CHAPTER-1

INTRODUCTION

Organizations have gained momentum over the past few decades as an

inevitable source to sustain business activities. An organization is a power house of
resources through which manufacturing and production operations are effectively carried
out. It comes into existence when several minds are bound together through effective and
efficient communication along with harmonious interpersonal relations for contributing
towards a common endeavor.
Apollo Tyres boasts of a vibrant and dynamic professional and non-
hierarchical culture. Transparency and communication are cornerstones of corporate
practice, across levels to ensure that each employee is aligned with the goals and
aspirations of the company. At Apollo Tyres there are three focus areas leading to its
journey of be coming a global player - People, Quality and Technology. All activities and
processes are built to enhance these three key pillars of corporate excellence

The organization study's primal focus is to extract the corporate exposure

in understanding more about the organization, its performance; it's functioning, about the
various departments and the structure as a whole. The study is based purely on the
information and other relevant data and materials obtained from the organization.
Interviewing high official authorities and staffs have been done to get more accurate and
up-to-date information. Each activity and operations performed have been closely
scrutinized with the available data and materials.

1.1 OBJECTIVES OF THE STUDY

 To have a general awareness of the functioning and management of an

organization.
 To understand the extent to which management theory matches with actual
practices seen.
 To understand the organization structure and working of various functional
departments.

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  To identify company‟s strength and weaknesses.
 To have an exposure to the working environment.

1.2 SCOPE OF THE STUDY

The study mainly focuses on the detailed analysis of the organization

structure. In this study, the overall functioning of the firm was analyzed as well as the
financial performance of the enterprise. A moderate attempt was made to have the SWOT
analysis of the company. This study also involved the practical application of theoretical
knowledge. This study will help to know the organization better and to have new insights
on the functioning of the organization.

1.3 METHODOLOGY
Data for the report are collected through both primary and secondary sources.

1.3.1 PRIMARY SOURCES

 Observation
 Interviews
 Discussion with managers and employees

1.3.2 SECONDARY SOURCES

 Company‟s manuals
 Company‟s annual reports
 Websites

1.4 LIMITATIONS
 Time allowed for conducting organization study was less.
 The study could be conducted only on the general working hours and so the
working conditions of employees could not be studied.
 As the executives were busy with their work, adequate information couldn‟t
be collected.
 The company didn‟t reveal some official report and documents as it is kept
confidential.

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 CHAPTER: 2

INDUSTRY PROFILE

The world is now experiencing the highly mechanized transportation

facilities. The advancement of transportation is the manufacturing face for the growth of
tyre industries, which has created some of major players like Goodyear, MRF, Apollo and
Bridgestone etc. The industry is strongly linked to automobile sector.
R.W.Thomson invented and patented the pneumatic tyre in 1845. His first
design used a number of thin inflated tubes inside a leather cover. This design actually
had its advantages over its later designs. It would take more than one puncture to deflate
the whole tyre and varying pressure could alter the ride conditions.
It was not until the late 19th century 1888, that John Dunlop invented the tyre
pneumatic tyre. Despite these technological breakthroughs, the solid rubber tyre
continued to be the dominant tyre and it was not until 1889 that the pneumatic tyre caught
on.
Dunlop first advertised his tyres in December 1888 in the Irish cyclist and in the
May of the following year, the tyre had its first breakthrough. A Belfast cycle race was
won on pneumatic rubber tyres and by now the publics were starting to take note.
Unfortunately the original tyres had its drawbacks. The inner tube was difficult to get at
because the tyre was struck to wheel. In 1890, C.K.Welsh patented the design of a wheel
rim and outer cover with inextensible lip. By now we have the basics for today‟s tyre.
Over years tyre has developed into today‟s high technology offerings.
Two of the most important technical development includes Michelin‟s creation
of the radical tyre with its vastly superior group 1948 and when Dunlop did away with
inner tube on car tyres in 1972. Time has given the motor industry tyres capable of many
different applications. This ranges from high seed racing such as Formula One to Heavy
plant usage on vehicles as large as a house. All tyres deliver a comfortable ride, relative
puncture resistance, wear and performance. The importance of a tyre must not be taken
for granted. After all a tyre is vehicle‟s only point of contact with the road.

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2.1 INDIAN TYRE INDUSTRY

The tyre industry began to grace in India during 1930‟s. The growth of tyre
industry in India can be divided in to three phases.

2.1.1 FIRST PHASE

In this phase, the multinationals came to India and started selling tyres. This
includes MNC‟s like Goodyear, Dunlop etc.

2.1.2 SECOND PHASE

Here, the multinationals started their production in India. They became the first
generation tyres of Indian tyre industry. Among the first generation tyre companies,
Dunlop was the first which started their domestic production at Calcutta.

2.1.3 THIRD PHASE

The third phase of Indian tyre industry began, when the Indian companies began to
produce tyres, which came to be called second generation tyres. Important among them
are MRF, CEAT etc. They started their production in 1960‟s.
Later in 1970‟s the third generation tyres started their production. It include
Apollo tyres, Vikrant, Modi tyres etc.
All type of companies which started production after 1970;s and the tyre
companies which are yet to start production are classified under the head fourth
generation tyres. Notable among them are S.Kumar tyres, Rado tyres, Sri Chakra tyres
etc.

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 CHAPTER: 3

COMPANY PROFILE

3.1 A brief history of Apollo tyres Limited

The history of Apollo Tyres Ltd. is about a company‟s passion,

determination and will to surpass all obstacles and emerge as a leader in the Indian tyre
industry.
Apollo, named after the Greek sun God has created a remarkable identity for
itself in the tyre market. So much so that the name itself has become synonymous with
the brand. The history of Apollo can be traced back to the seventies, when the hard nosed
MNC‟s and Indian tyre majors dominated the tyre industry. Apollo Tyres Limited was
incorporated in the year 1972. The commercial production started on 8th March 1975 at
Perambra unit. The initial investment of the company was Rs. 36 Crores.
The first manufacturing unit is situated at Perambra in Thrissur District, near
Chalakudy. At the starting time, the production capacity was 54 tones per day. Since
Thrissur is a notified industrial backward area, tax exemption up to 20% of the assessable
income was availed for a period of 10 years from the commencement of the production,
which began in March 1977. This plant is conveniently located near to major raw
materials trading centers like Cochin, Kottayam, and Calicut.
During 1977 to 1981, the company was under heavy loss. The capacity
utilization was only 40 to 50% of the production capacity. But through continuous efforts,
management overcame this situation. The second plant was installed at Limda village at
Baroda in Gujarat. The commercial production of this plant was started on 1991. This unit
has the installed capacity of 6.75 Lakh tyres per annum. This is the biggest plant of
Apollo tyres. This unit also enjoys a sales tax exemption
Another production centre is at Kalamassery, where the Apollo Tyres
Limited took over the Premier Tyres Limited, a leading tyre company on lease agreement
in 1995. As per the recommendation of the Board f Industrial and Financial
Reconstruction (BIFR), Apollo tyres took over Premier tyres. Apollo has 76% of
shareholding in Premier Tyres Ltd. So it is a wholly owned subsidiary unit of Apollo
tyres Limited.
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 The fourth plant was commenced in 1996 and is situated at Ranjangaon near
Pune, Maharashtra. This unit is mainly focused on the production of tubes. It also
produces flaps for the company.

3.2 About Kalamassery Unit

The present day Apollo Tyres Ltd, located at Kalamassery was setup in 1962
in the name of Premier tyres Ltd. In 1995, Apollo tyres took over Premier Tyre Ltd as a
rehabilitation scheme. This scheme involves the operation of Premier plant by Apollo for
the production of Apollo units under a lease agreement.
Apollo tyres Ltd brought 76% of shares of Premier Tyres Ltd. So Premier tyres
Ltd is now a wholly owned subsidiary of Apollo Tyres Ltd. These two companies are
functioning as different entities. But they leased all the facilities of Premier to Apollo
Tyres Ltd. They took all the liabilities of Premier Tyres Ltd. In the initial period, Rs.4
Crores was given to Premier Tyres for paying to creditors. Apollo has given a lease
amount of Rs. 45.5 Crores in eight periods. This contract was ended in 2003. After that
Apollo is renewing the contract with Premier Tyres Ltd every year. One year leasing
amount is 15 Crores.
Other related features of Apollo Tyres Ltd, Kalamassery are:-

Capacity: 86 Metrics Tone per day

Total land area: 117908

Number of employees: 1266

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3.3 MILESTONES

1972 - The company's license was obtained by Mr. Mathew T Marattukalam, Jacob

Thomas and his associates.

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

1975 - April 13, Perambra Plant Foundation stone was laid down.

1976 - Apollo Tyres Ltd. was registered.

1977 - Plant commissioned in Kerala with 49 TPD capacities

1982 - Manufacturing of Passenger Car Radial Tyres in Kerala

1991 - The second plant commissioned in Baroda.

1995 - Acquired Premier Tyres Ltd. in Kerala.

2000 - Exclusive Radial capacity established at Baroda

2003 - Radial Capacity expanded to 6600 tyres per day.

- November 17, Joint Venture with Michelin

2004 - Launch of Apollo Acelere- „H‟ Speed Rated Car Radials

2005 - April 13, Perambra Plant completes 30 Years.

2006 - January 30, Dunlop South Africa is acquired.

2006- launch of india‟s first range of ultra-high performance V and W-speed rated tyres.

2007-Launch of Apollo Tennis Initiative and Mission 2018

2008- Integrating the global product portfolio by rebranding the Dunlop brand and rolling

out new Dunlop Zones across South Africa.

2009- Acquired VREDESTEIN BANDEN B V in the Netherland.

2013- Disposed of the Dunlop brand in Africa along with most of the South African

operation in sale to Sumitomo Rubber Industries Japan

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3.4 Board of Directors and Key Executives of Apollo Tyres Ltd.

A K Purwar Director

Ajay Vaid Group Head

Akshay Chudasama Director

Anil Chopra Group Head

Bikram Singh Addnl. & Ind.Director

Chandrasekhar Velagapudi Head

Davendra Mittal Head - Finance

Dheeraj Prasad Sinha Group Head

Gaurav Kumar Chief Financial Officer

Harish Bahadur Head

John Devadason Unit Head

K Sunil Head

Neeraj Kanwar Vice Chairman & Mng.Director

Nimesh N Kampani Director

Onkar S Kanwar CEO

Onkar S Kanwar Chairman & Managing Director

P H Kurian Nominee Director

P N Wahal Head

Pallavi Shroff Director

Piush Bansal Unit Head

Pravin Tripathi Head

Prem Prakash Sharma Head - Human Resource

Rajesh Dahiya Group Head

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Robert Steinmetz Director

S Chockalingam Head

S Narayan Director

Satish Sharma President

Seema Thapar Co. Secretary & Compl. Officer

Seema Thapar Secretary

Sunam Sarkar President & Chief Business Officer

Sunam Sarkar Non Exe.Non Ind.Director

T R Gopalakrishnan Group Head

Vikram S Mehta Director

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 CHAPTER: 4

DEPARTMENT PROFILE

4.1 COMMERCIAL DEPARTMENT

Commerce means interchange of goods on a large scale. Every business

transactions are commonly called commerce. Commercial department of ATL is
concerned with various activities and functions, which are crucial for the company‟s
smooth working. This department handles financial and non-financial functions.

The various sections under this department are:

 Accounts

 Costing

 Payroll

 Excise

 Raw Materials Stores

 Finished Goods Stores

 Engineering Stores

 Purchase of Engineering Stores and Purchase of Engineering Goods.

4.1.1 OBJECTIVES OF COMMERCIAL DEPARTMENT

1. To arrange adequate funds for the business at the time firm needs.

2. To ensure proper utilization of funds.

3. To increase profitability of business.

4. To maximize the value of firm.

5. To do the analysis and appraisal of financial performance.

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 6. To anticipate the financial needs.

7. To maintain good relations with suppliers and monitor their performance.

8. Physical location and stocking of materials.

9. Minimization of obsolescence and damage.

4.1.2 FUNCTIONS

1. Financial forecasting and planning.

2. Financial management other functions is procurement of funds.

3. To advise top management on all financial matters and to suggest various

alternative solutions for any financial difficulty.

4. Co-ordination and control.

5. Help in tax administration and tax planning.

6. Preparation of audit report.

7. Another function of commercial department is the storage of raw materials,

finished goods and engineering goods.

8. This department also handles scrap disposal.

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CHART NO 4. 1: STRUCTURE OF COMMERCIAL DEPARTMENT

DIVISIO
NAL
HEAD
COMM
ERCIAL

ASSO: GROUP
GROUP MANAG MANAGER
MANAG STORES
MANAG ER ER AND
ER ACCOUNT COSTING PURCHASE
COMMERC S
IAL

EXECU EXECUT EXECU EXECU EXECU EXECU EXECU

TIVE- IVE- TIVE- TIVE- TIVE TIVE- TIVE
RAW FINISHED ACCOUNT PAYROLL COSTING PURCHASE - STORES
MATERIAL GOODS S
STORES SERVICES

Under Plant Coordinator comes the divisional Head of

commercial department. Under him comes the different sectional heads. This department
has two-group manager, one manager, one associate manager and eight executives.

This department includes both financial and non-financial divisions.

FINANCIAL

1. Accounts

2. Costing

3. Payroll

4. Central excise

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NON-FINANCIAL

1. Raw material stores

2. Finished good stores

3. Engineering Goods Store

4.1.3 FINANCIAL DIVISION

According to Raymond Chambers, Financial Management is the art of raising
and spending money. It is the art and science of using, managing and controlling the
business money. It is the management which controls money and money-related
operations within a business.
Financial section of Apollo Tyres is concerned with the planning and
controlling of the financial resources. The divisional head controls the function and the
duties to formulate accounting and costing policies, preparation of financial reports and
direction of internal auditing and budgeting.

ACCOUNTS

Accounts section maintains records showing particulars, quantitative details

and current position of fixed assets. Premier Tyres Ltd, which is a subsidiary of Apollo
Tyres, maintains two separate accounts. The day to day affairs are entered into the books
of Premier Tyres Limited and the consolidated monthly transactions are entered in the
books of Apollo Tyres Ltd.

COSTING

This section plays a vital role in the commercial department. It is concerned

with cost management, arising out of various production activities. It prepares a cost
budget for the firm. The main aim of this section is cost reduction and thereby resulting in
cost efficiency.

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PAYROLL

This section calculates the wages and salaries of employees based on the data
received from the time office. Other functions include issue of cheques to banks for
transferring salary to employees through salary account, transferring money to employees
Provident Fund (PF) and making provision for Employees State Insurance (ESI).

EXCISE

This section is concerned with assessment of the value of the finished goods
and payment of excise duty. The 16% of the value of finished goods is subjected to excise
duty. The company must give tax on all materials except for natural rubber. The liability
as tax is about 2.5 crore. Controlling of Central Excise Value Added Tax (CENVAT) is
under this department.

4.1.4 NON-FINANCIAL

Non-financial activities include purchase of raw materials, storage of

finished goods, logistics and scrap disposal. Marketing department forecast the potential
demand in various segments and informs the head office. The head office depending on
the plant capacity, assigns production targets to different plants. The planning department
produces production tickets. Once the production ticket is received, the production and
planning department estimates the raw material requirement. The estimate is then sent to
head office for the approval; once it is approved purchase is made from the various
suppliers. After the raw material procurement is over, production takes place and the final
finished good are stored in the warehouse. The scrap which is the outcome of power
failure or machine flaw is disposed to scrap contractor. Quality check is performed at
each level to reduce the scrap. Later the finished goods are dispatched to the various
centers. This department is also handling engineering goods.

4.1.5 RAW MATERIALS STORES

The main function of the raw material stores is to receive, store and
issue goods that are essential in the production. The raw materials are procured from both

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local as well as international agencies.The natural rubber required is purchased from local
agencies. The steel wired required for heads are supplied by TATA. The processing oil is
procured from Indian Oil Corporation (IOC). The carbon black is procured from an
agency in Karimugal. The chemicals required for rubber production include sulphur,
naphtha, ammonia formaldehyde are ordered from countries like China, Thailand and
Russia. The placing of orders for the production requires a proper coordination with other
departments such as the production department and the marketing department.

The stock keeping method followed here is that of consumption level. It

also has a section to know how much goods are to be reserved. The next step is to release
the stored goods for production. While releasing the goods, First in First Out (FIFO) rule
is followed. To expand on that, the goods that come for storing first should be released
first for production. This prevents goods from being stored above their life span. This also
reduces unnecessary wastage due to spoiling of materials. Raw Material Stores section
handles the scrap also. The scrap is disposed to a scrap contractor.

Various raw materials used in manufacturing of tyre are as follows:-

 Natural and synthetic rubber. (50%)

 Carbon black (23%)

 Process oil (5%)

 Steric acid (1%)

 Zinc oxide (3%)

 Anti oxidants (1%)

 Fabrics (11%)

 Bead wire (4%)

 Others (2%)

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4.1.6 ENGINEERING GOODS STORES

Engineering goods store is responsible for storing necessary spare parts,

components required for smooth functioning of the plant. Items included are:

 General spares.

 Insurance spares.

 General consumables.

 Furnace oil

 Lubricants.

 Chemicals.

 Building materials.

On receipt of intent from production department, the Engineering stores

arranges for its release. The inventory management technique used is VED (Vital,
Essential and Desirable) Analysis. Almost all the activities of this department are
computerized. The purchase department is intimated whenever re-order level is reached.
A buffer stock is always maintained in the store.

4.1.7 FINISHED GOODS STORE

The main function of finished good stores is to receive, store and dispatch
the goods. There are two dispatch centers. They are replacement market and export
markets. Domestic and export godowns are there in the stores. All finished goods after
final inspection are kept at the transferring area in each shift. Stock levels of finished
good stores are managed by supply chain management. Inventory levels are managed by
head office level and Finished Goods Stores has the function of receiving, storing and
dispatching as per supply chain management requirement and communicating daily stock
levels through MIS to head office.

Marketing department gives dispatch schedule on day-to-day basis.

They arrange the trucks which are required one day in advance. Daily dispatch is 20
trucks of loads in Kalamassery Plant. In seasons, this will increase up to 30-35 trucks.

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4.2 HUMAN RESOURCES DEPARTMENT
Human resources play a crucial role in the development process of the
present economy. According to Fisher and Shaw, Human Resource Management involves
all management decisions and practices that directly affects or influence the people and
human resources who work in the organizations.
Apollo Tyres Ltd has a good HR and Administration department which
always look forward to increase the efficiency of the employees. HR department is
concerned with the security, reception, time office, welfare, safety and personnel. HR
department facilitates the smooth functioning of the organization by looking into the
human resource side and also over all administration of the organization.

4.1.1 OBJECTIVES OF HR DEPARTMENT

1. To achieve and maintain good human relationships within the organization.

2. To ensure the satisfaction of needs of individuals for achieving their maximum
contribution towards organization goals.
3. To select right person for the job.
4. To evaluate the performance of employees.
5. To handle the grievances of the employees.
6. To arrange training and carrier development programs.
7. To provide welfare facilities to the employees.

CHART NO 4.2: STRUCTURE OF HR DEPARTMENT

GROUP
MANAGER
HR

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE

SECURITY HR WELFARE SAFETY RECEPTION PERSONNEL

TIME OFFICE
EXECUTIVE

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 HR department is divided into various sections such as security, reception,
welfare, safety, Human Resource, personnel and time office under a group manager.

4.2.2 FUNCTIONS OF HR DEPARTMENT

1. Recruitment
2. Selection
3. Training
4. Time Office
5. Industrial Relations
6. Reception
7. Promotion
8. Transfer
9. Safety
10. Security
11. Welfare
12. Performance appraisal

RECRUITMENT

Recruitment is the development and maintenance of adequate

manpower resources. It is the process of searching for prospective employees and
stimulating them to apply for the jobs in the company.

Apollo Tyres Ltd is using the external source of recruitment which is

through advertisement and campus interviews. They give more consideration to the
children of the present workers. This increases the loyalty of the employees and their
family towards the company.

SELECTION
The selection process is done in the companies to choose right type of
candidates to handle various positions. After recruiting, the employees are selected using
different procedures by the company. Technical staffs are selected from engineering
candidates and posted them as graduate engineer trainees. Non –Technical staffs are

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selected from CA, ICWA, MSW, MBA, or MA and posted as executive trainees. After
training they are absorbed as officers but minimum qualilfication is SSLC. Their training
period is three years in production.

In selection process, company considers the consistency in academic

performance of the candidate. Also there will be a group discussion and after that, eligible
candidates are selected to the next round which is personal interview. After personal
interview, selected candidates should attend the test. After the test, the medical officer
ensures candidate‟s physical fitness.

The employee strength of Apollo Tyres is as follows

Management Staff 140

General Staff 108
Workman 797
Contract Employees 259
Grand Total 1304

TRAINING

Training is the process to modify attitude, knowledge, skill or behaviour

through learning experience to achieve effective performance in an activity or range of
activities.

Apollo provides training for both managers and workers. Training

program for managers consists of both internal and external program. The workers
undergo internal training programs conducted by experts. External training is done by
professional training centers. The workers have internal training programs which are
mainly concerned with systems, technical aspects, work culture and specialization
training for trade unions. It also includes safety awareness training, need identification,
annual training plan etc. Training for management staff is mainly concerned with
conceptual, functional, cross-functional and behavioural training. There are on the job
training and off the job training for the workers. Several seminars are being conducted for
safety awareness and for making motivation among the workers. The person joining fresh
in organization are inducted through introduction training.

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 A separate register is kept for recording the training activity the employee
has undergone. The human resource department selects candidates for training based on
the advice of department heads. For this, performance appraisal reports are considered.
Sometimes random selection of the candidates for training is also done.

TIME OFFICE

The department is concerned with registering the time in and time out of the
workers. Time office registers the time in and out of the workers by punching system.
Other related activities are payment of wages, incentives, arranging for leaves etc. A
separate register is kept for different shifts. A leave record is maintained and it contains
leave balance, leave credited and leave awaited. The daily attendance report is verified by
the supervisor, shift in charge and shift superintendent. It provides information to pay roll
section which uses it for the wage calculation.

WORKING HOURS

General Shift 9 am to 5 pm

A Shift 7 am to 3 pm

B Shift 3 pm to 11pm

C Shift 11 pm to 7 am

Saturdays 9 am to 1pm

INDUSTRIAL RELATIONS

Industrial relations deal with the nature of relationship between the

employer and the employee in an organization. Industrial Relations in Apollo Tyres Ltd
are good. Problems can be solved jointly by the employees and the management through
meetings. Social gatherings such as factory day and other seasonal celebrations are
conducted and employees are encouraged to participate in it. There is proper
understanding existed among the union members and management. Management arranges
meetings with unions before going to take important decisions regarding work
improvements.

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TRADE UNIONS

Trade unions are associations of employees designed primarily to maintain or

improve the work conditions of its members. The aims of trade unions are to protect and
promote interest of workers. Presently there are three recognized trade unions functioning
in Kalamassery Plant. The President will be an outsider in each union. The recognized
trade unions are:

1. Premier Tyres Employees Union (PTEU)

2. Premier Tyres Workers Association (PTWA)

3. Premier Tyres Workers Union (PTWU)

RECEPTION

This section is concerned with attending telephone calls, directing visitors

to the designated positions or departments, connecting calls to various departments etc.

PROMOTION

Promotion refers to changes in which the pay, status and privileges of

new post are higher when compared with the old. According to Pigors and Myers,
Promotion is to the advancement of an employee to a better job-better in terms of greater
responsibilities, more prestige or status, greater skill, and especially increased rate of pay
or salary.

Promotion in the ATL is offered on the basis of performance and

experience. Both factors are considered in taking decisions regarding promotion.
Performance appraisal reports are also considered in promotions. First appointment is in
executive type one officer. Every officer has to work at least three years in a post. Above
associate manager‟s posts, decisions are taken in corporate office.

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MANAGEMENT HIERARCHY

 Executive Type 1

 Executive Type 2

 Executive Type 3

 Associate Manager

 Manager

 Group Manager

 Divisional Head

 Plant Head

 Chief

 Chief Executive Officer\ Joint Managing Director

 Chairman\managing Director

TRANSFER

A transfer involves the shifting of an employee from one job to another without
special reference to changing responsibilities or compensation.

In ATL transfer is given upon request of employees for their convenience and
also for those who have completed four years of performing a particular job in a section.

PERFORMANCE APPRAISSAL

Performance appraisal is the method used to measure the employee‟s

performance in a particular job. HR department conducts performance appraisal through
employee development review (EDR). The EDR cycle is from April 1st to March 31st of
each financial year. The appraisal has to be rated on a 4-point scale.

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 1. Outstanding

2. Good

3. Average

4. Below average

The EDR recommendations will be effective from April 1st of the new financial year.

WELFARE

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

encourage cultural and social welfare activities among the members. Welfare activities
are of two types namely,

1. Statutory

2. Non-Statutory or settlement grievances.

Welfare section is concerned with welfare of all employees, namely-uniform,

medical, ATM facility, education recreation and ESI. A small vital role attached to HR
department is the medical selection and its function includes pre-employment medical
checkup. The organization runs a subsidized canteen on contract basis. An excellent
transportation facility is given to all the employees for a less amount.

Statutory activities are employee provident fund and family pension scheme,
employee state insurance and gratuity.

Non-Statutory welfare schemes are Group Mediclaim Insurance, Group

Personal Accident Insurance, Two Wheeler and Car Loan Interest Subsidy, Housing loan
interest subsidy, Productivity linked bonus scheme and Periodical medical checkup.

SECURITY

The security division of ATL is very well managed. It controls the movement of both
material and men into the organization. To facilitate security measures, single point entry
is adopted to control visitors and material. For materials separate gate pass are issued.

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They looks into the arrivals and departure of employees, punching, control of out pass
and movement pass for workers, visitors pass etc.

SAFETY

Safety section facilitates safe work environment to the employees. The

organization follows all the provisions under the Factories Act, 1948. The plant is well
equipped with safety machines and directions as given by the same. Exhibiting safety
posters and slogans inside the plant is a good example of organization‟s concern towards
the safety of the employees.

Fire extinguishers are placed at reachable points and employees are well
trained to use if found necessary. Those who work in the production department are given
masks, safety gowns and shoes. Safety book is given to each employee, that prescribes
certain rules and procedures in order to create accident free work environment.

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4.3 PRODUCTION DEPARTMENT

Production is the process by which, raw materials and other inputs are
converted into finished products. Production system receives inputs in the form of
materials, personnel, capitals, utilities and information. Production management refers to
the application of planning, organizing, directing and controlling the production process.

There are three production divisions under the production department.

There is a manager who controls all the divisions and under him there is a manager for
each production division. Production department are responsible for the timely production
of tyres as per production planning. Production department is responsible to maintain
production and its efficiency. Production department should meet the production target in
every shift. They should ensure that target production is achieved in each division.

4.3.1 OBJECTIVE OF PRODUCTION DEPARTMENT:

1 Achieving the production targets and productivity.

2. Maintaining the desired quality.

3. Maintain records regarding plant parameters.

4. Coordinate with concerned departments to implement the suggestions for

improvement.

5. Ensure safe work practices

6. Ensure optimum manpower allocation as per the schedule

7. Ensure that production is achieved in minimum of scrap and initiate

activities to reduce same.

8. To increase productivity.

4.3.2 FUNCTIONS

1. Improving volume of production.

2. Minimizing the scrap.

3. Maintaining delivery schedule.

4. Controlling idle machine and manpower hours.

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 5. Eliminating accidents.

6. Updating processes and procedures.

7. Co-ordinate with other department personnel in the shift on the machine

breakdown and take necessary corrective actions.

8. Ensure optimum manpower allocation as per the schedule

CHART NO 4.3: STRUCTURE OF PRODUCTION DEPARTMENT

MANAGER
PRODUCTION

ASSOCIATE SHIFT ASSOCIATE MANAGER

MANAGER SUPERINDENTS MANAGER (DIV 3)
(DIV 1) (DIV 2)

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE

(DIV 1) (DIV 2) (DIV 2) (DIV 3)
STOCK TYRE BUILDING TYRE CURING
PREPARATION

Under Plant coordinator comes the divisional head of production

department. There are three production divisions under the production department. There
is a manager who controls all the divisions and under him there is an associate manager
for each production division. They should ensure that target production is achieved in
each division. Shift Superintend is responsible for planning and scheduling of shifts
across the plant. Each divisions under associate manager comes the executives.
DIVISION 1
In division one, assigning the jobs are compound mixing, fabrics, dipping,
Extrusion and calendaring. These divisions have two executives. One handling the
dipping unit and other handles the other jobs in that division.

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DIVISION 2
In division two, works are stock preparation, head preparation, tyre building.
The division has two sections. One in stock preparation and other is tyre building. Each
section has an executive.
DIVISION 3

Division-3 is the final preparation of tyre. This division jobs are curing and
final finish. This division has an executive in tyre curing.

SHIFT SUPRENDENT

Shift Superintend is responsible for planning and scheduling of shifts across

the plant with available manpower to ensure that target production is achieved with
respect to the concerned division. He coordinates material flow between production
centers.

4.3.3 PLANT LOCATION

Plant location may be understood as the function of determining

where the plant should be located for maximum operating economy and effectiveness. A
selection on pure economic considerations will ensure an easy and regular supply of raw
materials, labour force, efficient plant layout, proper utilization of production capacity
and reduced cost of production.

Apollo Tyres Ltd is located at Kalamassery industrial area near

Cochin. This plant is conveniently located near to major raw materials trading centers like
Kottayam, Idukki, and Ernakulam.

Total Land Area: 117908 Sq M.

Plant Area: 38595 Sq M

4.3.4 PLANT LAYOUT

A plant layout is a floor plan for determining and arranging the desired
machinery and equipment of a plant, whether established or contemplated, in the one best
place to permit the quickest flow of materials at the lowest cost and with the least amount
of handling in processing the product from the receipt of the raw materials to the
shipment of the finished products.

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 The type of plant layout adopted in Apollo Tyres Ltd is process layout.
The process layout involves a grouping together of like machines based upon their
operational characteristics. A quantity of raw materials is issued to a machine, which
performs the first operation Machineries are arranged in such a manner that the
production process is easily carried out with little waste of time, labour, materials and
other resources. In the plant, raw materials are carried out into the machineries and it is
processed by compound mixing, fabric dipping, calendaring, ply cutting bead preparation,
curing and inspection transporting those depending upon the orders received.

Production per day

Truck tyres 1150

Tractor tyres 275

Light commercial vehicle 450

Passenger 480

4.3.5 PRODUCTION PROCESS

The pneumatic tyres are a high performance composite product. The raw-material, used
for its manufacture is rubber, nylon, steel, chemicals and additives. The process of tyre
manufacturing is the art of processing the above materials and assembling the various
components into final product.

Various raw materials are used in manufacturing of tyre are as follows:-

 Polymers-natural and synthetic rubber.

 Fillers-carbon black, reinforcing clay.

 Process oil

 Curing agents-sulfur.

 Zinc oxide

 Anti oxidants

 Retarders.

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  Fabrics-nylon cord, rayon cord.

 Bead wire spools.

 Solvent for cements and solutions.

 Miscellaneous items paints, colors etc

4.3.6 MANUFACTURING PROCESS at Apollo Tyres is as follows:

1. COMPOUND MIXING

Mixing the additive into rubber makes compound. This mixing is done in
the chamber of the Ban bury mixed under high shear and pressure using the rotors of the
machine, so that the ingredient are uniformly dispersed inside the rubber matrix. The
rubber compound thus obtained is used for different comments.

2. FABRIC DIPPING

Raw Nylon Fabric, which performs the structural backbone of the tyre, has
very poor, adhesion to the rubber compound and has poor dimensional stability. During
Dipping processes adhesive coating is applied to the surface of the Fabric to improve
adhesion. The fabric is also stretched and hot-set to increase the dimensional stability.

3. EXTRUSION

Extrusion is the process by which the rubber compound is given a definite

continuous shape such as read/sidewall. A thin sheet of rubber compound prepared using
a small 2 roll calendar is applied to the bottom side of the treat. This compound is called
tread cushion. The continuous profile is then cooled, and cut to the required length which
is used in the assembling of tyre at the tyre building stage.

4. CALENDARING

Fabric calendaring is the process of coating both sides of the dipped fabric
using rubber compound. This is accomplished a 4 roll calendar. The coated fabric cooled
and wound in liners to avoid sticking. This goes to the next stage of ply cutting.

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5. PLY CUTTING (Bias Cutting)

A Ply cut from the coated fabric roll prepared by calendaring. This
process of ply cut at definite width and angle and wound in liners. The cut plies are then
go to 3 roll calendars for squeegee application.

6. SQUEEGEE CALENDARING (squeegee application)

It is the process of making thin sheets of rubber compound usually by

using a 3 roll or 4 roll calendars. Squeegees are used at innermost layer of tyre and also in
between the different plies. Drum squeegee is prepared in the 4-roll calendar. It is wound
in lines and squeegees roll are sent to tyre building.

7. BREAD PREPARATION
It consists of three stages

a) Bead winding: -

Here several wires are passed through the head of a bead extruder and coated
with rubber compound. The coated tape so formed is wound into bundles of definite turns
and stands and of definite diameter extruded using a cold feed extruder and applied on the
bead bundle using a filtering machine.

b) Bead filtering: -

Here a triangular shaped continues rubber profile is extruded using a cold feed
extruder and applied on the bead bundle using a filtering machine.

c) Bead flipping: -

The flipper fabric prepared at the bias cutter and stiffer is applied around the
filtered bundles. This is accomplished using a bead flipping machine.

8. TYRE BUILDING

It is the process of assembling the various components mentioned above into a

semi finished product called green tyre.

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9. TYRE CURING

The green tyre is inspected and applied with lubricants on the inner side and a
pre-cure paint on the outside wall area. The green tyre is then shaped and given the final
contour using the appropriate tyre curing moulds by the application of pressure and
temperature. The rubber compound gets vulcanized during curing and becomes tough and
elastic and provided all the desired properties in the tyre.

10. POST CURE INFLATION

Nylon tyres under high pressure inflation help to shape retention and to
reduce growth in service. The process of cooling the tyre under high inflation pressure is
called Post-Curing Inflation.

11. INSPECTION

The tyres after post curve inflation are subjected to vent trimming. The tyres
are then inspected for visual defects. The tyres are also statistically sampled and tested for
conformance to specification and then warehoused.

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4.4 PRODUCTION PLANNING AND CONTROL, INDUSTRIAL
ENGINEERING & SYSTEMS DEPARTMENT

This department has three divisions such as

 Production Planning and control

 Industrial Engineering

 System.

These three divisions are under a Group Manager. They handle three
different works.

CHART NO 4.4:STRUCTURE OF PPC, IE & SYSTEM

DEPARTMENT

GROUP
MANAGER
PPC, IE & SYSTEMS

ASSOCIATE EXECUTIVE ASSOCIATE

MANAGER SYSTEMS MANAGER
PRODUCTION IE
PLANNING

EXECUTIVE EXECUTIVE

4.4.1PRODUCTION PLANNING AND CONTROL

Production Planning and Control involves the organization of an

overall manufacturing system to produce a product. Production Planning and Control
function essentially consist of planning the production in a manufacturing organization
before actual production activities start and exercising control activities to ensure that the

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planned production is realized in terms of quality, quantity, delivery schedule and the cost
of production.

The main function of this department is to ensure optimum

utilization of resources as well as capital locked up in work in progress inventory. The
purpose of this department is to provide a procedure for planning, scheduling and
controlling of production activities. The planning process is done with the help of supply
chain management (SCM). The monthly feedback of the production is given against the
monthly production plan given by the head office.

4.4.2 OBJECTIVES OF PPC

1. To ensure maximum utilization of all resources.

2. To maintain optimum inventory levels.

3. To prepare, revise and ensure scheduling of required mould line up and plan
mould change to meet ticket.

4. To manage or collect the production details of the previous days from all
departments

5. To take physical inventory of compound calendared fabric, side walls.

6. The objective of evaluation is to improve the performance.

4.4.3 FUNCTIONS OF PPC

1. It involves deciding the quantity of products to be produced and cost involved

in it on the basis of forecast.

2. Scheduling: It lays down a time table for production, indicating the total time
required for each part on each machine or equipment.

3. Providing for movement of raw materials from stores to the first operation and
from one operation to the next operation till all the operation are carried out.

4. Manufacturing cost is controlled by wastage reduction, value analysis,

inventory control and efficient utilization of all resources.

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4.4.4 NDUSTRIAL ENGINEERING

Industrial engineering is concerned with the design, improvement, and

installation of integrated system of men, materials and equipment to improve
productivity. It is responsible to strategize, plan and guide optimum utilization of
resources and 5 M‟s (5 M‟s includes man, material, machine, money and moment)
resulting into the maximum production for the organization.

The main function 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.

Maintainability of SAD and capacity calculation comes under this

department. Method study, time study and motion studies are conducted when new norms
are developed or when new systems are implemented. Utilization of machines should be
calculated especially how many machines goes down. There are 2 industrial engineers, 4
officers and 2 apprentices in this section. This department also concerned with setting
norms by discussing with unions. Optimize inventory levels at various stages such as
engineering stores, work in progress and finished goods stores.

OBJECTIVE

1. To optimize the whole activities.

2. To control 5 M‟s.

3. To conduct work-studies in various equipment and fixation of norms.

4. They are also responsible for layout planning.

5. To conduct manpower planning.

6. To take responsibility for fixing and finalizing all work norms

7. To generate MIS on performance delays.

8. To calculate incentives and give advice to payroll section relating to it.

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FUNCTIONS

1. To develop an improved method to increase productivity and to reduce

operating costs.

2. Capacity calculation in various equipment from time to time consequent to

various changes.

3. Design, implementation and follow up of work study technique.

4. Lay out planning in shop floor machine lay out.

5. Studying plant layout and materials handling systems and suggesting for
improvement.

6. Negotiations with unions regarding various issues like incentive schemes,

productivity expansion and labour issues.

7. Suggest various cost reduction programs and implementation.

8. Conduct daily audit on manpower, productivity, lost time, scrap details,

absenteeism, over time etc.

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4.5 SYSTEMS DEPARTMENT

Information is a valuable asset to any organization. Therefore

Management Information Systems (MIS) enjoys much practical significance in the
management of highly complicated business enterprise. MIS is a set of interrelated
components that collect, process, store and distribute information to support decision-
making, coordination and control in an organization.

System department is responsible for implementing and maintaining all

the IT services at the plant. The main function of this department is operation and
coordination of all systems in the organization. Company has a proper and adequate
system of internal controls including computerized information system controls and
security in data, to ensure that all assets are safeguarded and protected against loss from
unauthorized use or disposition and that all transactions are authorized, recorded and
reported directly. The company uses System Administrative Protocol (SAP) system, an IT
enabler across the company to develop an integrated database.

4.5.1 OBJECTIVE

1. Plan and budget the IT requirements viz Apollo Tyres Ltd‟s IT policy.

2. Manage the implementation of hardware and software.

3. Ensure the uptime of the hardware and links.

4. Select IT service providers and co-ordinate with them.

5. Deploy and monitor IT manpower

6. Co-ordinate with head office for the IT requirements.

7. Co-ordinate with user department on daily basis.

8. Ensure proper disaster recovery measures.

4.5.2 FUNCTIONS

1. Installation of the hardware and software.

2. Co-ordinate with WAN support persons on hardware issues.

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3. Develop software and trouble shoot when required.

4. Keep proper data backup.

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4.6 TECHNICAL DEPARTMENT

Technical department is concerned with the implementation of

technology for manufacturing cost effective quality products. Its activities include
development of compound, development of new products and improving engineering
standards. Provide technical support for the production of compounds, treads and other
components.

The technical department plays a very crucial role in the organization.

Technical department deals with implementation of technology aspects in consultation
with corporate technology for manufacturing cost effective and quality products for
meeting customer requirements. Supporting manufacturing functions for achieving
corporate goals and efficiencies is another duty of this department. Technical department
is mainly concerned with improving quality of tyres by methods like reduction in curing
cycles, reducing tyre shape problems etc. The main functions are development of new
design, modification of exiting design and comparing competitor‟s design. It involves
with every aspects of tyre production.

4.6.1 OBJECTIVES

1. Maintaining the quality of the product name.

2. Provide support to the production department of the company.

3. Problem solving in the shop floor of the production department.

4. Improving efficiency of the machine.

5. Development of the products by implementing new techniques.

6. Reducing the cost of production without affecting the quality of product.

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4.6.2 FUNCTIONS

1. Development issue and revision of process specification in areas of mixing,

dipping, calendaring, cement preparation extrusion and stock preparation.

2. Preparation of mould surface stamping details specification.

3. The main function is to find out the needs of market.

4. Processing and curing of new design.

5. Development of compound fabric standard.

6. Troubleshoot the problems arising in the manufacturing process.

7. Issues of :-

 Process standards

 Finished Product Standards.

 Tyre Engineering Standards.

8. To ensure the properties of products during various processes

9. To make appropriate changes in production process and specification if

necessary.

10. Initiate and implement corrective measures

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4.7 QUALITY ASSURANCE DEPARTMENT

Quality is the totality of characteristic of an entity that bears on its

ability to satisfy, stated implied needs. Quality is refereed to as „fitness for use‟ or fitness
for purpose‟ or „customer satisfaction‟ or conformance to requirements‟. QA is the well-
planned and systematic activities implemented within the quality system and
demonstrated as needed to provide adequate confidence that an entity will fulfill
requirements for quality.

Quality Assurance (QA) Department 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
heads of the department are responsible to develop, implement and maintain the quality
system in the plant. The quality assurance department in Apollo checks the components
for production from the receipt of raw materials till the production process is completed
and finished goods are stored. The department also tries to establish and maintain
procedure for inspection and testing equipments as well as the output in each process. In
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. Tyre after
inspection and classification are taken to warehouse.

For international trade transaction ISO Certification has become

inevitable. Apollo Tyres Ltd system and model for Quality Assurance in design,
development, production, installation servicing.

Various quality assurance tests are done to assure the quality of

products, which are

1. Rheostat test

2. Specific gravity test

3. Compound tensile test

4. Viscosity test

5. Cord per test

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4.7.1 OBJECTIVES

1. Ensure the quality of raw materials.

2. To produce effective results for least total cost.

3. Provides better product satisfaction to customers.

4. To reduce the product defective.

4.7.2 FUNCTIONS

1. To check the quality of the raw materials.

2. To assure the quality in every manufacturing process.

3. To maintain the ISO 9001 certification.

4. To check machine readings in properly correct.

5. To ensure the quality of the finished goods.

CHART NO 4.5: STRUCTURE OF QA DEPARTMENT

GROUP
MANAGER
QUALITY
ASSURANCE

ASSOCIATE EXECUTIVE
MANAGER FINISHED EXECUTIVE EXECUTIVE
PRODUCTION PRODUCT STATISTICS LABORATORIES
CONTROL

SHIFT IN
CHARGE

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4.8 ENGINEERING DEPARTMENT

Engineering management requires the ability to shift rapidly from one task to
the next, from one person to another, often in the space of a few minutes. Engineering
development is a precarious business, and many tasks are started which never reach the
market place. Engineering is he science of the use of machines or technology for the
control and use of power.

Maintenance is the primary function of this department. First of all notify the
maintenance and provide guidance for the improvements. Operation of generator is a part
of this department. Preventive maintenance and break dawn maintenance of machines
periodically before any problem exists; they could forecast it and clear it. In break down
maintenance if there any problem if there any problem is found this department should
sent two engineers after recording it. They should clear the problem at the site. There is a
store inside the department for storing engineering stocks. When spares are required they
report to security office and along with security men they should take spares from the
stores.

Engineering department determines the incentives for the workers inside

this department. According to their evaluation report should sent to the pay roll section in
commercial department. Heat allowances and carbon allowances are there for employees
working in the respected areas. Skill factor, working condition and effort factors are the
measures for calculating incentives for the workers in the department. There are about 70
employees in the department while considering all the shifts.

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4.8.1 OBJECTIVES

1. Minimize the power consumption.

2. Planning the activities in mechanical workshops and projects.

3. Implementation of projects and modernization activities.

4. Co-ordinate with production department.

5. Maintain discipline in the shop floor.

6. Plan and execute preventives and predictive maintenance job.

7. Liaise with statutory authorities like Electrical Inspectorate, electricity board, and
factory inspectorate as required.

4.8.2 FUNCTIONS

1. Spares management and preventive planned and breakdown maintenance

activity of all equipments.

2. Operation and maintenance of utility section.

3. Planning the maintenance activities of utility and boiler house

4. Coordinating of energy conservation activities

5. Distribution of electrical power to the entire operation of the plant including

lighting.

6. Maintenance of electrical system.

7. Inspection of all incoming, materials in the engineering stores and preparation

of various drawings.

8. Timely execution of projects, plant expansion jobs and all civil works inside
the Plant.

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CHART NO 4. 6: STRUCTURE OF ENGINEERING DEPARTMENT

GROUP
MANAGER
ENGINEERING

MANAGER MANAGER
MECHANICAL ELECTRICAL AND
ENGINEERING ELECTRONICS

MANAGER EXECUTIVE EXECUTIVE EXECUTIVE

CIVIL & PROJECTS INSPECTION & ELECTRICAL INSTRUMENTATIO
DRAFTING N & CALIBRATION

MANAGER EXECUTIVE
(DIV 2) (DIV 3)

ASSOCIATE ASSOCIATE
MANAGER MANAGER
(DIV 1) BOILER & UTILITY

EXECUTIVE
MAINTENANCE

- 44 -
 There is a Group manager for the technical department. Under him
there is a manager for mechanical engineering and manager for electrical and electronics.
There are executives for each process in production to provide technical assistance. They
provide technical support for computing, fabrics, extrusion and stock preparation,
drawing and inspection, bags & design and non-trucks. Heat engineering and trucks
sections heads are associate managers. Two divisions have in shift in charge officers.

MECHANICAL ENGINEERING

It‟s responsible for execute timely predictive, preventive and breakdown maintenance
jobs of the plant to ensure optimum uptime of machines.

ELECTRICAL AND ELECTRONICS

It‟s primarily responsible to engineer the distribution of electrical power to entire

operation of the plant including lighting and to comply with all the statutory requirements
of the State Electricity Board.

- 45 -
 CHAPTER:5

PRODUCT PROFILE

The company manufactures and sells a range of tyres (both bias and radial), tubes, and

flaps. The major products of the company are truck and bus tyres, tractor and trailer tyres.

Besides these the company also produces passenger tyres, light commercial vehicle

(LCV) tyres, animal driven vehicles (ADV) tyres etc.

5.1 PRODUCT RANGE

It is of two types, Domestic Product Range and Export Product Range.

DOMESTIC PRODUCT RANGE

1) TRUCK AND BUS: AMAR, AMAR EXPRESS, AMAR PREMIUM,
HERCULES, XT-7, XT-9
2) TRACTOR: KRISHAK, KRISHAK SUPER, POWER HAUL, SARPANCH
3) LCV: AMAR, AMAR GOLD, MILESTAR, LOADSTAR, DHRUV, ANCHOR,
CHAMPION, DURAMILE
4) JEEP: HUNTER, TROOPER, PANTHER
5) PASSENGER CAR: ARMOUR, STORM, GRIPPER
6) RADIALS: RAXER, AMAZER X,AMAZER XL, STORM
7) ADV: KISAN ADV PLUS, BHIM

EXPORT PRODUCT RANGE

1) TRUCK: AMAR SUPREME, CARGOMILES, EXPRESS XR, VAN GUARD,

HERCULES

2) GIANT TRUCK: CARGO PLUS XR, HAVLUY

3) LCV: CARGO RIB, AMAR

4) LOW PLATFORM TYRES: CARGO MILES

- 46 -
 CHAPTER: 6

ORGANIZATIONAL STRUCTURE & DESIGN

6.0 ORGANIZATIONAL STRUCTURE

Once the decision has been made to begin a retail venture, it is necessary to plan
its organizational structure in a way that maximizes efficiency and profitability. All of the
duties and responsibilities of those in the company must be identified, and lines of
authority must be carefully delineated so that all members of the organization will
understand what their job responsibilities are. By doing so, everyone knows who will
report to whom, who the decision makers are, and which advisory personnel are on hand
to assist in the decision-making process. No matter how large or small the operation,
whether it is a major department store or single-unit boutique, each company must be
structured in such a way that best serves its needs and makes the business a success
Organizational structure is the hierarchical arrangement of lines of authority,
communications, rights and duties of an organization. Organizational structure
determines how the roles, power and responsibilities are assigned, controlled, and
coordinated, and how information flows between the different levels of management.
A structure depends on the organization's objectives and strategy. In a centralized
structure, the top layer of management has most of the decision making power and has
tight control over departments and divisions. In a decentralized structure, the decision
making power is distributed and the departments and divisions may have different
degrees of independence. A company such as Proctor & Gamble that sells multiple
products may organize their structure so that groups are divided according to each
product and depending on geographical area as well. An organizational chart illustrates
the organizational structure.

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 VISION

“A leader in the Indian tyre industry and a significant global player, providing
customer delight and enhancing shareholder value”.

CORE VALUES

C --- Care for customers

R --- Respect for associates

E --- Excellence through teamwork

A --- Always learning

T --- Trust mutually

E --- Ethical practices

STRATEGIC GOALS

 Employee satisfaction
 Customer delight
 Revenue growth
 Operating margin improvement

- 48 -
 CHART NO 6.1: ORGANISATIONAL CHART

CHAIRMAN AND MANAGING

DIRECTOR

CHIEF OPERATING
OFFICER & JOINT
MANAGING DIRECTOR

CHIEF CHIEF CHIEF CHIEF CHIEF CHIEF

HUMAN RESEARCH MANUFAC MARKETING CORPORA CORPORA
RESOURCE AND TURING TE TE
TECHNOLO PROJECTS AFFAIRS AFFAIRS
GY

HEAD
KERALA HEAD HEAD
FACTORIES BARODA PUNE

APOLLO TYRES APOLLO TYRES

KALAMASSERY PERAMBRA

Apollo Tyres is headed by the Chairman and Managing Director assisted

by the Joint Managing Director, Chief of various departments. All these top officials are

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deputed at the corporate office of the company. Under the manufacturing chief comes the
Head of plants. The Head, Kerala factories, controls the plants at Perambra and
Kalamassery.

CHART NO 6.2 : ORGANISATION CHART OF APOLLO TYRES

KALAMASSERY

CORDINATOR-
KALAMASSERY PLANT

DIVISIONAL DIVISIONAL DIVISIONAL

HEAD- HEAD- HEAD-
PRODUCTION TECHNICAL COMMERCIAL

GROUP GROUP
GROUP GROUP
MANAGER- MANAGER-
MANAGER- MANAGER-
QUALITY PPC, IE &
ENGINEERING
HRM ASSURANCE SYSTEMS

The plant at Kalamassery is headed by the Head-Kerala factories, which is

common for the plants at Perambra and Kalamassery. Under him comes the co-ordinator
of the plant; under him comes the different heads.

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 CHAPTER: 7

SWOC ANALYSIS

7.1 STRENGTHS
 Market leadership in the dominant industry segments like truck and bus tyres.

 Dynamic and progressive leadership.

 Responsive to changes in market condition and product profile.

 Leadership position being maintained through focused marketing strategies

 Product innovation and technical superiority.

 Joint venture for truck and bus radial tyres with Michelin.

 Superior product quality

 Strong brand equity.

 Largest distribution network.

 Quick responsive to market needs.

 High consumer and brand recall in a sensitive market.

 Significant utilization of IT practices and systems.

 Good relationship between employees and employers.

 Goodwill of the organization.

 Economy of transportation cost on account of closeness to natural rubber growing

places.

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7.2 WEAKNESSES

 No presence in two and three wheeler market.

 Share in passenger car segment is low.

 Advertisements are less.

 No significant presence in global tyre market.

 Low presence in radial market.

7.3 OPPORTUNITIES

 Continuous thrust in road infrastructure and construction of expressways, national

and state highways, and improvement of network of rural roads across country.

 High growth prospects in commercial vehicle radicalization.

 Leadership position in the commercial vehicle segment will enable the company

to leverage new and related business opportunities.

 In the new economic scenario, imports will be cheaper enabling access to global

sources for raw materials.

 High growth in vehicle production in the immediate future.

 Estimated 12% growth in annual demand.

 Steady GDP growth of economy envisaged in the next few years.

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7.4 THREATS

 An increase in the flow of tyres from cheaper and competitive sources like

China.

 Higher transaction costs.

 Rising cost of raw materials.

 Price of natural rubber which accounts for nearly one third of total raw

material cost has witnessed unexpected and unprecedented increase and the

trend is likely to continue.

 Integration with the global economy will necessitate lowering of import tariffs

not only for raw materials, but finished products like tyres, as well.

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 CHAPTER: 8

FINDINGS, SUGGESTION&
CONCLUSION

8.1 FINDINGS

 The company has a good organization structure.

 Employee‟s compensation packages are attractive.
 The customers are fully satisfied with company‟s products.
 Trade unions play a vital role as bargaining agents.
 The management is sometimes forced to accept unreasonable demands made by
the unions.
 Workers, for the fear of loss of jobs resist modernization of plant.
 The company faces the problems of outside competitors like China.
 The products of the company are known for its high quality standards.
 Industrials relations with local unions are fairly good and there is greater co
operation between management and employees.
 Workers‟ health and safety are given prior importance.
 A good coordination exists between different departments.

8.2 SUGGESTIONS

 Company should try to increase its market share in the radial tyre segment.
 Company should enter in to two or three wheeler tyre market.
 The relationship between management and employees should be improved.
 A bit more promotional activities could enhance building brand image.

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SEGMENT WISE PERFRMANCE

Apollo has shown a record performance as reflected by the growth figures

such as:

Truck and bus tyres 8%

Passenger car radial 82%

Light commercial vehicle tyres 17%

Agricultural usage vehicles 48%

RISKS AND CONCERNS

Raw material prices are continued to rise in the future also. Thus further

affects operating margins of tyre companies.

Value Added Tax (VAT) was introduced on April 1st 2005. problems related

to that are:

1) Some states will charge entry tax.

2) Import and uncertainty on inter-state trading where neighboring state has

not implemented VAT.

3) Non uniformity of tax rates.

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8.3 CONCLUSION
Tyre industry is steadily expanding every year. Apollo tyres Ltd is one of

the leading tyre companies in India. It stands first in the production of truck tyres. The

company is now making sufficient profits. The wage system prevails in Apollo is very

good. And there is better working conditions and industrial harmony among employees.

Proper and adequate training is given to the employee which leads to higher productivity.

The industrial relations with local unions are fairly good and there is greater cooperation

between the management and employees. The company is facing a cut throat competition

from Indian market and also from foreign market.

At Apollo tyres, they are always on a look out for newer opportunities.

If it does not come in their way, they go ahead and create some opportunities. Over the

years, they have created opportunities for growth, opportunities for success and also

opportunities for a brighter future.

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BIBLIOGRAPHY

1) VERVE- Quarterly magazine of Apollo Tyres Ltd.

2) Job description files

3) Annual reports of Apollo Tyres Ltd.

4) Standing orders of Apollo Tyres Ltd

5) Abdul Assiss Koroth, “Management information Systems”

6) Khanna O.P. “Industrial Engineering and Management”

7) www.apollotyres.com

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