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INDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES Page 1

CHAPTER I

INTRODUCTION

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1.1 ABOUT RUBBER INDUSTRY IN GENERAL

The rubber industry in the world made its beginning in 1887. It was because

of the invention of the processing of rubber vulcanization by Charls Goodyear. The

growth of industry, however received a good boost by century end. When John Boyd

Dunlop succeeded in making of vulcanized rubber tyres into inflatable pneumatic

tyres. Since then the tyre industry has continued to be a major segment of rubber

industry all over the world.

Even in India. Automobile tyre and tubes account for a major part Indian

Rubber product industry.

Present status of tyre industry

Automotive Tyre Manufacturers Associ ation (ATMA) was setup in 1975 as

representative body of automotive tyre industry in India. The association constitutes

of companies manufacturing tyres ranging from animal driven vehicles to aero tyres

of defence application. The applications represents approximately 90% of the tyre

production in the country. The association interact government on a continuous basis

and function as a link between government and the tyre industry.

Among the individual companies MRF is moving into aircraft tyres and formula

racing tyres manufacturing in collaboration with Uniroyal Good rich. The total

capacity of CEAT tyres has gone up to 45 lakhs with commencement of nylon cord

tyres. MODI rubber tyre industry modernized the Modipuram plant and Modinagar

plant is under implementation.

Present Indian Tyre Industry

The tyre industry has witnessed over the last decade mainly fuelled by the

strong growth in the domestic auto industry. Through the replacement market

has driven the industry growth for long time; the OEM market has seen a

robust growth over the last couple of years.

The industry is highly capital intensive as it requires around Rs. 4 billion to

setup a radial tyre plant with a capacity of 1.5 million tyres and around

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Rs 1.5- 2billion for a cross ply tyre plant of a capacity to manufacture 1.5

million tyres.

The profitability of the industry has high correlation with prices of key raw

materials such as rubber and crude oil as they account for more 70% of the

total costs. The raw materials to sales ration in the industry is around 65%

The industry is dominated by four players i.e., MRF, Apollo tyres, JK

industries and CEAT enjoy more than 70% of total market share.

The fortunes of the industry are linked to the trend in the domestic auto

industry retreading, trend in road transportation and spending on road

infrastructure.

The companies have lined up further expansion plans to meet the increasing

demand.

GLOBAL TYRE INDUSTRY

Sales. top 75 cos -US$ 70.6 billion

Top 10cos 80%

Chinese cos 4.5%

Indian cos 2.5%

19 Chinese tyre cos. Included in worlds 75 largest tyre companies.

Derived demand product (automobile dependent); boom in automobile industry

drives the impressive growth in tyre industry.

Raw material and labour intensive, high turnover, low profit margin @2to3%

Dependent on NR, steel, Crude oil; price rises cause big cost push pressure onmanufacture

Nature of tyres

A tyres is an assembly of thread, sidewall. Ply fabric and beads that have

been homogenized by vulcanization.

Tyre industry is basically a raw material intensive industry and raw

materials account for about 50% to 54% of total production cost. The major raw

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materials and their percent composition in the total raw material cost structure are

given below;

Natural Rubber 26%

Synthetic Rubber 15%

Carbon Block 12%

Nylon tyre [Card/yam (fabric)] 26%

Rubber chemicals 91%

Remaining 12% share of raw materials is accounted for by other materials

such as zinc oxide (2% ) V.P, Latex (1%), process oils (2%)& others(5%) such

as insoluble sulphur, stearic acid, resorcinol, silica & steel.

Features of the tyres industry

High capacity cost

Large distribution network

Demand is cyclical in nature

Technological intensive

Rising cost raw materials

The tyre manufacturing technology is highly sensitive and is increasing to

meet the needs of revolutionary changes in the automobile industry. Today the

entire ranges of tyres are manufactured for the industry of truck, bus, power tiller,

light truck, jeep, car etc. The industry meets the indigenous requirements from 1

kg moped tyre to 1 ton earth mover tyre, Most of the raw materials is available

in the country and the short falls are met by imports.

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1.1.1 THE INDIAN TYRE INDUSTRY

HIGHLIGHTS

The tyre industry is a Rs. 9,000 crore industry.

The fortune of this industry depends on the agricultural and industrial

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

vehicles.

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

unorganized sector holds sway in bicycle tyres.

In the last five years (2005-06 to 2009-10), 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.

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

tyres.

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

tyres, whereas world-wide, the ratio of natural rubber to synthetic rubber is 30:70.

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 carried out the domestic production of the tyre.

The tyre industries in India are classified under three heads:-

1. First Generation companies : - Dunlop and Fire Stone

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(New Bombay tyres international Ltd)

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

3. Third Generation companies : - J K, Vikrant, Apollo, Modi

The first Indian Company Dunlop Rubber Company was incorporated

in 1926. Today the tyre industry is growing rapidly and today its turnover is 1,

00,000 million and earning an income of Rs.1, 000 crore 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.

Ranking Of Indian Tyre Companies On The Basis Of Production

MRF Tyres Limited

Apollo Tyres Limited

JK Tyres Limited

CEAT Tyres Limited

Modi Rubber Tyres Limited

Birla Tyres LimitedGood Year India Limited

Vikrant Tyres Limited

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DOMESTIC RANKING

Companies Segment

Truck Light Commercial

Vehicle

Apollo Tyres 1 2

JK Tyres 2 4

MRF 3 3

CEAT 4 1

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SEGMENT WISE MARKET SHARE OF TYRE COMPANIES IN INDIA

COMPANY TRUCK AR AARM CV

APOLLO 28 0 21 9

MRF 16 5 24 0

CEAT 17 8 15 9

JK 12 4 8 15

VIKRANT 11 1 7 2

GOODYEAR 5 12 23 2

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1.2 OBJECTIVES OF THE STUDY

To get an overview of the tyre industry.

To study the overall working of Apollo Tyres Ltd.

To understand the organizational structure of Apollo tyres.

To study the functions of different departments.

To understand SWOT analysis of the company.

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CHAPTER IIPROFILE OF THE ORGANISATION

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HISTORY

The history of Apollo tyres can be traced back 70s when MNCs and

Indian tyre majors 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 nearby, at a cheaper rate. At the starting time

the production capacity was 54 tonnes per day.

The Apollo tyre ltd owned by Raunaq group of industries place 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 entirearea 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. Kanwar took

over the companys affairs . Company began to earn profit and accumulated

losses of 26 crores 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 mostmodern plant. The R&D centre is also functioning at this location. The third plant at

Kalamassery was taken over by Apollo from Premier tyres. After the takeover

Apollo spent a good amount in modernizing the plant and now its a profit

earning unit. The fourth plant was commissioned in 1996 at Pune for

manufacturing tubes. The entire requirement of tubes for all plants of Apollo is

done from here.

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MILESTONES OF APOLLO TYRE

1972 The companys 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.

2009 Acquired Vredestein Banden B V in the Netherlands, and thereby

adding Europe as its third crucial market.

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GOLDEN ACHIEVEMENTS

QS- 9000: 1998, 2004 certification for Quality Management Systems.

Registered with DGS & D and Defence (CQAV).

Registered with Department of Transportation USA.

ECE Certification.

IN-Metro Brazil Certification.

SASO (Saudi Arabia)Certification

Apollo Tyres Ltd received the pollution control award by the

central government during the year 2003-2004.

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VISION

A leader in the Indian tyre industry and a significant global

player, providing customer delight and enhancing stakeholder value.

The core values of Apollo is CREATE

C- CARE FOR CUSTOMERS

R- RESPECT FOR ASSOCIATES

E- EXCELLENCE THROUGH TEAM WORK

A- ALWAYS LEARNING

T- TRUST MUTUALLY

E- ETHICAL PRACTICES

MISSION

To be largest and most profitable tyre company in India.

To make truck/bus radial operations profitable and retain leadership in the

passenger radial market.

To be a customer observed company.

To enhance value to shareholders and service to all stake holders.

To excel as a values driven organization.

To be the most preferred Tyre Brand in india.

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ORGANIZATION STRUCTURE

MANAGING DIRECTOR

BOARD OF DIRECTORS

MARKETING

MANAGER

PRODUCTION

MANAGER

FINANCE

MANAGER

ASSISTANT

MARKETING

MANAGER

H R

MANAGER

ASSISTANT

FINANCE

MANAGER

SUPERVISOR

ASSISTANT

HR

MANAGER

SUPERVISORS SUPERVISORS

WORKERS

ASSISANT

PRODUCTIO

N MANAGER

WORKERS WORKERS

SUPERVISORS

WORKERS

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PRODUCT AND SERVICES

TRUCK.

Overload Technology

Loadstar Super.

Loadstar Super Gold.

Loadstar Super Hercules.

Kaizen 50L.

Load & Mileage Technology

XT7. XT7 Gold.

XT7 Haulug.

Amar Deluxe.

Amar.

Commando.

Kaizen 36L

Kaizen 99R plus

Kaizen 77R

Premium Mileage Technology

XT9

XT9 Gold

Amar Gold

Kaizen XTD

Mileage Technology Segment

ChampionChampion Gold

Champion DXL

Amar AT Rib

Kaizen 27L

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LIGHT COMMERCIAL VEHICLE

Overload Technology Loadstar Super.

Load & Mileage Technology Mile star

Premium Mileage Technology

Amar Deluxe

Amar Gold Rib

XT9

XT9 Gold(lug)Duramile (radial)

Regular Mileage Champion

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PASSENGER CAR RADIALS

Tubeless Radial Passenger Car

Acelere

Amazer XL

Tubeless Radial MUV & SUV Hawks

Tube type Radial for Passenger

Car

Amar

Amazer XL

Quantum

Tube type Radial MUV & SUV

Amar

Amazer XL

Storm

Hawks

Passenger Car & Jeep Bias

Armour

Panther Gripper

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FARM

Cultivation Krishak Super

Sarpanch

Haulage Power Haul

Multipurpose Farm King (Radial)

Krishak Premium (bias)

Tractor Trailer Types Dhruv

Hunter

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CHAPTER III

DEPARTMENTAL STUDY

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DIFFERENT DEPARTMENTS IN APOLLO TYRES

There are 9 departments in the organization which are classified on the

basis of the functions what they are performing, which are listed below,

1. HUMAN RESOURCE DEPARTMENT

2. PRODUCTION DEPARTMENT

3. PURCHASE & STORES DEPARTMENT

4. PRODUCTION PLANNING AND CONTROL DEPARTMENT

5. QUALITY ASSURANCE DEPARTMENT

6. ENGINEERING DEPARTMENT

7. INDUSTRIAL ENGINEERING DEPARTMENT

8. FINANCE DEPARTMENT

9. SYSTEMS DEPARTMENT

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HUMAN RESOURCE DEPARTMENT

Human resources play a crucial role in the development process of the

present economy. Though the exploitation of natural resources, availability of

physical and financial resources and international aid play prominent roles in the

growth of modern economies, none of these factors is more significant than efficient

and committed manpower.

HR aims to play active role success and growth in the organization

via competitive forces.

HR plays lead role in reaffirming and reshaping organization culture in

consonance.

HR focuses on maintaining credibility in the organization.

Encourages innovation in its mechanism.

Creating organization wide involvement with the concept.

STRUCTURE OF HR DEPARTMENT

Human Resources and Administration department is one, which

facilitates smooth working of the organization by looking into the human

resource side and also the overall administration of organization

It is divided into three sections namely Industrial Relations, Security and

Administration. Heads of each section are in direct contact with the department

head. Among the three sections, industrial Relations is the biggest section havingfour subsections looking into personnel and industrial relations, employees arrival

and departure, time, health and safety.

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HR MISSION

To create HR policies and processes which are employee friendly.

To build a culture this is warm, forthcoming and professional with

a sense of ownership & pride.

To encourage innovative thinking.

To encourage transparency & teamwork.

To develop leaders at all levels with general management skills.

To create a learning organization.

To develop competencies & skills through training and development.

To constantly raise levels of employee productivity. To be a change agent.

HUMAN FRONT

CATEGORY NO OF PEOPLE

Management staff 270

Permanent workmen 1819

Workmen trainees 248

Contract workmen 453

Total 2790

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FUNCTIONS

The major functions of this department are:-

o Recruitment

o Training

o Industrial Relations

o Welfare

o Time office

o Security and Safety

o Other Administrative activities

1. Recruitment :

Recruitment is done through advertisement and employment exchange.

Candidates are called for interview and final decision is with the chief executive. As

of now there are no major constraints in attracting the right talent since the

organisation is a reputed one and the compensation package is really attractive.

2. Training:

As jobs have become more complex, the significance of employee training

has increased. The modern complex society has created intense pressure for

organisation to readapt the produce and services produced as a competitive product.

This has necessitated raising the skill level and adaptability of employees.

Apollo provides training for both managers and workers. Training programfor managers consists of both internal and external program. The workers undergo

internal training programmes conducted by experts. External training is done by

professional training canters.

A separate register is kept for recording the training activity the employee

has undergone. The human resource department selects candidates for training

based on the advice of department heads. For this performance appraisal reports

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are considered. Sometimes random selection of the candidates for training is also

done.

The effectiveness of the training program can be adjudged by providing the

trainees with a feedback format. However employees are of the view that personal

interview should be conducted to assess the effectiveness of the training program.

3. Industrial Relations:

A good industrial relation exists in the organization. The management and

the employees jointly find the solutions for the problems. There exists a good relation

between employer and employee.

There are four main trade unions recognized by the company.

1. ATEU (Apollo Tyres Employee Union) with the political influence of

CPM.

2. ATSWU (Apollo Tyres Staff and Worker Union) with the political

Influence of INTUC

3. ATMS (Apollo Tyres Mazdur Sangh) with the political influence of BMS

4. ATWM (Apollo Tyres Workers Movement)

The trade unions which get at least 20% of vote of total strength are

recognized by the management. The management has introduced a long-term

settlement (LTS) plan, which is nothing but a collective bargaining agreement. The

decisions are taken jointly by the trade union and the management. Also a part of the

HR initiative employee involving them in productivity relied issues such as qualitycircles and professional circle, a social gathering such as factory day and other

celebrations encourage participation. Among the four unions the recognized unions

are ATWM & ATEU.

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4. Welfare:

The organization provides good welfare services to its employees. The

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

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

provided.

A good transportation facility is given to all the employees from different

destinations for which they have to pay a very meager amount. All employees

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

medical claim policy. Taking the health aspects of those employees who work in thenight shift, 200ml of milk packets are provided for every night shift worked.

Management staff:

o Group hospitalization scheme.

o Group personal accident policy.

o 2 wheeler scheme-40% borne by the company.

o Car scheme- Asst. manager and above -40% borne by the company.o Super annulations-Asst. Manager and above.

o Employee self development scheme.

Workers:

Group personal accident policy.

mediclaim.

Housing loan interest subsidy-50%. 2 wheeler loan interest subsidy -70%.

Financial assistance co-operative society.

Periodically medical checkups.

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5. Time Office:

The department is concerned with registering the time in and time out of the

workers. Other activities related are; payment of wages, incentives, leaves etc. A

separate register is kept for different shifts.Apart from it, a punching system is

maintained. Each employee has to punch his badge in the electronic punching

system while arriving for duty. The same is repeated while leaving the factory

premises.

Attendance is cross checked with the attendance report of the workman and

the attendance register maintained at various sections for the staff and managerialpersons. Performance reports are maintained in each section. These are done with a

view to reduce the absenteeism in employees and motivate them to increase

production. A leave book is maintained and it contains leave balance, leave credited

and leave awaited. The daily attendance report is verified by the supervisor, shift

engineer and shift superintendent department head.

Working hours:

A - Shift 6 a.m. to 2 p.m.

B - Shift 2 p.m. to 10 p.m.

C - Shift 10 p.m. to 6 a.m.

D - Shift 9 a.m. to 5 p.m.

(Trainees will be generally put in the general shift)

6. Safety And Security:

The organization follows all the provision under the Factories Act

1948.The plant is well equipped with safety machines and directions are

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

around the plant premises. Fire extinguishers are placed reachable points and

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

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production departments are given masks, safety gowns and shoes. In Apollo

,a separate book is given to each employee, which prescribes certain rules

and procedures in order to create a working environment free of accidents.

No major accident was occurred in the plant for past 10 years.

ABC of Safety:

Always B e C areful

Security:

The security is concerned with the physical movement of men andmaterial. Security staff headed by the chief security officer works at all the shifts. To

facilitate the security measures, single point entry is adopted to control visitors. For

materials, separate gate passes are issued.

Job description:

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

materials, process materials, highly sophisticated equipment etc. Their inward

outward movement is monitored as per the system prevailing.

Developments of security staffs in line with the requirement of the

organization & to keep a high morale of the forces.

Principal accountabilities of chief security officer

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

Deploy of contract workforce to various departments for routine as well

as project work.

Maintain the data base of all indirect workforce including contract

workmen.

Ensure high degree of liaison with police, local administration, fire

force and government authorities.

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Upkeep of environment management system, including housekeeping of

plant.

Keep strict vigilance, gather and assimilate intelligence for smooth

functioning of the plant in an unionized environment.

7. Other Administrative Activities:

Performance Appraisal :

The performance appraisal system followed in ATL ltd. is a 360 degree

evaluation system. This system, which solicits feedback from seniors (including the

boss), peers and subordinates, has been increasingly embraced as the best of all

available methods for collecting performance feedback. Gone are the days of

working hard to impress only one person, now the opinions of all matter, especially if

you are in a leadership role (at any level). Every person in the team is responsible for

giving relevant, positive and constructive feedback. Such systems also help in

identifying leaders for higher level positions in the organization. Senior managers

could use this feedback for self development.

Quality circle concept :

The concept of quality circles was first introduced in Perambra plant as

far back as 1988. However due to the lack of adequately trained facilitators and other

teething problems the initial activities of the quality circles was carried on a rather

modest scale. As on today Apollo has 30 active QC in operation covering about 10%

of total workforce and the number is increasing every month. The system is very

much vibrant, and at least 7 circles have presented full-fledged case studies to the

top management so far. Apollo has been able to achieve considerable financial

savings and also improve general discipline as a result of the QC. Some of the notes

worthy achievements of the QC are given below:

"Rose Circle" , is the first QC of the company from bead winding section,

evolved a system for the reduction of scrap which will fetch a saving of more than

Rs.15 Lakhs, when the suggestions are fully implemented. In August 1992, they

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presented this case study in the all Kerala competition conducted by the QCFORUM

OF India.

In April 1993 "Diamond Circle" , from the mechanical maintenance

section participated in the all Kerala case study presentation competition conducted

by National Institute for Quality and Reliability. One of the major problems faced by

Apollo in 4-roll calendar was 'derailment of wind up stand' in the calendaring

operations. The diamond circle members solved this problem effectively and saved

Rs.80, 000/-per annum. This study was adjudged as the best case study in 1993 in

the state level and second best in the national level.

Surya Circle in vertical bias cutter section presented recently another

case study to the top management. This study was rated as the best so far. The

circle members eliminated the problem of "improper ply cut" in vertical bias cutter,

which was one of the major scrap-contributing factors for the last 16 years. In this

case the financial saving will be to the tune of Rs.18 Lakhs/annum. This case study

was rated as the second best in the zonal competition conducted in March 1995.

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PRODUCTION DEPARTMENT

Production facility is the backbone of any manufacturing based organization.

Apollo Tyres is very much improved in production capacity. Per day production of

Apollo Tyres Ltd is 270 tones. The entire production system has been broadly

divided in to three sections, namely Division A, Division B and Division C.

DIVISION A:

Banbury:

All polymers are mixed with filler, process oil and other chemicals to give

different grades of rubber compounds in the Banbury. The mixed batch is then

dropped on a batch off mill for further mixing to form the rubber compound and then

in to a sheet form. The rubber in sheet form is then passed through a conveyor and

stacked on skids. Each type of rubber compound is specifically compounded for tyre

performance. Tyre meant for high way services and fast speed have different rubber

formulation.

As compared to tyres for mining services, agricultural service etc, large bales

of natural rubber are cut into smaller parts by a bale cutter, prior to mixing in the

Banbury. Carbon black, process oil, and other chemicals are mixed in the Banbury

along with rubber under specified temperature and time. An essential characteristic

of the Banbury is to give a good mix of fillers and chemicals with the rubber polymer.

Normally all rubber compounds are mixed in to two stages and natural rubber

compounds in three stages, as natural rubbers being tough, requires mastication.

The final stage in the Banbury is a critical stage when the sulphur and other

curing agents are added.

Cord Dipping Unit :

Rayon and nylon cord requires treatment in order to make them suitable

for adhesion of rubber compounds. These cord fabric are passed through a liquid

rubber solution called 'latex' and is heated under tension through special ovens.

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Each type of fabric like rayon, Nylon, Polyester etc should be coated with specific

amount of rubber latex in the cord-dipping unit. Fabric after passing through cord

dipping unit is wound up in rolls and wrapped and packed in polyethylene in order to

prevent absorption of moisture from the atmosphere.

Calendering:

All fabric is coated with specific compounds in the calender. Cord fabric is

coated on both sides with rubber layer, where as square woven fabrics are normally

fractioned and then they are coated on one side or both sides. Coating consists of

applying a rubber layer to top and bottom surface of the cords. Calenders are ofvarious types. 3 roll calenders makes a layer of rubber compound between the top

and middle roll and squeezes the rubber layer on to the fabric on one side between

the middle and bottom roll. The fabric is then to be run again through the three-roll

calender in a similar process to get a coat on either side. The 4-roll calender can

coat on both sides of the fabric with rubber layers simultaneously. After calendering,

fabrics are wound in cotton liners in order to prevent sticking.

Calenders are also used to produce rubber layers to different widths and

gauge that are required in the process of tyre manufacturing.

Extruders:

a) Single extruder :

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

fed in to the screw of the extruders from which with the help of dies, produces agreen shape of treads, side walls, and other strips as per specified dimensions and

contours, width, gauge and weights. These strips are cooled in water sprayed

conveyors and then cut out in to 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)

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b) Dual extruder

Two separate set of mills on which two different types of compounds are

broken down and heated and fed separately to two different screws. The two

compounds after extrusion are extruded together in a common head and with the

help of performer and final dies, emerge in to a pre-determined shape. The

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

composition can be extruded.

DIVISION B

Bead Winding Section:

The bead building machine manufacturers beads for all types of tyres. Beads

consists of a number of strands of copper coated steel wire which is coated with a

layer of rubber compound and then wound to specified diameter depending on each

tyre. Bead building machine consists of a lot of strands, for each strand of wire

spools, which is brought together and coated on an extruder with a layer of rubber

compound and then wound on a check which determines the final diameter. Theserubber coated wire spools are then covered with rubberized cotton sq. woven fabric

with necessary fillers or rubber compounds. The functions of beads in a tyre are to

anchor the tyre while mounting rims of vehicles.

Bias Cutter:

Fabric after coating from the calender is run through bias cutter, which cuts

the fabric to, specified widths and angles. The width depends on the type of tyres

and the angle of-the cut depends on the type of tyre services required. The regular

bias angle tyre, the angle of the cords varies from 35inches to 45 inches from bead

to bead. This is the basic difference between the radial and biased angle tyres.

Tyre Building Machine:

All the necessary compounds like beads, plies (cord fabric), breakers,

treads, sidewalls, chafer etc are brought to the tyre-building machine. The tyre-

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building machine has a turret for holding different numbers of plies, breaker fabric,

chafer rolls besides tread applying conveyor. Tyre building machine itself consists of

a shaft, which can rotate at different speeds. The direction of rotation can also be

changed. According to the size of the tyre to be built specified building drum is

mounted in the shaft of the tyre-building machine. The fabric layers are then applied

to the drum along with the bead wire bundles, which are compressed together with

the help of different types of sticher wheels. After building cord carcass on the drum,

in the final stage the green tread, sidewall and chafers are applied. The green tyres,

which are in cylindrical form, are removed from the drum by collapsing the same.

DIVISION C

Tyre Curing:

The green tyre from the tyre-building machine is prepared for

vulcanization by the application of lubricants on the inner and outer surfaces for

better moulding. The Bagomatic curing press which is the latest design (no separate

air bags are required) consists of a thin synthetic cured bladder positioned in the

center of the bottom half of the mould over which the green tyres are placed. As thepress starts to close, steam pressure is applied in to the bladder, which gives the

tyre a press shape, and the pressure is increased till the full shape of the tyre

reached when the press is closed.

(I.e., both the top and bottom halves of the moulds are in contact with each

other). At this stage when the press is fully closed under high internal pressure and

temperature, curing media like steam and hot water are passed through the bladder

while the outer surface of the mould is heated by the steam. The internal pressure in

the bladder is critical for the purpose of obtaining good moulding effects. The heat or

temperature applied to different locations of the tyre compounds has to be as per the

specifications. Less heat or temperature will cause an under cure condition and

excess heat or temperature will cause deterioration in the rubber compounding

fabric. After vulcanization, the tyre is removed from the press and in the case of

nylon truck tyres, as additional process of post cure inflation may be required. This

process consists of moulding the tyre on specially designed rim and inflating the tyre

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to the required pressure while it is still hot for a period of time in order to help final

process of vulcanization and maintain a proper shape.

Tyre Inspection:

All cured tyres are then physically inspected for visual defects and excess

rubber flashes are removed. The tyre is then checked in the balancing machine. The

tyre after inspection and classification are taken to ware house .

MAJOR LOSSES DURING PRODUCTION

Break down of machineries

Loss of time for setting up of machine

Loss due to the difference of machine speed

Loss due to stoppage of production

Loss due to mistakes and correction of mistakes

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PURCHASE & STORES DEPARTMENT

This department is concerned with the purchase and storing of both

indigenous and imported materials. It covers procurement of indigenous engineering

spares, general engineering and miscellaneous items including raw materials. This

department is headed by senior manager and under him there are a number of

officers and staff. The department is provided with the latest communication facilities

and computers.

And the functioning of store moves through the following ways,

Process :- Receipt, handling, storage , packaging, forwarding &

delivery of material to internal and external customers with proper

documentation to meet their requirements.

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

quality product without any interruption.

Scope :- Receipt , handling ,storage & issue of raw materials & tothe customer.

OBJECTIVES OF PURCHASE SECTION

Continuous availability of materials

Make purchase competitively and wisely at the most economical price.

Purchase in reasonable quantities to keep investment in materials at

minimum.

Purchase proper quality of materials to have minimum possible

wastage of materials and loss in production.

To develop good supplier relationship, this will ensure the best terms of

supply of materials.

To develop alternative sources of supply.

Adopt most advantageous method of purchase to ensure smooth

delivery of materials.

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To act as an information centre on the materials knowledge.

To sum up, the basic objective of setting up a separate purchase

department is to ensure continuous availability of requisite quality of

materials, to avoid hold up of production and loss in production and at

the same time reduce the ultimate cost of finished product.

RAW MATERIAL HANDLING PROCESS

Activity description:-

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

supply are verified for authenticity of the supply.

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

receipt, suppliers name & truck no : will be carried out and transferred to

the pre identified location.

3. Upon receipt of the raw materials goods requirement will be prepared 4.

Based on the goods requirement ,Quality assurance will collect the samplesas per the pre- determined frequency and OK the material if the results

are meeting the requirements.

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

accepted material will be accounted in the inventory.

6. Issue of raw material will be carried out to internal customers & external

customers based on the request received from the customers as if

applicable.

VARIOUS RAW MATERIALS USED IN THE MANUFACTURE

OF TYRES ARE AS FOLLOWS

o Polymers: - natural rubbers, synthetic rubber, (SBR, PBD, BUTYL etc)

o Fillers, carbon black, reinforcing clays

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o Process oil

o Curing agents/sulphur

o Accelerators/activators

o Antioxidants/antiozonents (waxes)

o Retardors

o Pepticers for natural rubber mastication

o Fabrics: nylon cord, i-ayon cord

o Bead wire spools

o Solvents for cements and solution.

o Miscellaneous items like paints, colours, crayon, scrap flakes etc.

VERIFICATION OF DOCUMENTS AT SECURITY GATE

The security inspector at main gate shall verify all documents pertaining to

the consignments brought to the factory before allowing entry in to factory premises

and note the following details. Serial no, suppliers name, description of item, challan

quantity, challan no and date or LR no and date, truck reg. no, date and time of

arrival, date and time of departure.

VERIFICATION OF DOCUMENTS AT RMS

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

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

discrepancy is found the same shall be orally reported to the officer concerned

before unloading. He in turn will take decision suitably. The dispatch documentsinclude: Delivery challan /invoice, sales tax papers, packing list and duplicate copy

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

the above documents the consignment will not be unloaded unless and otherwise

instructed by the competent authorities after compliance of all conditions stated

above, the materials will be unloaded as instructed by the receipt in charge and lead

to the respective area.

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HANDLING STORAGE AND PRESERVATION

All the incoming materials except the materials coming in tankers will be

unloaded manually or with the help of forklift as instructed by the receipt in charge.

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

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

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

PRESERVATION

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

/SBR, wax etc in the 1st floor and fabric, bead wire, latex etc in the ground floor. In

case of space constraints in the respective floors, the materials may be kept in the

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

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

quality assurance department will be directly pumped into the storage tank. Before

unloading the receipt in charge will make sure the availability in the storage tank.

Rejection items are identified by displaying a rejection tag by technical

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

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

the rejection area duly displayed with the rejection tag.

ENGINEERING GOODS STORES

Engineering goods stores is responsible for storing the necessary

spare parts, components required for smooth functioning of the plant. On

receipt of indent from production department, the engineering stores arranges

for its release. The inventory management technique used is VED Analysis. Vital,

Essential and Desirable Analysis. It is the Analysis for monitoring and control of

stores and spares inventory by classifying them into 3 categories viz., Vital, Essential

and Desirable. The mechanics of VED analysis are similar to those of ABC Analysis.

Almost all the activities of this department are computerized. The purchase

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department is initiated whenever re order 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 The vendors supply the raw material in large

quantities and payment is made only for consumed items.

FINISHED GOODS STORE

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.

o Material code

o Description

o Quantity

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

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

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

staff each from production and FGS/TTF(Tyres, Tubes and Flaps) will separately

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

entry in the transfer-note.

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PRODUCTION PLANNING AND CONTROL DEPARTMENT ( PP&C )

PP&C is an important department of the company headed by a senior

manager. The department consists of a senior officer, one officer, 4 junior officers

and 4 production assistants. For administrative purpose plant is divided into 3

divisions A, B, C. Banbury mixer, dip chord unit, 4 roll and 3 roll calendering units,

dual extruder and cement house come under division A. The horizontal and vertical

bias cutters, Bead winding units and tyre building units come under division B.

Division C covers tyre curing section.

FUNCTIONS OF PPC

The main function of PPC is to plan production in such a way as to make the

best use of available resources so as to meet the target set by the Management.

Importance is given to best possible capacity utilisation in terms of manpower, raw

materials and equipment. The PPC department receives monthly ticket from the

management. This is converted to monthly production plan which in turn is

distributed into a daily plan on the basis of the number of working days and lead time

required for making each component.

The daily plan is made on the basis of factors like

Output of each press in a shift

Output of each building machine in a shift

Mould and machine availability\curing cycles and no of presses

Current lineup and manningPriority based management decisions

Availability of feeding materials

The daily plan will be received everyday and plan for 3 shifts are made. It

takes 2 to 3 days to convert raw materials to finished goods. Hence all the decisions

on the components to be made in the next 3 shifts would depend on what is going to

be the cured tyre production 2 to 3 days hence. Since there is a buffer for green

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tyres, the inventory of green tyres should also be considered. This would shift the

focus from cured tyres to inventory of green tyres available.

PPC department also consider the following factors for visualising the next 3 shift

production plan

Cured tyre production for 3 shifts

Projected green tyre inventory for next 2 to 3 days.

Latest component wise inventory

Comparison of planned and actual production for the previous 3 shifts;

Production up to the day of the week and target for the remaining days.Machine availability data

First the schedule for the finished tyres is made, based on this, the schedule

for the green tyres for that shift is made. Since the tyre building process requires

assembly of large number of components namely: tread, sidewall, squeegee, plies,

breaker, chaffer and beads .

Each of these components has to be scheduled separately. Tread andsidewall are extruded from the dual extruder. So depending on the no of tyres to be

made, a schedule is made for the dual extruder. Similarly the number of plies

required for each shift in each category is arrived from the tyre-building schedule. A

tyre requires different plies of different sizes and width. Since the requirement of

plies is in the form of cuts, a conversion factor is used. The requirement of each

component is directly related to the stock on hand. The components with least

inventory are given high priority on the basis of their requirement. The plies are cut inhorizontal or vertical bias cutters. Certain plies have restriction with respect to the

choice of bias cutter. Thus schedules for the bias cutters have to be made on the

basis of bias option and priority of ply. Plies are made from calendared fabric that in

turn is made by coating sides of the dipped fabric with rubber compound. This is

done in 4-roll calendar. So a schedule for the 4-roll calendar is made on the strength

of the inventory of the calendar roll. The plies cut in the bias cutters also need to go

through a process called squeegee application in which a thin layer of rubber

compound is pressed against the inner surface of each ply. This is done in 3-roll

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calender. Besides a schedule for 3 roll and 4 roll calender machines, a schedule is

prepared for the dip unit from where dipped fabric is obtained which is used for

calendering. Similarly schedules are made for the bead preparation, which includes

bead winding, tillering and flipping. Here we can see that bottom up approach has

been used in generating the schedule i.e. based on the requirement of each

preceding step the schedule for the next step is made. This is because whatever is

made in step 1 is consumed in step2 and so on. To prepare schedules the personnel

of PPC department have to take the physical inventory of the work in progress and

finished goods everyday for each component involved in the tyre manufacture.

Besides the PPC department has to maintain the RM inventory from the RM store.

Other functions include communicating mould changes to production department,

generating reports on production, stock of raw material, working progress, finished

goods, experimental tyres, outside mixing and scrap. The schedules that are

prepared are given to various production departments for deciding the final layout of

the machines for production.

The factors that are crucial to the success of the schedule are

Mould and Machine availability

Accuracy of daily physical inventory

Computerisation

Timely receipt of ticket

The management requires vital information relating to mould and

machine availability, shift wise production details (scheduled and actual), daily

inventory of finished goods and green tyres etc.

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QUALITY ASSURANCE DEPARTMENT

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

satisfy, stated and implied needs. Quality is referred to as 'fitness for use' or 'fitness

for purpose' or 'customer satisfaction' or 'conformance to requirements. QA is t he

well-planned and systematic activities implemented within the quality system and

demonstrated as needed to provide adequate confidence that an entity will fulfil

requirements for quality.

For international trade transaction ISO Certification has become inevitable.

ATL has got the privilege to have ISO 9001 Certification. ISO 9001 (1994) covers the

quality system and model for QA in design, development, production, installation and

servicing.

ATL Kalamassery has a well-functioned QA department. They divided the

whole plant in to three divisions. Each division comes under a Quality Auditor, says

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 qualityactivities and related results comply with planned arrangements and whether these

arrangements are implemented effectively and are suitable to achieve objectives.

One of the purposes of quality audit is to evaluate the need for improvement or

corrective action. Audit should not be confused with inspection activities performed

for the purpose of process control.

If any deviation is there, then they will take corrective action to eliminate the

causes 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.

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STRUCTURE OF QUALITY ASSURANCE DEPARTMENT

Process control & Audit

Laboratory

Quality Engg.

Systems

Product testing

FUNCTIONS:

RAW MATERIAL TESTING

Quality of all the raw materials received are tested in the laboratory consists

of three different sections.

Fabric laboratory: The laboratory tests all fabric and steel wires received, and at all

stage of the process i.e. after dipping, after calendering, and in the cured stage etc.

Chemical laboratory: This laboratory carries out tests for all polymers, fillers andchemicals.

Physical laboratory: All rubber compounds in process are tested in the laboratory on

each stage i.e., after mixing in the Banbury, after extrusion, and calendering and after

curing.

TYRE TESTING

Samples of cured tyres are tested indoors on a test wheel. The wheel

simulates the running condition of a tyre, primarily used to detect carcass strength

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

different types of roads, loads and climate conditions.

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ENGINEERING DEPARTMENT

This department consists of utility division, Electrical work shop and

industrial engineering department.

STRUCTURE OF ENGINEERING DEPARTMENT

UTILITY DIVISION:

The Utility division is the source of steam, power, water and compressed

air. The main functions of this division include:

DEMINERALISATION OF WATER

The water pumped from nearby River is demineralised by a series of

operation like filtration, passing through an ion exchange matrix etc. This is done to

remove dissolved oxygen and minerals. It is then stored in a storage tank.

BOILER AND UTILITY

There are 3 boilers running to fulfill the present demand of steam. The

capacity of two boilers is 10 TPH (Tones per Hour) and 14 TPH. The Boilers are flat

tube type and furnace oil is used as fuel. The steam generated has a pressure of

15.5 Kg/cm2

CHILLED WATER PLANT

There are 4 chillers and the medium used is FREON. The capacity of

each chillier 115TR. The temperature of the chilled water 55F. Sections which

required chilled water are: TCU, Dual extruder, Banbury, Mill etc.

COMPRESSOR HOUSE

There are total seven compressors. It is again divided into high pressure

(HP), low pressure (LP), and medium pressure (MP). All these are passed through

the dryers to remove any moisture content. LP is used for instrument purpose

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(60psi), MP is used for Banbury, Tyre building, and Bias cutter sections (90psi) and

HP is bused for Tyre curing unit and post cure inflation unit (150psi). Total electricity

consumption is 105000 units. A stand by generator is available to meet the

emergency.

ELECTRICAL WORK SHOP:

The main job of this department is electrical maintenance including

electronic instrumentation. The main management hierarchy is given below.

Total strength of this department is around 50. The maintenance activities

mainly include break down maintenance and preventive maintenance. In the case of

break down maintenance, a maintenance slip is given from the respective

department to this department including the date and the type of maintenance work

required, so that it is possible to take necessary actions. Preventive maintenance

includes developmental activities. Here pre-checking and necessary actions are

done in order to avoid the break down. Spare keeping function also included under

preventive maintenance.

There is a programmable logic array (PLL) circuit for controlling the

production process. It is actually a computer system with out the monitor and

keyboard. It contains a processing unit, control unit and memory unit. The purpose of

the control unit is to initiate a series of sequential steps of micro operations. During

any given time, certain operations are to be initiated while all others remain idle.

Thus the control variable at any given time can be represented by a string of 1's and

0's.

INDUSTRIAL ENGINEERING DEPARTMENT

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

manage integrated production and service delivery systems that assure productivity,

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

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FUNCTION

Conduct work-studies, improvement studies in various equipment and

fixation of norms.

Capacity calculation in various equipment from time to time consequent to

various changes.

Design, Implementation and follow up of incentive schemes in various

zones.

Planning and assessment of manpower requirements of various

departments periodically.

Studying plant layout and material handling systems and suggesting

improvements.

Explore the possibilities of capacity expansion and prepare project reports.

Negotiations with unions regarding various issues like incentive schemes,

productivity, expansion and Labour issues

Analysis of capital expenditure request from various departments and make

recommendations to Senior Management Committee.

Prepare budgetary planning for capital and cash flow requirement.

Prepare documents for long-term settlements, bonus settlements etc. and

represent the management in the meetings with the Unions /Labour

Departments.

Visit other Industries for getting information regarding LTS methods,

practices and other developments.

Conduct various training classes for workmen, supervisors, other officers

and new recruits.

Apply various Industrial Engineering techniques such as job evaluation,

O&M (Organization & Methods) studies, Kaizen, Line Balancing etc.

Suggest various cost reduction programmes and implementation.

Associate with professional bodies like Productivity Council, NITTIE, and

Institution of Engineers etc.

Conduct daily audit on manpower, productivity, lost time, scrap details,

absenteeism, overtime etc.

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Furnish various other management information reports to the top

management.

Evolve best practices and processes through global benchmarking in the

context of global competitions and intense customer focus.

Optimize inventory levels at various stages such as Engineering Stores,

work in progress and finished goods.

Continuous improvement of methods and equipments design compatible to

the best economic standards.

Industrial engineering department helps to maintain the machines which

have been used for the production process. Preventive maintenance helps

to reduce the breakdown rate up to minimum and also to avoid the

disturbance during the production process.

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FINANCE DEPARTMENT

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

taxation jobs of ATL. At Kalamassery plant there is a separate accounting and

finance department. This department deals with salary, wages and costing. Excise

duty of the raw materials also comes under this department.

Sales from operations during the financial year ended March 31, 2007

amounted to an all time high of Rs. 4,733 crore as against Rs.3, 002.12 crore during

the previous year, recording a growth.

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

along with enhanced operations management, better working capital management,

aggressive marketing and overall cost reduction measures adopted by the

Company.

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TURNOVER AND NET PROFITS

Apollo Tyres Ltd

Turnover

Apollo Tyres Ltd- Net

Profits

year Rs. in

Crores year Rs. In Crores

2000-01 1154.02 2000-01 31.08

2001-02 1368.75 2001-02 76.06

2002-03 1458.70 2002-03 25.42

2003-04 1710.00 2003-04 42.40

2004-05 2025.10 2004-05 120.02

2005-06 2314.31 2005-06 70.42

2006-07 2656.8 2006-07 67.63

2007-08 3002.12 2007-08 78.17

2008-09 3774.34 2008-09 147.00

2009-10 4246.98 2008-10 219.30

2010-11 4071.33 2010-11 108.45

CATEGORY AND HOLDING %

Foreign holdings 14.76

Government (Travancore titanium) 1.98

Directors and their relatives 39.35

Other including Indian public 26.38

FIIS/NRIS/ Foreign body corporate 17.55

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OPERATIONS

Net sales surged by 63% to Rs 81.2 billion from Rs 49.8 billion.

Operating profit at Rs 11.9 billion from Rs 4.4 billion.

Net profit at Rs 6.5 billion from Rs 1.4 billion the previous year.

Exports out of India grew by nearly 27%

The growth and profitability on an annual level, across operations is a clear

indication of the companys ability to overcome a challenging environment and

consistently work towards delivering value through profitable growth. In India, 7

more new HIV-AIDS Health Clinics were opened across the country to cater to thehealth of commercial vehicle drivers, of which 5 were in Tamil Nadu, taking the total

to 15. Apollo also launched a focused environment initiative called Habitat

Apollo to enable individual employees to take on greater responsibility in the larger

cause of sustainability.

PRODUCTION

During the year, your Company has achieved 7.81% growth in production

tonnage by registering production of 2,90,000 MT as against 2,69,000 MT in the

previous year. All expansion programmes were implemented successfully as

envisaged, by increasing total capacity across all plants to 744 .

SHARE CAPITAL

During the year, your Company has allotted 24.42 million equity shares of

Re.1/- each at a premium of Rs.28.30 to Promoters on conversion of 2.442 million

warrants. The Company's share capital as on 31 March, 2008 has increased from

Rs.464.02 million to Rs.488.44 million after the said allotment. Subsequently,

promoters have exercised last tranch of their option for conversion of 1.558 million

warrants into 15.58 million shares on 18April, 2008, thereby, increasing share capital

to Rs.504.02 million. The face value of equity shares of your Company has been

splitted from 1 equity share of Rs.10/- each into 10 equity shares of Re.1/- each

w.e.f. 27h August, 2007, in pursuance of the resolution passed in the Annual

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General Meeting held on 26 July, 2007. The Board of Directors of Apollo Tyres Ltd

today approved the companys audited financial results for the 4th quarter and the

financial year 2009-10. The Board recommended a dividend payout of 75%. This will

go through an approval process at the companys Annual G eneral Meeting later in

the year

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SYSTEMS DEPARTMENT

The system department is responsible for computerization of different

departments of ATL. The main function of this department, operates and co

ordinates all systems in the organization. The simple structure of department

facilitates speedy communication flow within the department.

SAP R/3

The third generation set of highly integrated software modules that

perform common business function based on multi-national leading practices. Takescare of any enterprise however diverse it may be in operations, spread over the

world geographically. SAP was founded in 1972 by 5 people Wellen Reuthor, Hopp,

Hector, Plattner & Tchira .

IBM is the implementation partner. There are around 250

computers and 100 printers were placed in different departments, which are

connected to a Central Server in the Head-office (Gurgaon, Haryana). HCL is the

service provider of Apollo Tyres. They provide VPN (Virtual Private Network)

network through BSNL leased line. The bandwidth capacity of the leased line is

2Mbps by using OFC.

MONITORING FUNCTION

Security problems in the SAP were solved using Central Virus Scanning

System and Firewall at the head office (Gurgaon, Haryana). HCL solve all the

problems related to the network connection.

MAINTENANCE FUNCTION

The system department in the plant solved network problems as well as

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

providing reliability in the SAP system.

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.

CHAPTER IV

SWOT ANALYSIS

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STRENGTHS

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

Bus tyres.

Global presence with acquisition of Dunlop Tyres International (Pty) Ltd in

South Africa.

Robust Operation Centre for managing IT operations across 140 Locations

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

Presence in technology products in car radial segment.

Dynamic & Progressive Leadership.

Responsive to changes in market conditions and product profiles.

Product innovation and technical superiority.

Economies of transportation cost on account of closeness to natural rubber

growing belt.

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WEAKNESSES

No presence in two/three wheeler segment.

Declining profit margins due to raw material cost push.

OPPORTUNITIES

Continuous thrust in road infrastructure and construction of expressways &

national highways. Creation of road infrastructure has given, and will

increasingly give a tremendous fillip to road transportation in the coming

years. Tyre industry will play an important role in this changing product mix oftransport.

Leadership position in the commercial vehicle segment will enable the

Company to leverage new and related business opportunities.

Access to global sources for raw materials at competitive prices due to

economies of scale.

Steady growth in vehicle production in the immediate future leading to

growing demand.

THREATS

An increase in the flow of tyres from competitive sources like China.

Cheaper imports on account of import from countries which are signatories to

Regional Trading Agreements (RTAs).

With crude prices scaling upwards, pressure on raw material prices can be

expected.

Continuous increase in the prices of natural rubber, which accounts for nearly

one third of total raw material cost.

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CHAPTER V

FINDINGS, CONCLUSION AND

RECOMMENDATIONS

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FINDINGS

The organization structure facilitates smooth running of business

The benchmarking of information security with the global best practices will

help the organization to build a strong customer loyalty

Comprehensive understanding of customer needs.

The efficiency of the employee is showing the depth of internal branding

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CONCLUSION

Apollo Tyres Limited (ATL) is one of the leading tyre manufacturing

companies and is slowly moving in the path of progress. Apollo currently

enjoys the largest market share in heavy, commercial vehicles and light truck

tyres. The Apollo dealer network of over 4000 is the one of the largest in the

country. It has strategic alliance with Michelin of France, which is the No.1

tyre company in the global market

Company places a great deal of confidence on its excellent pool of HR,

which is the key to its future growth. The industrial relation atmosphere was

cordial and the focus is also on training at all levels including works men to

new concepts of management in alignment with the overall corporate

objectives.

Apollo is quick in absorbing and adapting the latest technologies,

as part of this SAP was implemented in the record time of 8 months; this has

enabled it to connect to a vast network of 140 centres by converting them intoa single source data centre. Apollo has also implemented APO (Advanced

planner &optimize), the dealer portal helps dealers to directly place their

orders, check their financial statement and even sort out their claim status.

The demand and growth for the industry depends on primary as

well as secondary factors. The primary being the overall GDP growth,

industrial production and growth in vehicle demand. Secondary factor like the

infrastructure development, prevailing interest rates and financing options.

Soaring raw material prices with limited pricing flexibility impacted the profit

margins of all the players. The year ahead still looks tough with no easing in

raw material prices.

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RECOMMENDATION

Employee training needs should be assessed yearly .It should be done at

least twice in a year.

Training program should be planned according to the changing

environment of the organization.

Training should be distributed over short periods of time in order to be more

efficient.

There should be check on the effectiveness of training program being

conducted.

The training program that is provided to the employee should include training

on stress management in order to increase the productivity.

R&D effort can be increased to meet likely competition and come up with

new products.

Import content can be reduced by more indigenous effort.

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BIBLIOGRAPHY

1. http://www.apollotyres.com/
http://www.apollotyres.com/http://www.apollotyres.com/http://www.apollotyres.com/

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ANNEXURE

Balance sheet (Rs crore)

Mar' 11 Mar' 10 Mar' 09 Mar' 08 Mar' 07

Sources of funds

Owner's fund

Equity share

capital 50.41 48.85 46.41 38.34 38.34

Share application

money - 4.57 11.72 - -

Preference share

capital - - - - -

Reserves &

surplus 1,305.30 1,176.84 917.56 592.37 534.94

Loan funds

Secured loans 462.39 223.15 473.76 381.00 348.75

Unsecured loans 233.13 237.51 144.94 369.00 195.06

Total 2,051.23 1,690.91 1,594.39 1,380.71 1,117.09

Uses of funds

Fixed assets

Gross block 1,838.00 1,569.66 1,492.51 1,310.61 1,148.43

Less revaluation

reserve - 3.16 3.16 3.31 3.46

Less accumulated

depreciation 694.66 598.66 541.66 469.94 398.30

Net block 1,143.34 967.84 947.70 837.36 746.67

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Capital work-in-

progress 281.41 94.41 80.46 77.93 84.33

Investments 297.45 302.71 258.11 0.53 54.48

Net current assets

Current assets,

loans & advances 1,040.70 1,472.83 1,278.76 1,204.58 905.05

Less : current

liabilities &

provisions

711.82 1,147.14 970.76 739.95 673.82

Total net current

assets 328.88 325.69 308.00 464.63 231.23

Miscellaneous

expenses not

written

0.15 0.26 0.12 0.26 0.38

Total 2,051.23 1,690.91 1,594.39 1,380.71 1,117.09

Notes:

Book value of

unquoted

investments

297.26 302.53 257.97 0.25 44.10

Market value of

quotedinvestments

0.03 0.07 0.11 1.07 19.97

Contingent

liabilities 682.36 444.96 119.29 106.63 113.14

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