INTRODUCTION

An organization is social agreement which pursues collective goals, controls its own

performance and has a boundary separating it from its environment. In the social sciences,

organization are studied by researches from several disciplines, the most common of which are

sociology, economics, political science, psychology, management and organizational

communication. The broad area is commonly referred to as organizational studies, organizational

behavior or organizational analysis. This project is basically an analysis of the organization

structure as well as the functions of each department of Apollo Tyres Ltd, a leading tyre

manufacturer.

Apollo Tyres Ltd is a leading tyre manufacturer with the annual revenues of over US $ 1.99 billion

in 2011.It was established in 1976. Its first plant was commissioned at Perambra in Kerala State. In

2006, the company acquired Dunlop Tyres International, South Africa, one of the popular

companies in this field. The company having four manufacturing units in India, two in South

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

3500 are exclusive outlets. In South Africa, it has over 9000 dealership where 190 Dunlop

accredited dealers. It gets 59% of its revenue from India, 28% from Europe and 13% from Africa.

It aims to have revenue of about US $ 6 billion by 2016.

OBJECTIVE OF THE STUDY

To study about the organization structure.

To familiarize with the business holistically

To familiarize with the various department in the organization and their functioning.

To understand how key business processes are carried out in the organization.

To understand how information is needed in the organization for Decision making at

various levels.

To do SWOT analysis of the company.

RESEARCH METHODOLOGY

The Methodology selected for this project is primary and secondary data. These are:

Primary data: These are obtained by the following methods

Personal and direct investigation.

Interview with managers and employees.

Secondary data: Secondary data are those, which has been already collected and gone through

statistical process. Secondary data are collected from the secondary sources like websites,

magazines, journal etc. Secondary data are of two types, they are

1) Internal

In this project internal data are collected from the company brouchers, manuals of the

company

2) External

In this project external data are collected from the company website and website of tyre

industry.

LIMITATIONS OF THE STUDY

Hazardous working environment

Lack of time

As the main source of data is secondary reliability is limited.

INDUSTRY PROFILE

TYRE INDUSTRY

HISTORY OF TYRES

The key milestone in the history of tyres was the invention of the wheel by Sumerians 5000

years ago and it has been refined over ages. Centuries back pieces of rubber placed at four

corners of the vehicle were used as tyres. The earliest tyres were bands of iron (later steel)

placed on wooden wheels, used on carts and wagons. The tire would be heated in a forge fire,

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

But the whole scenario started changing when Charles Goodyear invented vulcanized rubber in

1844 which was later used for the first tires. The first practical pneumatic tire was made by the

Scot, John Boyd Dunlop in 1887. Pneumatic tires are made of a flexible Elastomeric material,

such as rubber, with reinforcing materials such as fabric and wire. Tire companies were first

started in the early 20th century, and grew in tandem with the auto industry. Today over 1 billion

tires are produced annually, in over 400 tire factories, with the three top tire makers

commanding a 60% global market share.

Structure of the industry

The origin of the Indian tire industry dates back to 1926 when Dunlop Rubber

Limited setup the first tyre company in West Bengal. MRF followed suit in 1946. Since then, the

Indian tyre industry has grown rapidly. Transportation industry and tyre industry go hand in hand

as two are inter dependent. Transportation industry has experienced 10% growth rate year after

year with an absolute level of 870 billion ton freight. With an extensive road network of 3.2

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

INTERNATIONAL SCENARIO

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

form of auto tyres and tubes and certain other parts and accessories. For instances, Japan’s

Bridgestone Corporation is world’s largest producer of tyres. It consumes 3 lakhs tones of natural

rubber annually to produce 68 different types of tyres. Italy’s Pirells SpA consumes 1,20,000

tonnes of natural rubber in the production of tyre. Economic recession anywhere first hits this

industry before any other industry.

World production has been fairly stable in the last three years even though it was unstable in

the last 10 years. Where in India’s production has showed consistent increase with an average

growth rate of about 16percent during the last 10 years. Indian consumption has also shown steady

growth except in 2001 where it showed a slight fall. Significant variation in world production and

consumption are source of concern on the price front for Indian sector in the free market regime

where global pressure of imports and exports could make the rubber price more volatile. About

47percent of natural rubber consumed in the country goes in the production of auto tires and tubes,

13 percent in cycle tyres and tubes, 10 percent in footwear, 7 percent in belts and hoses, 6 percent

in camel black, 5 percent in latex foam, 4 percent in dipped rubber goods and 8 percent in other

rubber products. This fairly establishes the diffused nature of consumption of natural rubber. The

world tyre industry is around US $70 billion. The industry is marked by the presence of around

half a dozen major players who together occupy 70%of world market share.

Table below shows the market share of various companies

COMPANY Market share

MICHELIN 19.5%

BRIDGESTONE 19.4%

GOODYEAR 16.6%

CONTINENTAL 7.1%

SUMITTOMO 4.9%

PIRELI 3.9%

YOKHOHAMO 3.5%

KUMHO 1.7%

OTHERS 23.5%

INDIAN SCENARIO

The tyre industry began to grow in India during 1930’s. Indian tyre industry is two-tier. The Tier-

1 players (top six tyre companies) account for over 85% of industry turnover containing a well

diverse product mix and presence in all three major segments i.e., replacement market. Original

equipment Manufacturers (OEMs) & exports. Tier-2 companies are small in size mainly

concentrating on production of small tyres(for two/three wheelers etc) tubes and flaps and the

replacement market.

The Indian tyre industry produced 736 lakh units of tyres(11 lakh tonnes) garnering Rs. 19000

crores during the financial year 2010-2011. At present there are 40 tyre-companies operating in

India. Indian tyre industry is manufacturing all categories of tyres except some specialized

categories like Snon Tyres for which currently there is no requirement and Aero Tyres. Indian tyre

industry is expecting to register a growth of 9.10% in the next 5 years.

The Indian tyre industry is characterized by its raw material intensity (raw material

costs around or approximately 70% of operating income), capital intensity, cyciability, fierce

competition among the top players, low bargaining powers and resulting low margins. The top

players are now focusing on branding their products and strengthening their distribution now so as

to increase their market share.The industry derives its demand from the automobile industry. While

OEM market off take is dependent on the new vehicle sales, replacement market depends on the

total population of vehicles on road, road conditions, vehicle scrapping rules, overloading norms

for trucks, average life of tyres and prevalence of tyre re trading category of tyres produced in the

country is that of Truck & Bus Tyres. These tyres accounted for 57% of the total tone age

production in FY 07 followed by LCV tyres which accounted for 9% of the total tyre tonnage

production. Approximately 53% of the total tyre tonnage off take was by the replacement market,

31% by OEM and 15% by the export market in the last financial year.

Table shown below indicates the production of major categories of tyres in India and percentage

share in turnover

CATEGORY PRODUCTION[IN LAKHS] % SHARE IN TURNOVER

Truck and bus 108.21 60%

Passenger 113.99 11%

Jeep/MUVs 32.71 8%

Two wheelers 261,30 11%

Tractor 15.63 6%

The Indian Tyre Industry Market Characteristics Demand

The demand for tyres can be classified in terms of

Type

Bus & Truck

Scooter

Motorcycle

Passenger car

Tractor

Market

OEM ( Original Equipment Manufacturer)

Replacement

Export

Ranking of Indian Tyre Companies on the basis of production:-

Apollo Tyres Ltd

MRF Tyres Ltd

CEAT Tyres Ltd

JK Tyres Ltd

Birla Tyres Ltd

Good Year India Ltd

Vikrant Tyres Ltd.

HISTORY OF APOLLO TYRES

Apollo Tyres Ltd (ATL) on the leading manufacturing companies in India was named after

the Greek Sun-Apollo. Apollo has created a remarkable identity. Company’s name itself has

become synonyms with the brand. In its constant pursuit for excellence, Apollo has come a long

way up of the corporate gradient. The history of Apollo company can be traced back to 70’s when

MNC’s and Indian tyre majors dominated the tyre type industry. ATL is the flagship company of

the Raunaq Singh Group. It was incorporated in 28th September 1972, in collaboration with

General Tyre International Company (USA), which is now owned by continental General Tyre

International (CGTI, USA).

The company was promoted by Bharat Steel Tubes Ltd. Raunaq and Co.Pvt Ltd, Raunaq

International Pvt Ltd, Raunaq Singh, Mathew.T.Marattukulam and Jacob Thomas. The company

was taken over by Dr. Raunaq Singh and his associates in 1974. The implementation of the tyre

project took place in 1976 at Perambra in Kerala.The Raunaq Group of companies under the

chairmanship of Mr. Raunaq Singh purchased the license and thus first manufacturing unit was

started at Perambra near in 1974. Kerala plant began its commercial production in the year 1977 to

1981. It was in 1982 that Apollo formulated and put into action a series of pragmatic profit

generating policies geared towards high turnovers. A dynamic and prudent new management team,

under the leadership of chairman Mr. Onkar and Managing Director Mr. Neeraj. S. khan was took

over the helm of the company affairs. The objectives were redefined with emphasis on growth

through quality products and services, aggressive market penetration and expense containments.

Through the excellent effort in the year 1984, ATC wiped out the entire accumulation loss and

even posted a profit of Rs.57 lakhs. After this, there had been no looking back for Apollo and

catapulted itself among the top tyre companies of the country. The second plant was installed at

Lamda Village at Baroda in Gujarat, which started production in 1991 having capacity of 6.5 lakhs

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

company has been taken over M/S Premier Tyres Ltd in April 1995 and products are being made

in Apollo brand name. The third plant to manufacture tubes and flaps has started at Rajagoan near

Puna in 1996. The entire requirement of tubes for all plants of Apollo is done from here. The

company sells its products to both orginal equipment manufactures and replacement market and

also to the state transport undertaking and various government agencies. Apollo has identified

export as a focus area finding large scale use in Asian and American countries and for this

purpose. It was established a subsidiary company Apollo International Ltd.

With a view to position itself in the premium tyre segment, Apollo divided to price its brands

reasonably higher than its competitors. It thus targeted a customer segment for which price was

almost a non issuer. The Key criterion was producted benefits.

Premium branding led to the development of the niche that comprised there who looked for the

best tyre and not necessarily the best bargain. The Apollo is the first tyre company to introduce

packaging for tubes, two wheeler tyres and car tyres. The first tyre company has to the concept of

exclusive showrooms and service centres for the truck type, called the “ Apollo Tyre World”.

Believing firmly in philosophy of always looking for new answer, today’s tyre plant Apollo

tyre has all along envisioned action that would challenge the conventional wisdom of tyre industry

call its holistic thinking or innovative marketing strategies, as a corporation.Apollo has always

thrived on huge challenges so as to turn around to its advantage. The company is exploring

possibility of setting up of a plant in Holland and also another unit near Sree Perambathur in the

state of Tamil Nadu. It had a turn over of 4300 crores in the year 2010.

HISTORY OF PREMIER TYRES

Premier Tyres Ltd was incorporated in the 19 th October 1959. The company was

established in collaboration with the unit Royal Tyre USA. The company was owned by the

Indian. During the seventies and righties company company was running in a huge profit the main

reason for this lack of competition was the tyre named “ Lug Master” was a gignetic success in the

market. But gradually the profit of the company declined. More and more players enterd in the

market. The competition became intense. It was declared as a sick unit. The government of kerala

requested Apollo tyres to takeover the unit and bring it back to form. In 1995 the premier tyres was

teken over by the Apllo tyres. At that time the share capital of premier tyres. At that time the share

capital of premier tuyres 3.25 crores. Apollo tyre introduced another 10 crores. After the takeover

in 1995, Apollo tyre initiated their management practices in the company. The ultimate aim was to

make the company in to a profit making one. Even with the existing machinery and all, the

production from 35 to 80 tons.

According to the agreement of lease, the goods produced with the machines of premier

tyres will be brought in to the market and sold the name of Apollo Tyres.

OBJECTIVES OF THE COMPANY

To enhance the company’s share holders value

Employee satisfaction

Revenue growth

Strengthen supply chain market share cost effectiveness in all segments

High quality technology and superior products

Consistent production through harmonium industrial relations.

To become a significant global player providing customer delight

To widen the distribution networks and strengthen the field service.

VISION

“A significant player in the global tyre industry and a brand of choices providing customer delight

and continuously enhancing stakeholder value”

Values

C – Care of customer

R – Respect of associates.

E – Excellence through teamwork.

A – Always learning.

T – Trust mutually.

E – Ethical practices.

MISSION

A journey called “passion in motion” to be a US $ 2 billion company by the year (2011-2012) on

the three pillars of people, quality and technology using the rigour f the six sigma process

DREAM

“To become a nine thousand crore turn over company by the year 2013”

QUALITY POLICY

Apollo tyre limited follows strict quality control measurement to enhance customer delight.

Apollo tyre limited gives much emphasis to retain the quality of products. The company’s

quality policy is concentrates in each state of the tyre manufacturing process and all the

activities related to production.

CORPORATE GOALS

Creating social responsibility

Learning and development.

Family focus.

Hygienic factories.

Employee involvement and cultural building.

THE THREE PILLARS OF THE COMPANY

People: happiness and development among whole 10000 employees and their families.

Quality: Not only in products but also in every activities.

Technology: Not only in products bases technology but also to incorporate technologies in

all our walk of life.

FEATURES OF THE COMPANY

Development of compounds for improved performance,

Raw material development

Analytical research

Reverse engineering.

Advanced design using CAD.

FEA modeling of tyres.

Simulation testing of the designed product.

Product validity and reliability studies

PHASES OF DEVELOPMENT

1972 – The company’s license was obtained by Mr. Mathew.T. Marattukulam, Jacob Thomas

and his associates

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

1975- Apollo Tyres limited was registered.

1977 - Plant commissioned in Kerala with 49 TPD capacities.

1982 – manufacturing of passenger car radial tyres began in India.

1991 – The 2nd plant commissioned in Baroda, Gujarat.

1995 – Acquired Premier Tyres in Kerala.

2000 - Exclusive radial capacity established in Baroda.

2003 – Radial capacity expanded to 6600 tyres per day.

2004 – Launch of Apollo accelure.

2005 – Perambra plant complete 30 yrs.

2006 – Launch of Indians first range od ultra-high-performance-vand-w speed rated tyres.

2007 – Launch of Apollo truck and bus radial tyres.

2008- Integrating the global product port folio by rebranding the Dunlop.

2009 – Acquired vrestiern banded BV in Netherlands.

2010 – It won on agreement with Volkswgaen AG to supply the VW Polo.

FUTURE GOALS

The main and primary goal of the company is to be an US $6billion company by the year

of 2016

Rapid radialization is commercial vehicle segment in India

Commercial production to begin from March 2011

Green field project in Chennai

A total capacity of 6000 TBR $ 8000 PCR tyres by FY 2012

Apex of Rs 20 billion

A new performance and career enhancement system will soon be launched.

Quality journey goal is to be established at ATC as an organization that is recognized

world wide for the quality process and practices. Its object is t win the “ demand award

within a stipulated time frame”

CERTIFICATIONS OF THE COMPANY

Q.S – 9000 1998, 2004 – certification for quality management.

Registered with DGS and D and defense ( CQ AV)

AIS

In – metro ( Brazil) certification

In – metro ( South Africa) certification

SASO ( Saudi Arabia) certification

ISO 9001 certification

MAJOR ACHIVEMENTS

Corporate highlights:-

The acquisition of Dunlop Tyres International in South Africa, making Apollo the first

Indian Tyre manufacture to have a global foot print.

A 12% growth in overall production.

A double digit growth of 18% was the course of the year, compared to the industry average

of over 11% in segments Apollo is presents.

AWARDS

1) First tyre company in the country to get ISO9001 certification.

2) One of the manufactures with us 9000 certification (March 2001).

3) Manufacturing facility and tyre testing tab certified by ‘IN METRO’ of Brazil.

4) Consistently rated as “Excellent” in quality audit by the collaborate M/s. Continental AG.

5) Self certified vendor to trading OEM’s in the country.

6) Registered with QAVC (Defense) DGS and D (Government).

7) Approved by DOT-DPT of transport USA<ECE Economic Commision of Europe, SASO

– Saudi Arabian Standards organizing, CONENIN OF VENEZULA.

8) Apollo Tyres Ltd, Perambra unit was ranked the first among large scale industries for

productivity and energy conservation in the year 2002-03 by Kerala State Productivity

Council.

9) Apollo Tyres Ltd received the Pollution Control Award from the Central Government

during the year 2003-2004.

10) In the JD power India Orginal Equipment Total Customer Satisfaction Index Report 2008.

Apollo Tyres stood second at 816 points out of 1000.

11) Awarded the Gold Certificate for its manufacturing units in December 2008, at the Indian

Manufacturing Excellence.

SHARE HOLDING PATTERN

Apollo Tyre Limited is a publically listed company in India. It’s stokes are traded on India’s two

largest exchanges, the Bombay Stock Exchange and the National Stock.

FIIs/ NRI’s/ Foreign Bodies Corporate.

FIs/ Banks / Mutual funds.

Government of Kerala and others.

Promoters.

Public.

Major customers of Apollo Tyres

Ashok Leyland

Eicher

TATA

ESCORTS

Punjab Tractors LTD

Mahindra

AMW

MARKET SHARE OF THE COMPANY

Good year – 6%

Others – 17%

MRF – 24%

CEAT – 14%

JK Tyres – 17%

Apollo Tyres – 22%

COMPANY PROFILE

Company Name : Apollo Tyre Ltd.

Business : Manufacturing and marketing Automobiles tyres, tubes & flaps

Chairman and MD : Mr.Onkar.S.Kanwar

Registered office : Cochin, Kerala

Head Office :New Delhi.

Network Manufacturing

Location : Perambra – Kerala.

Limda – Gujarat.

Pune – Maharashtra.

Kalamassery – Kerala.

In corporation : 1972

Distribution network : Sales and services through more than 100 office.

Employees : 5257

Market share : 73 rs

Location of the 1st factory : Cochin, Kerala.

Year of establishment : 1975

Installed capacity : 86 Metric tones.

Land Area : 117908 sq meters.

Plant area : 38,595 sq meters.

PRODUCT MANUFACTURED AT KALAMESSERY UNIT

Apollo offers a smart choice fot its consumers capturing the essence of luxury style utility

and safety product for varying consumer needs. Available for its consumer needs is a wide range

of smart choice tyre, alloy wheels and rethreading material which combine performance, safety

and design, fortunes to meet varying vehicle and customer requirements.

Truck and Bus tyres

Light truck tyres

Farm tyres.

Retreading materials

APOLLO TYRES LTD, KALAMASSERY (ABOUT PREMIER UNIT)

Location : Kalamassey, Cochin.

Capacity( production) : 86 tone / day

Year of establishment : 1962

Land Area :117908 sq.m

Plant Area : 38595 sq. m

Power requirement : 6000 kw / day

Installed capacity : 60 MT

EMPLOYEE STRENGTH

Management staff

General staff

Workmen

Trainees

: 140

: 108

: 797

: 259

Total : 1304

SHIFT SYSTEM

General – 9am to 5pm

A shift – 7am to 3pm.

B shift – 3pm to 11pm.

C shift – 11pm to 7am

Saturday – 9am to 1pm

TRADE UNIONS

Premier Tyres Workers Union – INTUC

It has strength of 400. Even though they don’t directly claim any party connection. But it is

inclined to Congress ideals.

Premier Tyres Employee Union – CITU

It has strength of about 250. They are inclined to Marxist ideals.

Premier Tyers workers association – Independent

It has strength 250. They are an independent trade union.

CODE OF CONDUCT

To maintain high standards of transparency business conduct and ethics.

To act as a different unethical doings and to promote ethical values.

It is the manifestation of the company’s commitment to successful operation of the

company’s business in the best interest of the shareholders, creditors, employers and

other business associates.

The code specifies the following with respect to conducting the business.

Honesty and integrity

Financial reporting and records.

Conflict of interest

Compliance with laws and regulations.

Company meeting.

Compliance with laws and regulations.

Company meeting.

Confidentially of information.

Internal control systems

Corporate governance.

Employee relations.

Respect for the individual.

Health, safety and environment.

Quality of product and services.

Share holder’s value.

MAJOR CUSTOMERS

Some of the customer of Apollo Tyres Ltd are :-

Ashok Layland ( Hinduja Group )

Escort.

Punjab Tractors Ltd.

Eicher.

Mahindra.

JAFE.

AMW (The Global Truck)

TATA.

FUTURE FOCUS

A formidable distribution network, strong brand equity and the ever increasing demand for its

products have encourage Apollo Tyres Ltd to plan a new manufacturing unit with 100 tons per day

capacity for manufacturing gross ply radial tyres in involving a capacity outlay of Rs 450 crores.

The new facility would focus on creation of capture of manufacturing truck and has radial tyres to

meet the merging demand for radial tyres in the segments.

PRODUCT SEGMENT

Truck : 46%

Light truck : 8%

PCR : 33%

Agriculture : 10%

Others : 3%

QUALITY PLEDGE

“We the people of ATL will create an enterprise committed to quality. It’s our policy to

design manufacture and service our products to provide the level of quality and value that needs

every customer need”

STRATEGIC GOALS

At Apollo Tyres Ltd they fully realize their strategies and organizational goals, driven by

their core values are formulated keeping this in mind. Though thick and thin they continue to stay

focused on their primary objective – “ to maximize share holder’s wealth”. This ability to stay

focused is what enables them to meet their challenges, day to day out and propels forward to

become the best in the Indian tyre Industry and global arena. Apollo tyres aims to achieve a

turnover of 1 $ billion. Their corporate objectives in support of this area.

Employee satisfied

Customer delight.

Revenue growth.

Operation margin improvements.

SEGMENTS AND BRANDS

Truck

BRANDS

APOLLO Kaizen

Load star super Hercules

Load star super

Load star super gold

XT 7

XT 7 Haulug

XT 7 Gold

XT 7 – 9

XT – 9 Gold

Champion

Champion DXL

Champion Gold

Amar

Amar Gold

Amar

Amar Delux

Amar Gold

Amar AT – Rib

50L

36L

Commands

KDT 27 L

77 R

99 R Plus

Light truck

Load star super

Amar Deluxe

Amar Gold

XT – 9

XT – 9 Gold

Duramile

Milestar

Champion

Passenger Car

Car Radials

Tube Type – Amaze XL

Tubeless Radial – Quantum

4 X 4 Radials

Hawks

Amazer XL

Storm

Passenger Car

Alloy Wheels

Haste

Torque

Nivarana

Frast

Quest

Inspire

Stay

Multispoke

Sphere

Cinco

Tubeless Radials

Acelere

Hawks

Amazer XL

Conventional Tyres (Bias Tyres)

Car

Armour’

Panthur

Jeep

Gripper

Maha Troope

Farm

Pure Cultivation Segment

Sar panch

Krishak super

Pure Hauluge segment

Powerhaul

Mixed Application Bias

Krishak Premium

Mixed Application Radial Segment

Farm King

Gripper

Maha Tropper

PRODUCT RANGE

Since the tyre is the only component of vehicle, which makes contact with the road is an important

part of the vehicle. The quality of the rubber as well as the ratio of carbon used. The basic function

of a tyre is the transaction of a force generated by the engine stopping the vehicle as and when

needed and guiding the vehicle and carrying load. Tyre must have enough strength to carry load, to

face the irregularities of road and to provide the user as a noise free and vibration free ride. It must

have smooth running condition that means low resistance in rolling and good durability and grip

on the road and must meet good safety measures.

Tyre is a continuous round made of good rubber which covers the rim of a wheel. The tyre

may be solid. Usually tyre is inflated by air filled tubes. The tyre carries so lies its weight 85% of

which is carried by air filled in the tube and 15% of the weight is carried by the tyre elements. On

the outside is the trend rubber having good covering which enable the tyre to have good grip on the

road. On the inside is fabric plies which give shape and strength to the tyre. In tube tyres a thin

rubber tube is used beneath the plies. Tubeless tyres have a thin layer of soft rubber lining the

plies. The right base of tyre is the bead consisting of high tensile steel wire encased in rubber. The

thick layer of tread rubber is compounded to withstand road wear and traction. The side wall

rubber which doesn’t touch the road is not so thick and is generally made of an abrasion resistant

to provide maximum protection to the structural plies. Dozens of different chemicals are used in

preparing the rubber for using in tyre making process. Sulphur is basic chemical agent in

vulcanizations. Zine Oxide was used in early compounding to tougher the rubber is still used.

Carbon black came to use for the same purpose. The rubberized fabric (nylon) provides the rubber

stability and resistant to business, faligue and heat. Without plies tyres would be little more than

ballon. Fabric takes about 15% weight of truck tyre. The fabric used first was cotton then rayon

and now nylon is used.

DOMESTIC PRODUCT RANGE

Truck : AMAR, AMAR EXPRESS, AMAR PREMIUM HERCULES, XI – 7, LOAD

STAR

Tractors : KRISHAK, KRISHAK SUPER POWER HAUL SAR PANCH

LCV : AMAR ANCHOR , RIDER, MILESTAR, LOAD STAR

Jeep : HUNTER, TROOPER

Passenger : ARMOUR.

Radial : STORM

EXPORT PRODUCT RANGE

Truck : AMAR SUPREME, CARGO MILLER.

Gaint Truck : CARGO PLUS XR, HAULUG

LEV : CARGO RIB, AMAR

Low Platform: CARGO MILLER

PLANT LAYOUT

RAW MATERIAL STORAGE

PLANT LOCATION AND PRODUCT MANUFACTURE

Perambra, Trissur, Kerala.

Year of operation 1977

Initial capacity 40 tons per day.

Current capacity 245 tons per day.

MIXING CALENDERING

BAND

BUILDING

TYRE

BUILDING

TYRE CURING

FINAL FINISH

EXTRUSION BIAS CUTTING

CALENDRING

BEAD PREP

WARE HOUSE

Employment 2267

Product manufactured: Truck bias, LCV bias, passenger bias, animal driven vehicle, farm

rear tractor radial.

Limda, Baroda, Gujarat.

Year of operation 1991.

Initial capacity 70 tons per day.

Current capacity 300 tons per day

Product manufactured: Passenger car radial and bias, LCV radial and bias, truck bias, farm

radial and bias, rear tractor, front tractor, animal driven vehicle tyres.

Kalamassery, Cochin, Kerala.

Year of operation 1962(acquired in 1995).

Initial capacity 30 tons per day.

Current capacity 80 tons per day.

Employment 1542.

Product manufactured: Truck bias, LCV bias, passenger car bias, farm rear front tractor,

animal driven vehicles.

Ranjangoan, Pune, Maharashtra.

Year of operation 1996.

Initial capacity 29 tons per day.

Current capacity 50 tons per day.

Product manufactured: Passenger car radials and bias, LCV radials and bias, truck bias, farm

bias, rear tractor, front tractor and animal driven vehicle.

TURNOVER OF APOLLO TYRES LTD IN CONSECUTIVE YEARS

YEAR TURNOVER (in crores)

2004 – 2005 2656.81

2005 – 2006 3002

2006 – 2007 3234.25

2007 – 2008 3576.31

2008 – 2009 3929.81

2009 – 2010 4367.25

APOLLO KEY DIFFERENCIATION TO OTHER FIRMS

Superior product quality

Strong brand equity.

Committed marketing team.

High consumer loyalty

Product segmentation in truck tyres.

Benched market planning efficiency parameters.

Power consumption

Quick response to market needs.

Least scrap generation.

STATE SCENARIO

Apollo had secured fifth place in the state of Kerala MRF has secured the first position with

30% of the market shares under its control this is followed by JK with 24% of the Kerala state

shares CEAT, Good Year follow JK with 17% and 12% respectively. Apollo holds the fifth

position with 10% of the market shares in Kerala.

INDUSTRIAL RELATIONS

The company has a standing order. It has a well defined grievance procedure for handling

grievance at the shop floor level.

Methods

If a workman has any grievance arising out of his employment to discuss he must

place the same before his supervisor as soon as possible. If no satisfactory answer is received or no

reply within 48 hours of presentation of the complaint is received, he must institute the grievance

procedure as follows.

Present a written statement to the department head through the proper channel. The

department head shall investigate the matter and give a reply in writing within 3 days.

If the worker is not satisfied with the decision of the head of the department or fails to

receive an answer within the stipulated time, he may submit his grievance to the chief

executive.

The chief executive will arrange for an investigation by the officer of personal office.

After receiving his report the chief officer will give his reply as far as possible within 7

days from the time the case is presented to him and the chief executive shall consider his

decision unless the above procedure has been carried out. No grievance that has been

presented within a week of its occurrence will be considered

Matters for collective bargaining that affect group of individuals will be replied or

grievance redressed and intimated to the union by the personnel department either verbally or

in writing depending on the cases. Register for recording grievance redressed of employees by

respective department. Files containing representation should be recorded and maintained and

the reply given should be recorded and maintained by the personnel department.

Company’s Philosophy on corporate governance

At ATL, corporate governance is all about the processes, which

involve direction and control of affairs of the company in a fashion that ensures optimum returns

for the stakeholders. Corporate governance is a broad framework. It is a combination of voluntary

practices and compliance with laws and regulations leading to effective control and management

of the organisation. Company is sincerely following the philosophy of good corporate governance

by creating and holding strong business fundamentals and delivering high performance through

relentless focus on the followings

Transparency by classifying and explaining the company’s policies and actions to those

towards whom it has responsibilities, ie maximum possible disclosures without hampering

the company’s and shareholder’s interests.

Accountability whereby even though the management has the executive freedom to drive

the enterprise towards growth, it chooses to use this freedom within the framework of

effective accountability and full responsibility.

Professionalization ensures that the management teams at all levels are qualified for their

positions, have a clear understanding of their roles and are capable of exercising their own

judgement, keeping in view company’s interest, without being subject to undue influence

from outsiders

Trusteeship brings into focus the fiduciary role of the management to align and direct the

actions of the organisation towards creating wealth and shareholder value.

Corporate social responsibility ensures the promotion of ethical values and setting up

exemplary standards of ethical behaviour in the conduct towards the business partners,

colleagues, shareholders and general public ie, abiding by the laws showing mutual respect

and acting with honesty and responsibility. Corporate social responsibility ensures that the

company contributes to societies overall welfare by undertaking not for profit activities

which could benefit all or any of its stakeholders in society.

Safeguarding integrity ensures independent verification and truth full presentation of the

company’s financial position. For this purpose the company has also constituted audit

committee which pays particular attention to the financial management process.

Continues focus on training and development of employees and workers to achieve the

overall corporate objectives

Company is open, accessible and consistent with communication and shares long term

perspective and firmly beliefs that good corporate governance practices underscore its drive

towards competitive strength and sustained performance. Thus, basic corporate governance

norms has been institutionalised as an enabling and facilitating business process at the board,

management and operation levels.

ORGANIZATION STRUCTURE

BOARD OF DIRECTOR

CHAIRMAN CUM M.D

CHIEF INDIAN OPERATIONS

UNIT HEAD KALAMASSERY

HEAD COMMERCIAL

Divisional Head Technician

Divisional Head production

Group Manager engineer

Group Manager H.R

MANAGER COMMERCIAL

GROUP MANAGER (PURCHASE)

Executive (2)

MANAGER A.M(Engineer A.M. (Area Area Area Manager Area Manager Executive

HUMAN RESOURCE DEPARTMENT

UNIT HEAD KALAMASSERY

GROUP MANAGER OF

HR AND ADMIN

ASSOCIATE MANAGER (SECURITY)

EXECUTIVE (WELFARE AND PERSONNEL)

EXECUTIVE

(HR & TRAINING)

MANAGER A.M(Engineer A.M. (Area Area Area Manager Area Manager Executive

Human Resource 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 the

department.

Group Manager leads the HR department of ATL, HR Manager Deals with the working life of the

worker from the line of his entry into the organization until he leaves. It is divided into 3 sections

namely:

Industrial Relations, Security and Administration

Heads of each Section are in direct contact with the department head. Among the 3 sections

industrial section is the biggest having 4 sub sections looking into the personal and industrial

relations, Employee arrival and departure time, Health and Safety, Group Manager leads HR

department of Apollo Tyres Ltd.

Key Functions

To design and implement procedures, policies and systems those are transparent and help

in achieving company goals.

Industrial Relations.

To boost productivity and improve quality through internal customers.

Developing people and team.

Managing Change.

Integrating people into the company’s vision, culture and philosophy.

Manpower planning, recruitment, employee orientation.

Induction, Confirmation, campus recruitment and internal recruitment.

Travel and Transfer.

Compensation policies, attendance and leave administration, payroll advice , performance

appraisal, training and development , benefit administration, disciplinary action and safety.

HR Philosophy of Apollo Tyres

Aims to play an active role in enabling the success and growth of the organisation.

Continues improvement in the quality of people and then approach towards customer

service.

Providing newer and more effective methods of managing and leading.

HR oriented growth strategies guide towards top level decisions.

Strives to maintain a balance between qualitative and quantitative results.

Creation of an organisation wide involvement with the concept of HR.

Commitment of the top level management which is the backbone of the success of all new

HR initiatives.

Focus Areas of HR Department

1. Manpower Planning

2. Recruitment

3. Selection

4. Training and Development

5. Performance Appraisal

6. Industrial Relations

7. Welfare

8. Time Office

9. Security and Safety

10. Other Welfare Activities

Man power planning Process

The manpower planning process is dually linked to the long term business plans of the

organisation. The manpower planning exercise is conducted annually to assess the manpower

requirements of the organisation. At the beginning of each calendar year, corporate HR interacts

with each department in each division to collect their manpower requirements in conjunction with

the annual projected business plan.

The following factors form the basis for the manpower planning exercise

Product Mix

Optimum equipment capacities

Existing Manpower

Envisaged Organisation structure

Comparison of actual versus expected productivity ( measured in terms of kg /man- hour)

Inter unit comparison for common functions

Keeping in mind these factors, each department/ functions is expected to make an estimation of the

human resource requirement phase wise at each location , along with the profile of the people

needed and sources from where they can be obtained. The manpower planning covers all levels

such as workman, staff, officers and managers. The total manpower requirement is discussed with

the President/VC and MD. After the formal sanction has been given corporate HR incorporates the

manpower requirements into its annual requirement schedule. Attempts are made to look into the

possibilities of relocation and redeployment. For filling up the manpower plan has been frozen, the

norm is to ensure that no deviations are there in terms of requisition for additional vacancies at a

later stage during the year.

Recruitment Process

A well designed and pre-planning recruitment policy, based on corporate goals, study of

environment and corporate needs is essential for implementing the organization mission and

objectives.

The recruitment policy assets the objectives of the requirement process and provide a framework

of implementation of the recruitment programmes in the form of procedures.

At Apollo, the recruitment policy in its broadest sense has the following rules.

To find and employ the best qualified person for the job

To retain the best and the most promising of those hired

To offer challenging opportunities for life time working careers

To provide programmes and facilities for personal growth on the job

Recruitment is carried out in accordance with the annual manpower plan. Broadly requirement

activities are done at either entry level or lateral entry to carter to.

Replacement vacancies ( occurring due to resignation, retirement or transfer)

Additional vacancies ( created due to company’s expansion/ diversification)

Selection

The job profile is communicated to the consultants and bio-data of candidates are invited. The

screening of bio-data is completed first by the concerned HR department and then by the

concerned functional head. An application blank is filled up by the candidate to facilitate the

interview process. The preliminary interview is conducted by the HR department. The final

interview is conducted by a panel consisting of the concerned Functional Head and in case of key

position also by the President/VC and MD. Up to the level of assistant manager the concerned Unit

Head has the responsibility for recruitment and selection. However from the level of the Deputy

Manager & above, corporate HR is involved and for the DGM & above President and MD is

involved in the process.

Performance Appraisal

Objectives

The performance appraisal system has the following objectives

Assessing past performance

Providing Rewards for performance

Goal setting for the future

Assessing Training Needs

Assessing potential for growth

Periodicity

Appraisal are to be done for the concerned employees on an annual basis, ie, for the calendar year

from January to December. However the result of the review will be effective from 1st April. The

appraisal for the trainees and probationer are to be done according to their cycle of training or

probationary period. The concerned HR development is to coordinate the entire exercise of

Performance appraisal review and rewards starting from the circulation of appraisal forms to the

issuing of letters as per the schedule mentioned above.

Circulation of forms to all user departments by Mid December

Collection of forms from all user departments by Mid February

Summarizing of data for review committee by beginning of March

Review and issue of letters by end of March

HR department is to provide necessary inputs for comparative analysis so as to avoid major

disparities within and across departments. All employees are to be covered under the annual

appraisal; however, the trainees and probationers are eligible for appraisal only before their due

date of confirmation. Performance appraisal is to be done by the immediate supervisor to whom

the appraise is directly reporting and the review is to be done by the department head. In cases

where the functional and administrative reporting are separate both the appraises are to check

independently and arrive at a joint decision (if location factors are a constraint, then 2 separate

forms are to be given to both the appraises and information collected is to be summarized by the

HR department.

Appraisal Committee

The appraisal committee consists of the appraise, the reviews and the corporate HR. The overall

rating is to be reviewed by the appraisal committee to arrive at the final decision for the appraise .

Training and development

Objective

The training and development procedure of Apollo tyres Ltd has the following broad objectives

To improve the identified functional skill areas of personnel for more effective contribution

to the organization

To provide platform for personal growth and exploration leading to overall organizational

health and quality of life

To improve human resource in consonance with broader corporate horizon and long range

vision of the organization

Scope

The corporate training procedure is applicable to all the personnel on the head office rolls,

plants/units and marketing division has procedure or formats to meet their specific need in line

with corporate procedure. The procedure is laid in conformity to ISO requirements.

Responsibility

The head of the corporate human resource is responsible for accessing the implementation of the

training methodology. Respective divisional HR is responsible for implementing of the training

procedure for the employer under their preview.

Methodology

Assessment of Training Needs

The training needs are assessed at the beginning of each financial year using developmental action

plan from the HR department discusses the summarized training need with each

department/functions separately. Inputs during these interactions are provided by a team of two or

three senior members of the department, including the head of the department.

Annual Training Calendar

The HR department collates the overall training needs based on which an annual training calendar

is formulated. All the programs organised are in conjunction with the training calendar. The

calendar is reviewed on a quarterly basis to accommodate availability of faculty etc.

Training Record

There are 2 main types of training records maintained by the respective HR department

Training cards and Training Records

Training Evaluation

Every training program is evaluated by the participant using a training evaluation form in terms of

1. Reaction

2. Learning

3. Actions

4. Results

Welfare Measures

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

cultural, sport, social and other welfare activities among the members and to foster among them a

spirit of mutual friendship, cooperation and understanding. The organization provides good

welfare service to its employees. The company runs a subsidized canteen on a contract basis. Rest

rooms with lockers and washing facilities, art and sports club, library etc are other facilities

provided. Transportation facilities are also provided to all employees. Company buses will take the

employees from different destination for which they have to pay a nominal amount. All the

employees drawing a salary below 6000 are covered under ESI and those who are exempted to ESI

are covered under group accident policy and MEDICLAIM policy. The welfare department also

includes insurance schemes, policies managing the welfare fund activities.

Safety

Safety section facilitates safe working conditions to all the employees. The organization follows all

the provisions under the factories act 1948. All workers are bound to observe safety precautions as

directed and notified from line to line and use safety equipments or clothing as may be required by

the management. All accidents should be reported at once by the workmen concerned to his

immediate supervisor and in his absence to department head. Workmen should engage themselves

only to the operation at the machine to which they have been appointed. Fire extinguishers are

placed at reachable points and the employees are trained to use them.

Time Office

The functions of the time office are as follows

1. Maintain attendance record of the workers

2. Calculation of incentives

3. Calculation of man-day, absenteeism and maintain leave records

4. Security executives

5. Maintain security of properties, personnel and information

6. Looks into the arrival and department of employees, punching, control of shifts, allotment

of gate passes and movement pass of workers, visitor pass etc.

Personnel

The main functions are:

1. Matters connected with Recruitment, career promotions, transfers and positing, retirement

and reservation guidelines concerning executives, staff and workmen

2. Design and implementation of HR policies

3. Matters connected with annual performance, assessment report of all employees and all

development activities

4. Matters related to the appointment of employees, induction of apprenties , appointment of

trainees under company scheme etc

5. Spare part Management

6. Power Management

7. Maintenance of machine in optimum working conditions

8. Increasing production by decreasing downtime of machines

COMMERCIAL DEPARTMENT

UNIT HEAD

DIVISIONAL HEAD

GROUP MANAGER

GROUP MANAGER

RMS FGS EXCISEACCOUNTS, FINANCE, COSTING

PURCHASE ENGINEERING STORES

EXECUTIVE

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE AM

COMMERCIAL DEPARTMENT

Purchase Department

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

right quantity. This department is concerned with the purchase of both indigenous and imported

materials. It covers procurement of indigenous engineering spaces, general engineering and

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

under him there are a number of officers and staff. The department is provided with the latest

communication facilities.

The main items of purchase are:

1. Engineering spaces

2. Consumable

3. Diesel

4. Chemicals

5. Lubricants

6. Some Raw materials

MANAGER

EXECUTIVE AM AM AM EXECUTIVE EXECUTIVE

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

material is purchased after considering what the market requires for the month. Under plant

purchase, purchase may be of stock items or non stock items. Stock items are purchased for regular

use. They are having material codes. They are purchased after considering the recording level,

reorder quantity, lead time etc. For non stock items there is no regular purchase. Different

departments have to purchase requisitions, the items purchased are engineering item, lubricants,

local raw material, Import of spares etc.

Vendor Selection

This includes a list of steps involved in selecting the right vendor for stock items identified as

critical by the department to enable a smooth functioning of the plant. Vendors are generally

identified as

1. Manufacturers

2. Dealers

3. Firms offering various services

Manufacturers are divided into two

1. OEM ( Original Equipment Manufacturers)

The OEM shall be identified as a vendor for the supply of equipment, spares, components etc

2. OCM ( Original Component Manufactures)

For all spares, components and consumables attempts are made to identify the manufacturers and

source the items directly from them so as to get quality products or services at optimum cost.

Information available on supplier manuals, catalogue, details available on the name plates of

machines etc shall be used for the purpose.

Approval of Vendors

All OEM vendors who have supplied the machinery equipments and instruments are approved

vendors for sourcing the respective components and spares. All original component manufacturers

are treated as approved vendors. Further consideration for approval includes.

Vendors supplying goods satisfactorily for last 5 years

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

For the order of finished goods specified brands are approved

Purchasing Reports

1. Purchase order Record: PO’s of all materials bought

2. Vendor Record : List of all vendors and their complete mailing addresses

3. Blue print and specification record : Many items are purchased by blue print specification

are kept in separate files with index showing their locations and where the copies have been

sent. Therefore for repeat order to old suppliers it is not necessary to send new copies of the

specification

4. Contract file : Certain goods may be bought under a term contract if so, the purchasing

department must maintain a record of such contract

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 in VED

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

initiated whenever reorder level is reached. A buffer stock is always maintained in the store.

Another system followed in engineering stores is VMI-Vendor Maintain Inventory. In this the

vendors supply the raw materials in large quantities and payment is made only for consumed

items.

Engineering Materials

At present, total number of item codes in engineering stores are 38500 approximately. Out of this

23500 items are spares and 15000 are consumables.

1. Consumable ( General stores items)

Consumables are standard engineering items. It is decided to identify common codification scheme

for all consumable items. All the items shall be brought under this codification scheme.

2. Spares

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

It aims to:

1. Identify common equipments by make and model

2. Assign uniform code to equipment make and model wise, which is common across plants

3. Assign respective plant spaces with code of equipment

Generally item codes for consumables will be common across all plants and item codes for spares

will be plant specific with respect to common equipment codes. However material classification in

SAP will be used to trace the spares to common machines. Material code modification will follow

the external numbering.

Raw Material Stores (RMS)

Process: Involves Receipt, Handling and storage, packaging, forwarding and delivery of material

to internal and external customers with proper documentation to meet their requirements.

Purpose: To supply right material in right time to produce right quality product without any

interruption.

Scope: Involves receipt, handling, storage and issue of raw materials to the customers

Raw Material Handling Process

Activity Description

1. Upon receipt of 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, supplier name

and truck number will be carried out and transferred to the pre identified location

3. Upon receipt of the raw material, GR will be prepared

4. Based on the GR, Quality assurance will collect the samples as per the pre determined

frequency and ok the material if the results are meeting the requirements by releasing the

GR.

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

will be accounted in the inventory

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

request received from the customer as if applicable

Various Raw Materials used in the manufacture of tyres are as follows

1. Polymers- Natural rubbers, synthetic rubber(SBR, PBD,BUTYL etc)

2. Fillers, Carbon Black, reinforcing clays

3. Process oil

4. Curing agents/Sulphur

5. Accelerators /Activators

6. Antioxidants/antiozonents

7. Pepticers for natural rubber mastication

8. Fabrics: nylon cord, i-ayon cord

9. Bead wire spools

10. Solvents for cements and solutions. Miscellaneous items like paints, colours crayon, scrap

flakes etc

Receipt of Raw Materials

Verification of Documents at security gate

The security inspector at main gate will verify all documents pertaining to the consignments

brought to the factory before allowing entry into factory premises and note the following details

Serial number, supplier name, description of items, challan quantity, challan number and

date or LR number and date, truck registration number, date and time of arrival, date and time of

departure.

Weighment (By the computerized weigh bridge)

Security will inform raw material stores about the arrival of the vehicles at the gate. The security

guard and a representative from the raw materials stores will record weighment of the truck jointly.

The weighment slip will indicate the sl. no, time and date of receipt, suppliers name, gross weight

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

weighing balance the vehicles will be directed to the respective unloading bay. In ATL weighment

will be done in a weigh bridge closer to the factory under the supervision of security and RMS

personnel after ensuring that the weigh bridge possesses a valid certificate from weight and

measure department. Both security and RMS personnel will sign on the computerized weighment

slip. One copy of the weighment slip will be filed in RMS along with concerned delivery Chelan

and the second copy will be returned by security department.

Verification of documents at RMS

The receipt in charge will verify the documents to ascertain the number of packages, description of

materials code and weight of the material. If any discrepancy is found the same will be orally

reported to the officer concerned before unloading. He in turn will take decisions suitably. The

dispatch documents include delivery Chelan /Invoice, sales tax papers, packing list and duplicate

copy of transporter of invoice for availing MODUAT credit. In case of non-receipt of any of the

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

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.

Handling, Storage and preservation

All the incoming materials except the materials coming in tankers will be unloaded manually or

with the help of fork lift 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 second floor, natural rubber/ SBR, wax etc stored in

the 1st floor, and fabric, bead wire ,latex etc in the ground floor, and the other places are directed

by the storage in charge. Materials received in tankers after checking the seal and dip reading and

sample test by QA will be directly pumped into the storage tank. 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 the disposal, while small quantities will be removed

and stored in the rejection area, duly displayed with the rejection tag.

Finished Goods Store

Receipt of Finished Goods

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 counter signed

by the staff of FGS/TTF. After verification, finished goods transfer note will be serially numbered

and have the following details: Material code, Description and 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 from Production and FGS/TTF will separately verify the quantity, size, ply rating of the

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

Removal of finished goods

The final goods required for dispatch are kept at the transferring area, after preparing the

transferring notes will be removed to the loading bay and balance will be removed to stores for

storage, after completing packing for required item.

Handling and Storage

Method- Applicable for Non-OE

Finished goods store is fully covered and protected from sunlight and rainwater. The floor is

cleaned to remove dust. Proper passage is left for access for periodical inventory. All the tyres to

be stored are rolled from transferring area to stores and stored size wise. Each stock will be

maximum of 10 height for truck tyres and 12 for low truck/ passenger tyres. All tubes are packed

in bags and brought to the storage area directly by the production department. Flaps are bundled in

10 and transferred using trolleys. All seconds tyres stored in FGS are identified using a white band

& blem tyres wing a red band.

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

despatch. After preparing the stock statement the finished goods transfer not in handed over to

factory excise wing for recording and filling.

Applicable for OE

Truck OE tyres if not dispatched within 24 hours should be stocked in the warehouse. Bottom most

tyres will be stocked with tube valve facing upwards and for others with tube valve facing

downwards, same practice to be followed while loading the tyres in truck also.

FIFO system is to be followed strictly to avoid over aging. Truck inspection should be carried out

in order to avoid false pickup

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

sheds/ tarpaulin sheds are resorted for storing of tyres. At such times starting norms may not be

adhered to and tyres may be kept in places other than the designed area.

Stock levels of FGS are controlled by supply chain management (SCM).Inventory management is

done at head office level and FGS has the function of receiving, storing and dispatching as per

SCM requirement and communicating daily stock levels.

Distribution of Finished goods

Marketing coordination given despatch schedule on day to day basis . The destination to which

trucks are required is arranged by marketing coordinator one day in advance. Load slips are

prepared as per the plan made. Store man will keep the loads as per the load slip at the loading bay,

staff of FGS , TTF, security and representative of transporter will check the load, kept separately

for size, ply and quantity. After checking the load slip will be signed by the staff and given for

preparing transport document and goods will be loaded on to the lorries.

Assembling Tyres, Tubes and Flaps (TTF)

Upon receipt of goods for TTF, FGS shall prepare a brought out goods receipt report ( BGRR) and

it shall be forwarded to the head of QA department. QA department will organize for sampling and

inspection of the goods received. Upon acceptance / rejection of the consignment QA department

will return to the BGRR with status of inspection marked on the same. A consignment of goods

will be used for packing after obtaining approval for use from QA department. In case a

consignment is rejected the same will be tagged as “ Rejected” by QA department.

ACCOUNTS DEPARTMENT

The corporate office situated at Gurgaon does most of the accounting

and taxation jobs of ATL. The company has an effective budgetary control system. The budgets

are renewed and deviations are analyzed and necessary corrective action is taken. Important

variations relating to raw materials, furnace oil, electricity etc are analysed and furnished to

various level of management for corrective actions. The key budget factor test the availability of

power is estimated and rough pictures of anticipated power shortage are drawn up. The possible

production and the capacity required are taken into account and the source of power is also found

CFO

GROUP HEAD (A/C’S AND FINANCE)

HEAD (A/C’S AND FINANACE

MANAGER A/C’S AND FINANCE

ASSOCIATE MANAGER ACCOUNTS

ASSOCIATEMANAGER FINANCE

ASSOCIATE MANAGER COSTING

out. The main function of bill section is concerned with passing of bills which is done immediately

after checking into quotation, order and products received and the work achieved. Bills are passed

after seeing that the materials received are in conformity with the purchase order. The MIS

department is handled by the finance department in Apollo under the costing and budgetary control

section.

Financial section of the ATL, which is included in the commercial department is concerned with

the planning and controlling of the firms financial resources. The divisional heads controls the

functions. The duties include providing information to formulate accounting and costing policies.

Preparation of financial reports and the direction of internal auditing and budgeting. The company

has to maintain records includes quantitative details and situation of fixed assets.

In ATL the financial statement is prepared in accordance with the requirement of companies act

1956 and applicable accounting standards issued by the institute of chartered accounts in India.

The management of ATL accepts that the integrity and objectivity of their financial statements has

been made on a prudent and reasonable basis, in order that the financial statements reflects the

form of transactions, company’s state of affairs and profit of the year.

Payroll Section

It involves the handling of wages, salaries, keeping records of employees including information

about their basis allowances, maintaining their attendance etc for the convenience of employees.

Payments are dispersed through banks or ATM’s.

Costing

The process of costing is based on the financial accounts. The price of a single tyre is determined

by taking into consideration the actual cost in making tyres. The company follows the policy of

having only 0.5% or less as scrap. This helps minimizing cost.

Control

This involves monitoring of electricity charges, scraps and other avoidable expenses. There are

also steps which are taken to reduce man power security requirements. It maintains the minimum

inventory of 6-7 days, as this is required for ageing time of tyres. A total of 1.32 hours is required

to make a tyre, make it heat resistant, strong, load resistant etc.

Control Excise

This section deals with the duty that is being paid for the tyres reaching the market both nationally

and internationally. ATL has to pay 16 % excise duty for dutiable items for domestic purposes to

the central government. For exports no excise duty has to be paid. ATL gives about 2-3 crores of

excise duty inspite of all these measures.

QTECH DEPARTMENT

UNIT HEAD

DIVISIONAL HEAD (Q TECH)

PRODUCT INDUSTRIALISATION & PROCESS IMPROVEMENT

This department is a combination of Quality assurance as well as technical department

Technical Department

Technical department is a department which involves every aspects of tyre production

The major functions are:

Troubleshoot the problems arising in the manufacturing process

Development of compound fabric standard

Accessories drawing

Processing machine specification

LAB AND QUALITY SYSTEM PRODUCT TESTING

GM AM EXECUTIVE

Processing and curing of new design

Taking care of issues related to Process standards, Finished product standards and tyre

engineering standards

Review of adjustment reports

Inspection of all production activities if necessary

Testing of tyres

Ensuring the correct properties of products during various processes

To stop production if there is any unconformity found during analysis

To make appropriate changes in production process and specification if necessary

Initiate and implement corrective measures

Technical department is mainly divided in 2 sections:

Compounding department: This department holds all the specification concerned with

compounding and ensures all processes as per specification.

Tyre engineering department: This department holds all the specifications with building and

curing. This department can make any changes in the specification as required and is concerned

with conducting various tests on the final production

Quality Assurance department

QAD is concerned with assuring quality in every manufacturing process and

controlling the production process. Management representatives both at corporate and unit level

with the involvement of all heads of the department are responsible to develop implement and

maintain the quality system that are required to assure the decided quality of product and service.

QAD issued guidelines, departmental procedures and work instruction to units for ensuring

uniformities in quality system. Quality is the totality of characteristics of an entity that bears in 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 well planned and and

systematic activities implemented within the quality system and demonstrated as needed to provide

adequate confidence that an entity will fulfil requirements for quality.

Quality assurance involves two sections namely:

lab

process control and audit

Lab

This section mainly deals with the testing and release of raw materials and processed materials. All

raw materials which come to RMS are released for production only after lab approval. For that

samples of raw materials ( rubber, carbon ,chemicals ,fabrics etc) are given to lab. In lab these raw

material samples are tested. If the test results are within the required specifications above materials

is released for production. If the result is not meeting standards it is rejected.

In the similar manner processed material samples are also given to

lab for testing (eg: Mixed rubber compound, dipped fabric, calendared fabric etc). These materials

are released for further process only if its meeting the standards else its rejected.

Process, Control and Audit

In shifts all the production areas will be audited by quality assurance. QA will check whether the

processing is done within the required specification. If any abnormality is noticed necessary

corrections will be done and the defective processed materials will be held up.

Finished products (cured tyres) will also be checked by QA. If any defect is noticed on finished

tyre it will be held up. Only the tyres tested ok will be released to the warehouse.

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

condition of a tyre primarily used to detect carcass strength and heat generation. Tyres are also

fitted in different vehicles to study the effects of different types of roads, loads and climate

condition.

For original equipment ( OE) there is 100% inspection by quality assurance .The different methods

used for checking are dimension, pulley wheel and punches.

Various quality assurance tests are done to assure the quality of product, which are

1. Rheostat test

2. Specific gravity test

3. Compound Tensile test

4. Viscosity test

5. Cord per test

ENGINEERING DEPARTMENT

UNIT HEAD

GROUP MANAGER

ENGINEERING SERVICES

PROJECTS

GM GM MANAGER EXECUTIVE GM EXECUTIVE

The engineering department is the service department and provides its service to

various departments such as production, technical and quality assurance. The major functioning of

the engineering department is installation, maintenance and repair of machines. All machines are

checked regularly. The machine history is recorded so that the life of a particular machine can be

known and used respectively.

Maintenance is the key function of this department and is classified as

1. Preventive maintenance

2. Breakdown maintenance

Preventive maintenance means preventing the machines from any possible breakdown

and breakdown maintenance means repairing the faulty machines

Engineering department undertakes periodic checking of all machines. Shift engineers

study the problem in detail and the required repair work is done. The required spaces are available

from various engineering stores. The machine is then checked and production officers close the

notification.

The engineering department is divided into mechanical, electrical, utilities and calibration

Utilities division

The utility division is the source of steam, water and compressed air. The main functions of these

divisions include.

1. Determination of water

2. Boiler and utility

3. Chilled water for plant

4. Compressor house

Maintenance of Machine tools

A machine tool can continue to produce accurate work pieces within specified limits throughout its

working life. If the wear of the machines tool doesn’t exceed limits and parts which become faulty

due to wear or other damage are replaced or repaired timely. The improved maintenance would

reduce machine tool downtime and lead to higher productivity.

Various maintenance techniques

Preventive maintenance

Corrective maintenance

Reconditioning

Productive maintenance

Maintenance is the other key issue of this department. The central purpose of maintenance is to

ensure that machine and physical assets are maintained at the top state so that they are capable of

functioning or delivering what the organisation had originally planned with respect to quality,

quantity, cost and time liners.

TPM benefits

Zero breakdown

Zero defects

Zero Accidents

Zero pollution

7 Major losses in production

Equipment breakdown

Setup loss

Tool charge loss

Speed loss

Minor stoppage loss

Start up loss

Defect and Rework loss

7 steps in Autonomous maintenance

1. Initial cleaning

2. Counter measures against deterioration

3. Tentative standards for clarifying

4. Overall inspection

5. Autonomous Inspection

6. Standardization

7. Autonomous maintenance

Pillars of TPM

1. Autonomous maintenance

2. Planned maintenance

3. Quality maintenance

4. Individual improvements

5. Educational and trainings

6. Initial control

7. Safety, health and environment

8. Office TPM

PRODUCTION DEPARTMENT

DIVISIONAL HEAD (PRODUCTION)

MANAGER

ASSOCIATE MANAGER DIV1

SHIFT SUPERINDENT ASSOCIATE MANAGER DIV 2

ASSOCIATE MANAGER DIV 3

EXECUTIVE DIV1 EXECUTIVE (DIP UNIT)

EXECUTIVE DIV 2 (STOCK PREPARATION)

EXECUTIVE DIV2 (TYRE BUILDING)

EXECUTIVE DIV 3

Production department is concerned with allocation of raw materials to

various divisions and aligning the entire manufacturing process. The department takes care of all

day to day production activities. The average production in the company plant is 65 tonnes per

day. The function of the production department is to ensure smooth production in the plant. This

plant is engaged 24 hours continuously a day.

The production process of tyres is carried out collectively in 3 divisions in the unit they call as

division A,B and C.

Manufacturing Process

Raw material stores process

Compound Mixing Process

Cement Mixing process

Fabric dipping/ calendaring process

Extrusion Process Bead Preparation

Division A

1. Banbury

Tyre Building Process

Tyre curing Process

Final Finish Inspection Process

FGS Process

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 of mill

for further mixing to form the rubber compound which is specifically compounded for tyre

performance. Tyre meant for highway services and fast speed has different rubber formulations as

compared to tyres for mining services, agricultural services 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 characteristics of the Banbury to give a good mix of fillers and chemicals with

the rubber polymer. Normally all rubber compounds are mixed in two stages and natural

compounds in three stages, as natural rubber being tough requires mastication. The final stage in

the Banbury is a critical stage when the sulphur and other curing agents are added.

2. Cord dipping unit

Rayon and nylon cords requires treatment in order to make them suitable for adhesion of

rubber compounds .These cord fabrics are passed through and is heated under tension through

special ovens. 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.

3. Calendar

All fabric is coated with specific compound in the calendar. Cord fabric is coated on

both sides with rubber layer whereas square woven fabrics are normally frictioned 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. Calendars are of various types. 3 roll calendars 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

calendar in a similar process to get a coat on either side. The 4 roll calendar can coat on both sides

of the fabrics with the rubber layer simultaneously. After calendaring, fabrics are wound in cotton

liners in order to prevent sticking. Calendars are also used to produce rubber layers to diffuse

widths and gauge that are required in the process of tyre manufacturing.

4. Extruders

Extruders are distinguished by the diameter of their screws and are single or dual type

Single Extruder

Rubber compounds after being broken down and warmed upon mills, are fed into 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 dimension and contours, width, gauge and weights. These

strips are cooled in water sprayed conveyors and then cut out into specified lengths with the help

of skives (rotary cutting knife) in metal trays or wrapped in cotton liners . The word green denotes

uncured rubber ie non vulcanised.

Dual Extruder

2 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 compositions can be extruded. In dual extruder after top and base extruded it passes to the

cooling conveyors where it is cooled down by water spraying and then it is fed into skiver.

The machines that are used here are:

Universal bead winding (Pneumatic type ) and FSW( Mechanical type)

Division B

1. Bead winding section

The bead building section manufactures 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 square

woven fabrics with necessary fillers or rubber compounds. The function of beads in a tyre are to

anchor the tyre while mounting rim of vehicles. After the bead winding they get into apexing and

flipping. Apexing the coating of layer over the bead and flipping is the covering of rubber layer

over the bead. It is done after apexing.

2. Bias cutter

Machines used are vertical bias cutter and horizontal bias cutter.

Fabric after coating from the calendar is run through bias cutter, which cuts the fabric to , specified

width and angle. 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 cord varies from 35

inches to 45 inches from bead to bead. This is the basic difference between the radial and biased

angle tyres.

3. Tyre building Machine

All the necessary compounds like beads, plies (cord fabric), breakers, treads, side walls, chafer etc

are brought to the tyre building machine. Tyre building machine itself consists of a shaft which can

rotate at different tyres of sticker wheels. After building cord carcass on the drum , in the final

stage the green tread, side wall 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

Involves two types of curing namely Bagometric curing (bladder type) and sheer strip curing

Bagometric curing

The green tyre from the tyre building machine is prepared for vulcanization by the

application of lubricants on the inner and outer surface for better moulding. The bagometric curing

press which is the latest design (no separate air bags are required) consists of a thin synthetic cured

bladder positioned in the centre 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 is reached when the press

is closed.( is 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 deterioration in

the rubber compounds 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 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.

Shear Strip Curing

In the shear strip curing instead of bladder inflated airbags are used the bags are inserted

into the green tyres called tyre bagging. After this the green tyre with the bags are placed in the

process. As the process is at completely closed position the internal pressure increases which will

give green tyre the shape provided.

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 warehouse. Here tyres are inspected for the defects if any. Finally these

are sent to warehouse for storing.

Major losses during production

Breakdown of machinery

Loss of time for setting up of machine

Loss due to the difference of machine speed

Loss due to stoppage of production

Boilers

All the steam and hot water needed for curing and other processes are supplied by the boiler

PPC, IE AND SYSTEMS DEPARTMENT

Production Planning and control department

The production, planning and control department is responsible for fixing monthly production

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

developing subordinates and the preparation of raw material requirements based on monthly

production ticket.

GROUP MANAGER

ASSOCIATE MANAGER

EXECUTIVE

EXECUTIVEASSOCIATE MANAGER

EXECUTIVE ( IE )

EXECUTIVE

Major functions also involves

Conduct work studies, improvement studies in various equipments and fixing of norms

Capacity calculations in various equipments for time to time inquest to various changes

Design, implementation and follow up scheme in various zones

Planning and assessment of man power requirements in various departments periodically

Study plant layouts and material handling system and suggestions for improvements

Explore the possibilities of capacity expression and prepare the report

Visit other industries for getting information regarding new developments

Suggest various cost reduction programmes

Conduct improvement of methods and equipment design compatible to best ergonomic

standards

Evolve various standards to optimize inventory levels at various stages such as engineering

stores

Preparation of monthly production plans

Communication of organizational goals down the line

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

program of work and specifications

Follow up programs of work in all sections

Report relevant details and assist to maintain steady progress of work

Take physical inventories from the stores of finished goods and raw materials

Maintain records of inventories

Report shortage, rejection and delay in the operations and take corrective measures

Maintain good house keeping

Ensure that no material is leftover when size changes occur

Keep record of non moving material, unidentified material , scrap generated, report follow

up actions and to clean up materials

Preparation of raw material requirement based on monthly production ticket

INDUSTRIAL ENGINEERING DEPARTMENT (IED)

Objective

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.

Major Functions

1. Bench Marking

2. Key Result area identification

3. GAP analysis

4. Incentive planning

Other major functions involves

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 man power 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 issues like incentive schemes, productivity, expansion

and labour issues

Analysis of capital expenditure requests from various departments and make

recommendations to senior management committee

Prepare budgetary planning for capital and cash flow requirements

Prepare documents for long term settlements, bonus settlements etc and represent the

management in the meetings with the union/labour departments

Visit other industries for getting information regarding LTS methods, practices and other

developments

Conduct various training classes for workmen, supervisor, other officers and new recruits

Apply various industrial engineering techniques such as job evaluation, O&M

( Organization and Methods) studies, Kaizen, line balancing etc

Suggest various cost reduction programmes and implementation

Associate with professional bodies like productivity council, NITTIE and institute of

engineers etc

Conduct daily audit of manpower, productivity, lost time, scrap details, absenteeism,

overtime etc

Furnish various other management information reports to the top management

Evolve best practices and processes through global bench marking in the context of global

competitions and intense customer focus

Optimize inventory levels at various stages such as engineering stores, work in progress are

finished goods

Continues improvement of methods and equipments design compatible to the best

economic standards

SYSTEMS DEPARTMENT

The systems department is responsible for computerization of different departments of ATL.

Apollo uses Enterprise Resource planning (ERP) as an IT enabler across the company to develop

an integrated database. The ERP package implemented in ATL is SAP R/3, which stands for

systems, applications and products in data processing was implemented by February 2004. It is

developed by German software company SAP and implementation consultant was IBM

solutions.Different departments like Finance, HR, Purchases, Engineering Stores, Raw material

store, Finished goods stores, production department etc are integrated using SAP. All the

departments are connected with the help of LAN and the company is connected to the corporate

office at Delhi with the virtual private network (VPN). The data transfer capacity of VPN is 2

MBPS and is provided by HCL.

Some software’s used in ATL are developed in house. The antivirus server used in ATL

is trend micro, the security features which includes firewalls, routers etc have got British standard

(BS) 7799 certification.

Monitoring Function

Security problems in the SAP were solved using central virus scanning systems and firewall at the

Head office (Gurgaon, Haryana). HCL solve all the problems related to the network connection

Maintenance function

The systems department in the plant solves network problems as well as computer problems.

Regular backups were taken daily, weekly and monthly for providing reliability in the SAP

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

intranet inside the plant. Proper authentication was given to each department members using a user

ID and a password. The users change the passwords once in every 30 days.

Other major functions involves

Furnish various other management information reports to top management

Incentive and computation SAP

Integration of entire departmental activities through ERP and SAP system

MARKETTING DEPARTMENT

Sustained growth of ATL in the recent period of time is the result of planned and

focussed marketing initiatives. Apollo tyres Ltd have a fully fledged marketing setup all over the

country with head quarters situated in Delhi. The department deals with the 2000 exclusive

dealers. Besides dominance in the replacement market, the company make effort to have an

increased presence in the original equipment market. It is the first tyre company to have the

concept of exclusive showroom for truck called “Apollo Tyres world”. Apollo holds dealer meets

regularly. It has introduced the tyre super value program to collect feedback from the customer and

dealers. Apollo is a regular participant in automobile exhibition. There is no separate department

for marketing in kalamassery plant and in Perambra. ATL has 3 corporate offices in Kerala in

locations such as Kochi, Trivandrum and Calicut that does the marketing functions of the

company.

The major functions involve

Formation of effective advertising strategies for winning the market

Conducting seminar/ exhibition for the purpose of launching new products to the market

and also make people aware of their existing products.

Conducting retailers meet for maintaining cordial relationship between management and

distributors, dealers.

Conducting consumer’s survey for the purpose of collecting information from customers

for the future product development and evaluation of existing position of product in the

market entering to the new market with different products.

Formulations of sales strategies in order to achieve the target turn over.

Formulation of effective marketing strategies according to the market conditions

Orientation is given to dealer and distributor to make aware them about the quality of

products.

Product development is based on the feedback from customers and retailers.

Segmentation

ATL market segmentation is user-based segmentation. ATL segregate the market as

commercial and personal. Commercial constitutes light trucks, heavy trucks and jeeps, which

constitute 90 per cent of the entire tyre market of India. The rest constitutes the personal

transportation primarily cars driven for personal reasons. In fact, even taxis come under the

commercial segment.

Targeting

ATL mainly focus in truck segments (truck tyre market (replacement and OEMS)), light

truck commercial market and in the farm category, which are the near tractor tyres. Due to the

increased competitors and customer demands 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

products 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 fixed depending on the variation of the price of main raw materials and based

on the market situations.

Retailing

Retail sector of ATL’s product is through dealers. Launching of customer acquisition and

retention programmes has helped in imparting knowledge to the dealers and enhancing dealer

network. This resulted in increase goodwill and brand equity of ATL.

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. For car radials, they use a mix of media

depending on the target group. Other promotional activities includes printing of brochures,

sponsoring of events and running various awareness campaigns.

INDUSTRIAL RELATIONS

The company has a standing order. It has a well defined grievance procedure for handling

grievance at the shop floor level.

Methods

If a workman has any grievance arising out of his employment to discuss he must place the same

before his supervisor as soon as possible. If no satisfactory answer is received or no reply within

48 hours of presentation of the complaint is received, he must institute the grievance procedure as

follows.

Present a written statement to the department head through the proper channel. The

department head shall investigate the matter and give a reply in writing within 3 days.

If the worker is not satisfied with the decision of the head of the department or fails to

receive an answer within the stipulated time, he may submit his grievance to the chief

executive.

The chief executive will arrange for an investigation by the officer of personal office.

After receiving his report the chief officer will give his reply as far as possible within 7

days from the time the case is presented to him and the chief executive shall consider his

decision unless the above procedure has been carried out. No grievance that has been

presented within a week of its occurrence will be considered

Matters for collective bargaining that affect group of individuals will be replied or grievance

redressed and intimated to the union by the personnel department either verbally or in writing

depending on the cases. Register for recording grievance redressed of employees by respective

department. Files containing representation should be recorded and maintained and the reply given

should be recorded and maintained by the personnel department.

Trade Unions

There are mainly 3 recognized trade unions

Premier tyres workers union

Premier tyres employee union (CITU)

Premier Tyres workers association( Independent)

Company’s Philosophy on corporate governance

At ATL, corporate governance is all about the processes, which involve direction and

control of affairs of the company in a fashion that ensures optimum returns for the stakeholders.

Corporate governance is a broad framework. It is a combination of voluntary practices and

compliance with laws and regulations leading to effective control and management of the

organisation. Company is sincerely following the philosophy of good corporate governance by

creating and holding strong business fundamentals and delivering high performance through

relentless focus on the followings

Transparency by classifying and explaining the company’s policies and actions to those

towards whom it has responsibilities, ie maximum possible disclosures without hampering

the company’s and shareholder’s interests.

Accountability whereby even though the management has the executive freedom to drive

the enterprise towards growth, it chooses to use this freedom within the framework of

effective accountability and full responsibility.

Professionalization ensures that the management teams at all levels are qualified for their

positions, have a clear understanding of their roles and are capable of exercising their own

judgement, keeping in view company’s interest, without being subject to undue influence

from outsiders.

Trusteeship brings into focus the fiduciary role of the management to align and direct the

actions of the organisation towards creating wealth and shareholder value.

Corporate social responsibility ensures the promotion of ethical values and setting up

exemplary standards of ethical behaviour in the conduct towards the business partners,

colleagues, shareholders and general public ie, abiding by the laws showing mutual respect

and acting with honesty and responsibility. Corporate social responsibility ensures that the

company contributes to societies overall welfare by undertaking not for profit activities

which could benefit all or any of its stakeholders in society.

Safeguarding integrity ensures independent verification and truth full presentation of the

company’s financial position. For this purpose the company has also constituted audit

committee which pays particular attention to the financial management process.

Continues focus on training and development of employees and workers to achieve the

overall corporate objectives

Company is open, accessible and consistent with communication and shares long term

perspective and firmly beliefs that good corporate governance practices underscore its drive

towards competitive strength and sustained performance. Thus, basic corporate governance norms

has been institutionalised as an enabling and facilitating business process at the board,

management and operation levels.

SWOT ANALYSIS

Strengths

Apollo tyres diversified market base across 3 continents has enabled it to reduce its

dependence and thereby the inherent risks of banking on a single market, as compared to its

Indian competitors.

The presence of strong and established brands in the company’s portfolio in each of its

country operations, lends credence to its growth plans. The key brands are Apollo in India,

Dunlop in South Africa and Vredestein in Europe.

An extensive distribution network supporting Apollo tyres brands and products in all its 3

key operations.

Continued leadership positions in the commercial vehicle type segment in India, including

price leadership in the cross ply segment.

A leading position in the fast growing passenger car tyre segment in India reaching the # 1

position in production and # 2 in market share.

Strong player in the ultra high performance ( UHP) passenger car tyre segment in Europe

particularly in high margin winter tyres.

Dynamic and progressive leadership

Weaknesses

Absence in the 2 wheeler and 3 wheeler tyre segment in India, which is large and continues

to show good growth

Sub optimal production facilities in terms of economic size in South Africa.

Market dynamics and intense competition in some key markets do not allow passing on

cost pressures as and when reasonably required.

Opportunities

Apollo tyres enjoys an early mover advantage with a large production capacity in the

rapidly growing truck-bus radial segment in India, well ahead of key competitors.

Entry into truck- bus radial retreading segment in India, by further leveraging its leadership

position in the commercial segment- this enables the company to provide a complete

solution to its customers and thus enhance its brand equity.

Cultivating a sizable market for brand Apollo in Europe by capitalising on the existing

European distribution network. This further improves brand recognition and enhances

profitability.

Increased sales of brand vredestein tyres by providing competitive cost productions base

out of India or sourcing tyres from other players.

Entry into the off-highway tyre segment in India.

Introduction of truck-bus and off highway tyres in Europe.

Penetrating newer markets in Africa including tapping into the potential of the Dunlop

brand.

Entry into high potential markets like South America, Australia and Eastern Europe.

Threats

Potential growth slowdown in the Indian economy due to rising interest rates

Increased competition from global players like Michelin and Bridgestone as they enter the

truck- bus radial segment in India

De growth in the truck cross ply segment faster than anticipated.

Extreme raw material price volatility and cost pressures

Exposure to the south African market which continues to face both a country and currency

risk

Economy downturn in Europe leading to decline in demand.

FINDINGS AND SUGGESTIONS

FINDINGS

The company is always in the forefront of absorbing and adapting the latest in product and

manufacturing technology to maintain its leadership in the industry

Industrial relations with local unions are fairly good and there is better co ordination

between management and employees

Workers health and safety are given prime importance. Safety posters and slogans are

exhibited inside the plant and various safety awareness programs are also conducted

The knowledge and skill levels of the committed engineers and technologists are also being

continuously improved through various training programmes

The company works in close association with reputed universities and institutes within the

country and abroad. This coupled with the in house R&D has resulted in tangible

improvements in products and process

The company has strengthened its ERP deployment and created a very robust operations

centre for managing the entire IT operations. The company has also set up wide area

network comprising of approximately 140 locations across the country

Time management is excellent in the company

Trade unions play vital role as bargaining agents. The management is at times forced to

accept unreasonable demands made by the union

It is one of the hazardous industries because of the storage of naphtha, LPG etc

SUGGESTIONS

The good coordination that exists among the management and employees should be

maintained for the better performance of the company

Promotional activities should be strengthened. The company should invest more on

advertising

Optimum utilisation of the workforce should be done

Measures should be taken in order to reduce the absenteeism rate

New partnership can be started for reaching better horizons

More investments in current assets and its effective utilisation necessary for improving the

liquidity position of the company

Improve the production through the adoption of new and latest machines

Management should take measures for prompt payment to creditors and thereby increase

the credit worthiness of the company and improve the cash positions

CONCLUSION

Apollo Tyres Ltd is the 7th fastest growing tyre company in the world. A fair wage

system prevails in ATL. The company provides better working conditions for employees. Proper

training to workers and the efficiency of the workers must be increased to increase production. The

industrial relations with the local union are fairly good. The company is facing stiff competition in

the Indian and International market.

Apollo tyres ltd is the number one truck and farm type manufactures in India. Now the

company is running in profit and the production sometimes crosses the target. The company

considers consumer satisfaction essential for the survival and thus strives to reliable supplier of

quality products.

Absenteeism is the main problem which effects the continuity of work in any organization.

The company should take proper steps to reduce absenteeism rate. There are many factors which

affect the absenteeism rate of Apollo Tyres Ltd.

Despite of all challenges Apollo has done well in the past and with a booming economy and

a focussed and progressive leadership at the top. The growth of the tyre industry is dependent, or

economic growth infrastructure development and also growth in automobile industry which is

cyclical in nature

Every organization should make sure that their employees are satisfied and are happy while

working in the organization. They should provide excellent benefits to its employees so that they

are satisfied and contribute to the success of the organisation

BIBLIOGRAPHY

1. Apollo Tyres company manual

2. Apollo Tyres Annual Report

3. www.google.com

4. www.apollotyres.com