INDUSTRY AND COMPANY PROFILE

The Tyre Industry- A brief Introduction:

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

processing of rubber, vulcanization by Charles Goodyear. The growth of the industry, however received a

good boost by century end, when John Boyd Dunlop succeeded in making of vulcanizing rubber tyres

into inflatable pneumatic tyres. Since then, the tyre industry has continued to be a major segment of

rubber industry all over the world.

Indian tyre Industry Past and Present:

The Indian tyre industry is about 55 years old. It is to be noticed that, the tyre industry was covered under

essential commodities Act. The predominance of foreign multinationals prevailing in our country till

1960’s has been considerably reducing now due to development of technology. Firestone was the

company that started the selling of tyres first in our country. They were then, followed by Dunlop in 1926

and later by Goodyear in 1942. Dunlop set up the first MNC tyre industry at Saharjung, West Bengal, in

the year 1939. In 1936, Firestone setup its factory in Bombay.

At present there are more than 20 licensed companies and 25 factories, which include 11 large scale

sectors manufacturing the full range of tyres and tubes. The Indian tyre are having collaboration with

giant tyre companies of USA, UK, West Germany, France and Japan, etc.The tyre industry in India has a

range of tyres for trucks, busses, light trucks, cars, jeeps, trailers, short and long tillers, off road vehicles,

heavy and light earth moving equipments, defense vehicles, aircrafts and specially designed vehicles and

two-wheelers. The large tyre unit in India are, Apollo, Bombay tyre international, Ceat, Madras rubber

factory(MRF), Dunlop, Good year, JK tyre, Birla tyre, and Vikranth tyres, etc.

The company that manufactures tyres primarily for the two-wheeler segments are Srichakra, Falcon,

Metro tyres, Ceat, MRF, Stallion. Tubes are produced by the large and the medium sector, of which 80%

of the tubes are manufactured from natural rubber as well as imported butyl rubber. The inner rubber is

covered under packaged commodities act.

JK Organization:

J.K. Industries is a corporate entity that is emblematic of excellence, diversification and pioneering new

technologies. JK Organization ranks among the top private groups in India, J.K. Industries is committed

to self reliance and follows an ethic that views customer satisfaction as an index of achievement. Over the

years, the company has expanded and diversified its business portfolio. It has developed into a multi

product, multi-location corporate entity comprising of following business divisions.

History of JK Tyres:

JK Tyre was founded in 1977. It built its first plant at Jaykaygram near Udaipur in Rajasthan. This was

set up in technical collaboration with General Tire International Co, USA. Since then, the wheels of JK

Tyre have moved only forward. It now has four plants at Kankroli (near Udaipur), Banmore (near

Gwalior) and two at Mysore. To create its mark on the global highways, the company forged a technical

partnership with Continental AG of Germany, the fourth largest tyre maker in the world. JK Tyre took

over ailing Vikrant Tyres in 1997 and turned it around in ten months. The takeover brought the company

to the forefront of the bus and truck segment. These are the three plants located in Rajasthan, Madhya

Pradesh and Karnataka. The truck and bus tyres produced account for nearly 74% of the total tyre

business in India, thus giving JK Tyre an undisputed position. Additionally, JK Tyre is the only

manufacturer of truck/ bus steel radial tyres, and the second largest manufacturer of 4-wheeler tyres in the

country. Ever since its inception it has been JK Tyre's belief in the value of technological superiority that

has made it grow rapidly. This division produces and sells tyres and tubes under the brand name "JK

Tyre" for Truck, Buses, Passenger Cars, Jeeps, Light commercial Vehicles, multi, utility vehicles and

tractors.The company pioneered Steel Radial Technology in India in 1977 and continues to be the

industry leader in the Radial segment in India. JK Tyre’s premium brand identity can be attributed to

factors such as superior technology, performance and the durability of its products. JK Tyre has pioneered

the manufacture of T-rated radials (capable of running at speeds of 190 km/hr) and H-rated radials

(capable of running at speeds of 210 km/hr). Its two brands, JK Tyre and Vikrant, together offer a wide

range of products catering to almost all the sectors of the automotive industry – trucks, buses, light

commercial vehicles, cars and tractors.

JK Tyre has consciously followed a policy of continuously modernizing and expanding its tyre

manufacturing facilities to retain its edge in the market place. The customer base covers virtually the

entire Original Equipment Manufacturers (OEMs) in India together with Replacement Market for four

wheeler vehicles, Defense and State Transport Units. Also, JK Tyre is the largest exported tyre brand

from India. It enjoys preferred premium brand status in Truck Bias market in USA and across many

markets in Africa, Middle East and South East Asia.

Pricing:

The JK tyres is using the competitive pricing that means setting the price of their product based on what the competition is charging. Competitive pricing is used more often by businesses selling similar quality and featured products i.e Tyre,. This type of pricing strategy is generally used once a price for a product has reached a level of equilibrium, which often occurs when a product has been on the market for a long time and there are many substitutes for the product. The JK tyres as compare to other companies are pretty cheap and the quality of the product is much better as compare to its price. As shown in below

JK tyre is providing good quality of product at comparative cheap prices, the performance of JK is good enough as compare to the cost they are charging. Their prices became a competitive advantage for JK

Pricing is a mix of cost based marketing and competitive pricing, as the company is in this sector from very long time so now they are using cost based pricing also with competitive pricing.

Industry margins are operated by cartel behavior

Project Technological Innovation

JK Tyre have three R&D center which consist all product and technological innovation-

Harishankar Singhania Elastomer & Tyre Research Institute Elastomer Research and Tyre Mechanics.

Tech Center at Faridabad, Haryana. Product Design, Project Management, Benchmarking and R&D - Key Account Management

Raghupati Singhania Centre of Excellence for Tyre and Vehicle Mechanics

JK Tyre’s R&D expertise is underpinned by innovation and creativity allowing continuous product development. JK Tyre’s efforts are mediated towards providing customers with technologically superior products and address emerging market needs. JK Tyre’s activities in this realm have helped strengthen the Company’s business model, accelerate market responsiveness and improve environment-friendliness.

HASETRI (Hari Shankar Singhania Elastomer and Tyre Research Institute), India's first and foremost independent tyre research and testing centre and JK Tyre Tech Centre have led the way in cutting-edge and future-ready product development. JK Tyre and its associate HASETRI have collaborated with different IITs and universities of international and national importance including the Indian Rubber

Institute and Rubber Skill Development Council to train young scientists and engineers in polymer science and technology. This helps meet the demand for qualified personnel to carry out activities in the field of elastomer and tyre research. Till date over 600 people have been trained through workshops, short-term courses and on-the-job-training. The Company’s focus on raising the bar in terms of R&D is reflected from the fact that it was the first in India to come up with ‘green’ tyres in line with growing environmental concerns. Moreover, JK Tyre responded to the increasing stringency of environmental norms through the use of high-strength, eco-friendly raw materials. This, in turn, translated into the manufacture of lighter and stronger tyres, enhancing fuel-efficiency and declining costs per kilometre.

JK Tyre launches RANGER – The premium range of SUV tyres

The all new Ranger Series is a multi-terrain, high performance SUV tyre series, setting a new benchmark  for the future of SUV tyre segment in India

Available in two variants, Ranger Series’ design ensures best in class braking in most rigorous conditions

JK Tyre launched the Ranger Series through one of its kind experiential off-road drive near Panaji

JK Tyre’s Ranger Series is designed to upgrade the overall driving experience of SUVs in India. Superior DUAL Tread Compound, in Ranger Series, provides maximum grip & control, to match the power and size of these vehicles. Ranger tyres will be available in two specialised applications, RANGER A/T -for all-terrain performance and Ranger H/T - for tarmac application. The tyres come in 10 sizes and therefore work best with a variety of SUVs available in the Indian market, viz., Audi Q-series Land Rover Freelander, Fortuner, Nissan X-trail, Terrano, Pajero, EcoSport, Duster, and many more.

The Ranger tyre series was launched at a unique experiential off-road drive along with JK Tyre Off-Road Expo which was attended by thousands. With this experiential launch, JK Tyre added another feather to its cap by putting it up for experience before the commercial launch thus demonstrating the potency of its extremely high quality range.

Jk tyre took initiative and launch new design tyre in truck sector(RADIAL TRUCK TYRE) vice a versa recent news was jk tyre will planning to entre in two wheeler segment tyre with new product and technological innovation.

Globalization

JK Tyre is one of the largest tyre exporters from India; marketed in global markets for over 30 years. The sales footprint, spread over 100 countries across 6 continents operates through a strong and dedicated distribution network comprising of over 125 distributors, ably and fully supported by the company's technical team.

Besides India, JK Tyre enhanced its global manufacturing spread through the acquisition of a Mexican tyre major – Tornel in 2008 to further strengthen JK Tyre’s resolve for increased presence in the NAFTA trade bloc and emerging economies of Central and South America. In addition to Mexico, to meet the increasing demand for tyres in the global tyre markets, JK have entered into sourcing arrangements with tyre companies in China for truck/bus radial tyres.

The company’s tyres are marketed in three brands : JK Tyre, Vikrant and Tornel.

JK Tyre continues to be amongst the largest exporters of truck / bus bias and radial tyres from India. Additionally JK Tyre also markets passenger car, light truck, farm and off the road tyres across most global markets.As published by the Automotive Tyre Manufacturer’s Association, the total export value from JK Tyre during the year 2012-13 was 18% of the total export by the Indian Tyre Industry.

JK Tyre’s bias tyres command a premium price and image across major bias global markets. All products conform to international quality certifications such as TS 16949, 'DOT'(USA), 'E' mark (Europe), 'INMETRO (Brazil), 'GCC' (Middle East Gulf), ‘SONCAP’ (Nigeria).

SERVICES

WARRANTY POLICY

Every effort is made by the company to secure the highest possible standard of excellence of both

material and workmanship. The company will not be liable for any claim whether arising in contract or

in tort for any injury, loss or damage caused to any person or property by or arising out of the use of

any company product.

Without prejudice to the above paragraph JK Tyre tyres & tubes are warranted against manufacturing

defects arising out of any deficiency in design, Manufacturing, material or workmanship. 

Tyres accepted under warranty claims will be replaced on pro-rata wear based on percentage of tread

wear , on the basis of measurement of remaining Tread depth.

Warranty claim findings made by JK Tyre Technical Service Personnel or Trained and Authorized

Personnel would be final and binding to all concerned.

HEAL THE WHEELHOME SERVICES HEAL THE WHEEL

Heal The Wheel is a tyre check-up campaign for truck and bus fleets enrolled under the Fleet

Management program of JK Tyre. In this activity, all tyres are checked for inflation pressure, irregular

wear, and removed tyres are checked for scrap analysis. The Fleet In-Charge also shares and updates

the data pertaining to tyre performance, fuel consumption, and CPKM A detailed report of the same is

then discussed by the Fleet In-Charge with the owner, along with a suggestion plan for proper care and

maintenance to enhance tyre life and reduce CPKM.

FLEET MANAGEMENTHOME SERVICES FLEET MANAGEMENT

Fleet Management is a concept created by JK Tyre to offer added value to its customers. The program

is aimed at increasing our connection with our customers. It offers total tyre solutions – from the

purchase of new tyres to tyre disposal – to ensure the optimum Cost Per Kilometre (CPKM) to our

fleets.

Supply Chain Management of JK Tyre

JK Tyre has 6 modern plants in India which are strategically located at:

Mysore, Karnataka -3

Banmore, Madhya Pradesh

Kankroli, Rajasthan

Chennai, Tamil Nadu

JK Tyre has also enhanced its global reach by taking over Tornel, a renowned Mexican company, which has 3 plants in Mexico. All of these plants are equipped with the world’s most advanced manufacturing and testing machines.

JK Tyre started manufacturing tyres in 1977 with a capacity of 0.5 million tyres per annum. It has grown multi-fold over the years, and currently has a capacity of more than 16.6 million tyres per annum from its 9 plants in India and Mexico. With the commissioning of the Greenfield Project in Chennai, the capacity across 9 plants has crossed the milestone of 20 million tyres per annum.

ERP Helps JK Tyres Make Business Agile

Enterprise resource planning (ERP) is a category of business-management software—typically a suite of integrated applications—that an organization can use to collect, store, manage and interpret data from many business activities, including: product planning, cost. Manufacturing or service delivery.

When you are in the manufacturing industry, accurate demand forecasting and production planning is crucial to your business. At J.K Tyres they found an ingenious way to bridge the gap in the company's supply chain, saving crores

J.K. Tyres & Industries, a part of the J.K. organization, has been the leading automobile tire manufacturer in India since 1977. With over 8.7 million tires sold per annum, understandably, the company operates in a huge distribution network with a large number of SKUs (stock-keeping units).

The company deployed 16 conventional and new dimension ERP modules. These modules translated into a statistical demand forecasting system that gave rise to an accurate production plan.

Today, finished goods, created on the basis of the production plan, from all the plants are sent to the SKUs.Based on the demand, stock is transferred from SKUs to the respective depots. The system creates transportation orders from plants to the SKUs and from the SKUs to the depots

Conclusion-

J.K. Tyres has raked in savings of Rs 6.86 crore over a period of one year, post implementation. According to Sharma, "Beside monetary gains, the social life of people has improved. They are now able to finish their jobs much faster and their work-life balance has improved significantly."The business now interacts with its suppliers through the ERP Portal. Various modules for purchase order, schedule lines and suppliers have been created together with the roll out of raw materials for efficient functioning of the supply chain.

JK Tyre – Distribution and Service Network JK Tyre centre

143 JK Tyre Selling Points and 4000 Dealers across India – 1000 exclusive

Marketing Campaigns, Promotions and schemes

COOL WHEELS - FREE TYRE CHECK CAMPS

Customer Service both pre and post sale has today become one of the critical differentiating factors which

aggregates as a complete package deal for the customer when he purchases the product and can be used as

an effective tool for ensuring loyalty of the customers.Keeping in mind the motto of full customer

satisfaction to both internal and external customer, a strategy was devised to effectively counter the

competition and gain visibility through below the line promotional media.

The concept branded as 'Cool Wheels" stands for a free tyre check camp (for all car tyre brands)

conducted by them wherein they offered the following services to the customers

Wheel Alignment at 50% discount.

Free Wheel balancing (Cost of weights is chargeable to the customer).

Inspection of tyres by our service engineers/ service trained personnel.

Tyre Rotation wherever necessary.

All the customers visiting the outlet are given a tyre inspection report and a copy of this report is

retained for records and future use/customer contact.

The customer visiting the camps are given a small giveaway, and they became eligible to enter

into the lucky draw contest. This is being done to create higher brand visibility and recall and

ensure higher customer interest in the activity.

The camps are conducted at the Steel Wheels Outlets and some other major multibrand counters. Till date

they have conducted Cool Wheels service camps in the following cities- Chennai, Delhi (thrice),

Bangalore, Coachin, Mumbai, Noida(twice), Faridabad (twice), Ludhiana and Chandigarh to name a few,

wherein over 10,000 customer have availed of these services.

These camps have been promoted by using innovative and cost effective means, which have created a lot

of hype in these important markets. Some of the activities carried out by us to promote the camp are as

follows-

Promotion at IOC Outlets - Promoters are placed at IOC petrol pumps. These promoters interact with the customers coming in for refuelling and brief them about the camp and the locations. A leaflet containing corporate communication, location of outlets for the tyre check camp and coupon for entering into the lucky draw contest is given to the customers. The names, addresses, vehicle make of customer who responded are noted down and in return they are given a giveaway.

Also at these outlets you will come across air filling machines sponsored by JK Tyres.

A team of promoters is also used to promote the camp at

Important marketplaces / commercial complexes

Residential areas

Office complexes

Cinema halls

Traffic intersections

Areas adjoining dealer counters.

Campaigns:

JK Tyre kick-started this year’s ‘Road Safety Week’ on Sunday in association with the Delhi

Police’s Road Safety Cell. With increasing vehicle population and daily pressures of life,

individuals and organizations need to unite to address the issue of road safety.

Women’s Rally to the Valley day when thousands of women came out and gathered to celebrate

the spirit of womanhood.  Women’s car rally presented by JK TYRE & Industries Limited and

organized by Western India Automobile Association (WIAA)in association with Aamby Valley

City on the occasion of International Women’s Day.

2016 Off Road Awards presented by JK Tyre. The award for off roads being sponsored by JK

Tyres

TV Advertisement: Contract Advertising has recently launched a 360-degree brand campaign for JK Tyre

that aims to clearly position the brand as a premium, superior quality offering. The core of the campaign is rediscovering and reconnecting relationships with family and friends that are otherwise missed out in the hustle-bustle of modern day living. The theme ties in well with the product as the tyres play a key part in the consumer mind-space when the driver plans a long road trip with loved ones.

Print Media:

The company heavily invests in the print media especially in the magazines which re related to automobile. Company believes that the reach of this Advertisement is very wide and the shelf life of this advt. is pretty longer than any of other medium

Social Media:

The company is using the social media very effectively and getting the good response from the users now a day’s company also concern about the Facebook, Youtube and Twitter.

The correct set of communication tools is vital to a successful marketing campaign. Target markets needs to be studied so that the most effective ways and times to communicate the Riders brand are maximized. The marketing strategy will include the following types of communication tools: television, magazine print advertisements, the internet and different events for effective public relations.

Television is the most reliable source of media for maximum reach to the consumer. It has a high intrusion value while also allowing creative's great opportunities for design. The reason this type of commercial was chosen was to remain as neutral and to attract the largest portion of our target market as possible.

Another type of media that would have a great impact in the campaign would be print advertisements in magazines. Print ads have proved to be more effective than television.

Public relations are also going to be an important component to the Riders marketing strategy. This event will be a good way to promote the shoe as well as supporting active lifestyles while building brand loyalty and trust.

JK Tyre has actively engaged with its customers with its continual mass media presence. Through one of its print advertisements, JK Tyre states itself as ‘The Baadshah of radial tyres on Indian roads’ with more than 3 million truck and bus radial tyres on Indian roads. It is India’s No. 1 truck and bus radial tyre

manufacturer. JK Tyre’s campaign 'Made for India and Made for You' is built around the advantage of using JK truck and bus radial tyres.