to derive

five forces which determine the competitive intensity and therefore attractiveness of a

market. Attractiveness in this context refers to the overall industry profitability. An

"unattractive" industry is one where the combination of forces acts to drive down

overall profitability. A very unattractive industry would be one approaching "pure

competition".

The model of the Five Competitive Forces was developed by Michael E. Porter in his

book „Competitive Strategy: Techniques for Analyzing Industries and Competitors“

in 1980. Since that time it has become an important tool for analyzing an

organizations industry structure in strategic processes.

Porter’s model is based on the insight that a corporate strategy should meet the

opportunities and threats in the organizations external environment. Especially,

competitive strategy should base on and understanding of industry structures and the

way they change.

Porter has identified five competitive forces that shape every industry and every

market. These forces determine the intensity of competition and hence the

profitability and attractiveness of an industry. The objective of corporate strategy

should be to modify these competitive forces in a way that improves the position of

the organization. Porters model supports analysis of the driving forces in an industry.

Based on the information derived from the Five Forces Analysis, management can

decide how to influence or to exploit particular characteristics of their industry.

http://en.wikipedia.org/wiki/Industrial_organization

http://en.wikipedia.org/wiki/1979

http://en.wikipedia.org/wiki/Harvard_Business_School

http://en.wikipedia.org/wiki/Michael_Porter

APOLLO TYRES LTD

The Five Competitive Forces

The Five Competitive Forces are typically described as follows:

Bargaining Power of Suppliers

The term 'suppliers' comprises all sources for inputs that are needed in order to

provide goods or services.

Supplier bargaining power is likely to be high when:

· The market is dominated by a few large suppliers like MRF, JK Tyres rather than

a fragmented source of supply.

· There are no substitutes for the particular input.

· The supplier’s customers are fragmented, so their bargaining power is low.

· The switching costs from one supplier to another are high.

· There is the possibility of the supplier integrating forwards in order to obtain

higher prices and margins.

· The buying industry has a higher profitability than the supplying industry.

· The buying industry (automobile) hinders the supplying industry in their

development (e.g. reluctance to accept new releases of Tyres),

· The buying industry has low barriers to entry.

In such situations, the buying industry often faces a high pressure on margins

from their suppliers. The relationship to powerful suppliers can potentially reduce

strategic options for the organization.

Bargaining Power of Customers

APOLLO TYRES LTD

Similarly, the bargaining power of customers determines how much customers

can impose pressure on margins and volumes.

Customers bargaining power is likely to be high when

· They buy large volumes; there is a concentration of buyers.

· The supplying industry comprises a large number of small operators.

· The supplying industry operates with high fixed costs.

· The product is undifferentiated and can be replaces by substitutes.

· Switching to an alternative product is relatively simple and is not related to high costs.

· Customers have low margins and are price-sensitive.

· The customer knows about the production costs of the product.

Threat of New Entrants

The competition in an industry will be the higher; the easier it is for other

companies to enter this industry. In such a situation, new entrants could change major

determinants of the market environment (e.g. market shares, prices, customer loyalty)

at any time. There is always a latent pressure for reaction and adjustment for existing

players in this industry.

The threat of new entries will depend on the extent to which there are barriers to entry. These are typically

· Economies of scale (minimum size requirements for profitable operations).

· High initial investments and fixed costs.

· Cost advantages of existing players due to experience curve effects of operation with fully depreciated assets.

· Brand loyalty of customers.

· Protected intellectual property like patents, licenses etc.

· Scarcity of important resources, e.g. qualified expert staff.

APOLLO TYRES LTD

· Access to raw materials is controlled by existing players.

· Distribution channels are controlled by existing players.

· Existing players have close customer relations, e.g. from long-term service contracts.

· High switching costs for customers.

· Legislation and government action.

Threat of Substitutes:

A threat from substitutes exists if there are alternative products with lower

prices of better performance parameters for the same purpose. They could potentially

attract a significant proportion of market volume and hence reduce the potential sales

volume for existing players. This category also relates to complementary products.

Similarly to the threat of new entrants, the treat of substitutes is determined by factors like

· Brand loyalty of customers.

· Close customer relationships.

· Switching costs for customers.

· The relative price for performance of substitutes.

· Current trends.

Competitive Rivalry between Existing Players

This force describes the intensity of competition between existing players

(companies) in an industry. High competitive pressure results in pressure on prices,

margins, and hence, on profitability for every single company in the industry.

Competition between existing players is likely to be high when

· There are many players of about the same size.

· Players have similar strategies.

· There is not much differentiation between players and their products, hence, there is much price competition.

APOLLO TYRES LTD

· Low market growth rates (growth of a particular company is possible only at the expense of a competitor).

Diagram of Porter's 5 Forces

SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry

BARRIERSTO ENTRY Absolute cost advantages Proprietary learning curve

Access to inputs Government policy Economies of scale Capital requirements Brand identity Switching costs Access to distribution Expected retaliation Proprietary products

THREAT OFSUBSTITUTES -Switching costs -Buyer inclination to substitute -Price-performance trade-off of substitutes

BUYER POWER Bargaining leverage Buyer volume Buyer information Brand identity Price sensitivity Threat of backward integration Product differentiation Buyer concentration vs. industry Substitutes available Buyers' incentives

DEGREE OF RIVALRY -Exit barriers -Industry concentration -Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate stakes

(Chart no 7.1)

APOLLO TYRES LTD

CHAPTER - 8

FINDINGS AND SUGGESTIONS

APOLLO TYRES LTD

FINDINGS

ATL is the first tyre company to receive ISO 9001 certification and one

the few tyre manufactures to obtain QS 9000 certification.

Workers health and safety are given prime importance

A good co-ordination exists between different departments.

Trade unions play vital role as bargaining agents. The management is

sometimes forced to accept demands made by the unions.

The products of the company are known for its high quality standards.

The workers are not completely satisfied with the wages they are paid.

Employees are provided with facilities such as subsidized canteen,

transportation etc.

Safety posters and slogans are exhibited inside the plant and various

safety awareness programs are also conducted.

The factory premises are kept clean which comes under a dedicated

system known as Environment Management System (EMS)

Factory is located at an ideal location that allows easy access to land, air

and sea transportation.

All departments at the plant are being connected through SAP which

gives real time connectivity with each other.

All the plants of Apollo tyre group are being connected with the head

quarters through WAN and SAP which critical decision making easy.

APOLLO TYRES LTD

SUGGESTIONS

Maintain the relationship between employees and employers

There should be training program for better understanding of SAP

A bit more promotional activities could enhance building brand image

Maintain a healthy relationship with trade unions

More training facilities must be given to employees

The company should enter into two/three wheeler markets.

The company should invest more on advertisement.

Each should have an in house marketing department that can take care

of the local fluctuations in market.

APOLLO TYRES LTD

CONCLUSION

Apollo tyres Ltd is the 7 th fastest growing tyre company in the world. A

fair wage system prevails in ATL. The company provides better working condition

for employees. Proper training to workers and efficiency of the workers must be

increase to increase production. The industrial relation with the local union is fairly

good.

The company is facing a cut throat competition in Indian market and

international market. Despite of all these challengers Apollo has done well in the past

and with a booming economy and a focused progressive leadership at the top.

The employees enjoy working as a team and with customers to create

superior and distinct production and services. Apollo is focused on fast and flexible,

never ending improvement in order to create an enterprise that is dynamic, ever

expanding and profitable and in constant pursuit of customer satisfaction is Apollo

policy to design, manufacture and service our products to provide the level of quality

and value that meets ever customer needs.

Apollo stands first in the production of truck tyres. In spite of recession the

company is still making sufficient profit. There are good working conditions and

industrial harmony among the employees. Proper and adequate training is given to the

employees, which leads to higher productivity,. The company is facing cutthroat

competition from Indian market as well as foreign market. In spite of fierce

competition and local problems the Perambra plant thrives and move forward to its

target of 310 MT/day and thereby achieve their 9000 crore goal by the end of 2010.

Apollo tyres boast a vibrant and dynamic, profession and non hierarchical

culture. Transparency and communication are cornerstones of corporate practice,

across levels, to ensure that each individual employee is aligned with the goals and

aspiration of the company. At Apollo Tyres the three corporate pillars of People,

Quality and Technology underpin all activities and processes. These are the

APOLLO TYRES LTD

company’s stated areas of corporate excellence, in its journey towards becoming a

best in class global manufacturer.

Apollo Tyres, they are always looking out for new opportunities. If

opportunities do not come their way, they go ahead and create opportunities. Over the

years they have created opportunities for growth, opportunities for success and also

opportunities for a bright future.

BIBLIOGRAPHY

APOLLO TYRES LTD

BIBLIOGRAPHY

Books reference

1. Dr. Aswathappa K., H.R.M & P.M, 4e, Tata McGrawHill, Delhi, 2005.

2. Research Methodology- Methods & Techniques, Kothari.C.R, New Age

International Publishers, New Delhi, 2006.

Web Sites

www.apollo tyres .com

www.google.com

www.wikkipedia.com

Manuals

Apollo annual reports

Apollo journals

Job sheet of various departments

http://www.wikkipedia.com/

http://www.apollo/

APOLLO TYRES LTD

APPENDIX

APOLLO TYRES LTD

PROFIT AND LOSS ACCOUNT OF APOLLO TYRES

Sl. No Particulars Year ended 31.03.2009 Year ended

31.03.2008

1. Gross sales/Income from

operations

45,496.32 42,469.83

2.Other Income 112.47 92.23

Total 45,608.79 42,562.06

3.Total Expenditure

a) Decrease/ (Increase) in work in

progress &

Finished Goods

b) Consumption of Raw Materials

c) Staff cost

d) Excise Duty

e) Other Expenses

265.86

27,946.64

2,075.46

4,791.91

7,168.77

(552.74)

23,849.60

2,270.55

5,530.56

6,731.11

Total 42,248.64 37,829.08

4. Operating Profit 3,360.15 4,732.98

5. Interest 668.43 520.41

6. Depreciation 980.07 878.10

7. Profit before Tax 1,711.65 3,334.47

8. Provision for Tax

-Current 439.30 975.01

APOLLO TYRES LTD

-Deferred

-Fringe Benefit Tax

148.67

42.50

121.43

45.00

9.Net Profit 1,081.18 2,193.03

BALANCE SHEET

PARTICULARS Mar 09 Mar 08 Mar 07 Mar 06

Mar05

Apollo Tyres Ltd SOURCES OF FUNDS :Share Capital Reserves Total Total Shareholders FundsSecured Loans Unsecured Loans Total DebtTotal LiabilitiesAPPLICATION OF FUNDS :Gross Block Less : Accumulated Depreciation Less:Impairment of AssetsNet Block Lease AdjustmentCapital Work in ProgressInvestments Current Assets, Loans & AdvancesInventories Sundry Debtors Cash and BankLoans and Advances Total Current AssetsLess : Current Liabilities and ProvisionsCurrent Liabilities

50.411,305.301,355.71462.39233.13695.522,051.23 1,838.00694.66-1,143.34-281.41297.45

417.0587.28340.60195.771,040.70

460.13

48.851,180.001,228.85223.14237.51460.651,689.50 1,569.78598.78-971.00-94.41302.71

513.29155.13265.85191.531,125.80

565.83

46.41920.71967.12473.76144.94618.701,585.82 1,492.51541.66-950.85-80.46258.11

451.95203.06172.00441.371,268.38

542.20

38.34595.68634.02381.00369.00750.001,384.02 1,310.61469.94-840.67-77.930.53

419.41175.14231.36370.181,196.09

388.62

38.34538.40576.74348.75195.06543.811,120.55 1,148.43398.30-750.13-84.3354.48

330.12156.52110.43305.72902.79

380.14

APOLLO TYRES LTD

Provisions Total Current LiabilitiesNet Current AssetsMiscellaneous Expenses not written off Deferred Tax AssetsDeferred Tax LiabilityNet Deferred TaxTotal AssetsContingent Liabilities

95.63555.76484.940.15

10.96167.02-156.062,051.23282.85

93.08658.91466.890.26

11.29152.49-141.201,694.07223.56

289.12831.32437.060.12

10.38139.44-129.061,597.54115.27

237.63626.25569.840.26

8.49113.70-105.211,384.0269.73

188.07568.21334.580.38

2.26105.61-103.351,120.5574.29

48774762-apollo-os

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