ORGANISATION STUDY REPORT

AT

APPOLO TYERS (PERAMBRA)

Submitted by,

Gobind.C.J

In partial fulfilment of requirement for the award of

Master of Business Administration

ACKNOWLEDGEMENT

First of all, I thank the Almighty for giving me the strength and blessings that

showered on me to do my project successfully.

It gives me immense pleasure to thank our Principal prof S. G IYER Sir for

giving me this wonderful opportunity to get an insight about the work culture

of an organization.

I would also like to thank Mrs Soumya V Iyer (project guide) for guiding me

to complete my project.

I thank Mr. Mubarak, Associate Manager (HR) for his guidance and

assistance throughout my project.

I also take this opportunity to thank my family, friends for their continuous

motivation and for boosting my confidence level to complete my project.

Sreelakshmi A A

TABLE OF CONTENT

SL.No

CHAPTER TITLE PAGENO

1 1 INTRODUCTION2 1.1 Significance of the study3 1.2 Objectives of the study4 1.3 Scope of the study5 1.4 Methodology followed6 1.5 Scheme of reporting7 2 INDUSTRY PROFILE8 2.1 Introduction to industry and its evolution9 2.2 An analysis of the current competition prevalent10 2.3 World scenario11 2.4 Indian scenario12 3 COMPANY PROFILE13 3.1 Introduction15 3.2 Vision and mission16 3.6 Promoters of the company17 3.4 Product details18 3.5 Organizational structure19 3.6 Future plan20 4 DETAILED STUDY OF DEPARTMENTS21 4.1 1 Human Resource Department22 4.2 2 Production Department23 4.3 3 Purchase Department24 4.4 4 Stores Department25 4.5 5 System Department26 4.6 6 Finance Department27 4.7 7 Quality Assurance Department28 4.8 8.Marketting Department29 4.9 9.Utility Department30 4.10 10. Technical Department 31 5 SUGGESTIONS AND RECOMMENDATION

32 6 CONCLUSION

TABLES

Sl. No Table. No Title

Page.

no

1 2.1 Global market share

2 2.2 Company market share

3 2.3 Domestic rank

4 3.1 Mile stone of Apollo tyres

5 3.2 Turnover of Apollo tyres

6 3.3 Product details

7 3.4 Light commercial vehicles

8 3.5 Passenger car radicals

9 3.6 Farm

10 4.1 Activities in raw material store

11 4.2 For generation

12 4.3 Issue

13 4.4 Identification and storage

14 4.5 Outside mixing

15 4.6 Stock transfer to sister concern

16 4.7 Inventory maintenance

17 4.8 Scrap disposal

18 4.9 Handling of rejected items

19 4.10 Open delivery report

CHAPTER 1

INTRODUCTION

The industrial revolution in the eighteenth century not only initiated a

boom in the industrial sectors across the world; but also initiated a much

more clinical and systematic approach in the management of organizations.

Rather than running the organizations, organizations are now managed.

This highly evolved and scientific process of managing organizations

became more important ever since the doors of India were opened for global

trade. Competition began to fly in from highly advanced industrial nations

forcing the Indian industries to think in advance and change the year old

methods they followed in managing organizations.

Looking positively at the current industrial scenario prevalenst in the

country makes us understand that the Indian industry is growing both in

terms of business they do and also in terms of brain power it holds. A highly

able super competitive workforce is what drives the industrial growth. A

dedicated workforce determined to find oncoming opportunities at the

earliest and modulate ideas to grab those opportunities and to streamline the

operations of the organization can be considered as the most valuable asset an

organization possess.

Advances made in the scientific and technological areas combined

with determined manpower are what we need to drive the Indian industrial

juggernaut ahead.

Consider whatever field; let it be software, infrastructure development,

pharmacy, biotech, the graph of Indian industries is growing only in one

direction. That is; ascending

Need and Significance of the study.

The importance of management education, management

development and management training cannot be over emphasized. While the

theory classes provide management concepts to a student it is essential for

him to develop managerial skill possibly through experiential learning.

Internship training is one of the many tools used by management institutes to

provide opportunity for the student to develop managerial skills. It also helps

to bridge the gap between the test book knowledge and management in

practice. Effective management creates innovative and flexible environments,

where workers and teams successfully work to continually improve their

performance. The trainee got an opportunity to interact with successful

practicing managers at their own work setting. The trainee could also

experience the work environment and the relationship of the managers and

employees in a dynamic environment. Observing managers in action by itself

was a motivating experience

OBJECTIVE OF THE STUDY

1. To observe and study the different functional departments of Apollo Tyres

Ltd.

2. To study how different activities of departments are structured.

3. To study the functions of various departments of the company.

4. To familiarize with the processes and procedures of different departments

of the firm.

5. To do a SWOT analysis of Apollo Tyres

SCOPE OF THE STUDY

The scope of a study actually limits the domain of the study .The trainee

attempted to study Apollo tyres by conducting a study as the period of study

was limited to 15 days the scope of the study was further limited to four

departments namely the HR department, Production department, commercial

department, engineering department.

Methodology

The present study being an internship training used observation research to

collect data and arrive at conclusions. Both primary and secondary data were

needed for completion of the study. Apart from observation, Interviews were

also conducted among working executives for collecting primary data for the

study. Secondary data were collected from the web site of the company, its

internal records, annual reports, journals, business dailies and internet.

During the study, I gathered information relating to Organizational Structure,

various departments and their functions, products, quality policies,

procedures of the company.

This study is based on the relevant data and materials obtained from the

organization. Also direct interviews are held with high authorities and staffs

to get more accurate and up-to-date information. Each activity of the

company is studied carefully with the available data and materials

Scheme of Reporting:-

This training report was presented in five chapters including this chapter on

introduction. The first chapter on introduction provides in detail the need and

significance of the study, objectives of the study, the scope of the study and

the methodology used in this study. The second chapter is on industry profile

which contains an introduction to the tyre industry, an analysis of the current

competition prevalent in the industry globally and also the Indian scenario.

The third chapter profiles Apollo Tyres Ltd. The vision and mission of the

company, details of promoters of the company, the product details, the

organization structure, the financial performance and the future plans of

Apollo is listed in this chapter. After this the detailed description of four

departments- the HR department, Production department, commercial

department, and the engineering department were provided in the third

chapter itself. The forth chapter contains suggestions and recommendation

and the last chapter concludes the report.

CHAPTER-2

INDUSTRY PROFILE

History of Tyres

The key milestone in the history of tyres was the invention of the wheel by

Sumerians 5000 years ago and it has been refined over ages. Centuries back

pieces of rubber placed at four corners of the vehicle were used as tyres. The

earliest tyres were bands of iron (later steel), placed on wooden wheels, used

Mon carts and wagons. The tyre would be heated in a forge fire, placed over

the wheel and quenched, causing the metal to contract and fit tightly on the

wheel. But the whole scenario started changing when Charles Goodyear

invented vulcanized rubber in 1844 which was later used for the first tyres.

The first practical pneumatic tyre was made by the Scot, John Boyd Dunlop,

in 1887. Pneumatic tyres are made of a flexible Elastomeric material, such as

rubber, with reinforcing materials such as fabric and wire. Tyre companies

were first started in the early 20th century, and grew in tandem with the auto

industry. Today, over 1 billion tyres are produced annually, in over 400 tyre

factories, with the three top tyre makers commanding a 60% global market

share.

. Chronology of Tyres:-

1. 1843 – Charles Goodyear announces vulcanization.

2. 1846 – Robert William Thomson invented and patented the pneumatic tire.

3. 1888 – First commercial pneumatic bicycle tire produced by Dunlop.

4. 1889 – John Boyd Dunlop patented the pneumatic tire in the UK.

5. 1890 – Dunlop, and William Harvey Du Cross began production of

pneumatic tires in Ireland.

6. 1890 – Bartlett Clincher rim introduced.

7. 1891 – Dunlop‘s patent invalidated in favour of Thomson‘s patent.

8. 1892 – Beaded edge tires introduced in the U.S.

9. 1894 – E.J. Pennington invents the first balloon tire.

10. 1895 – Michelin introduced pneumatic automobile tires.

11. 1898 – Schrader value stem patented.

12. 1900 – Cord Tires introduced by Palmer (England) and BF Goodrich

(U.S.)

13. 1903 – Goodyear Tire company patented the first tubeless tire; however it

was not introduced until 1954.

14. 1904 – Goodyear and firestone started producing cord reinforced tires.

15. 1904 – Mountable rims were introduced that allowed drivers to fix their

own flats.

16. 1906 – First pneumatic aircraft tire.

17. 1908 – Frank Seiberling invented grooved tires with improved road

traction.

18. 1910 – BF Goodrich Company invented longer life tires by adding carbon

to the rubber.

19. 1919 - Goodyear and Dunlop announced pneumatic truck tires.

20. 1938 – Goodyear introduced the rayon cord tire.

21. 1940 – BF Goodrich introduced the first commercial synthetic rubber tire.

22. 1946 – Michelin introduced the radial tire.

23. 1947 – Goodyear introduced first nylon tires.

24. 1947 – B F Goodrich introduced the tubeless tire.

25. 1963 – Use of polyester cord introduced by the Goodyear.

26. 1965 – Armstrong Rubber introduced the bias belted fibreglass tire.

27. 1965 – BF Goodrich offered the first radial available in North America.

28. 1967 – Poly/glass tires introduced by Firestone and Goodyear.

29. 1968 – United States Department of Transportation (DOT) numbers

required on new tires in USA.

30. 1974 – Pirelli introduced the wide radial tire.

During the last 20 years tyre has been virtually reinvented with most modern

technologies like steel radial tyres, a milestone in the tyre technology. Tyre

sector is experiencing a rapid improvement with the advent of newer

technologies

Company Market

share

Michelin 19.5%

Bridgestone 19.4%

Goodyear 16.6%

Continental 7.1%

Sumittomo 4.9%

Pirelli 3.9%

Yokhoham

o

3.5%

Kumho 1.7%

Others 23%

Table 2.1 GLOBAL MARKET SHARE

World Scenario

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.

. Company Market share-:

COMPANY MARKET SHARE

Michelin 19.4

Bridgestone 19.4

Goodyear 16.6

Continental 7.1

Sumihomo 4.9

Pirelli 3.9

Yokohama 3.5

Kumho 1.7

Others 23.5

Table 2.2

The Indian Scenario

The most important application of rubber relates to the transport sector of

which tyre industry consumes over 60% of the total rubber produce. During

the last 20 years tyre has been virtually reinvented with most modern

technologies like steel radial tyres, a milestone in the tyre technology. Tyre

sector is experiencing a rapid improvement with the advent of newer

technologies.

The Indian Tyre industry dates back to1930 when multinationals like Fire

Stone, Good Year and Dunlop entered in the market. MRF, Premier, CEAT

at various locations in the country carry out the domestic production of the

tyre.

The tyre industry in India is classified under three heads:-

1. First Generation companies: - Dunlop and Fire Stone (New Bombay tyres

international Ltd).

2. Second Generation companies: - MRF, CEAT, Good year, Premier

3. Third Generation companies: - J K Tyres, Vibrant, Apollo and Modi

rubber

The first Indian tyre Company Dunlop Rubber Company was incorporated in

1926. Today the tyre industry is growing rapidly and its turnover is 1, 00,000

million and earning an income of Rs.1, 000 core per annum for export.

Market for tyre can be broadly classified or segmented into three categories:-

: - Original Equipment Manufacturers. (O E M).

: - Replacement Market.

: - Export Market.

. Salient Features of Indian Tyre Industry

1) Adaptability and absorption.

2) Exports

3) Innovations

4) Indigenous and ready availability

5) Technology progression

6) Wide product range for diverse use

7) Self sufficiency and vibrant marketing setup.

.Ranking of Indian Tyre Companies On The Basis Of Production

1. MRF Tyres Limited

2. Apollo Tyres Limited

3. JK Tyres Limited

4. CEAT Tyres Limited

5. Modi Rubber Tyres Limited

6. Birla Tyres Limited

7. Good Year India Limited

Highlights

1) The Indian tyre industry is a Rs. 9,000 crore industry.

2) The fortune of this industry depends on the agricultural and industrial

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

vehicles.

3) While the tyre industry is mainly dominated by the organized sector, the

unorganized sector holds sway in bicycle tyres.

4) In the last five years (2002-03 to 2007-08), the industry managed to

achieve a compounded annual growth of only 4.40 per cent. However in the

last fiscal the industry registered a growth of 7 per cent.

5) Natural rubber constitutes 25 per cent of the total raw material cost of the

tyres.

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

Indian tyres, whereas worldwide, the ratio of natural rubber to synthetic

rubber is 30:70.

Domestic Rank

Companies SegmentTruck Light Commercial Vehicle

Apollo Tyres 1 2JK Tyres 2 4MRF 3 3CEAT 4 1

Table 2.3

CHAPTER-3

COMPANY PROFILE

History of the Company

The history of Apollo tyres can be traced back 70‟s when MNC‟s and Indian

tyre major’s dominated the tyre industry. Apollo Tyres Ltd a leader in the

Indian tyre industry and a significant global player, providing customer

delight and enhancing share holder value was registered in 1972. The license

was firstly given to Ruby Rubber works to start a tyre factory at

Changanassery .In 1975 Raunaq Singh purchased the license from Ruby

Rubber works. It is one of the flagship companies of Raunaq group. The

plant is situated at Perambra 50 km north of Cochin. Total area covered

where 97 acres which was bought from people who stayed there by, at

cheaper rate. At the starting time the production capacity was 54 tones per

day.

The Apollo tyre ltd owned by Raunaq group of industries play an important

role in world tyre industry. The products include tyres, tubes and flaps for all

vehicles. The head office of company is at New Delhi and registered office is

at cochin. The main marketing activities are concentrated in New Delhi and

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

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

utilization was only 40 to 50 % capacity. The emphasis is given on growth

quality and objectives are redefined when Mr.Onkar S Cañar took over the

company’s affairs . Company began to earn profit and accumulated losses of

26 cores could be wiped out with short span of time.

There second plant was installed at Limda village at Baroda in Gujarat,

which started production in 1991 having capacity of 6.5 lakh tyre/annum.

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

location.

The third plant at kalamassery was taken over by Apollo from Premier

tyres .While taking over this plant was a sick unit. After the takeover Apollo

spent a good amount in modernizing the plant and now it is also 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 taken care off from

here.

Family Focus.

Hygienic Factors.

Employee Involvement and Culture Building.

Manufacturing Excellence Awards:-

Perambra plant has received best norms for man days lost due to accidents.

Best norms for FGS-OE adherence.

Certifications

1) QS 9000 (Automobile specification) 1998, 2004 certification for quality

management systems

2) Registered with DGS & D and defence (CQAV)

3) Registered with DOT (Department of Transportation USA)

4) ECE certification

5) In-metro (Brazil) certification

6) SASO (Saudi Arabia) certification

7) ISO 9001 certification

Mile s tone of Apollo tyres

1972 The company’s license was obtained by Mr. Mathew T.

Marattukalam, Jacob Thomas and associates.

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

associates.

1975 April 13, foundation stone of the Perambra plant was laid.

1976 Apollo Tyres was registered.

1977 Plant commissioned in Kerala with 49 TPD capacities.

1982 Manufacturing of Passenger Car Radial Tyres in Kerala

1991 Second plant commissioned in Baroda.

1995 Acquired Premier Tyres Ltd in Kerala.

2000 Exclusive radial capacity established in Baroda.

2003 Radial Capacity expanded to 6600 Tyres per day.

November 17, Joint Venture with Michelin.

2004 Launch of Apollo Aclere-„H‟ Speed Rated Car Radials.

2005 April 13, Perambra plant completes 30 years.

2006 January 30, Acquires Dunlop South Africa.

August 7, Announced the launch of new plant in Chennai.

2007 Launch of Dura tyre. Retreaded tyre first in India.

2007 Launch of Regal track and bus radial tyres.

2007 Launch of the Apollo Tennis initiative and Mission 2018

2008 Announce possible green field plant in Hungary ready by 2010

for European market.

1972 The company’s license was obtained by Mr. Mathew T.

Marattukalam, Jacob Thomas and associates.

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

associates.

1975 April 13, foundation stone of the Perambra plant was laid.

1976 Apollo Tyres was registered.

1977 Plant commissioned in Kerala with 49 TPD capacities.

1982 Manufacturing of Passenger Car Radial Tyres in Kerala

1991 Second plant commissioned in Baroda.

1995 Acquired Premier Tyres Ltd in Kerala.

2000 Exclusive radial capacity established in Baroda.

2003 Radial Capacity expanded to 6600 Tyres per day.

November 17, Joint Venture with Michelin.

2004 Launch of Apollo Aclere-„H‟ Speed Rated Car Radials.

2005 April 13, Perambra plant completes 30 years.

2006 January 30, Acquires Dunlop South Africa.

August 7, Announced the launch of new plant in Chennai.

2007 Launch of Dura tyre. Retreaded tyre first in India.

2007 Launch of Regal track and bus radial tyres.

2007 Launch of the Apollo Tennis initiative and Mission 2018

2008 Announce possible green field plant in Hungary ready by 2010

for European market.

Table 3.1

Manufacturing Centres

Corporate office-GurgaonOther plants in India:-

- Baroda- Pune- Perambra- Kalamassery Upcoming plant:- Chennai

International plants:- Zimbabwe – Bulawayo South Africa – Ladysmith, Durban

3.1.3. Perambra Plant (in Focus)

1 Single largest truck tyre plant in India.

2 Fastest growing plant in Apollo family.

3 It is known as the mother plant.

4 Continuous expansions.

5 Total employee involvements.

3.1.4. Highlights of Apollo Tyres Ltd

1. 7th fastest growing Tyre Company in the world.

2. 17th largest Tyre Company in the world.

3. First Tyre Company in India to obtain ISO9001 certification for all its

operations.

4. First Company to introduce packaging for tubes, two wheeler Tyres and

Car Tyres.

Turnover of Apollo as

a Whole (In Tyres)

Years Turnover in Crores2001-2002 1710.142002-2003 2025.622003-2004 2314.312004-2005 2656.812005-2006 3002.122006-2007 3774.342007-2008 4246.98

Table 3.2

3.1.5. Golden Achievements

1. 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 productivity council.

2. Apollo Tyres Ltd received the pollution control award by the central

government during the year 2003-2004.

Vision and Mission

Vision

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

providing customer delight and continuously enhancing stakeholder value.”

Perambra Plant Vision:-

“To be the most successful profit centre through innovation, capacity

expansion and by embracing newer technologies and work culture, thus

synergizing our efforts to achieve corporate goals”

Quality policy

“We will achieve customer delight by striving for excellence in the quality of

our products and services using a fact based approach for continual

improvement that ensures all processes contribute to business success”.

Values

The core values of Apollo is CREATEC- Care for Customers

R- Respect for AssociatesE- Excellence through Team WorkA- Always LearningT- Trust MutuallyE- Ethical Practices

.Goals

1. Creating social responsibility.

2. Learning & development.

3. Family focus.

4. Hygienic factors.

5. Superior Employee involvement & cultural building.

Apollo Key Differentiation to Other Firms:

1. Product Quality.

2. Strong Brand Equity.

3. Committed Marketing Team.

4. High Consumer Loyalty Product Segmentation in Truck Tyres.

5. Benchmarked for planning efficiency parameters.

6. Power consumption.

7. Quick response to market needs.

8. Fuel efficiency.

9. Least scrap generation.

Corporate Social Responsibility

The company has 2790 direct employees. Among them 1500 employees are

local people. It increases family loyalty towards Apollo tyres. Indirectly they

take 5000 persons, majority of them are locals. Apollo contributed Rs 10

lakhs to Kodakara Panchayath for drinking water supply scheme. They also

provide Rs 2lakhs for assistance in settlement of dues to water authority.

They conducted an eye camp for workers in Apollo Tyres Ltd. In 1996

Department for International Development [DFID] conducted a research,

which reveled an alarming rate of increase in HIV infection amongst truck

drivers in India. 0.03 to 0.05 million truckers are living with HIV- AIDS

today. ATL in partnership with Department for International Development

started pilot project in the form of health care clinic in Sanjay Gandhi

Transport Nagar in the year 2000 to spread awareness about HIV-AIDS.

Introduced Wrist Bands and distributed all over India as a mission for

spreading AIDS awareness. They conducted summer camps for children of

workers. It creates a good relationship with employer’s and employee’s

family. It increases family loyalty of children towards company.

Promoters 0f the Company

 

 Onkar S Kanwar Chairman & Managing Director, Apollo Tyres Ltd

   

Neeraj Kanwar** Vice Chairman & Managing Director, Apollo Tyres Ltd

 

T Balakrishnan* Principal Secretary (Industries)Government of Kerala

   Nimesh N KampaniChairmanJM Financial Group

 

Dr S NarayanFormer Principal Secretary to the Prime Minister of India

   U S Oberoi** Chief, Corporate AffairsApollo Tyres Ltd

 

Dr A K Dubey* Principal Secretary (Finance) Government of Kerala

   

M R B PunjaFormer ChairmanIndustrial Development Bank of India

 Arun Kumar PurwarFormer ChairmanState Bank of India

   Sunam Sarkar**Chief Financial OfficerApollo Tyres Ltd

 

Robert SteinmetzFormer Chief of International Business Continental AG

   

K Jacob ThomasManaging DirectorVaniamapara Rubber Co Ltd

 P N Wahal Company Secretary Apollo Tyres Ltd

 

 

Nominee* Wholetime Director **

Product Details

Overload Technology 1. Loadstar Super.2. Loadstar Super Gold.3. Loadstar Super Hercules.4. Kaizen 50L.

Load & Mileage Technology1. XT7.2. XT7 Gold.3. XT7 Haulug.4. Amar Deluxe.5. Amar.6. Commando.7. Kaizen 36L8. Kaizen 99R plus9. Kaizen 77R

Premium Mileage Technology 1. XT9

2. XT9 Gold3. Amar Gold4. Kaizen XTD

Mileage Technology Segment

1.Champion2.Champion Gold3.Champion DXL4.Amar AT Rib5.Kaizen 27L

Table 3.3

Light Commercial VehicleOverload Technology Loadstar Super.Load & Mileage Technology

Mile star

Premium Mileage Technology 1. Amar Deluxe

2.Amar Gold Rib3. XT94. XT9 Gold(lug)5.Duramile (radial)

Regular Mileage Champion Table 3.4

Passenger Car RadialsTubeless Radial Passenger Car

1. Acelere2. Amazer XL

Tubeless Radial MUV & SUV 1. Hawks

Tube type Radial for Passenger Car 1. Amar

2. Amazer XL3. Quantum

Tube type Radial MUV & SUV 1. Amar

2. Amazer XL3. Storm4. Hawks

Passenger Car & Jeep Bias1. Armour2. Panther3. Gripper Maha Trooper

Table 3.5

Farm

Cultivation 1. Krishak Super

2. Sarpanch

Haulage

1. Power Haul

Multipurpose

1. Farm King (Radial)

2. Krishak Premium (bias)

Tractor Trailer Types

1. Dhruv

2. Hunter

Table 3.6

ORGANIZATIONAL STRUCTURE

DETAILED STUDY OF DEPARTMENTS

Various Departments of Apollo Tyres

There is a high degree of departmentation in Apollo Tyres Ltd. The

departmentation helps in specialization of work in each field. It helps in better

planning and better concentration in the particular work handled by a particular

department. The various departments in Apollo Tyres are as follows:

1. Human Resource

2. Purchase

3. Stores

4. Production

5. Marketing

6. Systems

7. Utility

8. Technical

9. Quality

10 Finance

4.1 HUMAN RESOURCE DEPARTMENT

Human resources and administration department is one, which facilitates

smooth working of the organization by looking into human resource side and

also the overall administration of organization. HR department is divided into

three sections namely industrial and personal relations, security and

administration. Heads of each section are in direct contact with department

head.

Vision of HR Department

“Vision of HR department is to be strategic partner to the business and create

value for the organization by developing the human capital”.

Mission of HR Department

1. To create HR policies and process which are employee friendly

2. To build a culture which is warm forthcoming and professional with a sense

of ownership and pride?

3. To encourage innovative thinking.

4. To encourage transparency and team work.

5. To develop leaders at all level with general management skills.

6. To create a learning organization.

7. To develop competencies and skill through training and development.

8. To constantly raise levels of employee productivity.

9. To create HR brand

10. To work towards attaining and sustaining the best employer status.

Major Functions of HR Department

1. Recruitment

2. Selection

3. Training

4. Industrial relations

5. Welfare

6. Time office

7. Security and Safety

RECRUITMENT

In every organization the man power planning plays a vital role in the achievement of business objectives of supplier’s right man for right job at right time and a right place.

The current trend demands a more comprehensive more strategic perspective to recruit utilize and converse valuable human resource. The employees are the major stake holders whose interest can and must be acknowledged by to management

Once the kinds of human resource are determined the company has to determine the place where they set responsible human resource and he and the ways through which they attract then towards the organization. Usually recruitment is done through advertisement and a good opportunity is given to the family members of the existing workers so that the loyalty for the individual and his family members can be increased, this acts as a motivation. They are called for interview for the selection process

PROCESS OF RECRUITMENT

Recruitment process is a very difficult process as it is involved in the recruitment of right person with responsibilities and skills to the organization. This is a vital decision which the success of a company

Interviews are the most crucial part of any recruitment process. Here the selector has to assess the performance of the candidate. They might have fixed the norms for selection like qualification, skills or aptitude according to each job. Here the candidates get a chance to show and make the selector aware of his skills, aptitude and qualification. In interview

they also fest the behaviour and the other qualities of the person while in an organization.

Most of the organization while recruitment has a common structure or order first the application or CVS are received either through post or by person then the candidates are short listed then are invited for interviews

INTERVIEW FORMAT

Interview is the most important part where the candidates are measured and compared with the traits and competence that are prefixed by the selector and which are essential to get into that job. The person should be confident and well aware of the organization and it’s environment the interviews may be conducts in may be conducted in many ways they may be

1. Chronological interview

This interview based on the application or CVS received from the candidate, the candidate is asked about himself his family and his experience.

2. Competency based interview

This type of interview are conducted in order to access the technical knowledge of candidate, they might may be asked about their technical knowhow and might be asked about the final year project that they have done as a part of curriculum. They must be proved themselves competent and should admit if they are unaware of any of those questions that are being asked.

3. Case study interviews

These are largely used by consulting firms they can range from straight toward brain teasers to the analysis of hypothetical business

problem, how you identify they key issue, they persue the thinking time whether the candidate can developed and frame an appropriate frame work for the organization. The approach of the candidate to various situations is mainly tested in this type of interviews.

Steps in recruitment

1) Receiving applicationThis is the first step in any recruitment process. The

candidates are asked to fill the application given by the organization or sometimes are asked to apply including bio- data and photograph. This helps the selector in assessing he qualification of the person and can be compared with the norms, if the persons qualification is not satisfactory they can be rejected

2) Attending assessment centres Before attending assessment centre recruiters will be sent material for it, here candidate will be tested on written English skills, verbal reasoning, and mathematical skills. They will be tested in number of ways like interviews, role playing and writing tests of candidates are successful they will proceed to step 3 &4. Unsuccessful candidates will be provided with feedback from centre on their performance.

3) Medical and fitness test In this step the candidates are asked to prove themselves fit. They are asked to undergo a medical check-up and to bring the fitness certificates, this helps the recruit to select those who are competent to do the job, especially which involves physical labour.

4) Final selection The persons who qualify all these three steps are asked to come for the final selection, here they are compared and the most competent person is selected.

Sources of recruitment

Internal

Transfers Promotion Present employee Demotion External

Notice at factory gate Unsolicited application Casual caller Advertisement Employment exchange Educational institution Labour contractors Private agencies Trade union

RECRUITMENT STRATEGY IN APOLLO TYRES

Manpower planning

White Collar This includes the planning of top level employees. The norms for white collar jobs are;

Requisition on the registration of recruitment. No fresh vacancy creation unless approved by the head

office. Current freezed level of management staff -270

Blue Collar This involves in planning the lower level of workers in the organization.

Recruitment on the family of retirement or expansion or death

RECRUITMENT OF INDUCTION

WHITE COLLAR

A B

Fresher Experience

Campus interview internal and external

Short listing of candidates’ source

Personal meeting of candidates’ short listing of

Selection of candidates’ candidates

Issue of letter of intent interview

Medical test issue of letter of

Filling of joining report indent

Issue of appointment letter medical test

Induction schedule 15-20 days filling of joining report

Job allocation issue of appointment

Letter

Induction

job allocation

BLUE COLLAR

Start

Recruitment normal course recruitment normal course

(Retirement) (Death)

Minimum criteria

10th completed

Weight/height

Medical test

Selection of candidates induction schedule

Abnormal course 3 days external faculty

1st year production apprentice

(>270 days attendance)

2nd year production

Apprentice

(>270 days attendance)

Promotion grade

6 to 1 grade

End

2. Selection

a. Management staff Technical- B.tech, Graduate engineer trainee. on technical

– CA /ICWA / MSW /MBA / MA: Executive trainee After training they are

absorbed as officer. The criteria include Consistency in academic performance,

performance in Group discussion and Personal interview.

B.Employee Children Skill Development Scheme. Three year training as

production apprentice. Minimum qualification of eight standard , physical

fitness (height 168 cm, weight 50 kg)

c. Induction plan

Workers - 2 days induction training

Associate managers - 7 days

Management staff - 15 days t o one month ( varies at various levels)

3. TRAINING IN APOLLO

Both managers and workers are given training. The managers are given both

internal and external training.

Workers are given only internal training. The training is provided

only by experts.

Initially the training agencies called the track schedule of the

persons from Human Resource Department. All the employees who have not

undergone this are sent

For training. The training system includes:

a. Need Identification

b. Validation of need

c. Annual training plan

d. Selection and preparation

e. Training inspect assessment

The workers are given both on the job and of the job training .There will be

induction training for both managers as well as workers. Introduction training

for managers will be 15 days where as it is only 2 days for works. A separate

record for knowing the training that the person has undergone .After

considering performance appraisal report candidates for training will be

selected.

The selection is done by the Human Resource Department on

the basis of the advance given by the department heads. The company spends

more than Rs.20 lakhs for training.

The managers are given training for four days every year. According to the

changing conditions of which is ensured by providing them a feed back system.

Steps in Training

Organisational Analysis

Study of the entire organisation in terms of its objectives, its resources,

resources allocation and utilization growth potential, it environment

Operation Analysis

It is a systematic and detailed analysis of job. It is conducted mainly to

asses job contents, skills and aptitude acquired to perform jobs ,the knowledge

the work behaviour.

Man Analysis

The person to be trained, changes required in the knowledge, skills and

aptitude of the employees are to be determined.

Objectives of Training

a. To provide basic knowledge and skills required to perform a specific

task.

b. To provide information on latest concepts and techniques to employees

for performing efficiently in present position.

c. To build second line officers by giving training to occupy responsible

positions in future.

Industrial Relations

Industrial Relation

Industrial relation is a very essential part of any organisation. It should be

treated as a part of management and not as a discipline or activity apart from

management. It is a relationship that emerges out of day to day working and

association of labours and economic efficiency and motivation, productivity and

development of the employee loyalty and mutual trust .It helps in the

development and maintenance of harmonious relationship between employer

and employees of an organization .It ensures industrial peace. It safeguards the

interest of employees in an organisation. Industrial democracy is maintained. It

also encourages collective bargaining and has the merit of boosting the morale

of the employees.

The main unions which are recognized by the Apollo Tyres Ltd are:

ATSWN (Apollo Tyres Staff and Workers Union)

ATEU (Apollo Tyres Employee Union)

ATMS (Apollo Tyres Mazdoor Sangh)

ATWN (Apollo Tyres Workers Movement)

The management recognizes those trade unions which gets at least 20% of vote

of total strength. The management has introduced a long term settlement (LTS)

plan. It is a collective bargaining agreement. The decisions are taken jointly by

the trade unions and the management. Also a part of the HR initiates employees

involving them in productivity related issues such as quality circles and

professional circles, a social gathering such as factory day and other celebration

over coverage participation. Among the 4 unions the recognized unions are

ATWM and ATEU.

WELFARE

The Apollo Tyres provides good welfare service to its employees. The company

runs a subsidized canteen on contract basis. Rest rooms with lockers and

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

facilities provided.

The workers are given transportation facility to commute from different

distinctions for which they have to pay only a nominal amount .All employees

drawing a salary below Rs.6000 are benefited by the accidental policy and med

claim policy.

The organization takes the health aspects of the workers in to consideration.

They get a 200ml milk packet during their night shift, to retain their lost

energy. This also acts as a motivational factor for employees to work in the

night shift. Cakes of soaps are distributed among the employees to promote

cleanliness which is free of cost.

MANAGEMENT STAFF

1. Group Hospitalization Scheme

2. Group personal accidental policy

3. 2 wheeler scheme 40% borne by the company

4. Car scheme assistant manager and other superior grade 4% borne by the

company.

5. Superior annuation – assistant manager and other superior grade.

6. Employees self development scheme.

WORKERS

1. Group personal accidental policy

2. Medi claim

3. Housing loan-interest subsidy 50%

4. 2 wheeler loan-interest subsidy 50%

5. Financial assistance by co-operative society

6. Periodical medical check-up

TIME OFFICE

This is concerned with registering the time of arrival

of the workers and also the time of arrival of the workers and also the time of

their leaving the company. This aids activities like payment of wages and

incentives

Purchasing system is also used in addition to

recording in the book. The badge of each employee is punched at the time of

arrival and leaving the organization. Attendance is cross checked with the

attendance register of the various sections with those of the workmen

performance reports are maintained in each section. These are done with a

view to reduce the number of absentee employees and also to motivate them

to increase production.

A leave book is maintained which contains details

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

register is verified by the supervisor, shift engineer and shifts superintendent

of the concerned department.

WORKING HOURS

A shift 6 am to 2 pm

B shift 2 pm to 10 pm

C shift 10 pm to 6 am

D shift 9 am to 5 pm

(General shift)

Usually trainees are put in the general shift)

SECURITY AND SAFETY

Security is concerned with the physical movement of men and material security

staff headed by the chief security single officer. To facilitate the security single

point entry is adapted control visitors for materials, separate gate passes are

issued.

ACCOUNTABILITIES OF CHIEF SECURITY

a. To monitor and control all inward and outward flow of vehicles, materials

and persons.

b. Deployment of contract work force to various departments for routine as

well as project work.

c. Ensure high degree of liaison with police, local administration, fire force

and government authorities.

d. Up keep of environment management system, including housekeeping

of the plant.

e. Maintain the database of all in the direct work force including contract

workmen.

f. Keep strict vigilance and administrative intelligence for smooth

functioning of the plant in a unionized environment.

The organization follows all the provisions under the Factor Act 1948.

The plant is well equipped with safety machines and directions are placed

at a noticeable point in and around the plant premises. Fire extinguishers

are placed at reachable points and employees are well trained to use these

if necessity arises. The workers in the production department are given

mask, safety gowns and shoes. In Apollo a separate book is given to each

employee which prescribes certain accident free working environment.

No major accidents have occurred in the plant for the past 10 years.

SAFETY POLICY

a. Accidents resulting in personal injury and damage to property and

equipment must be presented by every reasonable means available.

b. All personal injuries are checked. The protection of human life

demands a complete elimination of accidents.

c. Officers of all levels have a primary responsibility for the safety and

wellbeing of their co-workers.

d. The ABC safety method is used in the organisation- the “ Always be

safety” method.

Six Sigma

Six sigma was introduced on April 16th 2007. It is basically meant for increased

production and for running the organization successfully. It is for finding out

areas where unnecessary expenses are occurring and for reducing it. It is also

concerned with usage of scientific techniques with a disciplinary approach. A

six sigma organization means the defects in the production of one million cases

are below 3.34%. When the employees are trained through six sigma, they come

into contact with the machineries in the appropriate manner, thus the

organization will achieve an unexpected growth. This helps to find the defects

in the production and to take corrective actions for its removal. It also helps to

understand the fact that consumers are the owners and thus it is utmost

necessary to produce quality goods.

. Jyothirgamaya

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

classroom atmosphere, about the quality, productivity and scrap reduction. The

employees are given training especially about the company and the tyre industry

in general. Jyotirgamaya provide information regarding the changes happening

in the industrial field. Its objective is to give training for all the employees in the

unit within a period of one year.

Production department

The production department forms the backbone of any manufacturing

organization. Apollo Tyres Ltd. has adapted the latest technology in various

areas of operations to ensure improved production. The production target is

fixed as per the directions of the head office. At present the daily production

target of Apollo Tyres is 86 meric tones per day. Production department runs 3

shifts for workmen. Every month end production intends are obtained for

marketing department of ATL from Delhi stating how much tyres are to be

produced during the next month and which type tyres are to be produced.ATL

primarily focus on bias production and frame radial production.

Production department is responsible for maintaining quality of production and

optimum level of production. The production planning starts with the receipt of

production ticket from Delhi which contains the quality required for operation.

The requirement is then processed in the planning department and then

converted into equivalent tyre requirements. This is then checked for feasibility

depending on the moulds available for production, and then the production

schedule is finalized.

The production department is divided into 3 main divisions based on the stages

of tyre manufacturing process. Each division monitors the following:-

Division 1 - Raw material store, Banbury, mixing.

Division 2 - Thread preparation, Bead preparation, Fabric Dipping, Tyre

Building.

Division 3 - Curing, Post Cure Inflation, Warehousing.

Composition of Tyres:-

50% Rubber

23% Carbon

11% Fabric

5% Process oil

5% Bead wire

3% Zinc oxide

1% Stearicacid

2% Sulphur & other accelerator

Pneumatic tyre is a high performance composite product. The raw materials

used for its manufacture can be divided into 3 groups.

Rubber & Rubber additives.

Fabric reinforcement (Tyre cords)

Wire reinforcement (Bead Wire

Materials used in Rubber Compound The essential ingredients in rubber

compound are as given below:

a) Raw rubber or natural rubber

b) Vulcanized rubber

c) Carbon Black

d) Zinc oxide

e) Accelerators

f) Activators

g) Reinforcing agents

h) Process oils or Aromatic oils(make easy the mixing)

i) Anti- degrader

j) Anti-oxidants

k) Fillers

l) Process aids

m) Special additives

n) Auxiliary materials

a) Raw Rubber:-

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

properties required for a tyre 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 built- 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 weather

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

compounds for higher hardness.

b) Vulcanizing agents:-

Raw rubber when heated with vulcanizing agents become elastic and harder and

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

c) Carbon Black:-

Carbon black is the predominant reinforcing filler used in rubber compounds.

Through the addition of carbon black to the rubber compound, durability and

strength are significantly improved. Improvement in rubber properties is a

function of the physical and chemical characteristics of carbon black. Carbon

black‟s most important fundamental characteristics are aggregate size and shape

(structure), particle size, surface activity, and porosity.

d) Zinc oxide:-

Zinc oxide is an essential chemical used in rubber compound and help to form

proper shape of products. Zinc oxide is used in the manufacturing of plastic and

rubber products durable. Zinc oxide is used in rubber and latex compounds as

an activator in the curing and vulcanization process. Zinc oxide is used as an

enforcing agent adding durability and abrasion resistance. Zinc oxide is a raw

material which aids in protecting rubber from harmful UV rays.

e) Accelerators:-

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

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

classified as Primary Accelerator and Secondary Accelerator. A Secondary

Accelerator is one, which is used as the booster to the Primary Accelerator.

f) Activators:-

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

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

oxide and stearic acid.

g) Reinforcing agents:-

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

activators are still soft like rubber band. For improving the strength, hardness,

tear and wear and flex properties suitable for a tyre compound, reinforcing

agents are used. Reinforcing agents are carbon black and silica.

Materials used for tyre re- enforcement:-

Caress and bead materials used in a tyre are called tyre re-in forcers. 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. To

form a cord, two or more piles are twisted together. Cords are then woven into

fabrics in special looms, with cords in longitudinal direction called warp and

thin cotton filaments in the opposite direction called weft. Bead wire is a

especially alloy steel wire bronze plating used as a bead wire for tyre.

h) Process oils:-

Incorporation of re-in forcing 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.

i) Anti-degradedness:-

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

heat, flex, and weather and to take care of these anti- degradedness are added.

j) Anti-oxidants:-

It confers very good heat resistance and good flex cracking resistance. It

disperses readily in rubber and does not bloom. It is used in automotive tubes,

curing bags and in mechanical rubber goods.

k) Fillers:-

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

compound cost. Carbon black and reinforcing clay are the normally used fillers.

l) Process aids:-

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

reducing viscosity of the stock and for improving process safety.

m) Special additives:-

Sometimes special additives like bounding agents, hardening agents, and

corrosion inhibitor etc. are added for specific vulcanization properties.

n) Auxiliary materials:-

Major auxiliary materials used in the tyre manufacturing process are dip

solution, chemicals, solvents, lubricants and seperants.

Tyre Manufacturing Process:-

Tyre Manufacturing Process is the art of processing the above materials and

assembling the various components into the final product. The process of tyre

manufacturing is complicated by numerous raw materials, equipments and

processes used for the same. The process involved in the manufacture of a bias

truck is as follows:-

1. Compound Mixing:-

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

accomplishes in to two or more steps using a Banbury mixer. The mixing is

done in the chamber of the Banbury mixer under high pressure using two rotors

of the machine so that the ingredients are uniformly dispersed inside the rubber

matrix. Different rubber compounds are used in different components of tyre.

The rubber compound is thus used for the preparation of different components

in subsequent stages of manufacturing. This mixing is accomplished by various

stages which are as follows:-

First stage: first stage takes place at the second floor of the production unit,

where there is a Banbury which is a cone shaped machine .The carbon is cut in

different weights and put in Banbury, where it gets processed. Different weights

are required for different combinations, which is displayed through a chart.

Second stage: the second stage of the process takes place at first floor, where

the mixed combination of the carbon arrives from the second floor. Required

rubber and sulphur are added to this mixture and processed. During this process

a computer terminal displays the current heat, pressure and operations which

help the operator to monitor it.

Third stage: the third stage takes place at the ground floor, where the above

stated mixture arrives and is processed in a mill. This combination is dipped in a

soap solution so that they don’t stick to each other. Then they are fanned and

finally they get collected towards the endear sample is cut from it and sent to

the lab where they are tested. If it is tested OK then only they are used or else

they are sent upwards again for reprocessing.

The mixing takes place under shear at 50psi. The mixed batch is dumped on to a

sheet mill and sheeted out. Different compounds are used for different types of

tyres.

The major components of a bias truck tyre are:

1. Tread: made from rubber compound.

2. Side Wall: made from rubber compound.

3. Tread Cushion: made from rubber compound.

4. Plies: made from dipped tyre cord and compound.

5. Chafer: made from dipped square woven fabric and compound.

6. Flipper: made from dip rubber code and compound.

7. Filler: made from rubber compound.

8. Bead: made from bead wire and rubber compound.

9. Squeegee: made from rubber compound.

10. Breakers: made from dipped tyre cord and rubber compound.

The compound prepared in the Banbury goes to the respective equipment and

process for further processing.

2. Fabric dipping:-

Raw fabric (nylon) received 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 dimensional stability. Dipping is accomplished in a dipped unit

and the dipped fabric is then used for the preparation of different components as

mentioned above.

3. Extrusion:-

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

components using as 8” extruder. Extrusion is the process by which rubber

compound is given a definite continuous shape. It is then cooled and cut to

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

Extruders are distinguished by the diameter of their screws 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 into specified lengths with the help of skiver

(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 parts 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 predetermined shape. The

advantage of the dual extruder is that two rubber compounds of completely

different composition can be extruded.

4. Calendaring:-

Fabric calendaring is the process of coating both sides of hot dipped fabric

using rubber compounds. This is accomplished using a three roll calendar. The

coated fabric is cooled and wound in liners to avoid sticking. This goes to the

next stage for ply cutting.

5. Ply cutting:-

For assembling a tyre several plies are used eg; A 16 PR nylon truck tyre uses 8

piles and 2 breakers. Each ply is cut from the coated fabric rolls prepared by

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

ply is cut a definite width and angle and wound in liners. The cut plies then go

to roll calendar for squeegee application. Compounds like chafer and flipper are

also made. These are further slit using a slitter into smaller widths and wound

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

the bead flipping.

6. Squeegee Calendaring / Squeegee Application:-

Squeegee Calendaring is the process of making thin sheet of rubber compounds

usually by using a squeegee roll calendaring. It is wound in liners and the

squeegee rolls are sent to tyre building for assembling. The ply squeegee

application on to the cut plies is accomplished using squeegee application

tables.

7. Bead Preparation:-

The bead wire is coated with rubber compound in a T - head extruder and

wound into coils of required dimension. The coiled beads are further applied

with rubber and calendared fabric strips of appropriate dimensions. Bead

Preparation consists of 3 stages:-

1. Bead winding

2. Bead filtering

3. Bead flipping

1. 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.

2. Bead filtering:-

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

extruded. It is

applied on to the bead bundle using a filtering machine.

3. Bead flipping:-

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

bead bundle. This is accomplished using a bead bundle in a bead flipping

machine.

8. Tyre Building / Tyre Assembling:-

Tyre building is the process of assembling the various compounds into the semi

finished products called green tyre. This is done in a tyre building machine. The

component like Drum squeegee, plies with squeegee applied on it to are

assembled from the end and locked in using the ply ends, breaker and chafer are

applied next. Finally the tread and side walls are applied. The assembling (green

tyre) is taken out after collapsing the drum.

9. Tyre Curing:-

The green tyre is inspected and then applied with a lubricant on the inside and

ant blemish paint on the outside wall area. The green tyre is also used to

facilitate easy removal of any trapped air during the final shaping and moulding

operation. The green tyre is shaped and given final contour using the

appropriate tyre moulds (fitted to tyre curing presses) by the application of

pressure and temperature. The rubber compound gets vulcanized during curing

and become tough and elastic and provides all the decided property upon the

size of the tyre “varying from 18 minute” for a passenger car tyre to one hour

for truck tyres.

11. Post Curing Inflation:-

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

shape retention. This process of cooling the tyre under high inflation pressure is

called post curing inflation (PCI).

12. Inspection:-

The tyre after Post Curing Inflation is subjected to rest trimming. The tyre are

then inspected 100% for visual defects. The tyres are also statically sampled and

tested for conformance to B/S or company specification and warehoused.

Major losses during production

a) Breakdown of machineries

b) Loss of time for setting up of machine

c) Loss due to difference of machine speed

d) Loss due to stoppage of production

e) Loss due to mistakes and correction of mistakes

Production facility is the backbone of any manufacturing based organization.

Apollo tyres are very much improved in production capacity. The per day

production of Apollo tyres ltd is 270 tones. This achievement is only possible

because of the hard work of employees.

Production Planning & Control Department:-

Production planning and control department is responsible for fixing monthly

production levels, meeting production targets, scheduling machines as per the

requirements, employees developing subordinates and the preparation of raw

material requirements based on monthly production ticket. The resources in

terms of machines, men, material etc. Used in a tyre plant run in to several

crores and it is necessary to make best possible use of these resources to achieve

maximum economy in production cost.

The main objective of production planning and control department is therefore

to ensure optimum utilization of those resources as well as to prevent capital

locked up in process inventory.

Other function of this department includes;

1. Preparation of monthly production plans.

2. Communication of organizational goals down the line.

3. Prepare adjust and issue of different operations based on the programs,

inventories, programs of work and specifications.

4. Follow up programs of work in all sections.

5. Report relevant details and assist to maintain steady progress of work.

6. Take physical inventories from the stores of finished goods and raw

materials.

7. Maintain records of inventories.

8. Report shortage, rejection, and delay in the operations and take corrective

measures.

9. Maintain good house keeping.

10. Ensure that no material is leftover when size changes occur.

11. Keep record of non-moving material, unidentified material, scrap generated,

disposal instruction, report follow up actions and to clean up materials.

12. Preparation of raw material requirement based on monthly production ticket.

Production programme:-

Liaison with marketing and formulation of production programme as per sales

forecast. The production programme is prepared based on the following:

1) Machine capacity

2) Labour required.

3) Raw material requirements

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

Raw Materials:-

It is the duty of the Production Planning and Control department to liaison with

material control & technical departments for requirement of raw materials as

per the consumption pattern. It should also authorize the RMS for issue of raw

materials to production floor.

Scheduling:-

Scheduling in brief is determination of

1) When a job will be done.

2) Where to do the job( in case where there is more than one machine)

3) How much to do in one lot.

Machine Scheduling includes day to day scheduling of machine loading in the

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

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

are part of scheduling function of production planning and control department.

Machines It is the responsibility of the Production Planning and Control

department to review of machine capacity and its limitation with respect to

production programme. It has to initiate corrective actions as well. It also has to

asses‟ requirement of material handling equipment & storage systems and

arrange for its procurement whenever necessary.

Production programme:-Liaison with marketing and formulation of production

programme as per sales forecast. The production programme is prepared based

on the following:

1) Machine capacity

2) Labor required.

3) Raw material requirements

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

4. 3 Purchase department

Structure of Purchase Department

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

right time in right place at right quantity. The department is concerned with the

purchase of indigenous and imported materials.

Engineering spares, general 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 least

communication facilities and computers.

The main items of purchases are:

1. Engineering Spares

2. Consumables

3. Furnace oil

4. Diesel

5. Chemicals

6. Lubricants

7. Other raw materials

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

purchase the raw materials are purchased after considering what the market

require for the month. Under plant purchases, purchase may be of stock item or

non stock item.

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

are purchased after considering the reorder 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.

Vendor Selection

This includes a list of steps included in selecting the right vendor for the stock

items identified as critical by department to enable a smooth functioning of

plant. Vendors are generally identified as

1. Manufacturers

2. Dealers

3. Firms offering various services

Manufactures are Divided into Two:-

1. OEM (original equipment manufacturers)

The OEM shall be identified as a vendor for the supply of equipments, 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 nameplate of machine etc shall be used

for the purpose.

Approval of Vendors

All OEM vendors who have supplied the machinery equipments and

instruments are approved vendors for sourcing the respective components and

spares. All original component manufactures are treated as approves/ vendors.

Further consideration for approval includes

1. Vendors supplying goods satisfactorily for last five years.

2. All authorized dealers of OEM/OCM shall be treated as approved vendors

3. For the order of finished goods specified brands are approved.

Purchasing Records

1. Purchase order record:- purchase orders of material bought

2. Vendor record:- list of all vendors and their complete mailing addresses

3. Blue print and specification record drawing: - many items are purchased by

blueprint specification are kept in separate files with index showing their

location and where the copies have been sent. Thus if repeat order to old

supplier is to be made, it is not necessary to send new copies of the

specification.

4. Contract file: - certain goods may be bought under term contract, if so; the

purchasing department must maintain a record of such contract.

Purchasing department is directly under the control of purchase manager. This

department is doing all the purchase for production and engineering

department .Providing the right material at the right time is very difficult. But

because of the SAP system work of this department is easier than before.

4.4 STORES DEPARTMENT

Structure of Raw Materials In Store Department

Activities of Raw Material Department:

1. Receipts

2. Issue

3. Identification and storage

4. Outside mixing

5. Stock transfer

6. Inventory maintenance

7. Scrap disposal

8. Handling of rejected items

9. Open delivery report

Process:-Receipt, handling, storage packaging forwarding and delivery of

material to internal and external customers with proper documentation to meet

their requirements.

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

product without any interruption.

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

customer.

Raw Material Handling Process:

1. Upon receipt of raw material, the document related to transporter and supply

is verified for the authenticity of the supply.

2. Identification of the supply with full details of material code, date of receipt,

suppliers name and truck name will be carried out and transferred to the pre

identification location.

3. Upon receipt of the raw materials GR will be prepared.

4. Based on the GR, quality assurance will be done on the samples as per the pre

determined standards and OK the material if the results are meeting the

requirements by releasing the GR.

5. The material if rejected from lab will be sent back to supplier and all accepted

material will be accounted in the inventory.

6. Issue of raw materials will be carried out to internal customers and external

customers based on the request received from the customers if applicable.

Various Raw Materials Used in the Manufacturing of Tyres:-

1. Polymers: - natural rubbers, synthetic rubber

2. Fillers, carbon back, reinforcing clays.

3. Process oil

4. Curing agents /Sulphur

5. Accelerators/ activators

6. Antioxidants/ antiozonents (waxes)

7. Ret ardors

8. Pepticers for natural rubber mastication

9. Fabrics: nylon cord

10. bead wire spools

11. Solvents for cements and solution

Miscellaneous items like paints, colours , crayon , scrap flakes etc. (most of the

raw materials are imported from Brazil, Korea, Malaysia, Germany ,Uruguaya

and Mysore).

Receipt of Raw Materials

Verification of Raw Material 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 number , suppliers name ,

description of item , challan quality , challan number and date or LR number

and date , truck register number , date and time of arrival, date and time of

departure.

Weighment (by the Computerized Weigh Bridge)

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

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

of trucks jointly. The weighment slip shall indicate the following;

Serial number, time and date of receipt, suppliers name , gross weight with

materials , SIR number and date. After recording the above details in the

computerized weighing balance the vehicles shall be directed to the respective

unloading bay. 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 bridges possess a valid certificate from weight and measure

department.

Both security and RMS personnel shall sign on the computerized weighment

slip. One copy of the wieghment slip will be filed in RMS along with concerned

delivery challan and the second copy will be returned by security department.

SIPOC

S-supplier: corporate purchase

I - Input: raw material

P – Process: receipt handling, storage, preservation, and issue of raw materials

O – Output: confirming raw material receipt, storage, and delivery.

C – Customer: manufacturing, mixing centre other unit of ATL and internal

customer

Activities in Raw Material Stores

Activities Responsibility

Initial weighment RMS and security

Verification of both commercial

and quality documents

RMS

Unloading and verification of

packets

RMS

Final weighment and generation

of weighment slip

RMS and security

Acknowledgement of formal

receipt to transporter

RMS

Identification and storage RMS

Generation of GR RMS

quality certification

responsibility

RMS

Handing over of duplicate copy

of excise invoice to excise

department

RMS

Table 4.3.1

For generation of GR the following are required

Purchase order in SAP Purchase department

Invoice /delivery note from supplier

and bill of entry for imported items

Supplier /purchase department

Weighment slip RMS

Activity Responsibility

Inventory updating SAP system

Table 4.3.2

Issue

Activity Responsibility

Reservation of materials to

be issued on daily basis

PPC

Physical issue of quality

certified materials to

production guided by FIFO

RMS

Posting of issued quantity

against reservation

RMS

Inventory Updating SAP System

Table 4.3.3

Identification and Storage

Activity Responsibility

Identification and

storage

RMS

Table 4.3.4

This activity is done along with receipt of materials. Each consignment is fully

identified with tags or stickers with respect to supplier, truck number, date of

receipt and shelf life. Each item is to be stored at the right place, which will help

follow FIFO system while issuing. This activity is not connected to SAP

system.

Outside Mixing

Activity Responsibility

Approval of mixing centre TECH

Entering into contract with the

party

HEAD COMM

Decision of quantity to be mixed

per day

PLANT HEAD

Sending supervisors to mixing

centre and issue of specification

TECH

Fixing contract carriers for

transportation

HEAD COMM

Sending raw materials against

PO‟s by raising excise challans

RMS

Receiving mixed compounds

against PO‟s as in the e case of

raw materials

RMS

Day to day coordination of

activities

RMS

Schedule of mixing patterns PPC

Release of fixing for PO‟s PURCHASE DEPARTMENT

Reconciliation of input /output COSTING

Table 4.3.5

Stock Transfer to Sister Concern

Activity Responsibility

As required by purchase

department , they stock

transfer raw materials and

dipped fabric to sister concern

by raising invoices

RMS

Release of purchase order to

stock transfer

PURCHASE DEPARTMENT

In the case of stock transfer of

semi finished goods PO‟s will

be raised by PPC

PPC

Invoices will be raised for this

transition too

RMS

Table 4.3.6

Inventory Maintenance

Table 4.3.7

Activity Responsibility

Perpetual inventory

will be recorded under

SAP system

RMS

Scrap Disposal System

Activity Responsibility

Award of contract for

disposal of scrap

HEAD OFFICE

Scrap account

maintenance

SAP SYSTEM/ RMS

Production scrap

generated is entered into

SAP

PRODUCTION

Scrap generated and

entered in the system by

the production is being

transferred to scrap yard in

system by RMS

RMS

Follow up with scrap

contractor for lifting of

lifting of scrap

RMS

Invoice making while

disposal

RMS

Table 4.3.8

Handling of Rejected Items

Activity Responsibility

Rejected items are returned

to the party as instructed by

purchase department

RMS

Non modvat items are

returned on NA delivery note

RMS

Excisable items are returned

by raising invoices in SAP

RMS

Table 4.3.9

Open Delivery Report

Activity Responsibility

Open delivery report RMS

Table 4.3.10

Engineering Stores

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

components required for smooth functioning of plant on receipt of indent from

production department , the engineering stores arranges 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 engineering stores is VMI – vendor maintain

inventory. In this system the vendor supply the materials in large quantities and

payment is made only for consumed items.

Process: Receipt , handling , storage and issue of incoming engineering

materials.

Purpose: On time delivery of engineering spares , consumables , lubricants and

chemicals to users.

Scope: This process starts with the creation of stock item and ends with issue of

materials.

4.3.3 Finished Goods Stores

Receipt

1) 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 FGS/TTF . After

verification finished goods transfer note will be serially numbered and have the

following details:

Material code

Description

Quantity

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

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

the production and triplicate will be issued to the production planning .

3) One staff each from production and FGS/TTF will separately verify the

quantity size, ply rating , seconds , of the finished goods and compare against

the entry in the transfer note.

4) Removal of finished goods : The finished goods required for dispatch kept at

the transferring area after preparing the finished goods transfer note will be

removed to the loading bay and balance will be removed to stores for storage

after completing the packing for required material.

Distribution of Finished Goods

Purpose: To describe detailed procedure for distribution of finished goods in

finished goods stores.

Scope : To apply the above procedure to all finished goods in finished goods

stores.

Reference. : quality manual section

Responsibility: head of the department

Method:-

1. SCM department at H.O. give dispatch schedule on day to day basis.

2. The destination to which trucks are required is arranged day in advance.

3. Load slips are prepared as per the plan made.

4. Store man will keep the load as per the load slips at the loading bay.

5. Staff of the FGS ,TTF , security and representative of transporter will check

the loads , kept separately for size, ply and quantity.

6. After checking , the load slip will be signed by the staff and given for

preparing transport documents and goods will be loaded on the lorries.

7. The lorries will be inspected for cleanliness of the platform to ensure that ther

are no item , which will damage or dirty the tyres . All trucks dispatched to the

outstation are covered using tarpaulin and tied safely before leaving the factory

premises.

8. Dispatch documentation: The load slip is handed over to the representative of

the transporter for giving the lorry receipt number then it comes for preparation

of invoice cum delivery challan through computer.

9. Sales tax / road permits are handed over to transporter where they are

required.

10. List of serial numbers of the tyres being dispatched will be provided

wherever necessary.

11. 12All documents required for transportation are prepared and handed over

to the transporter after getting proper acknowledgement and lorry receipt from

him

SYSTEM DEPARTMET

Technology plays a critical role in the future proofing of an organisation

because every problem needs to be solved instantly and every opportunity must

be me in a flash .Systems department in ATL deals with the computerization of

all the activities of the company.

ORGANIZATIONAL STRUCTURE OF SYSTEM

All the IT initiatives in Apollo are in concurrence with the overall corporate

strategy. As an integral part of this IT drives across the company. ATL

implemented SAP in 2003 in a record time of nine months, which is aimed to

touch all their employees.

DEPUTY MANAGER

ASSISTANTS

OFFICERS OFFICERS

The head of the company. ATL implemented SAP in 2003 in a record time of

nine months, which is aimed to touch all their employees.

The head of the systems department monitors all the software requirements of

each department with the help of executives working under him. Systems

department consist of numerous PC’s, which are interconnected through the

local network. The functions of the system department are as follows:

To give requirements of software according to the needs of various

departments to the software vendors.

Maintains back up of important data required for each user.

Maintenance of Desktop PC’s.

Solves connectivity problems.

Manages LAN, files sharing etc.

Sets user rights, accessibility rights and time.

Keeps contacts with vendors or outside agencies for further additions of

computers, hardware maintenance etc.

SAP: Systems Application product in Data processing (SAP) is the s in

Software tool used in ATL. It was implemented in a record time of 8

months.ATL directly introduced the 4.7 version of enterprise solution.

Introduction of SAP has enabled ATL to connect a vast network of

140centers by converting them in to a single source data centre. ATL

currently uses the SAP R/3 4.7 version and the server is located in

Gurgaon.

One of the notable features is that ATL has received the BS7799

certification, which is an Information Security Certification that helps the

organization to proceed legally, if it encounters any data loss. It is

globally acclaimed standard for information security practice, developed

by British Standards Institution

.

FINANCE DEPARTMENT

The commercial department is mainly concerned with financial activities & the

supply chain functions. The financial functions consists of payroll, general

accounts, costing, etc & purchasing of raw materials & ware house constitute

the supply chain functions. All the functions are headed through group

managers.

Purchasing of spare parts, production consumables & general engineering items

are obtained through the Purchase request to the purchase department. The

reorder level for each item is determined & whenever it reaches this level, the

requisition will be sent to the purchase department. The raw material store

releases the material or the request from the production & planning department.

The accounts section is divided into Excise, costing & payroll.

STRUCTURE OF FINANCE DEPARTMENT

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

taxations jobs of ATL. At Perambra plant there is separate accounting & finance

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

the raw materials also comes under this department.

The strong performance of Apollo is combination of high growth in sales along

with enhanced operation management , better working capital management ,

aggressive marketing and overall cost reduction measures adopted by the

Company.

1) Payroll

The duty of the executive of the payroll section is to perform salary

calculations. All such calculations are done with the help of SAP software. This

helps the executive to monitor the time office section where the attendance of

the workers is registered. When a person is appointed by personal department

they will specify his amount of pay, allowances payable and the same is

intimated to the payroll section.

Function of Payroll section include

1. Salary calculations

2. Employee states insurance (ESI)calculation

3. Provident fund calculations

4. Income tax calculations

2) Costing

The major objectives of the costing section are to maintain accuracy of quality

reports and the preparation of MIS in quantity cost in order to submit the same

to the management. Costing section maintains performs the function of keeping

the stock ledger. The functions of costing section include, preparation of MIS,

ascertaining the product cost etc. the main aim of MIS preparation is to provide

information to the management to the management, regarding the productions

and allied data. It contain the details of the actual number of Tyres

manufactured, budgeted production etc... upon the cost of raw materials, power,

fuel etc.

3) Excise

The main function of this section is excise registration, at the beginning of the

production, according to the central excise rules and central VAT rules. Excise

duty is paid twice in month.

The Functions of Excise Section are

1. Liaison worker with central excise department

2. Discharge of excise duty on product goods

3. Monitors excise related changes

4. Finished goods stock register maintenance

5. Clarification of excise relate works

6. Preparation of weekly reports & maintains records of exports related works.

QUALITY ASSURANCE DEPARTMENT

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

satisfy stated implied needs. Quality is referred to “fitness for use” or fitness

for purpose or ‘customer satisfaction ‘or ‘conformance to requirement’.

QA is the well planned and systematic activities

implemented within the quality system and demonstrated as needed to provide

adequate confidence that an entity will fulfil requirement for quality.

For international trade transaction ISO

certification has become inevitable. ATL has got the privilege to have ISO 9001

(1994) covers the quality system and model for QA in design, development,

production, installation, and servicing.

ATL perambra has well-functioned QA

department. They divided the whole plant into three divisions. Each division

comes under a Quality Auditor says a supervisor. For each process there is an

audit form. Quality audit is taken by quality auditor. It is a systematic and

independent examination to determine whether quality activities and related

results comply with planned arrangement and whether these arrangement are

implemented effectively and are suitable t o achieve objectives if any deviation

is there, then they will take corrective action to eliminate the cause of an

existing non-conformity with the concerned people or department (technical). In

order to prevent defect or undesirable deviation, it will be marked as “HOLD”.

HOLD point is a point beyond which the activity must not proceed without the

approval of the designated department.

Other function includes:

Raw Materials

Quality of all raw materials received are tested in the

laboratory consists of three different section.

A) Fabric laboratory

The laboratory tests all fabrics and steel wires received, and

at all stages of the process i.e after dipping, after calendaring, and in the cured

stages etc.

B) Chemical laboratory

This laboratory carries out for all polymers, fillers and

chemicals.

C) Physical laborotory

All rubber compounds in process are tested in the laboratory

on each stages i.e after mixing in the Banbury, after extrusion, and calendaring

and after curing.

TYRE TESTING

Sample of cured tyre are tested indoors on a test wheel. The

wheel simulates the running conditions of a tyre , primarily used to detects

carcass strength and heat generation. Tyre are fitted on different vehicle to study

the effect of different types of road, load and climate conditions

MARKETING DEPARTMENT

The traditional definition of marketing is the performance of business

activities that direct the flow of good and service from producers to customers.

Marketing concepts holds that the key to achieving its organizational goals

consists of the company being more effective then competitor in creating,

delivering and communicating consumer value to its chosen target markets.

The American Marketing Association offers the following definition

Marketing is a process of planning and executing the conception and pricing

promotion , and distribution of ides, goods services to create exchange that

satisfy individual and organizational goal.

Theodore Leavitt of Harvard drew a perspective contract between the

selling and marketing concepts: Setting focus on the need of the seller;

marketing on the needs of the buyer. Selling is preoccupied with the seller’s

need to convert his product into cash marketing with the idea of satisfying the

needs of the customer by means of the product and the whole cluster of things

associated with creating , delivery and finally consuming it.

F U N C T I O N S O F M A R K E T I N G D E P A R T M E N T :

Formulation of effective advertising strategies for winning the

market.

Conducting Seminar / exhibition for the purpose of launching

new products to the market and also make the people aware of

their existing products.

Conducting Retailers meet for the purpose of main ting cordial

relationship between management and distributors, dealers,

entailers.

Conducting consumer’s survey for the purpose of collecting

information from customers for the further product development

and

evaluation of existing position of product in the market. entering

to the new market with different products.

Formulation of sales strategies in order to achieve the target

turnover.

Formulation of effective marketing strategies according to the

marketing condition, completion increase market share,

launching of new products

Orientation is given to dealer and distributors to make aware

them about the quality of products.

Product development is based on the feed back from customers

and retailers.

Apollo tyres Ltd has a full fledged marketing set up all over the country,

with head quarters situated is Delhi. The department deals with the 2000

exclusive dealers. 96 sales officers and around 1000 multiband dealers across

the country. A team of dynamic and dedicated professionals under the shortage

leadership of a company adds to its value. Besides leadership of a company

adds to its value. Besides having dominance in the replacements market, the

company makes effort to have an increased presence in the original equipment

market.

It is the Ist Tyre Company to have the concept of exclusive showroom for

trucks tyres called 'Apollo tyres World'. Apollo holds dealers meet regularly. It

has introduced the Tyre super value program to collect feed back from the

customers and dealers. Apollo is a regular participant in automobile exhibitions.

The company shares are currently listed as dealers Mumbai, Ahmadabad,

Calcutta, Ludhiana and Coli stock exchanges as well as at Natural stock

exchange of India

EXPORT

The international markets have been severely affected due to acute fall in

demand, extreme liquidity crunch and devaluation of some key currencies of

important markets. All sectors were adversely affected on export front due to

combination of economic conditions that developed around the third quarter of

the financial year.

Exports of Apollo Tyres were also not left unscathed by the economic

slowdown. But through robust internal processes and a strong distribution

network developed over the last 2-3 years which helped the company to blunt

the impact of demand slowdown.

The exports of truck and bus tyres by Indian manufacturers dropped by about

20%. However, exports of Apollo truck and bus tyres were marginally affected.

This decrease is largely attributed to Apollo's decision not to cut prices in the

wake of severe price undercutting by competition

DOMESTIC MARKETING

The year has been a challenging one which witnessed peak raw material

prices and an environment of uncertainty in the financial markets and a demand

slowdown in both the commercial and passenger segments during July to

December, 2008. The fiscal closed with some signs of recovery in last month

within a tough operating environment for the full year. For the period under

review, the company recorded a healthy growth of 7.1% in overall sales value

with 3.3% growth in truck, 19.8% in

passenger car radials (PCR), and 6.9% in light commercial vehicles (LCV) with

similar numbers in Tractor Rear.

The journey undertaken in the area of marketing strategy covering product

leadership, customer intimacy, and operations excellence were continued in

order to create better differentiators in the marketplace.

This year also saw a change in Apollo - a change in the way your company is

perceived by all stakeholders in terms of its visual identity. Not only do we

offer the

greatest reach - but, we are also redefining the way consumers shop for tyres

through the introduction of the Apollo Branded Outlets for PCR and the Apollo

Trust for Truck Tyres. From the look and feel of our new showrooms adorning

the new corporate identity to the depth and range of the products on offer - it is

a whole new experience on the way tyres are perceived and purchased in India.

In the realm of commercial vehicles, Regal truck bus radials got firmly

established during the year as a quality product with a proven sales record. The

new XT-100K bias truck tyre is a benchmark product engineered to deliver a

mileage of more than one lace kms. XT-100K boasts of the next generation in

cross-ply technology featuring advanced multi-layered tread construction,

optimized cavity, improve bead profiling and a host of other features that

delivers unmatched mileage.

This year also saw the delivery of a new product line - a 49 inch OTR tyre

called Xtrax, weighing as much as 1100 Kg. The tyre is as high as 8 feet and

uses an 8-hour curing cycle. As it can be seen, that this is truly in big league.

UTILIYY DEPARTMMENT

Generation and supply of utilities as per specifications is the fundamental aim

of this section. It is the duty of this section to supply the required utilities for

production such as chilled water, air compressor, hot water system etc. this

section ensures uninterrupted supply of various water systems at specified

parameter applicable to all equipments in the plant. The utility section also

intimates the commercial department for the delivery schedule of water

treatment chemicals and spares.

1. Demineralisation of water

The water pumped from chalakudy river is being mineralized by a series of

operation like filtrations. This is done to remove dissolved oxygen and

minerals. It is then stored in tanks.

2.Boiler and utility

There are five boilers working in the plant the capacity of two boilers in ten

ton per hour and fourteen ton per hour. The boilers are flat tube type and

furnace oil issued as fuel. The steam generated has a pressure of 15.5kg/cm2

3.Chilled water plant

There are four chillers and the machine used is Freon.

TECHNICAL DEPARTMENT

The technical department plays a very crucial role in the organization. It is

basically an R & T (Research & Technology) department. Technical department

is mainly concerned with improving improving quality of tyre by methods like

reduction in curing cycles, reducing tyre shape problems etc. Technical

department is mainly concerned with improving quality of tyre shape problems

etc. Technical coordination meeting take place once in every five months. The

technical coordination committee consists of members from marketing field

also.

The major responsibilities of technical department include the following:

1. To inspect and correct, if necessary all production activities going on in

the plant.

2. To ensure the proportions of in process product during various processes.

3. To stop production if there is any unconformity found during analysis.

4. To make appropriate changes in production process and specifications if

necessary.

5. To manufacture test tyres.

Main sub groups of technical department are the following:

a) Design Group: The main functions are development of new design,

modification of existing design and comparing competitive design.

b) R & D Group: This group is concerned with compound

development, testing and RM development.

c) Product Group concert: The main function is to find out the needs

market, problems of the tyre, replacement of damaged tyres etc.

d) Plant Technology Group: This group implements the technology

required for producing tyres according to the needs of the market at

the plant level. According to the market needs quality products are

delivered by strict quality procedures. It also includes

troubleshooting.

5.Suggestions and recommendation

5.1 SWOT Analysis of Apollo Tyres Ltd. \

Strengths

1. Continued Market Leadership in the dominant industry segment i.e. Truck

/Bus tyres.

2. Global presence with acquisition of Dunlop Tyres International

(Pty) Ltd in South Africa.

3. Robust Operation Center for managing IT operations across 140 Locations

supported by ERP / Dealer Portal / Information Systems Security Control etc.

4. Presence in technology products in car radial segment.

5. Dynamic & Progressive Leadership.

6. Responsive to changes in market conditions and product profiles.

7. Product innovation and technical superiority.

8. Strong Brand recall in a price sensitive market.

9. Economies of transportation cost on account of closeness to

natural rubber

10.growing belt.

Weaknesses

1. No presence in two/three wheeler segment.

2. Declining profit margins due to raw material cost push.

Opportunities

1. Continuous thrust in road infrastructure and construction of

expressways & national highways. Creation of road infrastructure

has given, and will increasingly give a tremendous fillip to road

transportation in the coming years. Tyre industry will play an

important role in this changing product mix of transport.

2. Leadership position in the commercial vehicle segment will

enable the Company to leverage new and related business

opportunities.

3. Access to global sources for raw materials at competitive prices

due to economies of scale.

4. Steady growth in vehicle production in the immediate future

leading to growing demand.

5.2 Observation

Increased production for increased profits.

2. Reaching better horizons by fostering new partnerships.

3. Initiating strategies for empowering dealers.

4. Increasing exports, withstanding fierce competition.

5. More promotional activities to build brand image.

6. Conclusion

Apollo tyres is the second fastest growing tyre manufacturing

company in the world. A fair wage system prevails in ATL. The

company provides better working conditions for employees.

Customised further training to workers, after a thorough and

precise assessment of the training requirements, may further

increase the productivity. The industrial relations are extremely

good. The company is facing cut throat competition in Indian and

international market. Apollo has done well in the past and a well

focused and progressive leadership at the helm of affairs at the top

will certainly sustain the success and continue to move forward in

future.

The organisational study done at Apollo Tyres Ltd,

Perambra has helped to acquire a practical knowledge about the

management practices. The various functions of different

departments of the organization were studied. The financial

statements of the company , for the past five years were analysed.

The company has a very quick response mechanism to track the

market needs and has been very agile in launching new products to

satisfy the challenging customers’ needs and preferences .With

focus on quality, the company’s products continue to enjoy strong

customer’s preferences across all the tyre segments. The company

is always in the forefront of absorbing and adapting the latest in

product and manufacturing technology to maintain its leadership in

the industry and this could help them to achieve the goal of being

one of the noteworthy global player in tyre industry.

e)

f)