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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