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REPORT OF THE ORGANIZATION STUDY AT
APOLLO TYRES LIMITED, KALAMASSERY
Submitted by
VISWANATH. V
2009-2011
Submitted in partial fulfillment of the requirements
for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Of the Mahatma Gandhi University, Kottayam
June 2010
DC SCHOOL OF MANAGEMENT AND TECHNOLOGY
PULLIKKANAM, IDUKKI
(Affiliated to Mahatma Gandhi University, Kottayam)
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DECLARATION
I, VISWANATH V hereby declare that this is a record of the Project titled “A report of
Organization Study conducted at APOLLO TYRES LIMITED,KALAMASSERY is a record of
my work done in partial fulfilment of the MBA programme of Mahatma Gandhi University under the
guidance of Mr. ABI C SIMON, ASSOCIATE MANAGER-SAFETY of Apollo Tyres Ltd. and
Mrs. Ranjini Unnithan faculty, DC SCHOOL OF MANAGEMENT AND TECHNOLOGY and
that this report has not formed the basis the award of any degree/diploma or other similar title to any
candidate of any other University.
VISWANATH V
2009-2011
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ACKNOWLEDGEMENT
I would like to take this opportunity to express my sincere gratitude to all those who have
helped me throughout this organisational internship study. It gives me immense pleasure to
acknowledge all those who have rendered encouragement and support for the successful completion
of this work.
, ASSOCIATE MANAGER-SAFETY, APOLLO TYRES LIMITED, for their constant
encouragement and support during the entire project work.
I also extend my sincere gratitude to Mrs.RANJINI UNNITHAN, faculty,DC SCHOOL OF
MANAGEMENT AND TECHNOLOGY, Pullikkanam whose advice and guidance helped me in
the successful completion of this study.
VISWANATH V
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Contents
INTRODUCTION.....................................................................................................................................1
INDIAN TYRE INDUSTRY – A PROFILE.....................................................................................................1
Ranking of Indian tyre companies on the basis of production...........................................................1
COMPANY PROFILE................................................................................................................................2
BRIEF HISTORY OF PREMIER TYRES........................................................................................................3
About premier unit............................................................................................................................4
HISTORY OF APOLLO TYRES...................................................................................................................5
PHASES OF DEVELOPMENT................................................................................................................6
COMPANY AT A GLANCE..................................................................................................................10
PRODUCT PROFILE...............................................................................................................................12
ORGANISATION CHART........................................................................................................................14
PRODUCTION DEPRTMENT..............................................................................................................16
SYSTEMS DEPARTMENT...................................................................................................................23
QUALITY ASSURANCE DEPARTMENT...............................................................................................23
TECHNICAL DEPARTMENT...............................................................................................................24
ENGINEERING DEPARTMENT...........................................................................................................26
HUMAN RESOURCE AND ADMINISTRATIVE DEPARTMENT.............................................................27
COMMERCIAL DEPARTMENT...........................................................................................................37
SWOT ANALYSIS...................................................................................................................................48
OBSERVATIONS....................................................................................................................................51
SUGGESTIONS......................................................................................................................................51
CONCLUSION.......................................................................................................................................52
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INTRODUCTION
Organization has gained momentum over the past few decades as the inevitable source to sustain business activities. An organization is a power house of resources through which manufacturing and production activities are effectively carried out.The established Indian owned enterprises has been steadily increasing their capacity and widening their range of products for every organization. There is a hidden asset.An asset that has the power to execute, the vision to excel and the spirit of limit-less energy.It is a force that is unstoppable; it is the force of capital.
Today india is in the midst of rapid economic growth.The government’s continued emphasis on building infrastructure has given a tremendous fillip to the development of road infrastructure and transport. Obviously, the number of vehicles on road have a marked increase.As a direct fallout of this scenario the tyre industry has had the good fortune of receiving increased orders from original equipment manufacturers (OEM) and replacement markets alike
INDIAN TYRE INDUSTRY – A PROFILE
The Indian tyre industry is about 25,000 crore and is growing at a compounded annual growth rate (CAGR) of 6-8 per cent.In terms of volume, about 1.2 million commercial tyres and 1.5 million passenger vehicle tyres are manufactured annually.The industry is ominated by 4 players-MRF, APOLLO, J.K and CEAT. Salient features of Indian tyre industry include:
Adaptability and Absorption Exports Innovations Indigenous and ready availability Technology Progression Wide product range for diverse use Self- sufficiency and vibrant marketing setup
Ranking of Indian tyre companies on the basis of production
1. MRF Tyres Limited2. Apollo Tyres Limited3. JK Tyres Limited4. CEAT Tyres Limited5. Birla Tyres Limited
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6. Good Year India Limited7. Vikrant Tyres Limited
Indian tyre manufacturing companies are re-engineering their business and looking at strategic tie-ups worldwide. The future is expected to see many strategic alliances among the domestic and global players. They include the OEM segment with vehicle manufacturers looking for fresh tie-ups or strengthening of existing partnerships. The tyre industry has evolved from the more basic cross ply products to the more sophisticated radial tyres. Radial tyres have shown significant increase in usage every year. Most of the automobile segments have shifted to radial tyres and the usage of cross-ply is restricted to trucks and buses only.
COMPANY PROFILE
Apollo Tyres Ltd is a high-performance company and the leading Indian tyre manufacturer. Head quartered in Gurgaon, a corporate-hub in the National Capital Region of India, Apollo is a young, ambitious and dynamic organization, which takes pride in its unique identity. Registered as a company in 1976, Apollo is built around the core principles of creating stakeholder value through reliability in its products.
Apollo’s present strength and market dynamism steps from its early years of strife in establishing itself as a tyre manufacturer within the closed Indian economy. Over two decades, Apollo worked on a portfolio of products, tuned to customer needs and an array of innovative marketing initiatives to establish itself as a leader in its home market. Some of these include segmenting customers by their load and mileage requirements, running tyre loyalty programmes and establishing customer contact programmes.
For the first time, in 2006 Apollo ventured outside India in its quest to test itself outside its home comforts. Apollo acquired Dunlop Tyres International Pty Ltd in South Africa (since renamed as Apollo Tyres South Africa Pty Ltd) and Zimbabwe, taking on southern Africa as the second domestic market. The company holds brand rights for the Dunlop brand across 30 African countries. In 2009, Apollo acquired Vredestein Banden B V in the Netherlands, and thereby adding Europe as its third crucial market.
The company currently produces the entire range of automotive tyres for ultra and high speed passenger cars, truck and bus, farm, Off-The-Road, industrial and specialty applications like mining, retreaded tyres and retreading material. These are produced across Apollo’s eight manufacturing locations in India, Netherlands and Southern Africa. A ninth facility is currently under construction in southern India, and is expected to commence production towards the end of 2009. The major brands produced across these locations are: Apollo, Dunlop, Kaizen, Maloya, Regal and Vredestein.
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In the three domestic markets of India, Southern Africa and Europe, Apollo operates through a network of branded, exclusive or multi-product outlets. In South Africa the branded outlets
are called Dunlop Zones, while in India they are variously named Apollo Tyre World (for commercial vehicles) and Apollo Radial World (for passenger cars). Exports out of these three key manufacturing locations reach over 70 destinations across the world, with key comprising Europe, Africa, the Middle East and South-East Asia.
For Apollo Tyres, offering the right product to the right customer is essential. Special efforts are made to understand customer needs and segment the market accordingly. After which, products are developed for niche applications within a larger category to enable the company to provide efficient, fuel and cost-saving products to each customer segment. Innovation has always been an integral part of the Apollo way of doing business, this applies as much to product development and marketing as to how the company as a whole is focused on challenging existing boundaries.
BRIEF HISTORY OF PREMIER TYRES
The premier tyre were incorporated in 19th October 1959.the foundation stone was laid by none other than Jawaharlal Nehru, the prime minister of India, on 18th January 1960.the company was established in collaboration with the Uni Royal Inc.USA. The company started its commercial production in may 1962 with production capacity of 30 million tonne per day. the company was owned by the Desai Group, Mumbai. This is the first tyre company owned by the Indian. During the seventies and eighties company was running in a huge profit. The main reason for this lack of competition .the tyre named “Lug Master” was a gigantic success in the market .the tyre whose market prise was about rs.4500 was available in the black market for rs.8000.
But gradually the profit of the company decline. More and more players entered in the market. The competition became intense. The profit of the company gradually decline and by the year 1987.the Company was in loss. In the year1987, a board called the “Cozy Judicial Board” was formed. This is the board for “Industrial Finance and Reconstruction”. This was called in because the premier tyres became the sick unit. The purpose of this board is to revive the sicks units. The conditions for the revival of the sick units are framed by the board. The company is considered sick if below two conditions are satisfies:
Existence of the company should be for more than 7 years
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Continuous cash loss for 3 years and the Net worth of the company are negative.
The stake holders are affected when the company goes sick. In 1987 this company was referred to the board. The board studied conditions of the company. Based on
the study the board will prepare the plan. It pumped in the funds, sourced finance, etc. but there was nothing positive and still the company was under the loss.
The government of Kerala requested Apollo tyres to take over the unit and bring it back to form. In 1995 the premier tyres was taken over by the Apollo tyres. At that time the share capital of premier tyres was 3.25 crores. Apollo tyres introduced another 10 crores. Then became Apollo subsidiaries .this premier tyre is there after known as PTL enterprises.nearly76%of the shares were held by the Apollo tyres. After the taken over in 1995, Apollo tyres 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 was increased from 35tonnes to 80tonnes (daily production) many measures were taken to increase the production and reduce the cost of production.
According to the agreement of lease, the goods produced with the machines of premier tyres will be brought in to the market and sold only in the name of Apollo tyres. The raw materials will be Apollo tyres and the PTL will produce all the tyres and another product and then Apollo will market all the products there by manufactured in the name of Apollo tyres.
The Premier tyres had a debt of 42 crores taken as loan from the outsiders and other financiers. Apollo tyres settled all the loans by 1998 and now the company is going on in a profit. This is a case in India, where a sick unit is bought to shape within five years time.
About premier unit
Taken over by Apollo tyres in april 1995
Location : Kalamassery, cochin
Year of establishment : 1962
Land area : 117908sq.m
Plant area : 38595sq.m
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Power requirement : 6000 KW/day
Installed capacity : 60MT
Production : 86tone/day
Employee strength
Management staff : 140
General staff : 108
Workmen : 797
Trainees : 259
Total : 1304
HISTORY OF APOLLO TYRES
Apollo Tyres Ltd. (ATL) was incorporated in 28th September, 1972 as a Public Limited Company and obtained certificate of Commencement of Business on October 24, 1972. The Company was promoted by Bharat Steel Tubes Ltd., Raunaq International Pvt. Ltd., Raunaq & Co. Pvt. Ltd., Raunaq Singh, Mathew T. Marattukalam 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 research and development of Apollo tyres took place at Perambra and later it had grown to a substantial height and stature at its present location at Limda, Baroda.All the activities in the R&D center are extensively supported by a series of highly sophisticated equipment that help the research scientists develop products as per customer’s specific requirements. The centers have the facilities and expertise for the following:
Development of compounds for improved performance
Raw material development
Analytical Research
Reverse Engineering
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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 second plant commissioned in Baroda, Gujarat.
1995. Aquired Premier tyres in kerala.
2000. Exclusive radial capacity established in Baroda.
2003. Radial capacity expanded to 6600 tyres per day.
2004. Launch of Apollo Accelere H speed rated car radials.
2005. Peramra plant completes thirty years.
2006. Dunlop South Africa and Zimbabwe was acquired.
2006. Expansion of passenger car radial capacity to 100000 tyres per day.
2006. Launch of India’s first range of ultra-high performance V and W-speed rated tyres.
2006. Opening of Apollo Tyres health care clinic in Ukadam,Tamil Nadu.
2006. Launch of Dura tead, trading material and solutions.
2007. Launch of Apollo truck and bus radial tyres.
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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. Aquired VREDESTEIN BANDEN B V in the Netherlands.
CORE VALUES OF THE COMPANY
C - CARE FOR CUSTOMER
R - RESPECT FOR ASSOCIATES
E- EXCELLENCE OF TEAM WORK
A- ALWAYS LEARNING
T-TRUST MUTUALLY
E-ETHICAL PRACTICES
VISION
“A significant player in the global tyre industry and a brand of choice, providing customer delight and continuously enhancing stakeholder value”
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COMPANY MISSION
A journey called “Passion in Motion” to be a US$ 2 billion company by the year 2010-11.
QUALITY POLICY
Apollo tyre limited follows strict quality control measurement to enhance customer quality control measurement to enhance customer delight .Apollo tyres limited gives much emphasis to retain the quality of the products. The company’s quality policy is concentrates in each state of the tyre manufacturing process and on all the activities related to production.
CORPORATE GOALS
Creating Social Responsibility Learning and Development Family Focus Hygienic Factors Employee Involvement & Cultural Building
The three pillars of our company:
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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 product bases technology but also to incorporate technologies in all our walk of life.
MAJOR ACHIEVMENTS
Corporate highlights: -
The acquisition of Dunlop Tyres International in South Africa, making Apollo the
first Indian tyre manufacturer to have a global footprint
A 12% growth in overall production
A double digit growth of 18% over the course of the year, compared to the
industry average of over 11%, in segments Apollo is present
A growth of over 36% in sales of passenger car tyres – the highest in the industry
A growth of over 11% in sales of jeep tyres, where the industry has witnessed a
negative rate of growth
Activation of Apollo Mobile, an sms-based dealer and sales force, stock and credit
facility allowing them instant data updates at all times9
Development of dual-bead light truck tyres to increase safety even under high
loads
Partnerships with Reliance Petroleum, ONGC (Oval) and Tata Motors to market
the Apollo’s commercial vehicle tyre range
The launch of Acelere Wheelz, high quality alloy wheels to complement
passenger car tyres.
FUTURE FOCUS
A formidable distribution network, strong brand equity and the ever increasing demand for its products have encouraged Apollo tyres Ltd to plan a new manufacturing unit with 100 tons per day capacity for manufacturing cross ply radial tyres involving a capacity outlay of Rs.450 crores. The new facility would focus on creation of captures for manufacturing track and bus radial tyres to meet the merging demand for radial tyres in the segments.
COMPANY AT A GLANCE
Name of the company : Apollo Tyres Limited.
Business : Manufacturing and marketing Automobile tyres
Registered Office : Cochin, Kerala
Head Office : New Delhi
Manufacturing Units : Limda-Gujarat, Perambra & Kalamassery- kerala
Conversion Unit : TCIL- Calcutta
Technical collaboration : Continental General Tyres, USA
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BOARD OF DIRECTORS
Chairman : Onkar. S .Kanwar
MD : Neeraj R S Kanwar
Principal secretary ( Industries) , Government of kerala : T Balakrishnan
Principal secretary(finance), Government of kerala : L C Goyal
Former chief executive, Dunlop Tyres International(Pty) Ltd. : Michael J Hankinson
Chairman , J M Financial Group : Nimesh M Kampani
MD, Apollo Tyres International Ltd. : Raaja Kanwar
Former principal secretary to the prime minister of India : Dr S Narayan
Chief, Corporate Affairs,ATL : U S Oberoi
Former Chairman , Industrial Development , Bank of India : M R B Punja
Former Chairman, SBI : Arun Kumar Panwar
CFO , ATL : Sunam Sarkar
Company secretary : P N Wahal
MD,Vaniamapara Rubber Co Ltd : K Jacob Thomas.
SHARE HOLDING STRUCTURE
Apollo Tyres Limited is a publically listed company in india. It’s stocks are traded on India’s two largest exchanges, the Bombay Stock Exchange and the National Stock Exchange.
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MARKET SHARE OF THE COMPANY
PRODUCT PROFILE
Segment and Brands
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Products Brands
Truck
Apollo Loadstar Super
Hercules
Loadstar Super
Loadstar Super Gold
XT 7
XT 7 Haulug
XT7 Gold
XT-9
XT-9 Gold
Champion
Champion DXL
Champion Gold
Amar
Amar Deluxe
Amar Gold
Amar AT-Rib
Kaizen 50 L
36 L
Commando
XDT
27 L
77 R
99 R Plus
Light Truck
Loadstar Super
Amar Deluxe
Amar Gold
XT-9
XT-9 Gold
Duramile
Milestar
Champion
Passenger Car
Car Radials Tube Type
(Amazer XL Quantum)
Tubeless Radials
4x4 Radials Hawkz
Storm
Amazer XL
Alloy Wheels Haste Inspire
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Torque
Nirvana
Frost
Quest
Slay
Multispoke
Sphere
Cinco
Tubeless Radials Acelere
Amazer XL
Hawkz
Conventional Tyres (Bias Tyres) Car
Armour
Panther
Jeep
Gripper
Maha Trooper
Farm
Pure Cultivation Segment Sarpanch Krishak Super
Pure Haulage Segment Powerhaul
Mixed Application Bias Segment Krishak Premium
Mixed Application Radial Segment Farmking
Jeep Gripper Maha Trooper
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ORGANISATION CHART
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HEAD-KERALA
FACTORIES
HEAD-KERALA
FACTORIES
CO-ORDINATOR
KALAMASSERY PLANT
CO-ORDINATOR
KALAMASSERY PLANT
GR.MANAGER
PRODUCTION
GR.MANAGER
PRODUCTION
GR.MANAGER
ENGG
GR.MANAGER
ENGG
MANAGER
PROJECTS
MANAGER
PROJECTS
MANAGER
HR&ADMIN
MANAGER
HR&ADMIN
GR.MANAGER
QA./UNIT MR
GR.MANAGER
QA./UNIT MR
DIV.HEAD
TECHNICAL
DIV.HEAD
TECHNICAL
DIV.HEAD
COMMERCIAL
DIV.HEAD
COMMERCIAL
DIV.HEAD
PPC.IE&SYSTEMS
DIV.HEAD
PPC.IE&SYSTEMS
DEPARTMENTAL PROFILE
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PRODUCTION DEPRTMENT
The average production in the company plant is 86 tone per day. the function of mthe
production department is to ensure smooth production in the plant .this plant is engaged in
245 hours a day continuous production.
Production process:
The production process of tyres is carried out collectively in three divisions which in the unit
they call as division I, II&III
Division I
The primary function are mixing and calendaring. In mixing the rubber is made into a
composite with other required materials such as carbon black, vulcanizations, accelerators,
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UNIT HEAD
ASSOCIATE MANGER (IED)
MANAGER (PPC)
EXECUTIVE (SYSTEMS)
EXECUTIVESEXECUTIVES
mocliferers and inhibitors. The machine used to do this is called the banbury mix. The other
process in this division is:
Fabric processing where dipping and stretching of fabric is there.
Calendaring i.e.coatin of compound in the fabric
Extrusion of threads and sidewall
Division II
This is tyre building division. These structural components of the tyre are called the rim side
wall and metal beads the building of the tyre with this in manned process facilities by a
machine. The job of the builder is leveraged by providing him with a structural component at
a work place. For accomplishing this almost all components that go in to tyre building is
made into set provided to the builder, this is called stock preparation. The output from the
tyre building is called green tyre.
Division III
This green tyre has to be initially moulded into the shape of the tyre. Then it has to be curved
in a press with proper outer mould. Therefore this division is called curing division. It is in
this curing process that the plastic property of the type composite is converted in to the elastic
property. This is also the most risk full in the production process for it the tyre become
defective while curing there is no other go than to scrap it. The tyre is lost forever.
There is also a last division in the production process. Inspection of tyre is done. Here
minor defects are rectified. The tyres that come out from this stage will become the first
quality tyre. There is nothing called the second quality tyre, as found in some other product.
In this case of tyre it is either first quality or scrap. Only this type with major defects will be
scrapped.
In the production department complete planning of production done. they calculate how
much production can be attained with the available resources with minimum cost. all the
maintaince works are done by this department apart from this they also overlook the activities
of the system.
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PLANT LAYOUT
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RAW MATERIAL STORAGE
MIXING SQUEGEE CALENDERIN
G
BAND BUILDING
TYRE BUILDING
TYRE CURING
FINAL FINISH
EXTRUSION
BIAS CUTTING WARE HOUSE
Thus the entire department is divided into three.
Production planning and control
Industrial engineering
System
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.
Other functions of the PPC Department includes:
Coduct work studies,improvement studies in various equmentas and fixing of norms.
Capacity calculation in various equipments for time to time inquest to various changes.
Design, implementation and follow-up scheme in various zones.
Planning and assessment of manpower requirement in various departments
periodically.
Study plant layout and material handling systems and suggest for improvements
Explore the possibilities of capacity expression and prepare the report
Visit other industries for industries for getting information regarding new
developments.
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CALENDERING BEAD PREP.
Suggest various cost reduction programmes.
Coduct improvement of methods and equipment design compatible to best ergonomic
standards
Evolve various strategies 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,
programs 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 housekeeping
Ensure that no material is leftover when size changes occur
keep record of non moving material, unidentified material ,scrap generated, obtained
disposal instruction, report follow up actions and to clean up materials
Preparation of raw material requirement based on monthly production ticket
INDUSTRIAL ENGINEERING DEPARTMENT
OBJECIVE
To plan, design, implement and manage integrated production and service delivery systems
that assure productivity, quality, reliability, maintainability and cost control to keep the ATL
globally competitive.
Functions
1. Conduct work studies ,improvement studies in various equipment and fixation of
norms
2. Capacity calculations in various equipment from time to time consequent to
various changes
3. Design ,implementation and following incentive schemes in various zones
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4. Planning and assessment of manpower requirement in various departments
periodically
5. Studying plant layout and material handling systems and suggesting
improvements
6. Explore the possibilities of capacity expansion and prepare the project reports
7. Negotiations with unions regarding various issues like incentive schemes
productivity ,expansion and labor issues
8. Analysis of capital expenditure requests from various departments and
suggestions of recommendations to senior management committee
9. Prepare budgetary planning for capital and cash flow requirement
10. Conduct training classes for various members and recruits
11. Suggest various cost reduction programmes and implementations
12. Total productive maintenance
13. Undertake maintenance work of the company
14. Optimize inventory levels at various stages such as engineering stores work in
process and finished goods
15. Bench marking
16. continuous improvement of methods and equipment design compatible to the best
standards
17. Prepare documents for long term settlements/bonus settlements etc. and represent the management in the meetings with unions/labour departments
18. Visit other industries for getting information regarding long term settlements,methods,practices and other new developments.
19. Conduct various training classes for workmen/supervisors/other officers and new recruits.
20. Apply various Industrial Engg. Techniques such as Job Evaluation,O & M studies,Kaizen,line balancing etc
21. Associate with professional bodies like productivity councils,NITTIE,Institution of engineers etc.
22. Conduct daily audit on manpower,productivity,lost time,scrap details,absenteeism,overtime etc.
23. Furnish various other management information reports to the top management.
24. Evolve best practices through global bench marking in the context of global competition and intense customer focus.
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25. Incentive computation & MIS through SAP.
26. GAP analysis
27. KRA
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 machine tool does not exceed certain limits and
parts which become faulty due to wear or other damages are replaced/repaired timely. The
improved maintenance would reduce machine tool down time and lead to higher productivity.
Various maintenance techniques
Preventive maintenance
Corrective maintenance
Reconditioning
SYSTEMS DEPARTMENT
Analysis of capital expenditure requests from various departments and make
recommendations to senior management committee.
Furnish various other management information reports to the top management.
Incentive and computation through SAP
Application of SAP throughout the country (stores, production planning and
control, HR.etc..)
All the company activities are now running on SAP. This has many
advantages over the conventional system. it is very fast and instant checking
can be done.23
QUALITY ASSURANCE DEPARTMENT
The main duty of the quality assurance department is the determination of the quality
standards, measurements of the actual quality, compares it against the standard and controls
whether established standards are maintained and practiced.
Functions
1. Inspection of incoming raw materials
2. Auditing involving the control of non conforming materials or processes
3. Auditing of finished products
4. Solving customer complaints
5. Testing process
Tools of Quality Assurance Department
1. Quality manual: It states the policies and principles of the quality system in use.
2. System procedure: It functions as guidelines to units ensuring uniformities in the
quality system.
3. Quality meeting: Such meetings are held every month and each department gives
suggestions for the scope of improvement. Internal quality audits are held every 6
months.
4. Quality policy: ATL follows a strict quality control policy to enhance customer
delight and also pays special attention to retain quality of products. At present this
department has been integrated with the technical department under
manufacturing.
TECHNICAL DEPARTMENT
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Technical department is a virtual production department as it involves with every
aspects of tyre production.Technical department monitors market needs for new product
development. The result specifications are passed on to the production department for
simulation.
Functions
To issue specification to the production plant
Trouble shoot the problems arising in the manufacturing process
Development of component fabric standard
Accessories drawing
Processing machine specification
Processing and curing of new design
Issue of
Process standards
Finished products standards
Tyre engineering standards
Review of adjustment reports
To inspectand correct all production activities
To ensure the properties of products during various processes
To stope production if any problems are found during analysis
Initiate and implement corrective measures.
To insure the compositions in various processes
To test manufactured tyres
Tyre testing:
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Tyres are one of the most versatile as well as the most abused products, as it has to
restrain the worst operating environment. A failure to obtain a safe functioning product can
even lead to fatal accidents thus calling for a completely tested product. One such test is
using actual running conditions, but the long time involved in this process to get the result
makes it impractical and instigates time saving indoor testing facilities.
Tyre testing can be divided into two
1. Destructive Testing
2. Non destructive testing
In destructive testing tyres being tested are destroyed beyond use. This involves indoor
wheel endurance testing, indoor wheel high speed testing, plunger testing, cut tyre testing and
tyre dimensions. Tyres are also tested for inflated dimensions. The tyre to be tested is
mounted on the recommended rim and inflated with recommended pressure. Main parameters
checked are outer diameter section width, tread radius non skid depth. Then the total values
are compared with the standard values to insure the tyres meet the specification.
Technical department is divided into two divisions:-
1. Tyre engineering section: decides upon the suitable specification of the tyre, and
designs it. Then they further see to the fact that the tyre is produced according to
the specifications issued by them.
2. Tyre compounding section: decides upon the chemical composition of the
product, dealing with the chemistry of mixing, calendaring and dipping.
ENGINEERING DEPARTMENT
The engineering department is the service department and provides its service to
various departments such as production, technical, quality, assurance and engineering. The
major function of the engineering department is manufacturing, 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:
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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 spares are available
from various engineering stores. The machine is then checked and production officers close
the notification.
The Engineering department is divided into
1. Mechanical
2. Electrical
3. Utilities
4. Calibration
The following functions also come under this section
1. Spare part management
2. Power management
3. Maintenance of machine in optimum working conditions
4. Increase production by decreasing downtime of machines
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HUMAN RESOURCE AND ADMINISTRATIVE DEPARTMENT
Structure of HR department
Group manager leads HR department of ATL, HR manager deals with working life of
a worker, from the time of his entry in to the organization until he leaves. It basically includes
activities such as HR planning, job design, performance appraisal and job evaluation and
motivation, welfare, safety and multi facts of Industrial Relations.
Key functions:
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UNIT HEAD
MANGER
(HR & ADMIN.)
ASSOCIATE MANAGER (SECURITY)
ASSOCIATE MANAGER
(IR)
ASSOCIATE MANAGER
(PERSONNEL)
ASSOCIATE MANAGER
MR. ABY SIMON
(SAFETY)
ASSOCIATE MANAGER
(HR & TRAINING)
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 teams
Managing change
Integrating people into the company’s vision, culture and philosophy
Manpower planning, recruitment, employee orientation
Induction, conformation, campus recruitment and internal recruitment
Travel, transfer, ambulance room, statutory compliances
Compensation policies, attendance and leave administration, payroll advice,
performance appraisal, training and development, benefit administration, disciplinary
action and safety
HR philosophy of Apollo Tyres Limited
Aims to play an active role in enabling the success and growth of the organization
Continuous improvement in the quality of people and their 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 organization wide involvement with the concept of HR
Commitment of the top management, which is the backbone for the success of all new
HR initiatives
Focus areas of HR Functions
The main functions of the HR department involve
1.1. Manpower planning
2.2. Recruitment
3.3. Selection
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4.4. Performance appraisal
5.5. Training and development
MANPOWER PLANNING PROCESS
The manpower planning process is directly linked to the long term business plans of
the organization. The manpower planning exercise is conducted annually to assess the
manpower requirements of the organization.
At the beginning of each calendar year, Corporate HR interacts with each
Department/Function in each Unit/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 organization structure
Comparison of actual versus expected productivity ( measured in terms of Kgs/man-
hour)
Inter-unit comparisons for common functions
Keeping in mind these factors, each Department/Function is expected to make an estimation
of the human resource requirement phase wise at each location, along with the profile of
people needed and the sources from where they can be obtained. The manpower plan covers
all levels, viz., workmen, staff, officers, and managers. The total manpower requirement is
discussed with the president/VC & 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 possibilities of relocation and redeployment for filling up the
vacant positions before resorting to recruitment from external sources.Once the annual
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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 POLICIES
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 asserts the objectives of the requirement process and provides a
framework of implementation of the recruitment programme 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 each 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.
The recruitment policy is in conformity with other HR policies. It is flexible enough to meet
the changing needs of an organization and it is designed to ensure the goals of the
organization are achieved effectively.
It aims to develop the potentialities of employees, aims to match the qualities of employees
with requirements of the work for which they are employed and highlights the necessity of
establishing job analysis. Recruitment is carried out in accordance with the annual manpower
plan.
Broadly, requirement activities are done at either entry level or lateral level to cater to:
Replacement vacancies (occurring due to resignation, retirement or transfer)
Additional vacancies ( created due to company’s expansion / diversification)
SELECTION
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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 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 positions, also by the president and/or VC&MD.
Up to the level of assistant Manager, the concerned Unit Head has the responsibility for
recruitment & selection. However from the level of the Deputy Manager and above,
Corporate HR is involved in the selection process and for the DGM and above the President
and/or VC&MD is involved in the decision making.
PERFORMANCE APPRAISAL
Objectives
The performance appraisal system has the following objectives:
1. Assessing past performance
2. Providing rewards for performance
3. Goal setting for the future
4. Assessing training needs
5. Assessing potential for growth
Periodicity
Appraisal are to be done for the concerned employees on an annual basis, i.e., 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 the probationer are to be done according to
their cycle of training or probationary period. The concerned HR department 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.
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Circulation of forms to all user departments – by mid-December
Collection of forms from mall 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.
Eligibility
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.
Types of appraisal forms:
Different appraisal forms are applicable fro depending upon the level and the function of the
concerned appraisee as mentioned below. The various forms are attached alone with the
guidelines for filling the forms.
Form A: Appraisal for Management staff for levels M01 and above.
Form A1: Management Staff (covering all functions other than production and
engineering in plants and marketing)
Form A2: Management Staff in production and engineering department in the plants
Form A3: Management Staff in marketing division
Form B: Appraisal for officers and staff in all locations/units
Form B1: Management Staff (covering all functions other than production and
engineering in plants and marketing)
Form B2: Management Staff in production and engineering department in the plants
Form B3: Management Staff in marketing division
Form C: Appraisal for Conformation
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Form C: For all trainees and probationers
Methodology
Performance appraisal is to be done by the immediate superior to whom the appraisee 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 appraisers are to asses
independently and arrive at a joint decision (if location factors are a constraint, then two
separate forms are to be given to both the appraisers and information collected is to be
summarized by the HR department.
Appraisal Committee
The appraisal committee consists of the appraiser, the reviewer and the corporate HR. the
overall rating is to be reviewed by the appraisal committee to arrive at the final decision for
the appraisee.
TRAINING AND DEVELOPMENT
Objective
The training and development procedure of Apollo Tyres Ltd has the following broad
objectives:
1. To porn up identified functional skill areas of personnel for more effective
contribution to the organization.
2. To provide platform for personal growth and exploration leading to overall
organizational health and quality of life.
3. To develop human resource in consonance with broader corporate horizon and long
range vision of the organization.
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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 needs in
line with corporate procedure. The procedures are laid in confirmity to ISO requirements.
Responsibility
The head of the corporate human resource is responsible for overseeing the implementation
of the training methodology. Respective Divisional HR is responsible for implementing of
the training procedure for the employee under their preview.
Methodology
Training Need Assessment
The training needs are assessed at the beginning of each financial year using
Developmental Action Plan form. The HR department discusses the summarized
training needs with each department/function 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 overall training needs based on which an annual training
calendar is formulated. All the programs organized 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 two main types of training records maintained by the respective HR
department.
# Training Cards
# Training Records
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Training Evaluation
Every training program is evaluated by the participant using a Training Evaluation
form in terms of:
i. Reaction
ii. Learning
iii. Action
iv. Results
HR department also has the following functions:
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 services to its employees. The company runs a subsidized canteen on a contract
basis. Rest rooms with lockers and washing facilities, arts 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 destinations 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 employees. The organization follows
all the provisions under the Factories Act 1948. All workers are bound to observe safety
precautions as directed and notifies from time to time 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 operations at the machine to which they have
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been appointment. Fire extinguishers are placed at reachable points and the employees are
trained to use them.
TIME OFFICE
It deals basically with keeping attendance records of workers, staff, employees,
calculation of
incentives, calculation of man days, leave records, security executives, maintaining security
of property and personal information etc.
The functions of the time office are as follows:
i. Maintain attendance record of the workers., staff and all employees
ii. Calculation of incentives
iii. Calculation of man-day, absenteeism, and maintain leave records
iv. Security executives
v. Maintain security of properties, personnel and information
vi. Looks into the arrival and departure of employees, punching, control of shifts,
allotment of gate passes and movement pass of worker, visitors pass etc.
PERSONNEL
i. Matters connected with recruitment, career promotions, transfers and posting,
retirement and reservation guidelines concerning executives, staff and workmen
ii. Design and implementation of HR policies
iii. Matters connected with annual performance, assessment report of all employees and
all development activities.
iv. Matters related to the appointment of employees, induction of apprentices,
appointment of trainees under company scheme, etc.
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COMMERCIAL DEPARTMENT
Department structure:
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DIVISIONAL HEAD COMMERCIAL
MANAGER ACCOUNTS &
COSTING
ASSOCIATE MANAGER
EXCISE
ASSOCIATE MANGER RM
STORES
GROUP MANAGER
ENGG. STORES AND PURCHASES
MANAGER STORES
ASSOCIATE MANAGER FG
STORES
ASSOCIATE MANAGER
EXECUTIVES (4) EXECUTIVES (2) EXECUTIVES (2)
EXECUTIVES (2) EXECUTIVES (2)
Raw material store
The main function of the raw material store is to receive, store and issue goods that
are essential in the production of tyres .The raw materials are produced from both local and
international agencies .The natural rubber required is purchased from local agencies. The
steel beads wires required for the beads are supplied by TATA.The processing oil is obtained
by the Indian oil corporation .The carbon black used is obtained from an agency in
Karimugal.
The chemicals required for the rubber production includes sulphur, naptha, and ammonium
formaldehyde .These are ordered from countries such as China, Thailand, and Russia.The
placing of orders for the production requires a proper coordination with other departments
such as the production and marketing department.
The stock keeping followed here is that of the consumption level .It also has a section to
know how much goods are to be reserved for the continuous production. The next step is to
release the stored goods for production .While releasing the goods the first in first out (FIFO)
is followed. This prevents goods from being stored above their life cycle.
Engineering and Finished goods store
Engineering stores: these stores are responsible for storing necessary spare parts,
components required for smooth functioning of the plant. It includes
1. General spares
2. Insurance spares
3. Furnace oil
4. Lubricants
5. Chemicals
6. Building Materials
On receipt of production department requirement the engineering stores arranges for its
release. The inventory management technique used in VED (Vital, essential, and Desirable)
analysis. A buffer stock is always maintained in the store.
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Finished goods store: the main function of this store is to receive, store and dispatch the
goods. There are two dispatch centers, Replacement market and Expert market. Their
following go downs are used to store the finished goods .All the finished goods .After their
final inspections are kept till transferred as required. Finished goods store has the function of
receiving, storing and dispatching as perm the supply chain management requirement and
communicating daily stock levels MIS to the Head office.
ACCOUNTS SECTION:
The finance department falls under the financial controller. Under him comes the bill
section where the Accounts Officer is assisted by an Assistant. On the other hand, falls the
Deputy Manager of costing and his assistant. The third division of C5 is the Deputy Financial
Contoller I & II. Under Deputy Financial Controller II there is an A.O(E), where E stands for
established ie.., payment of salaries and wages and welfare measures expenses are accounted.
Under the Deputy Financial Controller-I falls the various assistants who are divided into four
major accounts function ie.., costing, marketing, general accounts and financial accounts. The
internal audit function is carried out in the company by the internal audit section headed by
Chartered Accountant. Regular reports are given to the department heads for taking
corrective actions where ever necessary which is then submitted to the Chairman and
Managing Director.
The company has an effective Budgetary control system. The budgets are
reviewed and deviations are analysed 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 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
confirmity with the purchase order. The MIS department is handled by the finance
department in Apollo under the costing and budgetary control section.
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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
head controls the functions. The duties include providing information to formulate accounting
and costing policies, preparation of financial reports and the direction of internal auditing
budgeting. The company has to maintain records including 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 Charted Accounts in
India. The management of ATL accepts that the integrity and objectivity of their financial
statement 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 basic allowances, maintaining their attendance etc for the
convenience of employee .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 involved in making tyres. The
company follows the rule of having only 0.5 or less percentage of scrap. This helps
minimizing loss.
Control
It includes monitoring the electricity charges, wastages scrap and other avoidable
expenses .Distribution of payment though is a step also taken under this function .This has
helped in reducing manpower security requirements and also other risks to be taken by the
company. it maintains the minimum inventory of 6-7 days ,as this is required for aging time
of tyres.A total of 1.32 hours is needed to make a tyre, make it heat resistant, strong, load
resistant etc.
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Control Excise
This section deals with the duty that is being paid for the tyres reach the market both
nationaly 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 crore excise duty in spite of all these measures.
FINANCIAL PERFORMANCE
OPERATIONS:
During the financial year ended March 31, 2009, sales from operations amounted to Rs.40,704.41 million as against Rs.36,939.27 million during the previous year, registering a growth of 10.19%. The growth in revenue was impacted by the slowdown in industry, particularly in the OEM demand.
Operating profit, before interest and depreciation, amounted to Rs.3,360.15 million, as against Rs.4,732.98 million during the previous year.
Net profit, after providing for interest, depreciation and tax amounted to Rs.1,081.18 million as against Rs.2,193.03 million during the previous year, recording a decline of 50.70%.
The decline in profitability is due to overall slow down in economy which impacted the demand in the automotive sector, coupled with soaring raw material prices for major part of the financial year.
PRODUCTION
During the year, your Company recorded a drop in production tonnage at 2,73,575 MT as against 2,90,000 MT in the previous year. However, subsequently there was improvement across all the plants.
SHARE CAPITAL
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During the year, your Company has allotted 15.58 million equity shares of Re.1/- each at a premium of Rs.28.30 to Promoters on conversion of 1.558 million warrants issued during
2006-07. Your Company's share capital as on 31st March, 2009 has increased from Rs.488.44 million to Rs.504.02 million after the said allotment.
DIVIDEND
A dividend of 45% per equity share for the financial year 2008. There will be no tax deduction at source on dividend payments, but your company will have to bear tax on dividend @ 16.995%, inclusive of surcharge. The dividend, if approved, shall be payable to the shareholders registered in the books of the company and the beneficial owners as per details furnished by the depositories.
NET PROFIT MARGIN OF THE COMPANY
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NET SALES O THE COMPANY
EARNING PER SHARE OF THE COMPANY
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ACTUAL PRODUCTION OF THE COMPANY
PURCHASE SECTION:
Apollo tyres is one of the main automobile tyres and tubes manufacturer in India.
Apollo sees vendors as strategic partners and constantly endeavors towards building and
strengthening long term relationships with its partners .The setup of procurement functions in
ATL is as follows:
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1. Centralized procurement cell for raw material is based in the Head office in
Gurgaon.
2. De centralized procurement cell for engineering spares &consumables ,based at
respective manufacturing location
The basic purchase items are:
1. Capital item purchase
2. Raw material purchase
3. Service purchase
4. Store purchase
A procurement pattern of raw material is such that 75%is from indigenous sources and 25%
is from global market. Procurement of raw material at Apollo is strictly from approved
vendors only. Some of the main materials used by the Apollo tyres include: natural rubber
carbon black, nylon tyre, core fabric, steel tyre cord, rubber chemicals eMethod of purchase
is as follows:
1. Receipts of indents/purchase requests
2. Requests for quotation
3. Indigenous purchase order generation
4. Imported purchase order generation
5. Indigenous purchase order categorized
6. Authorization of purchase orders
7. Amendment of purchase orders
8. Logistics for material delivery at EMS-material connected through transport
9. Insurance of goods in transits
10. Payment of suppliers
11. Emergency procurement
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12. Rejection reports prepared by engineering department, sent to supplier and
purchase departments.
13. Import substitution
14. Service order quotation received by the engineering department /production
department Vendor registration system.
CORPORATE SOCIAL RESPONSIBILITY
Apollo has recognized the importance of corporate social responsibility .It is a leading supporter of CSR , setting it apart as a perfect example of corporate citizenship . Apollo is pursuing business ethics through pragmatic stress on corporate governance.
Apollo’s thrust on CSR, includes programmes for women skill development, adult literacy classes, primary education programmes ,drinking water supplies and maintainance of village school buildings.The company goes forward with specific institutional programmes that have sustainability with predictable positive impact on the community that it serves.
Apollo has allocated funds to set up medical clinics across he ountry, particularly in trucking hubs. The company is spending money on HIV/AIDS programmes, particularly targeted at the most vulnerable trucking community.
Conducting safe drive campaigns on the national express highways, which included checking the tyres for damages or wear patterns to ensure that they were safe for an expressway journey.
GREEN INITIATIVES
Enviornment protection programmes cover research on building “green tyres”,water recycling and conservation projects, use of solar energy and other alternate natural resources.
Wind energy project initiated with Suzlon Energy,has enabled tapping into 8 MW capacity of wind power, with an expected generation of around 1.70 million units of power every year.
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Technology upgradation along with waste heat recovery has resulted in approximately 39,000 CER’s being granted by UNFCCC.
Dunlop, S.A has launched the “war on waste” campaign , a company – wide initiative to responsibly dispose all waste generated in factories and offices in an effective and enviornmentaly friendly manner.
Steam energy to replace use of RLNG under an agreement with GAIL . The project based on waste heat recovery system from GAIL’s gas turbines exhaust is conceived as a clean development mechanism(CDM) under KYOTO PROTOCOL.
SWOT ANALYSIS
Strengths:
Continued market leadership in the dominant industry segment of truck and bus tyres Global presence with the acquisition of Apollo Tyres
South Africa (Pty) Ltd. (Formerly known as Dunlop TyresInternational (Pty) Ltd.)
Extensive distribution network in India and South Africa Strong brand recall in a price sensitive Indian market Responsive to changes in market conditions and product
profiles Global quality standards, international process and system
certifications High usage of information technology systems to hasten
the flow of information and leverage opportunities across140 locations in India
Dynamic and progressive leadership, willing to implementChange.
Economies of transportation cost, on account of closenessto natural rubber growing belt
Global sourcing of raw materials.
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Weakness:
No presence in two and three-wheeler segments Capital intensive business
Opportunities:
Leadership position in the commercial vehicle segmentwill enable the Company to leverage new and relatedbusiness opportunities
New product segments like Truck/Bus Radial (TBR), OffThe Road tyres (OTR), retreading and allied automotiveServices
Growth in overseas markets like Europe.
Threats
Imports from neighbouring countries at competitiveprices
Raw material price volatility.
Key Highlights:
Unveiling the new corporate identity that reflects ourglobal vision and showcases Apollo as a young, ambitious,dynamic company, proud to be Indian.
Featured in the top 20 "Best Com panies To Work For" in India, in a survey conducted by Business Today inpartnership with Mercer Consulting and TNS.
In the JD Power India original equipment Total CustomerSatisfaction Index Report 2008, Apollo Tyres stood secondat 816 points out of 1000.
The company's world-class, green field facility in Chennai,India will be operational soon. The plant will produce 'topof the line' Truck/Bus Radial Tyres & Ultra HighPerformance Passenger Car Radial Tyres.
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Apollo rides to Europe with the establishment of theEuropean Technology Center at Russelsheim, Germany.
Apollo was the only Indian company to be invited byVolkswagen AG to participate in the IZB exhibition inWolfsburg, Germany. Volkswagen Polo, the best selling carmodel from Volkswagen, will now roll out on Apollo Tyresfor its India launch.
Integrating the global product portfolio by rebranding the"Dunlop" brand and rolling out new “Dunlop Zones” acrossSouth Africa.
Awarded the Gold certificate for its manufacturing units inDecember, 2008, at the India Manufacturing ExcellenceAwards.
Production of the first ever ultra large size OTR (Off-the-Road) tyre from our flagship plant at Limda which will caterto the present and future needs of the mining industry.
Apollo Tyres Mission 2018 discovers hidden tennis talentacross the country for the second batch in 2008.
HINDRANCES FOR GROWTH
1.Fluctuating price of raw-materials is a major concern.The price of major raw-material, especially natural rubber volatiles backed by the signals arising from international market.Besides there is an import duty on natural rubber at 20%.
2.There is a need for multi-brand strategy for all its four brands.(Apollo,Dunlop,Vredestein,Regal)
3.The industry faces tough competition from china. China’s emerging economy is backed by stimulus packages and government policies , making it more competitive at cost-levels.
4. Declining exports post recession puts pressure on company’s mission to achieve the target of US $ 2 billion company by 2010.
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5. The Rupee appreciation against Euro, Dollar and Pound may affect the financials since the company exports to more than seventy countries
OBSERVATIONS
Special attention given to its customers and keeps updated about the new features to be adopted based on customer needs.
Strong feedback from customers for products rendered.
Trade union activities are strong and there are frequent lock outs at the units.
Updated technology in line with global standards.
Strongly commited towards CSR and green initiatives undertaken are satisfactory.
Policies , strategies and procedures followed are satisfactory.
Conductive work experience.
Quality standards maintained .
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SUGGESTIONS
Keeping in mind the company’s mission to be a $ 2 billion company by 2010, the plant should be modernized and efficient machinery should be imported and commissioned replacing human labor wherever necessary.
Since the company puts forward aggressive production targets, proper relations should be maintained between the board and trade unions to tackle the frequent lock- outs at its units since it seriously affects the company’s top line.
The company must adopt more green initiatives with major thrust on clean and renewable energy for its power needs.
CONCLUSION
The organization study at Apollo Tyres Limited was a great opportunity to gain first hand information about the functioning of the company. The study was very informative and the experience of working in the organization, interaction with the staff was very educating. The training measures employed are satisfactory. The company has over the loss making years and posted profit fit the fifth consecutive year. A fair wage system prevails in ATL, there is better working condition and industrial harmony among employees. Proper training to workers and the efficiency of the workers are the reasons for increased production. The industrial relations with the local union are fairly good and there is greater co-operation between the management and employees. The company is facing cut-throat competition in the Indian market as well as in the international market. But, with the technical potential as well as the potential of the management and employees, Apollo tyres ltd. can survive and emerge as a top-class player in the tyre company. The company has a highly professional management. A continuous effort is essential to maintain a harmonious relationship between the management and the employees. Following the rules and regulations and strictly maintaining discipline was also a great learning curve.
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BIBLIOGRAPHY
Apollo Tyres Personnel Manual
Apollo Tyres Accounting Manual
Apollo Tyres Annual Report.
Apollo tyres websites:
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