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 Association (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 Top 10cos Chinese cos Indian cos -US$ 70.6 billion 80% 4.5% 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 on manufacture

Nature of tyres
A tyres is an assembly of thread, sidewall. Ply been homogenized by vulcanization. Tyre industry is basically a raw material intensive industry and raw fabric and beads that have

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 Synthetic Rubber Carbon Block Nylon tyre [Card/yam (fabric)] Rubber chemicals 26% 15% 12% 26% 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 the

meet the needs of revolutionary changes in the automobile industry. Today 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 Limited Good Year India Limited Vikrant Tyres Limited

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DOMESTIC RANKING

Companies Truck

Segment Light Commercial Vehicle

Apollo Tyres JK Tyres MRF CEAT

1 2 3 4

2 4 3 1

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SEGMENT WISE MARKET SHARE OF TYRE COMPANIES IN INDIA

COMPANY APOLLO MRF CEAT JK VIKRANT GOODYEAR

TRUCK 28 16 17 12 11 5

AR 0 5 8 4 1 12

AARM 21 24 15 8 7 23

CV 9 0 9 15 2 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 II PROFILE 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 share holder value was registered in 1972. The

delight and enhancing

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 include tyres , tubes and

important role in world tyre industry. The products 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. 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 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. 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 1976 1977 1982 1991 1995 2000 2003 April 13, foundation stone of the Perambra plant was laid. Apollo Tyres was registered. Plant commissioned in Kerala with 49 TPD capacities. Manufacturing of Passenger Car Radial Tyres in Kerala Second plant commissioned in Baroda. Acquired Premier Tyres Ltd in Kerala. Exclusive radial capacity established in Baroda. Radial Capacity expanded to 6600 Tyres per day. November 17, Joint Venture with Michelin. 2004 2005 2006 Launch of Apollo Aclere-H Speed Rated Car Radials. April 13, Perambra plant completes 30 years. January 30, Acquires Dunlop South Africa. August 7, Announced the launch of new plant in Chennai. 2007 2007 2007 2008 Launch of Dura tyre. Retreaded tyre first in India. Launch of Regal track and bus radial tyres. Launch of the Apollo Tennis initiative and Mission 2018 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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MANUFACTURING CENTRES
Corporate office: Other plants in India: Baroda Pune Perambra Kalamassery Chennai International plants: Zimbabwe - Bulawayo Gurgaon

South Africa - Ladysmith, Durban Europe - Germany United Kingdom Netherlands KALAMASSERY PLANT (IN FOCUS) Year installed : 1962 Total land area: 179 hectares Installed capacity: 60 MT Power requirement: 60000 kwh/ day Fastest growing plant in Apollo family. Continuous expansion. Total employee involvement.

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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

BOARD OF DIRECTORS

MANAGING DIRECTOR

MARKETING MANAGER

PRODUCTION MANAGER

HR MANAGER

FINANCE MANAGER

ASSISTANT MARKETING MANAGER

ASSISANT PRODUCTIO N MANAGER

ASSISTANT HR MANAGER

ASSISTANT FINANCE MANAGER

SUPERVISORS

SUPERVISORS

SUPERVISORS

SUPERVISOR

WORKERS

WORKERS

WORKERS

WORKERS

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PRODUCT AND SERVICES

TRUCK.

Loadstar Super. Loadstar Super Gold. Overload Technology Loadstar Super Hercules. Kaizen 50L.

XT7. XT7 Gold. XT7 Haulug. Amar Deluxe. Amar. Commando. Kaizen 36L Kaizen 99R plus Kaizen 77R XT9 XT9 Gold Amar Gold Kaizen XTD

Load & Mileage Technology

Premium Mileage Technology

Champion Champion Gold Mileage Technology Segment Champion DXL Amar AT Rib Kaizen 27L

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LIGHT COMMERCIAL VEHICLE

Overload Technology Load & Mileage Technology

Loadstar Super. Mile star Amar Deluxe Amar Gold Rib XT9 XT9 Gold(lug) Duramile (radial) Champion

Premium Mileage Technology

Regular Mileage

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PASSENGER CAR RADIALS

Acelere Amazer XL Hawks Amar Amazer XL Quantum Amar Amazer XL Storm Hawks Armour Panther Gripper

Tubeless Radial Passenger Car

Tubeless Radial MUV & SUV

Tube type Radial for Passenger Car

Tube type Radial MUV & SUV

Passenger Car & Jeep Bias

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FARM

Krishak Super Sarpanch Power Haul Farm King (Radial) Krishak Premium (bias) Dhruv Hunter

Cultivation

Haulage

Multipurpose

Tractor Trailer Types

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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. 2. 3. 4. 5. 6. 7. 8. 9. HUMAN RESOURCE DEPARTMENT PRODUCTION DEPARTMENT PURCHASE & STORES DEPARTMENT PRODUCTION PLANNING AND CONTROL DEPARTMENT QUALITY ASSURANCE DEPARTMENT ENGINEERING DEPARTMENT INDUSTRIAL ENGINEERING DEPARTMENT FINANCE DEPARTMENT 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. consonance. HR focuses on maintaining credibility in the organization. Encourages innovation in its mechanism. Creating organization wide involvement with the concept. 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

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 having four 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
Management staff Permanent workmen Workmen trainees Contract workmen Total

NO OF PEOPLE
270 1819 248 453 2790

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FUNCTIONS The major functions of this department are:o o o o o o o

Recruitment Training Industrial Relations Welfare Time office Security and Safety 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 program for 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 CPM. 2. ATSWU (Apollo Tyres Staff and Worker Union) with the political Influence of INTUC 3. 4. ATMS (Apollo Tyres Mazdur Sangh) with the political influence of BMS ATWM (Apollo Tyres Workers Movement) (Apollo Tyres Employee Union) with the political influence of

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 quality circles 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 the night shift, 200ml of milk packets are provided for every night shift worked. Management staff:
o o o o o o

Group hospitalization scheme. Group personal accident policy. 2 wheeler scheme-40% borne by the company. Car scheme- Asst. manager and above -40% borne by the company. Super annulations-Asst. Manager and above. 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 managerial persons. Performance reports are maintained in each section. These are done with a view to reduce the absenteeism in employees and motivate them to increase production. A leave book is maintained and it contains leave balance, leave credited and leave awaited. The daily attendance report is verified by the supervisor, shift engineer and shift superintendent department head. Working hours: A B C D Shift 6 a.m. to 2 p.m. Shift 2 p.m. to 10 p.m. Shift 10 p.m. to 6 a.m. 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 safety machines and directions are

1948.The plant is well equipped with

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 Be Careful Security: The security is concerned with the physical movement of men and material. Security staff headed by the chief security officer works at all the shifts. To facilitate the security measures, single point entry is adopted to control visitors. For materials, separate gate passes are issued. Job description: Be responsible for security of men, machinery, finished goods, raw

materials, process materials, highly sophisticated 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 as project work. Maintain workmen. Ensure high degree of liaison with police, local administration, fire force and government authorities.
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routine as well

the

data base of all indirect

workforce

including contract

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 of various 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 a green 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. These rubber 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 tyreINDIAN ACADEMY SCHOOL OF MANAGEMENT STUDIES Page 34

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 the press 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 & to the 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 samples as 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 o Polymers: - natural rubbers, synthetic rubber, (SBR, PBD, BUTYL etc) Fillers, carbon black, reinforcing clays
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o o o o o o o o o o

Process oil Curing agents/sulphur Accelerators/activators Antioxidants/antiozonents (waxes) Retardors Pepticers for natural rubber mastication Fabrics: nylon cord, i-ayon cord Bead wire spools Solvents for cements and solution. 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 documents include: 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 VMIVendor 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 o o

Material code Description Quantity

The original copy of the transfer-note will be issued to central excise wing after entering the details in stock statement, duplicate will be given back to 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 manning Priority 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 and sidewall 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 in horizontal 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 the well-planned and systematic activities implemented within the quality system and demonstrated as needed to provide adequate confidence that an entity will fulfil requirements for quality. 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 quality activities 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 and
chemicals.

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 year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Rs. in Crores 1154.02 1368.75 1458.70 1710.00 2025.10 2314.31 2656.8 3002.12 3774.34 4246.98 4071.33 year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2008-10 2010-11 Apollo Tyres Ltd- Net Profits Rs. In Crores 31.08 76.06 25.42 42.40 120.02 70.42 67.63 78.17 147.00 219.30 108.45

CATEGORY AND HOLDING

Foreign holdings Government (Travancore titanium) Directors and their relatives Other including Indian public FIIS/NRIS/Foreign body corporate

%
14.76 1.98 39.35 26.38 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 the health 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 General 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. Takes care 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 of transport. Leadership position in the commercial vehicle segment will enable the Company to leverage new and related business opportunities. Access to global sources for raw materials at competitive prices due to economies of scale. Steady growth in vehicle production in the immediate future leading to growing demand.

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 into a 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/

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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 Share application money Preference share capital Reserves & surplus 50.41 48.85 46.41 38.34 38.34

4.57

11.72

1,305.30

1,176.84 Loan funds

917.56

592.37

534.94

Secured loans Unsecured loans Total

462.39 233.13 2,051.23

223.15 237.51 1,690.91

473.76 144.94 1,594.39

381.00 369.00 1,380.71

348.75 195.06 1,117.09

Uses of funds Fixed assets Gross block Less revaluation reserve Less accumulated depreciation Net block 1,838.00 1,569.66 3.16 1,492.51 3.16 1,310.61 3.31 1,148.43 3.46

694.66 1,143.34

598.66 967.84

541.66 947.70

469.94 837.36

398.30 746.67
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Capital work-inprogress Investments

281.41 297.45

94.41 302.71

80.46 258.11

77.93 0.53

84.33 54.48

Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total 2,051.23 1,690.91 Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity shares outstanding (Lacs) 040.25 4884.45 464.02 383.38 383.38 682.36 444.96 119.29 106.63 113.14 0.03 0.07 0.11 1.07 19.97 297.26 302.53 257.97 0.25 44.10 1,594.39 1,380.71 1,117.09 0.15 0.26 0.12 0.26 0.38 328.88 325.69 308.00 464.63 231.23 711.82 1,147.14 970.76 739.95 673.82 1,040.70 1,472.83 1,278.76 1,204.58 905.05

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