JK Tyre and Industries Ltd.

A Part of The

JK Organization

The JK organization was started in 1918 by Lala Lakshmipati Singhania. The group grew during the 1960s-1970s. It held the 3rd position as the industrial conglomerate after Birla and Tata.

It gets the name JK from Mr. Kamlapatji and Seth Juggilal. The Singhania family controls the JK Group of companies and is divided among them.

The Delhi family controls; JK Tyres, JK Lakshmi Cements, JK Papers, Fenner India, JK Risk Managers and Insurance Brokers.

The Kanpur family controls JK Cements.

The Mumbai family controls Raymond group of companies.

JK Organization

1. JK Lakshmi Cements.

2. JK Papers.

3. JK Risk Management and Insurance Brokers.

4. Fenner India.

5. JK Seeds.

6. JK Tyres and Industries Limited.

7. Umang Dairies

8. JK Sugar.

9. Clinirx- Tangent Research.

10. GST- Global Strategic Technologies.

11. Raymonds Textiles.

JK Tyre and Industries LimitedThe tyres division was started in the year 1974; the founders of this division were;

Lala Juggilal Singhania

Lala Kamalapat Singhania

Hari Shankar Singhania

The Chairman of the company is Mr. Raghupathi Singhania and the President of the company is Mr. Vivek Kamra, who is also the head of operations for India.

The Headquarters are located in New Delhi, with offices in Mysore, Rajasthan, Chennai. International offices in Dubai, and 3 manufacturing plants in Mexico City Mexico.

As on first quarter of 2015, JK Tyres and Industries Ltd had a consolidated net profit of 118 crores. The turnover for the year 2014 – 2015 was 7,988.89 crores.

VISION

To be among the most admired companies in India, committed to excellence.

MISSION

1. Customer obsessed company, Customer 24x72. No. 1 Tyre brand in India3. Create a team for excellence in performance4. Deliver enhanced value to all stakeholders5. Enhance global presence through joint ventures and strategic partnerships

HISTORY

1974: Established in West Bengal to produce 400,00 automobile tyres and tubes annually. On 1st April 1974, JK Industries is listed as Public Limited Company.

1982: Collaboration with General Tyres.

1988: Steel radial tyre for Maruti Gypsy and TATA motors.

1991: Acquisition of Mexican tyre company Tornel. Radial tyres for tractors introduced.

1993: New radial tyres introduced for Mercedes, Peugeot, Opel Astra and other cars in various segments.

2007: JK Industries Ltd becomes JK Tyres and Industries Ltd.

JK Tyres manufactured in two brands, Vikrant and JK

Products and Services of JK TyresJK Tyres manufacture various tyres for various segments. The tyres are categorized into the following:

Passenger Car tyres: The tyres are manufactured for all passenger cars/SUVs

UX1- High performance tubeless radials

Provides smooth drive

Better handling

Best comfort

Elanzo - Premium for SUVs

All terrain tyres

UX Royale - Unmatched handling and traction

Reduced noise at high speeds

Additional stability at high speeds

Elanzo Touring- Enhanced contact for better grip

Environment friendly

Ranger A/T- Low noise and long life

Excellent all terrain performance

Deeper grooves for superior grip

Ranger H/T- Exceptional control and stability

Strong wet grip

Excellent stability and handling

Quieter running

Vectra- Tubeless radials for sedans

Other notable tyres in the same segment are; Rally, Tornado, Zephyr, Brute.

Commercial Tyres: These are tyres manufactured for trucks and buses carrying low, moderate or heavy load.

The tyres for trucks and buses are manufactured under two categories:

Bias tyres and Radial Tyres

Trucks/Buses Bias Tyres

JETONE- Premium mileage

Better contact with the road

Design allows better grip with the road

Sizes: 10.00 - 20.00

11.00 – 20.00

JET XTRA LOAD - Carries extra load effortlessly

Smooth and even wear

Excellent anchorage

Sizes: 8.25 – 20.00

10.00– 20.00

JET TRAX 39 XTRA- Cooler running, higher mileage

Good load carrying capacity and casing stability

Sizes: 10.00 – 20.00

11.00 – 20.00

JET ROCK XTRA- Free from lug chipping

Designed for mining conditions

Resistant to cuts

Lesser heat development,

Reduced contact pressure

Size: 10.00 – 20.00

JET R PLUS- Front tyres for load carrying

Smooth and easy maneuvering

High mileage

Sizes: 10.00 – 20.00

10.00 – 20.00

Other tyres in the same category are:

JET XTRA, JET R MILES, JET ACE, JET XTRA MILES.

Truck/Buses Radial Tyres:

JETWAY JUL1- Good heat dissipation

Made for comfort

Less stone entrapment

Uniform shoulder wear

Sizes: 295/80R 22.5(tubeless)

315/80R 22.5(tubeless)

JETWAY JUH- Made to rule the road

Uniform pressure distribution

Very good mileage

Sizes: 10.00R 20.00

11.00R 20.00

JETWAY JTH- Made for trailers

High directional stability

High retread factor, low rolling resistance

Mileage in good riding condition

Sizes: 10.00R 20.00

11.00R 20.00

JETWAY JUX- Made for convenience

High heat dissipation

Fuel saving

Easy stone ejection due to diamond formation

Sizes: 10.00R 20.00

11R 22.5(tubeless)

295/80R 22.5

JETWAY JUC3- Made to conquer the road

Very good traction

Reduced heat generation at shoulder

Sizes: 10.00R 20

315/80R 22.5(tubeless)

Other tyres in the same segment are; JETSTEEL JDL, JETSTEEL JDC, JETWAY JUC2, JETSTEEL JDH, JETWAY JUH3, JETWAY JUH5, JETSTEEL JDH3, JETWAY JUH3+, JETWAY JDC3

Light Commercial Vehicles:

STEEL KING- Superior handling for high speed driving

20-25% additional mileage

Better fuel efficiency

Excellent traction, good road trip

Cooler running

Sizes: 215R 14 10PR

7.00R 15 10PR

JET XTRA- Very similar to its sister tyre under the truck/buses bias tyres

Extra mileage on moderate load

Sizes: 7.50R-16 16PR

8.25-16 16PR

JET TRAK 39- Take on any load

High load carrying capacity

Strong bead construction

Assurance of performance

Sizes: 7.50-16 18PR

8.25- 16 18PR

JET R MILES - Super premium mileage

Use on front tyres for best performance

Sizes: 8.25 - 20.00

11.00 - 20.00

JET RIB - Most reliable tyre

High mileage

Excellent resistance to crack growth

Sizes: 7.00 – 15 10PR

7.00 – 16 14PR

SMALL COMMERCIAL VEHICLES (SCV):

These tyres are used on small vehicles carrying light loads for a short distance; vehicles such as TATA ACE and other vehicles which carry similar load.

JUMBO KING- Tyre for any load

Excellent traction for any load, no slippage

Good contact pressure distribution and good mileage

Sizes: 165D12 8PR

165D13 8PR

JUMBO ACE- Best in class mileage

Good structural capability

High casing reliability

Size: 165D12 8PR

JUMBO MAGIC- Ultimate tyre for passenger application

Excellent control

Size: 155D/80D12 8PR

Tractor tyres:

SONA H/F REAR-Long life dual application tyre

Road grip

Better traction

Longer life

Size: 14.9-28 12PR

SONA1 tractor rear- Ultimate tyre for all application

Enables better pull

Better ploughing in hard soil

Excellent stability

Less mud gets stuck on the tyre due to the design

Sizes: 12.4-28 12PR

13.6-28 12PR

SONA/SONA5- Stronger tractor trailer

Excellent anchorage and bead support

Sizes: 9.00 – 16 16PR

9.00 – 16 18PR

SONA Tractor Front- High mileage 3 RIB patterns

Performs well in muddy and loosely cultivated soil

Good steer ability

Sizes: 5.50 - 16 8PR

7.50 – 16 8PR

SONA H/F Tractor Front- Unique 4 RIB patter for all types of application

More life during haulage

Extra rubber in tread region for extra mileage

Size 6.00 – 16 8PR

Off The Road Tyres:

Vehicles which are used for off road application like mining.

EG 04 DX - Grader

Excellent road levelling and cleaning properties

Directional stability, uniform pressure

Digs through terrain

Sizes: 13.00 - 24 12PR T/T

14.00 – 24 16PR T/T

VEM AS- Backhoe Loader

Suitable for heavy duty services

Excellent over coal, rocks, logs and other surfaces

Better traction, floating on soft and muddy surfaces

Sizes: 14.00 – 24 20/28PR T/T

14.00 - 25 20/24PR T/L

VEM 99- Wheel loader

Good stability

Better stability while carrying extra load

Cooler running and extra service life

Sizes: 17.5 - 25 20PR T/L

26.5 – 25 28PR T/L

VEM Smooth- Reach stacker

Good handling, good resistance to exterior damage

Provides good anchorage

Size: 18.00 – 25 40PR L5S T/L

VEM 99- Earthmover

Excellent casing reliability

Good anchorage of tyre rim

Size: 18.00 – 25 32PR E3/E4 T/T and T/L

The other tyres in the off the road segment are VEM 027, VEM 045, V-BH 85, V-BH Plus, V BHTEL/ Plus, VEM Rock, VEM 99 industrial and port usage, VEM 045 industrial and port.

Services offered by JK Tyres to their customers

Heal the wheel- Tyre care for their customers, irrespective of the segment of tyres they have purchased.

1. Warranty- Like any other product, tyres too have a warranty period, and terms and conditions, to claim warranty. JK Tyres’ warranty policies are very customer friendly.

2. Tyre care centers- JK has set up multiple tyre care centers all over India, on important highways and in cities, to facilitate tyre care and ensure that the tyres are maintained to provide best performance.

3. Exclusive dealerships are set up by the company for their tyres. Steel Wheels for cars and Truck Wheels for truck tyres.

The markets that JK Tyres covers, is vast. They supply tyres all over India and to International markets, which has earned them a phenomenal customer base globally. They are major players in the Americas, Africa, South East Asia, The Middle East, Mexico, Far East, Europe and in Australian markets.

Apart from manufacturing and selling quality tyres, JK Tyres is also involved in the Motorsport segment. They sponsor and organize and participate in rallies that

include Racing, Drag Racing and Karting. They have emerged champions in the events both at home and abroad. One of the racers representing the JK Tyres motorsport team is now an F1 Indian racer in the Moto GP races.

Organizational Structure of Export Department at Mysore

Mr. T H Venkatesh (AVP)

The Exports Department has two divisions: Sales and Operations.

Senior Manager

Senior Deputy Manager 1

Senior Deputy Manager 2

Deputy Manager

Assistant Manager

Senior Officer

Officer

Both these divisions play an equally important role in ensuring top sales and better efficiency in the company. Each function has its own importance and is in no way inferior to the other. In fact, they complement each other in their work to ensure that ultimately, the products from their stable reach the end user for mutual benefit.

Sales:

The Sales Division brings in orders from customer and pushes the product to buyers all over the globe. This team works with extreme professionalism and ensures that they always provide customized service, in terms of delivery schedule, pricing and product range. The Sales division in Mysore has seen an increase in orders as the demand for JK Tyres grows due to their unrelenting efforts.

JK tyres exports to a lot of countries worldwide, from the Western countries like North America up to the Far East. The only country in the EU to which JK exports tyres is Spain. The reasons for their absence from the EU countries are: one, that the pricing issue is being worked out to a mutually accepted figure; the second being the demand for certain specifications as laid down by the EU countries.

The EU expects manufacturers to produce a reach compliance certificate that meets their requirements as laid down by their laws. Without the reach compliance certificate, manufacturing companies cannot supply tyres to their market. Negotiations are in progress between the company and the EU countries. It is expected that JK will enter the EU market in a big way soon, leaving no market in the world unrepresented by them.

Apart from the EU, the countries to which the company exports its range of products are divided into 4 regions:

The Middle East- UAE, Qatar, Iraq, Turkey, Jordan, Bahrain, Turkey, Libya, Syria, Saudi Arabia, Oman, Sudan, Yemen, Iran. The other countries in the same region such as Pakistan, Afghanistan, Turkmenistan are also covered.

Africa- Egypt, Sudan, Somalia, Eriteria, Ghana, Nigeria, Congo, Ivory Coast, Ethiopia, Namibia, Cameroon, Kenya, Tanzania, Uganda, Zambia, Rwanda, Malawi, Mauritius, Mozambique, Gambia, Liberia.

America and Australia- Colombia, Bolivia, Peru, Brazil, Venezuela, Nicaragua, Trinidad, Ecuador, Dominican Republic, Honduras, Mexico, Haiti, USA, Australia, Canada, Costa Rica, Paraguay, Uruguay.

South East Asia and Bangladesh- Vietnam, Cambodia, Singapore, Myanmar, Philippines, Sri Lanka, Indonesia, Fiji, Malaysia, Bangladesh.

From the above data, it is clear that JK Tyre and Industries Ltd. is a major player for tyres in the global market.

Operations:

Operation means generating invoice for the orders placed by the customer and ensuring that the payment for the same is received as per their agreed terms. The order is then processed so that the goods are shipped to the customer’s country without delay.

There are 3 procedures which have to be followed by the Operations Division.

1. Advance licensing- This is the license issued by the DGFT. This allows an Indian company to export its products. The Indian government promotes exports by directing the DGFT to give various incentives to such exporters. This license is valid for a year and its specifies the quantity of products that have to be shipped by the company within the stipulated time. The company decides the export quantity and finalizes it with the DGFT. This target set by the company is measured in kilograms or metric tons and the target has to be achieved to ensure that the exporter enjoys the benefits doled out to it by the DGFT. These incentives include; no excise duty is levied on import of raw materials or capital goods required to manufacture the export product, etc.

2. Pre-shipment stage - Certain documents are to be submitted to the Customs Department of India while shipping products. These documents are;

ARE1: Application for removing excisable goods, which means no excise duty is to be paid.

Pre Shipment invoice: The consignee places the order for a certain number of products. This states the requirements given in the purchase order.

Pre shipment Packing List: This contains information of goods being shipped in a particular container, for example, description of tyres, quantity and weights. The Packing list also states the instruction for packing the cargo. Net weight and the Gross weight of the cargo is also stated in the list.

After the Customs Department receives these documents from the exporter, a LET Export Document is handed over to the company. This documents allows the products requested by the consignee to be stuffed into the container. The stuffing happens in a warehouse designated by the Customs. An official from the Customs Department will be present while the goods are being stuffed into the container to make sure that no other goods or materials other than those mentioned in the LET export document is loaded onto the container.

There is a Customs Housing Agent (CHA), who coordinates the work between the Export company and the Customs department to facilitate the flow of work. Till the products are stuffed into the container and the container leaves the port, the CHA takes care of the entire operations.

Once the cargo sails, a Bill of Lading is issued by the Shipping line. This is document given by the shipping line confirms that the cargo, handed over by the exporter, (consignor) has been loaded onto their vessel and it is enroute to its destination port, to be received by the consignee.

3. Post-shipment stages: As the name suggests, these are procedures which have to be followed after the goods have been shipped and when the consignee has to take possession of the consignment once it reaches the destination. For the consignee to collect the goods from the shipping company, he must produce the following documents to the Customs department at the destination port.

-The original invoice.

-The packing list and

-The most important document is the B/L (Bill of lading); without the B/L the material will not be handed over to the consignee.

The payment method also affects the collection of the goods from the port of the consignee. There are 3 payment methods:

- Advance payment, when the payment for the goods is received by the exporter before the product is shipped, then the B/L is given to the consignee to collect the goods from the port.

- The second payment method is DP sight; The complete set of documents is sent to the consignee from the exporter’s bank to the consignee’s bank. Once the payment has been made to the bank for the goods, the set of documents with the B/L is handed over to the customer to take his goods.

- The third payment method is DA; The documents are sent over by the exporter’s bank to the bank of the consignee. Once the documents reach the bank, the consignee has to sign a document promising to pay the exporter the money within a certain period of time. The usual period agreed upon ranges from 30, 45, 60, 90, 180 days.

Some other steps in the process are;

- Certificate of Origin (COO)- This document is issued by the Chamber of Commerce of India which states that the Exporter is an Indian company registered in India and that the goods being sold are manufactured in India.

- Inspection Certificate- A few customers prefer that a 3rd party inspects the products ordered and supervises the loading and dispatch of the same by the exporter. Along with the Inspection Certificate issued by the Customs Department, a 3rd party is invited to inspect the product so as to give an unbiased inspection certificate.

- Fumigation Certificate- Every container needs to be cleaned and fumigated before the products are stuffed to ensure that there are no contaminants in the container. This is vital so that no diseases or any

other infection breaks out in the country to which the products are being shipped to.

Research and Development of JK Tyres and Industries Ltd.

- HASETRI- Hari Shankar Singhania Elastomer and Tyre Research Institute was established in October 1991 as a Testing Center for the development of newer and better technologies for elastomer and tyres.

- RPSOCE- Raghupati Singhania Center for Excellence in tyre and vehicle mechanics is an institute based in IIT Chennai which is a collaborative venture between the industry and the Institute.

Corporate Social Responsibility:

JK Tyres and Industries Ltd is involved in various social responsibilities towards to community. With offices in multiple cities, the company can reach out to different sections of society all over India as part of their CSR.

Few of the CSRs that the company is involved in are:

- Road Safety: The first CSR step taken by JK was the road safety. With help from the Delhi Police Force and the Parliamentarians, they were able to bring about road safety campaigns. They also organized road safety drives in and around Delhi.

- Healthcare: JK also organized healthcare projects. Projects such as child care, mobile clinics, and multiple healthcare activities are taken up in a big way.

- Education: JK has adopted a lot of government schools and has provided schools with smart classes. This system is implemented in parts of Rajasthan. They have also supported schools with teaching learning aids and better classrooms.

- Environment: All the plants of JK have received ISO certification and a recognition certificate from British Energy Management Systems.

- Ladies Wing of JK Tyres: Involves in educational support to schools in the neighborhood and also encourages SHGs to be recognized by society through many of their outreach programs.

Industrial Rating of JK Tyre and Industries Ltd.

The tyre industry has seen a recession in the past year. However, this is set to change in 2016. This year the tyre industry and all tyre manufactures are expecting to see an increased growth in the market. JK Tyre has been upgraded from IND A+ to IND AA; this upgrade was long due to the company. Instruments with 'IND AA' rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. ‘The improved ratings are a result of the company's strong growth in the truck & bus radial (TBR) segment in Fiscal 2015’, according to a release by this tyre manufacturer. The ratings reflect 27.3% YoY rise in the company's volumes in the domestic TBR market in FY15. The trend is likely to continue next year as Ind-Ra predicts radialization to increase to 40% by FY16. Meanwhile, despite the onslaught from international competition, JK Tyres was able to raise its capacity utilization at its new facility in Chennai from 72.4 - 92.4% in FY15.

Performance of the Company for two years

January 2014 - December 2014:

Tyre No. of tyres soldTBB 131860RDL 232487LCV 96711LTR 867OTR 3312Farm 315PCR 124853Grand Total Value (USD) 85613872.26

Total Sales 5904505

January 2015 – December 2015:

Tyres No. of tyres soldTBB 91851 RDL 190428LCV 95702LTR 3942OTR 2807PCR 69907Farm 124Industrial 132Grand Total Value (USD) 56922843.31

Total Sales 454893

Sales of the exports department for the year 2015

Countries Quantity Value (USD)

Middle East and Africa 117505 72649900.72America, Canada, Mexico

44752 5023069.69

South East Asia 74393 10128045.35Australia 8490 1785739.02EU* 260 50700.00

*EU country is Spain.

Stock Market-

JK Tyre and Industries Ltd was listed on the stock market on 1st April 1974. The present day value of each share is in the 80-100 range. The highest ever share price in was 671.00 INR and the lowest was 80.10. If we were to compare the share price for past year the numbers are; 28th Jan 2015 121.90, highest 131.00 INR lowest 80.10 INR. The share price on the 28th Jan 2016 at 2:07 PM was 91.10 INR.

Achievements

JK Tyres has been a proud recipient of the Best Exporter Award from the Karnataka Government, a few times, for their stupendous export figures.

They have also set up a new manufacturing facility in Chennai to boost the production of quality tyres for various segments.

This is in addition to their existing manufacturing units in Mysore and Manesar.

They are also tied up with some automobile manufacturers to supply OEM tyres including the KSRTC fleet.

They have also acquired a Mexican tyre Company Tornel to meet the booming demand.

Despite stiff competition from other tyre makers like MRF, CEAT, BKT and TVS, JK Tyres has proven to be one of India’s leading tyre makers, in TOTAL CONTROL.

Acknowledgement

The internship opportunity I had with JK Tyre and Industries Ltd. for a week in January 2016 has been a great chance for learning. I consider myself a lucky individual as I was provided with an opportunity to intern at this company. I am also grateful for having a chance to meet professionals who directed me through this internship period.

I take this opportunity to express my deepest gratitude and special thanks to Mr. T H Venkatesh, AVP Exports, of JK Tyre and Industries Ltd. who, in spite of being busy with his duties, permitted me to carry out my initiation of internship at this esteemed organization.

I express my deepest thanks to Mr. Ujwal Raju M D, Dy. Manager Exports, for assisting me and guiding me on a daily basis and helping me understand the basics of how export of tyres is carried out. His continued guidance has provided me with a good insight into this segment.

I would also like to express my gratitude to Mr. Gowri Prakash, Senior Manager HR, for consenting to accommodate my request for internship at short notice. I would like to thank the other members of the Export Team, Mr. Ramprakash, Dy. Manager Exports, Mr. H R Ramesh, Dy. Manager Exports, Mr. S Natesh, Dy. Manager Exports, Mr. Vikram, Senior Manager Exports and Mr. Uday, Officer Exports for their valuable inputs to my queries on various aspects of the functioning of the department.

Being an intern at this well- known organization is definitely a stepping stone for me that has helped strengthen the basics of business management. I am glad to have been associated with JK Tyres and wish the organization great success in all its professional endeavors.

Gratefully,

Ashwin Viswanathan.

BBA 1st year SRM University

Kattankullathur, Chennai.