Organization study @ Apollo tyres

Presented bySharafudheen. m.uMCMAT

Company profile

• Established in 1972

• A turnover of USD 2.2 billion (INR 133 bn) as of FY 13-14

• Available in over 100 countries

• Over 16,500 employees

• 8 manufacturing facilities in Asia, Europe and Africa

• 7th fastest growing Tyre Company in the world.

• 16th largest Tyre Company in the world.

• First Tyre Company in India to obtain ISO9001 certification for all its operations

Ranking of Indian tyre companies on the basis of production

1. MRF Tyres Limited2. Apollo Tyres Limited3. JK Tyres Limited4. CEAT Tyres Limited5. Modi Rubber Tyres Limited6. Birla Tyres Limited7. Good Year India Limited8. Vikrant Tyres Limited

Highlights of Apollo Tyres Ltd

World tyre industry – Ranking

Bridgestone 1

Michelin 2

Continental 3

Goodyear 4

Sumitomo 5

Pireli 6

Hankook 7

Dunlop 8

CST 9

Yokohama 10

Cooper tire 11

Nokian Renkaat 12

Double coin 13

Nexen tire 14

Apollo tyres 16

INDIAN TYRE INDUSTRY

• Indian Tyre industry expects to grow 11%-12% during the next three years with revenues of Rs. 623 billion.

• The profitability of the industry has a high correlation with price of few materials such as rubber, crude oil, as it accounts more than 70% of the total cost.

• It is mainly dominated by 4 major players MRF, APOLLO TYRES, JK TYRES and CEAT. They enjoy more than 70% of the total market shares

MANUFACTURING CENTRES Corporate office-Gurgaon Other plants in India:- Baroda, pune, perambra, kalamassery International plants:- Zimbabwe – Bulawayo South Africa – Ladysmith, - Durban Netherlands

Apollo Beliefs

VISION

• To be a significant player in

the global tyre industry and

a brand of choice, providing

customer delight and

continuously enhancing

stakeholder value

VALUES

• Customer First

• Business Ethics

• Care for Society

• Empowerment

• One Family

• Communicate Openly

Brands

Products

Two Wheelers

Trucks

OHTFarm

Passenger Cars

Technology

Space Master: Saves 60% space

- Patented 3D siping tech for winter tyres - Green tyre from natural rubber

Air Master: Variable front spoiler

Partners

* This is only a representative listing and not comprehensive in any manner

Organization Structure

PRODUCTION DEPARTMENT

MANAGERPRODUCTION

ASSOCIATE MANAGER(DIV 1)

SHIFTSUPERINDENTS

ASSOCIATE MANAGER(DIV 2)

MANAGER(DIV 3)

EXECUTIVE(DIV 1)

EXECUTIVE (DIV 2)

STOCK PREPARATION

EXECUTIVE(DIV 2)

TYRE BUILDING

EXECUTIVE(DIV 3)

TYRE CURING

DIVISION 1

In division one, assigning the jobs are compound mixing, fabrics, dipping, Extrusion and calendaring.

DIVISION 2

The division has two sections. One in stock preparation and other is tyre building. Each section has an executive.

DIVISION 3

The final preparation of tyre. This division jobs are curing and final finish. This division has an executive in tyre curing.

STRUCTURE OF ENGINEERING DEPARTMENT

GROUP MANAGERENGINEERING

MANAGERMECHANICAL ENGINEERING

MANAGER ELECTRICAL AND ELECTRONICS

MANAGERCIVIL & PROJECTS

EXECUTIVEINSPECTION & DRAFTING

MANAGER(DIV 2)

EXECUTIVE (DIV 3)

ASSOCIATE MANAGER(DIV 1)

ASSOCIATE MANAGERBOILER & UTILITY

EXECUTIVEMAINTENANCE

EXECUTIVEELECTRICAL

EXECUTIVEINSTRUMENTATION &

CALIBRATION

HUMAN RESOURCE DEPARTMENT• Apollo Tyres Ltd has a good HR and Administration

department which always look forward to increase the efficiency of the employees.

• HR department is concerned with the security, reception, time office, welfare, safety and personnel

The major functions of this department are:-RecruitmentTrainingIndustrial RelationsWelfareTime officeSecurity and SafetyOther Administrative activities

FINANCE DEPARTMENT

• The corporate office situated at Gurgaon does most of the accounting and taxation jobs of ATL.

• At Perambra plant there is a separate accounting and finance department. This department deals with salary, wages and costing & Excise duties.

MARKETING DEPARTMENT• The success of the company is in its products , people & distribution

network. • The head office is situated at new Delhi that controls the entire

marketing activity. • There is no separate department for marketing in Perambra.. ATL has 3

corporate offices in Kerala (Cochin (Main office), Trivandrum, and Calicut which does the market functions for company.TARGETING• ATL mainly focus on truck segments (truck tyre market

(replacement and OEMs), light truck commercial market and in the farm category

• Due to the increased competition and customer demand they also focus on radial tyres.

• To produce truck/bus radials ATL and Michelin entered into a joint venture.

POSITIONING

• ATL has created an image in the minds of the customers regarding the quality of their product and its past performance.

• Constant process is done at every stage of manufacture and the company performance. ATL positions its products according to the product variety.

PRICING

• The price is fixed depending on the variation of the price of main raw materials and based on the market situations.

ADVERTISING STRATEGY

• ATL use a mix of media for the target audience. • ATL advertise less for commercial vehicles because it is more face-

to-face and interactive• Other promotional activities include printing of brochures,

sponsoring of events and running various awareness campaigns

SWOT ANALYSIS

Strength :- • Wide product variety .• Excellent Geographical coverage across Asian,

European and African markets.• Good financial position.• Good Brand awareness about the product.• Has manufacturing plants at India, SA, Zimbabwe

and Netherlands.• Over 4000 dealerships in India, and over 900 in South

Africa.

Weakness:-

-Low presence in latest car models.-Low presence in two/three wheeler segment.-Brand yet to establish itself like the market leaders.

Opportunities:

• Steady growth in vehicle production in the immediate future leading to growing demand.

• Improved Infrastructure has fuelled more and more transportation.• - More tie-ups with Automobile companies as it’s mainly into B2B market.• -Emergence of India as a hub for small car production. • -Emerging markets and improved lifestyle.

Threats:-• - Stiff competition from national and international brands.• - Price wars.• - Continuous increase in the prices of natural rubber, which

accounts for nearly one third of total raw material cost.• -Government Policies w.r.t export duties, import duties, tax levied

on automobile industries and economic condition of nation as it determines the sale of automobiles.

Findings• A good coordination exists between different

departments. • The products of the company are known for its high

quality standards.• Workers’ health and safety are given prior importance.• Labour turnover is very low.• The company faces the problems of outside competitors

like China.• Workers, for the fear of loss of jobs resist modernization

of plant.• Employee’s compensation packages are attractive.

Suggestions

• Company should enter in to two & three wheeler tyre market.

• Company should try to increase its market share in the radial tyre segment.

• More training facilities must be provided to employees

• Maintain a healthy relationship with trade unions.

• A bit more promotional activities could enhance building brand image.

Thank You