APOLLO TYRES LTD

CHAPTER - 1 INTRODUCTION

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INTRODUCTION
Organization is a harmonious adjustment of specialized parts for the accomplishment of some common purpose or purposes. Organization study helps us to study how to apply our theoretical knowledge in an organization. This project was conducted at Apollo Tyres, Kalamassery, Cochin. Organization has gained momentum over the past few decades as the inevitable sources 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 of every organization. There is a hidden asset. An asset that has the power to execute, the vision to excel and spirit of limitless 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 Governments continued emphasis on building infrastructure and transport .Obviously the number of vehicles on road has a marked increase. An direct fallout of this scenario, the tyre industry has had the goog fortune of receiving increased orders from Original Equipment Manufacturers (OEM) and replaces markets alike.

OBJECTIVES OF THE STUDY

The organization study is to familiarize ourselves with the working of various departments for a particular period, so that one can have an exposure to the practical side. The objectives include: 1. To understand the organizational structure of Apollo tyres 2. To understand the various key functional areas of the company 3. To get an idea about existing business operations at Apollo tyres Page 2

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4. To interact with managers at various levels of the organization hierarchy 5. To analyze the practical aspect in relation to the theoretical aspect of the organization 6. To gain a clear picture about the challenges and activities faced by the organization 7. To observe the work culture existing in the organization 8. To identify the strength and weakness of the organization 9. To analyse competition within the industry.

SCOPE OF THE STUDY

It helps to integrate classroom knowledge with the real situation in the organization. Such study will help to build competency, communication skill and to undergo future project in an easier way.

LIMITATIONS OF THE STUDY

Conducting an in-depth organization study touching all the departments and activities within a limited time is difficult. The study was done with the details given by the officers. Certain confidential information regarding the organization was not available, and the analysis and interpretations of the data are subject to that limitation.

METHODOLOGY
To conduct the study, different methodologies have been adopted. The study was undertaken by visiting the plant. Both Primary and Secondary data are used.

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DATA COLLECTION 1. Primary Sources

o Direct interview with the department heads o Discussion with the divisional heads o Interaction with workers in the company o Data collected by observing the function of the organization

2. Secondary Sources
Annual reports of the company Department manuals Periodicals, books, etc. published materials by the company Internet websites (www.apollo.com, www.google.com)

LIMITATIONS OF THE STUDY

The time period available for the study was limited The study was conducted only during the day shift and hence the working conditions of those employees working during the evening and night shifts could not be examined

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CHAPTER 2 INDUSTRY PROFILE

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WORLD SCENARIO
Worldwide, the automobile industry is the single largest consumer of natural rubber in the form of auto tyres and tubes certain other parts and accessories. For instance, Japans Bridgestone Corporation is the worlds third largest producer of tyres. It consumes 3 lakh tones of natural rubber annually to produce 68 different types of tyres. Italys Pirelli SpA consumes 120000 tonnes of natural rubber in the production of tyres. Economic recession anywhere first hits this industry before any other industry. Therefore, the world price of rubber goes through a cycle o few years of busts with the state of world economy. The engineers forecast that tomorrows tyres will have possibly have inflation with gases, which is heavier than air to prevent inflation loss. The advent of computer has revolutionized the tyre technology and tyre industry. The tyre industry was grown to one of the largest industries in the world.

WORLD RUBBER & TYRE FORECASTS FOR 2011 & 2016

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The world tyre industry is worth around US $ 70 billion. The industry is marked by the presence of around half a dozen major players who together occupy to 70% of the world market share. The global demand is to rise 4% annually through 2011. World rubber consumption is forecast to increase 4.0 percent annually to 26.5 million metric tonnes in 2011. Gains will directly benefit from solid growth in world motor vehicle production, as well as a strong global economy. Countries like the US, China and Japan dominate global rubber consumption, and will continue to do so, collectively accounting for more than half of the market in 2011. China has become the leading consumer of rubber worldwide, following more than a decade of strong growth in motor vehicle production and industrial goods manufacturing. The country overtook Japan as the second largest rubber market in the late 1990s and by 2001 had essentially caught up with the US as the worlds leading consumer. While China will continue to extend that lead, the US and Japan will remain leading markets worldwide, because of their extensive motor vehicle and tyre industries. The strongest gains are forecast for China, though the double digit annual gains that characterized Chinas rubber market from 2001 to 2006 are forecast to slow significantly as its domestic market matures and motor vehicle production decelerates. The Chinese market will be sustained primarily by expanding demand for industrial rubber products such as hoses, belts and gaskets, offsetting slower, though still solid, growth for tyre rubber. Above average gains also are forecast for most of the Asia/Pacific region, excluding Japan, which will benefit from strong economic growth and rising motor vehicle production. In addition the growing tyre industries in these nations will support demand for rubber. Among the major developed regions, the large North American, West European and Japanese markets will all see gains below the global average. Each of these regions will suffer from a weak outlook for Page 7

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the regional motor vehicle industry and competition from nations with lower labour or raw material costs.

MARKET SHARE OF VARIOUS COMPANIES

COMPANY Michelin Bridgestone Goodyear Continental Sumitomo Pirelli Yokohama Kumho Others MARKET SHARE (%) 19.4 19.4 16.6 7.1 4.9 3.9 3.5 1.7 23.5 (Table No : 2.1)

The tyre industries were classified under three heads. The first generation industries viz. Dunlop and Firestone (new Bombay Tyre International Ltd) were set up in the last 30s and early 40s.The second generation companies came up in 60s are MRF Tyres, CEAT, Goodyear Tyres and Premier Tyres. The third generation companies that were set up in 70s are JK Tyres, Vikrant Tyres, Apollo Tyres and Modi Rubber. Ever since the first Indian company Dunlop Rubber Company was incorporated in 1926 the tyre industry is growing rapidly and today its turnover is 100000 million and earning an income of Rs. 1000 crore per annum for exports. The industry had a growth rate of 11% over last decade. Indian tyre industry comprises 12 major companies, 13 minor ones and 34 minor plants manufacturing low technology products, such as small tyres, tubes and flaps. There are top players in this field having 69% of market share.

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MARKET
COMPANY MRF JK Tyres Apollo CEAT Dunlop Goodyear Others

SHARE

OF

LEADING

TYRE

COMPANIES
MARKET SHARE (%) 21.2 17.1 16.2 14.5 7.0 6.0 18.0 (Table No 2.2) Cross ply Radial

Tyres are basically two types:

In cross ply tyres, nylon or rayon tyre cords are arranged diagonally across. In radial tyres, polyester, nylon, fibre glass or steel cords are arranged perpendicular to the circumstances. Radial technology is an improvement over cross ply and radial tyres are priced at (of 25-30%) premium. They are long lasting and have lower incidence of flats. In domestic industry market demand for cross ply tyre is more because of rough conditions and also it is cheaper than radial. India is still in the in the cross play age when developed countries are into radial and tubeless tyres. The tyre industry in India is predominantly dependent on natural rubber as against synthetic rubber. Analysis by Experts reveals that the ratio of natural rubber usage to synthetic rubber is 80:20 in Indian tyre and 30:70 in worldwide. Indian tyre industry even though in its infant stage has been striving hard to establish itself in the global market. There are threats from global players who enjoy substantial economies of scale dominant market. The fortune of the tyre industry depends on the agricultural and industrial performance of the economy. The transportation needs tyres and vehicles. Hence, this is a very

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sensitive industry, which has to adopt itself to a highly volatile environment.

INDIAN SCENARIO
The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber Limited set up the first tyre company in West Bengal. MRF followed suit in 1946. Since then, the Indian tyre industry has grown rapidly. Transportation industry and tyre industry go hand in hand as the two are independent. Transportation industry has experienced 10% growth rate year after year with an absolute level of 870 billion ton freight. With an extensive road network of 3.2 million km, road accounts for over 85% of all freight movement in India. The Indian tyre industry is mainly dominated by the organized sector and consists of four major players who together account for approximately 85% of the industrys turnover Apollo Tyres Ltd., MRF Ltd. JK Tyre & Industries Ltd, and CEAT Ltd. These companies have a presence in all the major segments of the tyre industry the replacement market, Original Equipment Manufacturers (OEMs) as well as exports and consequently, offer the consumer a well diversified product mix. There are many other companies, some in the unorganized sector and mostly smaller in size, with a focus only on one or two categories of tyres, tubes and flaps primarily for the replacement market. Unlike the international tyre industry where passenger car radials dominate the market, in the Indian industry commercial vehicle tyres take the lead and account for approximately 70% of the industrys turnover. As a result, the growth of the entire tyre industry depends on primary factors like agricultural growth, overall GDP growth, industrial production, growth in vehicle demand and secondary factors like infrastructural development, prevailing interest rates and financing options. For the last 10 years, Apollo Page 10

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Tyres has maintained its leadership position in the commercial vehicle tyres segment. Although the automotive sector in India saw negative growth in the medium and heavy commercial vehicle segments, this downward trend was in contrast to the strong demand witnessed by the tyre industry. Led by replacement market growth of over 10%, the tyre industry registered a high single digit growth. The tyre industry is highly raw material intensive and a major consumer of rubber. With raw material costs accounting for 70 % of the cost of production, any change in the price of rubber or the crude basket has a direct impact on the cost of production. The comparatively stable raw material prices in the first half of FY 2007-08, coupled with price increases undertaken by the industry in FY 2006-07, resulted in all the major players reporting improved operating profit margins. This was after tour consecutive years of raw material costpush, both for natural rubber and crude oil- linked raw material basket. The second half of FY 2007-08 again saw an upward trend for all major raw material prices and the same is anticipated for the year ahead. As a result, margins are once again under pressure, even while the demand-supply situation continues to be in favour of the industry. Salient features of Indian tyre industry Adaptability and absorption Exports Innovation Indigenous and ready availability Technology progression Wide product range for diverse use Self sufficiency and vibrant marketing setup Page 11

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INDIAN TYRE INDUSTRY HIGHLIGHTS

The Indian tyre industry is a 9000 crore industry The fortune of this industry depends on agricultural and industrial performance of the economy, the transportation needs and the production of vehicles The tyre industry is mainly dominated by the organized sector, the unorganized sector holds away in the bicycle tyres The ratio of natural rubber content to synthetic rubber content is 80:20, in Indian tyres the ratio of natural rubber to synthetic rubber is 30:70.

DEMAND AND SUPPLY FACTORS

The drivers of demand in the Tyre industry are Industrial and freight activities Personal purchasing power Economic activity

APOLLO (in the Indian scenario)

Apollo Tyres Ltd. is the leading Indian tyre manufacturer, with annual revenues of over US$ 1.2 billion (2007-08). It was founded in 1975. Its first plant was commissioned in Perambra in Kerala state. In of 2006 South the company The acquired Dunlop now has Tyres four International Africa. company

manufacturing units in India, two in South Africa and two in Zimbabwe. It has a network of over 4000 dealerships in India, of which over 2500 are exclusive outlets. In South Africa, it has over 900 dealerships, of which 190 are Dunlop Accredited Dealers. In

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early 2008, the company announced plans to open a manufacturing plant in Hungary. Apollo Tyres Ltd. has been a pioneer in the implementation of Six Sigma among all the tyre companies in India, and is in the list of top 15 manufacturers of the world in terms of Revenues. 120 sales, services and stock points 19 state offices 4000 + business partners 2100 + Apollo tyre world 190 + Apollo Radial world 160 + Tubeless service points 60 + Apollo Paragati Kendras

STATE SCENARIO
Apollo had secured Fifth place in the state of Kerala. In the state of Kerala MRF has secured the first position with 30% o the market shares under its control. This is followed by JK with 24% of the Kerala state shares. CEAT, Good Year follow JK with 17 and 12% respectively. Apollo holds the fifth position with 10% of the market shares in Kerala.

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CHAPTER 3 COMPANY PROFILE

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ORGANIZATION GOAL
You cant stop the power of thought, nor can you stop the people behind it.

HISTORY OF THE COMPANY

Named after the Greek Sun God, Apollo, the company Apollo Tyres has created a niche for itself in the Indian tyre market. After three decades of consisted growth, today it is the premier tyre manufacturing company of India.

PEOPLE DELIVER INNOVATION INNOVATIONS DELIVER SUCCESS A FEW OF THE DIFFERENCES OUR PEOPLE MADE
The history of the company dates back to the early 70s. In 1972, license was obtained by Mr. Mathew T Marattukalam, Jacob Thomas and his associates. The company was taken over by Dr. Raunaq Singh and associates in 1974. It is one of the flagships companies of Raunaq group. The plant is situated at Perambra 50kms north of Cochin. Total area covered was 97 acres which was

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bought from the people who stayed there at a cheaper rate. At the starting time the production capacity was 54 tonnes per day. The Apollo Tyres Ltd. owned by Raunaq group of industries plays an important role in the world tyre industry. The products include tyres, tubes and flaps for all kinds of vehicles. The head office of the company is at New Delhi and the registered office is at Cochin. The main marketing activities are concentrated in New Delhi and 2400 exclusive dealers for Apollo cover the entire area of India. During 1977 to 1981 the company was under a heavy loss. The capacity utilization was only 40 to 50 percentages. The emphasis is given on growth, quality and objectives were re-defined when Mr. Onkar. S Kanwar took over the companys affairs. Company began to earn profits and accumulated losses of 26 crores were wiped out within a short span of time. Their second plant was installed at Limda village at Baroda in Gujarat, which started production 1991 having capacity of 6.5 lakh tyre per annum. This is the most modern plant. The R&D centre is also functioning at this location. The third plant at Kalamassery was taken over by Apollo Tyres from Premier Tyres. While taking over this plant, it was a sick unit. After the take over Apollo spent a large amount in modernizing the plant and now it is a profit earning unit. The fourth plant was commissioned in 1996 at Pune for manufacturing tubes. The entire requirement of tubes for all plants of Apollo is done from here. In truck tyres it has more than 30 percentage market share. The brand XT7 became the largest selling truck tyre in the country. The vision of the company is to be a leader in the Indian tyre industry and a significant global player.

APOLLO TYRES KALAMASSERY

YEAR OF INCEPTION Page 16 1976

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LAND AREA BUILDING AREA PRESENT CAPACITY PRODUCT RANGE

97 ACRES 69,500 SQ.MTS 300 MT/DAY Truck, LCV, Rear Tractor, Farm Radial, Passeng er & ADV Tyres

(Table no 3.1) APOLLO TYRES OUTLOOK

Business Activity: Manufacturers and sale of tyres Allied Businesses: Tread rubber for commercial vehicle tyres and distribution of alloy wheels for passenger cars. AcelereWheelz: company in India. Apollo Dura Treads: Indias best pre-cured tread rubber. Apollo Dura Tyre: Indias first branded re-treaded tyre, dedicated retreading plant which is launched in May 2007. South Africa: Distribution of Cooper Tyres and steel wheels for commercial vehicles. Financial Year: April 1 to March 31 India Net Sales Turnover FY 2005-06: Rs. 26.3 billion (22.3) or US$ 503 million (495), Rs 15.2 billion or US$ 332 million. South Africa CY 2005: Rand 1339 million or US$ 210 million, Rand 792 million or US$ 117 million. No. of employees: 10000+ Page 17 Premium alloy wheels, first from a tyre

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Corporate Headquarters: Apollo House, 7 Institutional Areas, Sector 32, Gurgaon, Haryana122001, India. Phone: +91-124-2383002 to 10. Fax: +91124-2383021/ 17 South Africa Office: 265 Sydney Road, Durban 4001, KwaZulu Natal, South Africa Registered Office: 6th Floor, Cherupushpam Building, Shanmugham Road, Cochin, Kerala 682031, India. Phone: +91- 4842381902, 2381903 Manufacturing Facilities: Three (India), Two (South Africa), One (Zimbabwe) Product Range: Truck, Bus, Light Truck Radial and Cross- Ply, Passenger Car Radial, Farm Radial and Cross- Ply, Off- The Road, Earthmover Industrial Overall Capacity: 314000 tonnes/ year Key Brands: Apollo, Dunlop, India Tyres, Kaizen, Regal Tyres Other Brands Manufactured: Novex, Master Steel, Milestone, TYfoon, and Velocity.

APOLLO TYRES LTD-KALAMASSERY PLANT IN FOCUS

Taken over by Apollo tyres in April 1995 Location : Kalamassery,Cochin Year of establishment : 1962 Land area : 117908 sq.m Plant area : 38595sq.m Power requirement : 6000 KW/day Installed capacity : 60 MT Production : 86tonne/day

Employee strength Management staff: 140 General staff: 108 Page 18

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Workmen: 797 Trainees: 259 Total: 1304

Growth of the Organization

Apollo Tyres Ltd. have 4 manufacturing plants in India is having a market all over the country. Indian passenger car radial tyres have also been gaining acceptance in the developed markets. India is leveraging its cost competitiveness to emerge as a major player in the segment of industrial tyres. Head Quarter Plants Zonal Offices : : : Gurgaon Baroda, Cochin (2), Pune Bangalore, Kolkata, Delhi, Jaipur & Mumbai Redistribution centre : Baroda, Coimbatore, Delhi, Ichapuram, Indore, Jaipur, Hubs in Kolkata, Guahati and Patna. However, the large and growing domestic market has meant that the export portfolio has always contributed a smaller portion of revenues. This is more so given that realizations are better in the domestic market. In recent years, exports have been a growth area for Apollo Tyres, even though it comprises only 8% of overall revenue. Products exported primarily include truck bias, light truck bias and passenger car radial. The key export markets include South America, Africa, Middle East and South East Asia. Inroads are now being made into Europe and Australia with high performance passenger car radial tyres. Apollo tyres recently acquired Dunlop tyres South Africa and started its operation over there.

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COMPANY VISION
A significant player in the global tyre industry and a brand of choice providing customer delight and continuously enhancing stakeholder value OBJECTIVES OF THE COMPANY High volume, high market share, cost effectiveness in all segments. High quality, technically superior products. Consistent production through harmonious industrial relations. Achievements of customer delight through benchmarking global practices. Strengthen supply chain management. Revenue growth. Operating margin improvements. Employee satisfaction.

GOAL OF APOLLO Learning and Development Employee safety Family Focus Hygienic Factor Employee Involvement and Cultural Building Employee satisfaction Customer delight Revenue growth Operating margin requirements

QUALITY PLEDGE

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We the people of Apollo Tyres Ltd will create an enterprise committed to quality. It is our policy to design, manufacture and services our products to provide the level of quality and valve that meet every customers need. We will aim to generate customer enthusiasm through continuous improvement in our products and services.

PLANTS IN INDIA
Sl.N o 1 2 3 4 5 PLANTS APOLLOTYRESLTD, PERAMBRA KERALA APOLLO TYRES LTD ,

KALAMASSERY, KERALA APOLLO TYRES LTD , BARODA GUJARAT APOLLO TYRES LTD, PUNE

MAHARASTRA APOLLO TYRES LTD, CHENNAI TAMIL NADU

(Table no 3.3) PLANTS ABROAD

Sl.N o 1 PLANTS APOLLO TYRES , BULAWAYA, 2 ZIMBABWE APOLLO TYRES, LADYMITH SOUTH 3 AFRICA APOLLO TYRES, DURBAN SOUTH AFRICA

(Table no 3.4)

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GLOBAL POSITION OF APOLLO TYRES LTD YEA R 200 4 200 5 200 6 200 7 200 8 (Table no 3.5) APOLLOS CORPORATE SOCIAL RESPONSIBILITY
By giving back to society in every way possible, one builds synergies with the core business, leading to a sustainable effort. Apollo Tyres believe true sustainability is only ensured by the positive impact of business practices. The company has invested in efforts to build awareness about AIDS and has undertaken to bring solutions to the problems of the community at large. Recognizing that an optimistic and progressive environment not only enhances productivity, but also promotes a feeling of well being, all around, our initiatives in Corporate Social Responsibility are an integral part of the business activities and not outside them. The principles of sustainability are inherent in our vision statement focusing on continuously enhancing stakeholder value. CSR is recognized as a key strategy to manage the business and operational challenges. The organizations strategy is to build key partnerships and linkages to optimize the existing resources in reaching out to more people. The organization is conscious of the Page 22

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triple bottom line concept and is working towards putting advanced and integrated management system on environment, health & safety and social aspect. Being a people centric business, at the onset, Apollo Tyres undertook to bring awareness and solutions to the problems effecting those members of the public that are in closest contact with the company- the trucking community. From then on, the CSR activities have expanded to include women, children and the disadvantaged, in collaboration with NGOs and other external agencies. The current and planned CSR programs are primarily focusing on health and education, in broad alignment with Millennium Development Programs of UNDP. All programs, except HIV-AIDS, are currently in the domestic market. As the geographies of operations expand, CSR programs will be undertaken after due needs assessment of the location. Some of the planned activities will require local NGO support.

GOLDEN ACHIEVEMENTS OF THE COMPANY

Apollo Tyres received the pollution control award by the central government during the year 2003-2004 Apollo tyres received the National Safety Council Award in the year 2005 & 2007 Apollo Tyres acquired the Energy Conservation Award in the year 2006 Apollo Tyres received the award for Road Safety in 2006 Apollo Tyres acquired the Quality Circle Award in 2006 First tyre company to get ISO 9001 CERTIIATION (Octo1 1995) One of the few tyre manufacturers with QS 9000 certification (March 2001) Consistently rated as excellent in quality audit by collaboration M/S continental AG

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Manufacturing facility and tyre testing laboratory certified by Inmetro of Brazil

Apollo key differentiation to other firms

Superior product quality Strong brand equity Committed marketing team High consumer loyalty Product segmentation in truck tyres Benched marked for planning efficiency parameters Power consumption Quick response to market needs Least scrap generation.

PRODUCT PROFILE TRUCK

Overload Technology Load & Mileage Technology

Loadstar Super Loadstar Super Hercules Loadstar Super Gold Kaizen 50L XT 7 XT 7 Haulug XT7 Gold Amar Amar Deluxe Commando Kaizen 36L Kaisen 99 plus Page 24

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Premium Mileage Technology

Kaisen 77R XT-9 XT9 Gold Amar Gold

Mileage Technology Segment

Kaizen XTD Champion Champion DXL Champion Gold Amar AT Rib Kaizen 27L ( Table no 3.7)

LIGHT COMMERCIAL VEHICLES

Load and mileage Technology Overload Technology Premium Mileage Technology Mile Star

Regular Mileage

Load Super Star Amar Delux Amar Gold Rib XT9 XT9 Gold Duramile(radial) Champion (Table no 3.8)

PASSENGER CAR RADIALS

Tubeless Radial passenger Car Tubeless Radial MUV & SUV Tube Type Radials For Passenger Car Tube Tyre Radial For MUV & SUV Acelere Amazer Lx Hawks Amar Amazer XL Quantum Amar Amazer XL Storm Hawks Armour Panther Gripper Maha Trooper (Table no 3.9) Page 25

Passenger Car & Jeep Bias

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FARM
Cultivation Haulage Multipurpose Tractor Trailer Type Krishak Super Sarpanch Power Haul Farm King (Radial) Krishak Premium (Bias) Dhruv Hunter (Table no. 3.10)

MARKET PROFILE 1. MRF

MRF is the market leader among tyre manufactures in India, with a 24% share in terms of revenues. Its leadership position coupled with its strong brand recall and high quality, MRF commands the price maker status. MRF has a strong presence in the T & B segment, the largest segment of the tyre industry, and commands around 19% market share in the segment. It is the leader in the 2/3 wheeler segment (including motorcycles) and tractor front tyres and holds second place in the passenger cars and tractor rear tyres. Exports accounts for around 12% of the gross sales in the MRF. The company has a distribution network of 2500 outlets within India and exports within India and exports to over 75 countries worldwide.

2. Apollo Tyres (ATL)

Apollo tyres is the second largest in the Indian tyre industry, with a market share of 22% in terms of revenues, and largest player in the T & B segment, with around 22% market share and 82% of its product mix coming from this segment. It also enjoys a strong brand recall. ATL derives 80% of its revenues from the replacement market. ATL

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is a strong player in the domestic market, with just 2% of sales coming from exports.

3. JK Industries
JK industries have a 17% market share, in terms of revenue making it the third largest player in the industry. The company ranks first in the MHCV and Passenger Car Tyre segments with 79% and 7% of its product mix coming from these segments respectively. Exports account for approximately 17% of its gross sales.

4. CEAT
CEAT has a 14% market share in terms of revenue and is an average player.68% of its product mix comes from MHCV segment. Its leading brands in the T & B segment are Lug XL, Mile XL and Rub XL, Secure in two wheelers and Formula 1 in passenger radials. In terms of profitability, CEAT has lower margins compared to its peers, in spite of deriving 60% of its revenues from the replacement market.

5. Goodyear India
Goodyear India with its presence across the globe has a market share of 6% in the Indian Tyre Industry in terms of revenues. It has a significant market share in the tractor tyres segment, with 22% in tractor front tyres and a 30% share in tractor rear tyres. It derives 45% of the product mix from the MHCV segment and 31% from the tractor tyres segment.

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CHAPTER - 4 ORGANISATION STRUCTURE

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ORGANISATION STRUCTURE

Chart no: 4.1

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CHAPTER 5 FUNCTIONAL DEPARTMENT

1. PURCHASE DEPARTMENT
The main function of purchase department is to provide right material at right time in right place at right quantity. Page 30

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STRUCTURE OF PURCHASE DEPARTMENT

GROUP MANAGER

ASSO.MANAGER

ASSO.MANAGER

ASSO.MANAGER

EXECUTIVES

EXECUTIVES

EXECUTIVES

(Chart no 5.1) This department is concerned with the purchase of both indigenous and imported materials. It covers procurement of indigenous Engineering and miscellaneous items other than raw materials. This department is headed by senior manager and under him there are a number of officers and staff. The department is provided with the latest communication facilities and computers. The main items of purchase are: Engineering spares Consumables Furnace oil Diesel Chemicals Lubricants Some raw materials The purchase may be corporate purchase or plant purchase. Under corporate purchase the raw material is purchased after Page 31

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considering what the market require for the month. Under plant purchase, purchase may be of stock item or of non stock item. Stock items are purchased for regular use. They are having material codes. They are purchased after considering the reordering level, reorder quantity, lead time etc. For non stock items there is no regular purchase. Different departments have to prepare purchase requisitions. The items purchased are engineering items, oils and lubricants, local raw materials, import of spares etc.

Objectives: To ensure continuous availability of material. Make purchase at most economic price. Develop good supplier relation. Ensure alternate source of supply Ensure quality products to reduce wastage and material loss.

1. Purchase requisition is formed What required Where required How much required

2. Vendor analysis based on Quality Price Time of delivery

Purchase Process:1. Receiving purchases requirement. 2. Ensuring sources of supply and choosing suppliers. 3. Preparation and execution of purchase order. 4. Receiving and inspecting of materials. 5. Checking and passing of bill of payments. Page 32

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Vendor selection
This includes a list of steps involved in selecting the right vendor for stack items identified as critical by the department to enable a smooth functioning of the plant. Vendors are generally identified as 1. Manufactures 2. Dealers 3. Firms offering various services Manufactures are divided into two

1. OME(Original Equipment Manufacture

The OME shall be identified as a vendor for the supply of equipment, spares, components etc.

2. OCM (Original Component Manufactures):

For all spares, components and consumables, attempts are made to identify the manufacturer and source the items directly from them so as to get quality products or services at optimum cost. Information available on suppliers manuals, catalogs, details available on the nameplates of machines etc shall be used for the purpose. The capital purchases and raw material purchase is done through centralised purchasing i.e by the corporate office situated at New Delhi. Each item of the engineering stores will have a serial number along with code number. They are identified with that number. The products to be purchased are automatically generated by the help of computer and this process id called MRP (Material Requisition Plan).A reorder level will be fixed for each and every item (spares) and whenever the stock is below the reorder level the MRP will be run and the order is placed to the vendor (supplier). The purchase order will be placed for the total quantity i. e if the stock is Page 33

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10 and the reorder level is 4, out of which 8 were taken to the plant then the order will be placed for entire 10 items and not balance 8 items. At this stage the stock will be above the actual stock i. e 12 as above situation. When the goods for purchase are without product code then these items are purchased when the required departments will have to place the order manually. The purchase department will take decision on such purchase order by calling a meeting. And if the decision is taken regarding the order then a tender will be issued for the purchase of goods. The lowest rate quoted will be fixed. The products so purchased will have to be collected by respective departments manually from the factory gate (other purchase items i. e items with product code will be unloaded at respective departments). On receipt of the goods the respective department will have to prepare a goods receipt (GR) and should be send to purchase department.

PURCHASING RECORDS
Purchase Order Records Vendor Records Blueprint and Specification Record Drawing Record pf all materials purchased List of all vendors, their mailing address, and other details. Many items are purchased by blueprint specification and are kept in separate files with index showing their location and where Contract Files the copies have to be send. Certain goods may be bought under a term contract. In such cases the purchase department must maintain a record of such contracts. Page 34

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Table no 5.1

2. STORES FLOW OF AUTHORITY

RANK 1 2 DESIGNATION Manager Associate Manager Stores DUTY TO BE PERFORMED Managerial functions Coordinate all activities of various stores like RMS, FGS AND EMS. Coordinate with transporters supply chain management of Delhi depot, excise and OE 3 4 Sr. Officer stores Jr. Officer customers. Despatch and receipts of in and out various materials. Receipts and related documentation of incoming 5 Jr. Officer materials Despatch documentation and account keeping Table no 5.2

RAW MATERIAL STORES

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Process:-Receipt handling, stores, packaging, forwarding and delivery of material to internal and external customers with proper documentation to meet their requirements. Purpose:-To supply right material in right time to produce right quality product without any interruption. Scope:-Receipt, handling, storage and issue of raw materials and to the customer.

SIPOC
S Supplier = Corporate purchase. I Input = Raw materials. P Process = Receipt handling, storage, preservation & issue of raw materials. O Output = Confirming RM receipt, storage & delivery. C Customer = Manufacturing, mixing centres other unit of ATL & internal customers.

RAW MATERIAL HANDLING PROCESS

1. Verification of documents at security gate The security officers will check the various documents like Serial number Suppliers name Description of item Truck registration number Date and time of arrival Date and time of departure

2. Weightment of the truck is taken after passing the gate. A computerized weighment machine is maintained. 3. Verification of documents at the Raw Materials Stores Various documents submitted at RMS will be examined and verified, which includes delivery Chelan, sales tax papers, excise papers, Page 36

APOLLO TYRES LTD

packing list, duplicate copy for transporters of invoice for availing modvat credit. 4. Testing The various raw materials are tested at the lab and only then the raw materials will be unloaded on the plant store or in the tanks. 5. Handling and storage All materials except materials in tankers will be unloaded manually. Caged pallets or platform pallets are use for storing of raw materials. Each caged pallet will carry a maximum of 1500kg of materials. Those items in the tankers will be directly unloaded to respective tanks. 6. Preservation The various raw materials are preserved as follows: Carbon black and chemical are stored in 2nd floor. Natural rubber, wax etc stored in 1st floor. Fabric, bead wire, latex etc stored in ground floor. Materials received in tankers will be pumped in storage tanks. 7. Rejection If the items are tested are displayed with a rejected tag by the technical department then if the item is small quantity then it will be kept in rejection area and if the quantity is large it will be kept in the same area till the disposal.

VARIOUS

RAW

MATERIAL

USED

IN

THE

MANUFACTURE OF TYRES
POLYMERS Natural rubber, synthetic rubber, carbon black, reinforcing clays Fillers Curing agent Process oil Curing agents / sculpture Accelerators / activators Page 37

APOLLO TYRES LTD

Antioxidants / antiozonents (waxes) Ret ardors Pepticers for natural rubber mastication Ret order Bead wire Fabrics spools Solvent for cement and solutions Miscellaneous items like paints, colour, crayon, scrap flakes etc.

Procedure for handling outside mixing operations

Purpose: To define a procedure for identifying sources of executing contracts, arranging for transportation and maintenance of records. Scope: All operation regarding outside mixing to be carried out by stores department are consolidated in the Procedure. Responsibility: Head of the Department. Resources: Mixing Centres, Stores Departments, Technical production planning control and production.

RECEIPT OF RAW MATERIALS VERIFICATION OF DOCUMENTS AT SECURITY GATE

The security inspector at main gate shall verify all documents pertaining to the consignments brought to the factory before allowing entry in to factory premises and note the following details. Serial no, suppliers name, description of item, Challan quantity,

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challan quantity, challan no and date or LR no and date, truck reg no, date and time arrival, date and time departure.

WEIGHMENT BRIDGE)

(BY

THE

COMPUTERISED

WEIGH

Security shall inform raw material stores about the arrival of the vehicles at the gate. The security guard and a representative from RMS shall record weighment of truck jointly. The weighment slip shall indicate the following: Serial no, time and date of receipt, suppliers name, gross weight with materials, SIR no and date. After recording the above details in the computerised weighting balance the vehicles shall be directed to the respective unloading bay. In ATL weighment will be done in a weighbridge closer to the factory under the supervision of security and RMS personnel after ensuring that the weigh bridge posses a valid certificate from weight and measure department. Both security and RMS personnel shall sign on the computerised weighment slip. One copy of the weighment slip will be filed in RMS along with concerned delivery challan and the second copy will be returned by security department.

VERIFICATION OF DOCUMENTS AT RMS

The receipt in charge shall verify the documents to ascertain the no of packages, description of material code and weight of the material. If any discrepancy is found the same shall be orally reported to the officer concerned before unloading. He in turn will take decision suitably. The dispatch documents include: Delivery challan/ invoice, sales tax papers, packing list and duplicate copy for transporters of invoice for availing MODVAT credit. In case of non receipt of any of the above documents the consignment will not be unloaded unless and otherwise instructed by the competent authorised after compliance of all conditions stated above, the Page 39

APOLLO TYRES LTD

materials will be unloaded as instructed by the receipt in charge and lead to the respective area.

HANDLING STORAGE AND PRESERVATION

All the incoming materials except the materials coming in tankers will be unloaded manually or with the help of forklift as instructed by the receipt in charge. Caged pallets or platform pallets are used for storing of materials so far as possible to facilitate easy handling at the time of issue. Each caged pallets will carry a maximum of 1500 kg of materials. Caged pallets will be stacked one over the other.

PRESERVATION
Carbon black and chemicals are stored in the 2nd floor, natural rubber/ SBR, wax etc in the 1 st floor and fabrics, bead wire, latex etc in the ground floor. In case of space constrains in the respective floors, the respective floors, the materials may be kept in the ground floor and other places as directed by the storage in charge. Materials received in tankers, after checking the seal and dip reading and sample test by QA will be directly pumped into the storage tank. Before unloading the receipt in charge will make sure the availability in the storage tank. Rejection items are identified by displaying a rejection tag by technical department. In case of rejection of voluminous quantities the materials are kept in respective areas till disposal, while small quantities will be removed and stored in the rejection area duly displayed with the rejection tag.

ENGINEERING STORES DEPARTMENT

Engineering goods stores is responsible for storing the necessary spare parts, components required for smooth functioning Page 40

APOLLO TYRES LTD

of the plant. On receipt of indent from production department, the engineering stores arrange for its release. The inventory management technique used is VED Analysis. Almost all the activities of this department are computerized. The purchase department is initiated whenever reorder level is reached. A buffer stock is always maintained in the store. Another system followed in the engineering stores is VMI Vendor Maintain Inventory. In this the vendor supply the raw material in large quantities and payment is made only for consumed items. The engineering store keeps record and stock of engineering materials and consumables. The actual stock and item list are maintained by the computer. The various types of items in the engineering store are tools, glows, mask etc which are required for the work to progress. A reorder level is maintained for each item and when the stock is either equal or less than the re order level the computer will automatically place the purchase order by running the MRP (material requisition program).The purchase department will see to it and place s the order to the regular suppliers. If new suppliers enter the market the best quoted price will be taken. The materials to the engineering department will be sealed by the security at the gate and the actual stock and order will be verified. If the materials received is correct the goods received receipt is prepared and sent to the purchase department. If there is any shortage then it is also informed to the purchase department.

ENGINEERING MATERIALS
The total number of item codes in engineering stores is 38500 approximately, out of which 23500 are spares and 15000 are consumables.

1. Consumables (General stores items)

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Consumables (General stores items) are standard engineering items (bearing, belt etc). It is decided to identify common codification scheme for all consumable items. All the items shall be brought under this codification scheme.

2. Spares
Spares are parts of equipments. Equipments are varying from plant to plant by make and model. It is decided to Identify common equipment by same make and model. Assign uniform code to equipment make and model wise, which is common across plants. Assign representative plant spares with code of equipment. In general the item code for consumables will be common across all plants and item codes for spares will be plant specific with respect to common equipment code. Material classification in SAP will be used to trace the spares to common machines. Material master codification will follow the external numbering

FINISHED GOODS STORES

Finished goods stores (FGS) is the place where the final goods are stored from where these are taken away from the plant. All finished goods after final inspections are kept at the transferring area in each shift. The staff of final finishing will prepare a finished goods transfer note in triplicate which will be countersigned by the staff of FGS/ TTF. After verification finished goods transfer note will be serially numbered and have the following details. Material code Description Quantity The original copy of the transfer note will be issued to central excise wing after entering the details in stock statement, duplicate Page 42

APOLLO TYRES LTD

will be given back to the production as their file copy and triplicate will be issued the production planning. One staff each from production and FGS/ TTF will separately verify quantity, size, ply rating

Removal:
The finished goods required for dispatch kept at the transferring area, after preparing the transferring notes, will be removed to the loading bay and balance will be removed to stores for storage, after completing packing for required item. The various processes to be performed for handling, preservation and storage are listed below: a) Application for Non OR (Non Original Equipment) Finished goods stores is fully covered and protected from sunlight and rain water. Tyres are rolled from transferring area to the stores and stored on size wise. Each stack with maximum of ten for truck tyres, 8 for RT and 12 for LT/passenger. All tubes are packed in HDPE bags and bought to the storage area directly by tube production. Flaps are bundled and transferred using trolley. All seconds tyres stored in FGS are identified using a white band and tyre using a red band. A stock statement is made as on the closing of the day. This is made based on the receipt and despatch. After preparing the stock statement the finished goods transfer note is transferred over to factory excise wing for recording and filling. b) Application for OE (Original Equipment) Truck OE tyre if not despatched within 24 hrs should be stacked in the warehouse. Bottom most tyre will be stacked with tube value facing upwards and for others with tube value facing downwards (same practice is followed while loading the tyre in truck also). Page 43

APOLLO TYRES LTD

FIFO system is followed Truck inspection is carried out before loading the tyres. In case of higher inventory levels it is not possible to store all the tyres in the godown, temporary sheds will be restored for storing those tyres. Stock levels of FGS are controlled by supply chain management at head office level.

DISTRIBUTION OF FINISHED GOODS

Main responsibility is for the head of department. Supply chain management department give the despatch schedule day to day basis. Destination to which trucks are required is arranged day in advance. Load slips are prepared as per the plan made. Stores men will keep the loads as per the load slips at the loading bag. Staff of FGS, security and representative of transported will check the loads. After checking the load, slip will be signed by the staff and given for preparing transport documents and goods will be loaded on to the Lorries. The lorries will be inspected for cleanliness of the platform to ensure that there are no items which will damage or dirty the tyres. All trucks are despatched to outstation are covered using tarpaulin and tied safely before leaving the factory premises Despatch documentation is made. Sales tax, road permit are handed over to the transporters. Invoice distribution

a) Original Buyers b) Duplicate Transporter c) Triplicate Assesse Page 44

APOLLO TYRES LTD

d) Quatriplicate Extra copy List of serial number of tyres being despatched will be provided when ever necessary. All documents required for transportation are prepared and handed over to the transporters after getting paper acknowledgement and lorry receipt from him. All finished goods after final inspection are kept at the transferring area in each shift. The staff of final finishing will prepare a finished goods transfer note in triplicate which will be countersigned by the staff of FSG. After verification finished goods transfer note will be serially numbered and have the following details: Receipt Material Code Description Quantity Removal The original copy of the transfer note will be issued to central excise wing after entering the details in stock statement, duplicate will be given back to production as their file copy and triplicate will be issued to production planning. One staff each from production and FSG will separately verify the quantity, size, ply rating of the finished goods and compare against the entry in the transfer note. The finished goods required for dispatch kept at the transferring area, after preparing the transferring notes, will be removed to the loading bay and balance will be removed to stores for storage, after completing packing for required items.

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APOLLO TYRES LTD

3. HUMAN RESORCE DEPARTMENT

Human Resource and Administration department is one, which facilitates smooth working of the organisation by looking into the human HR Heads is the resource is side and also the overall namely the into and administration of organisation. department of each biggest and divided are having in into three sections Industrial and Personal Relations, Security and Administration. section section direct contact with department head. Among the three sections Industrial Relations four subsections looking Personnel Industrial Relations, Employees Arrival

Departure, Time , Health and Safety.

VISION OF HR DEPARTMENT
Our HR vision is to be a strategic partner to the business and create value for the organisation by developing the human capital.

MISSION OF HR DEPARTMENT
To create HR policies and process which are employee friendly. Page 46

APOLLO TYRES LTD

To built a culture which is warm forthcoming and professional with a sense of ownership and pride. To encourage innovate thinking. To encourage transparency and teamwork. To develop leaders at all levels with general marketing skills. To create a learning organisation. To develop competencies and skills through training and development. To constantly raise levels of employee productivity. To create HR brand. To work towards a attaining and sustaining the best the best employer status.

STRUCTURE OF HR DEPARTMANT

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APOLLO TYRES LTD

HEAD HR & ADMINISTRATION

GROUP MANAGER-HR & ADMIN Security Welfare Personnel Hr & Training

ASSOCIATE MANAGER ECUTIVE (E2)

EXECUTIVE

EXECUTIVE (E2)

ASSOCIATE MANAGER

EXECUTIVE

Chart no 5.2 The major functions of HR Department 1. Recruitment. 2. Selection. 3. Training. 4. Industrial Relations. 5. Welfare. 6. Time office. 7. Security and Safety.

1. RECRUITMENT

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APOLLO TYRES LTD

Recruitment is done through advertisement and a good opportunity is given to the child of worker. This increases family loyalty towards the company. They are call for the interview and the Chief executive takes the final decision.

2.SELECTION
a. Management staff. Technical B. Tech, Graduate Engineer trainee. Non technical CA/ICWA/MSW/MBA/MA (PM): Executive Trainee. After training, they are absorbed as officer. Criteria include. Consistency in academic performance. Group discussion. Personal interview.

b. Employee children skill development scheme. Three year production apprentice. One year training in production. Dependant of employees. Minimum qualification -8th standard. Physical fitness (height-168Cm, weight-50Kg) .

c.Indction Plan. Workers Associate managers Management staff 2 days induction training. 7 days. 15 days to 1 month.

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APOLLO TYRES LTD

3.TRAINING
The organisation provides training for both managers and workers. Training program for managers consist of both internal and external program. A three dimensional skill frame work is used to identify the training needs of workers as conceptual skills, functional skills and human skills. The training system includes; Need identification. Setting objectives. Training design. Training implementation. Training evaluation. Training impact assessment.

Areas covered include: For management staff. Conceptual. Functional. Cross-functional. Behaviour.

For workers. Systems. Technical aspects. Work culture. Specialised training for trade unions.

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APOLLO TYRES LTD

TRAINING AND DEVELOPMENT PROCEDRE

Training and development of ATL Perambra aims accomplish the following objectives: To equip the personnel with conceptual, functional and behaviour skills those are necessary to perform the job at hand. To provide a nature for the work is to down of an individual where in he/she can explore and optimally use his/her innate and talent potentialities leading to his/her individual growth and development. To create a culture of continuous leading among the all employees through systematic training with the ultimate objective of making ATL a performance driven organisation. to

TRAINING RECORDS
3 types of training records will be maintained by HR Department. Training cards. The training card will contain the details of all training programme that are attended by an individual employee. The card will be maintained in the prescribed from FR-06-A-04. Organisational training programme monitor. In order to consolidate and mention various training programme conducted, an organisational training programme maintained as per from FR-06-A-05 Page 51

APOLLO TYRES LTD

Individual training programme monitor. For those programmes attended by more than 5

individuals, the list of participants will maintained in the individuals training programme in the prescribed from FR06-A-06.

TRAINING PROGRAMMES.
Training on communication and interpersonal skill

programmes for associate managers and managers. Training on Jyotirgamaya for blue collared employees. Safety and workmen. fire training conduct for blue collared

With a view to develop multi skill among engineering trainees, they are given exposure to engineering, production and technical fields.

4. INDUSTRIAL RELATIONS
There exists a good relation in the company. The

management and the employees jointly find the solution for the problems. There exists a well maintained relation between the employees and employers.

Trade Unions
The three Trade Unions are : Premier Tyres Workers Union Premire Tyres Employees Union (CITU) Premier Tyres Workers Association (independent) Page 52

APOLLO TYRES LTD

5. WELFARE
The organisation provides good welfare services to its employees. The company runs a subsidised canteen on contract basis. Rest rooms with locker and washing facility, arts and sports club, and well maintained library are other facilities provided. A well transportation facility is given to all the employees from different destinations for which they have to pay a very less amount. All employees drawing a salary below Rs.6000 are covered under group accidental policy and medi claim policy. The various schemes for the employees are: 1. Employee deposit linked insurance scheme. 2. Workmens compensation scheme. 3. Group hospitalisation scheme. 4. Canteen facilities. 5. Transportation facilities. 6. Housing loan interest subsidy and so on. Taking the health aspects of employees those who in the night shift get 200ml of milk packets. It is given to retain their lost energy in the night shift and give motivation to the employees to come for night shifts. Apart from its soaps is distributed for the cleanliness of employees. Each worker gets soap fully off cost and those who work in their production units 3 in number per month. Welfare activities are of 2 types; Statuary. Page 53

APOLLO TYRES LTD

Settlement grievances.

Statuary welfare activities. ESI Gratuity

Some of the settlement grievances are; Group Saving Linked Insurance Scheme (GSLIS). Group Personal Accident Insurance Scheme (GPAIS). Group Mediclaim Insurance Policy (GMIP).

Management staff Group hospitalisation scheme. Group personal accident policy. Two wheeler scheme 40% borne of the company. Car scheme Asst. manager & above - 40% borne of the company. Super annuation Asst. manager and above. Employee self development scheme.

Workers Group personal accident policy. Medical claim. Housing loan interest subsidy-50%. 2 wheeler interest subsidy-70%. Financial assistance co-operative society. Periodically medical check up. The aim and objective of welfare fund shall be to render financial assistance and to encourage cultural, sports, social

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APOLLO TYRES LTD

games

and

other

welfare

activities

among

them

spirit

friendship , co-operation and understanding.

6.TIME OFFICE
This is concerned with registering the time in and out of the workers. Other activities related to payment of wages, incentives, leaves etc....Different registers are kept for different shifts for the effective functioning. A leave book is maintained & it contains, Leave balance. Leave credited. Leave waited.

The daily attendance reports for the employees specify the following: Section/department. Shift. Date. Clock no. Grade. Hours worked. Schedule shift. Apart from it , a punching system is maintained. Each employee has to punch his badge in the electronic punching system while arriving for duty. The same is repeated while leaving the factory premises. Attendance is cross checked with the attendance report of the workman and the attendance register maintained at various sections for the staff and managerial persons. Performance reports are maintained at various sections for the Page 55

APOLLO TYRES LTD

staff

and

managerial

persons. Performance

reports

are

maintained in each section. These are done with a view to reduce the absenteeism in employees and motivate them to increase production. A leave book is maintained and it contains leave balance, leave credited and leave awaited. The daily attendance report is verified by the superior , shift engineer and shift superintendent department head. SHIFTS OF WORKERS Shift A B C D(General) 6am-2pm 2pm-10pm 10pm-6am 9am-5pm (Table no 5.3) Working hours

7.SECURITY AND SAFETY SecuritY

The security is concerned with the physical movement of men and material. Security staff headed by the chief security officer works at all the shifts. To facilitate the security measures, single point entry is adopted to control visitors. For materials, separate gate passes are issued. Job description :Be responsible goods, raw for security of men, machinery , finished materials , process materials , highly Page 56

APOLLO TYRES LTD

sophisticated equipments etc.... Their inward and outward movement is monitored as per the system prevailing. Developments requirement of of the security staffs in line to with a the high

organisation

and

keep

morale of the forces.

Principal accountabilities of chief security officer. 1. Monitor and control all inward and outward movement of vehicles , material and personal. 2. Deploy of contract workforce to various department for routine as well as project work. 3. Maintain the data base of all indirect workforce including contract workmen. 4. Ensure high degree of liaison with police , local administration , fire force and government authorities. 5. Upkeep of environment housekeeping of plant. management system , including

6. Keep strict vigilance , gather and assimilate intelligence for smooth functioning of the plant in an unionised environment.

Event management:The security department plays a significant role in factory day, safety day, Onam/Christmas visit by important officials. celebrations and plant

Safety
The organisation follows all the provision under the Factories Act 1948. The machines and plant are is well given equipped for the with safety directions same. Safety Page 57

APOLLO TYRES LTD

directions are placed at noticeable points in and around the plant premises. Fire extinguishers are placed reachable points and employees are well trained to use if necessary comes. Those who work in production department are given masks , safety gowns and shoes. In Apollo , a separate book is given to each employee , which prescribes certain rules and procedures in order to create a working environment free of accidents. No major accident was occurred in the plant for past 10 years. ABC of safety A-Always B-Be C-Careful FIRST AID Medical officer

:-

There are 2 doctors in Apollo Tyres Ltd, Perambra plant to cater to the medical needs of the company. One among them is a general surgeon . The various services provided by the medical officers are listed below. a) Causality services The main purpose is the causality function. The injured will be provided first aid by the medical officers. All the facilities available within the company will be utilised and when further treatment is required the patients will be referred to nearby hospitals. If the injured require any leave or rest , then a brief investigation report will be prepared and submitted. b) Medicines Basic medicines will be available in the first aid counter itself and other medicines will be prescribed to the patients to be purchased from outside. c) Record keeping A chart called the L chart is

maintained for the employees where all details regarding the various diseases of the employee will be recorded. Page 58

APOLLO TYRES LTD

d)

Advisory services Advisory and counselling services are

provided the employees with regard to their physical as well as mental problems. e) Classes and Seminars Medical officers conduct classes

and seminars regarding the harmful effects of alcohol , drugs , smoking etc... and make them understand the ways in which this will affect the health of the company. f) of Posture and exercises - A healthy mind and strong body work depends on the individual. Therefore the medical

is required for the company to perform successful. The quality officers also advices regarding good posture to be maintained, exercises to be performed to maintain body and mind healthy and activity Emergency plan:Emergency is a situation warrented to seek external help or resources for controlling an eventuality which adversely affect the environment , man and material or objectives of emergency plan are to assign the individual roles and duties to perform in an emergency situation. a) b) c) To avoid panic and confusions. To effective utilise the available resources. To equip them. But if the facilities not enough , then advance intimation shall be passed to hospitals for immediate receipt of a) patients. The The details procedures of the to be performed that are for taken such to a the situation are listed below: causalities hospitals will be intimated to the welfare officer.

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APOLLO TYRES LTD

b)

He

will

also

inform

the

Apollo

Tyres

Ltd

head ,

engineering head , HR and administration head , finance head , safety manager , security manager and medical officers over the phone. c) Welfare officers shall co-ordinate with hospital to give

utmost care and attention to the victims. Incident controller shall prepare a brief accident report (FIR) to be submitted to the management immediately after the situation has come under control. OTHER ADMINISTRATIVE ACTIVITIES 1. Selection Procedure. 2. Induction Plan. 3. Performance Appraisal. 4. Absenteeism Management. 1. Selection Procedure a. Management staff. Technical : B.Tech, Gradate Engg Trainee Non-Technical : CA/ICWA/MSW/MA(PM):Executive Trainee After trainee absorbed as officer criteria Consistency in academic performance Group discussion Personal interview

b. Employee children skill development scheme 1 year training in production Dependents of employees

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Minimum qualification 8th std Physical fitness 2.Induction Plan

Workers : 2 days induction training Management staff : 15 days induction Quality Pledge Safety procedure Welfare measures Interaction with all department heads 3.Performance Appraisal Employee Development Review(April-March) Three Tier system Helps in setting individual/team goals Rated in respect of the achievements Mid year review of the goals Personal attributes considered 4.Absenteeism Management Absenteeism among workmen has been a cause for concern for the company; production has suffered heavily in this account recently. It has therefore been decided to fight against the absenteeism contains among the regular workmen and production apprentices through attendance monitoring mechanism. The control measures are

a. Attendance, Discipline & Development Programme Introduction of ADD programme effective in ATL Page 61

APOLLO TYRES LTD

An effort to improve the attendance of chronic absentees To maintain consistent production Operations of the scheme

o Chronic

absentees

numbering 192 are

brought

under

small

group of 5 person. o 192 workmen are brought under 23 groups, under each mentor, drawn from purchasing and other financial areas, on a daily basis oversee attendance to ensure availability of his group members for work. o HR department monitor the attendance and stops those who absent from duty continuously for 3 days. o After 15th of each month, attendance data of the group

members are generated and circulated among the groups. o HR department publishes list of absentees during 1 st half of the month to give them a chance for improvement during the second half of the month. o In the 1st half of the succeeding month, the attendance for the previous month is published and committee meets and decides the course of action against defaulters. o Advisory/warning /suspension/pending based on the gravity of each case. o Individual appreciation letters signed by the mentors are sent to the residence in cases where remarkable improvement is shown. b. System o Daily follow up enquiry etc... are issued

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o 3 days meet HR o 6 days stoppage o 10 days home visit o 20 days (accident) home visit c. Task force o Constitution (1HR +1Line Personnel) o 12 task forces for 116 members o Achievements : 10 absentees were covered to 100% attendance o Individual Problem solving o 34% habitual absentees shows improvement d. Training and counselling o 2 days training module o Individual counselling e. Leave Planner o 12% permissible limit or work station o Festival leave plan o Leave sanctioning and monitoring Salary Payment All supervisory personnel are required to open a SB account with South Indian Bank, Perambra and intimate the accounting department who in turn will remit the salary. In case of non supervisory personnel cash payment is done in the following days; Staff and service staff Last working day of the month. Production/engineering 7th month. Employees focus (SHE) Page 63 working of the succeeding

APOLLO TYRES LTD

1. Safety Aspects : Primary importance 2. Health Full time doctor Ambulance Dispensary Medical check - up

3. Environment Eco friendly surrounding Pollution free work practice

Business focus Production linked bonus Production linked LTS(Long Term Settlement) Zero over time Expansion of capacity Right sizing

Promotion
Promotion is purely based on attendance , seniority and performance. They are all recorded in a systematic way. There is computerised punch card system followed in the company. Each entry and exit to the plant is recorded. Apart from this is a well maintained payroll system too. Absenteeism is being found out and proper reasoning is obtained. The attendance of the workers also account for their promotion.

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Thus Apollo relation welfare

HR department

is

the

strongest have more

department

of

Tyres and and

Ltd , Perambra, which this department of the gives

seven

subsections to the time

which are mentioned above. It has a well established industrial important the safety employees , also

management is very good here. All these sections are under the direct control of the HR Manager.

4. PRODUCTION DEPARTMENT

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MANUFACTURING PROCESS
Production department is required for the operation, maintain quality and optimum level of production department of ATL, Kalamassery consist of 2 zones, namely zone 1 and zone 2.All the production activities are classified under these two zones. The production planning starts with receipt of production ticket from Delhi which contains the quality required for branches. The requirement is then processed in the planning department and then converted into equivalent for production, and then the production schedule is finalized.

STRUCTURE OF PRODUCTION DEPARTMENT

PRODUCTION HEAD

DIVISION A HEAD

DIVISION B HEAD

DIVISION C HEAD

EXECUTIVES

EXECUTIVES

EXECUTIVES

EXECUTIVES

EXECUTIVES

EXECUTIVES

(Chart no 5.3)

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PRODUCTION PROCESS

Banbury mixer

Mills

Dip unit

Calander

Dual extruder

Bias cutter

Thread skiver

Brand building

Thread

Tyre building

Bead building unit

Tyre curing

Post cure inflation

Final inspection

Warehouse

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APOLLO TYRES LTD

(Chart no 5.4) Raw materials used in the manufacturing process Main raw materials used for the tyre manufacturing are, Materials used for various rubber components. Materials used in for tyre reinforcement. Auxiliary materials.

Materials used in rubber components The essential ingredients in rubber components are as given below: Raw rubber or natural rubber. Vulcanized rubber Carbon black Zinc oxide Accelerators Activators Reinforcing agents Process oils or Aromatic oils (makes easy the mixing) Anti degradents Anti oxidants Fillers Process aids Special additives

Raw rubber:
Rubber as such is a soft semi solid material which does not have any properties required for tyre components like elasticity, hardness, resistance etc. Natural rubber occupies the top position as the general rubber. It gives good strength, tear, wear and flex resistance, good process ability and low heat build up and good abrasion resistance. Synthetic butadiene rubber (SBR) is the first synthetic rubber developed. It offers good strength and tear, good crack, Page 68

APOLLO TYRES LTD

initiation, resistance, well whether resistance and fine process ability. SBR is also recommended for bead compounds for higher hardness.

Vulcanizing
Raw rubber when heated with vulcanizing agents become elastic, stronger and harder and this process is called vulcanizing. During vulcanizing, the long chain rubber molecules are cross linked to form a network thereby making it elastic. The cross links are generally achieved by adding sulphur and sulphur donors.

Accelerators
To increase the speed of vulcanization, accelerator is used. Accelerators are classified on the basis of the speed of the vulcanizing imparted by it.It is also classified as Primary accelerator and secondary. A secondary accelerator is the one, which is used as the booster to the primary accelerator.

Activators
Activators are used to improve the efficiency of accelerator and it improves the elasticity and the strength of vulcanizing agent. The general activators are zinc oxide and stearic acid.

Reinforcing agents
A vulcanizing thus made of raw rubber, vulcanizing agents, accelerators and activators is still soft like rubber band. For improving the strength, hardness, tear and wear and flex properties suitable for a tyre compounding, reinforcing agent are used. Reinforcing agents are carbon black and silica.

Material used for tyre re enforcement

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Carcass and bead materials used in a tyre are called tyre re enforcement. Textiles in the form of continuous filaments are the primary material for the tyre carcass. To form a ply, sufficient number of continuous filaments is twisted together. Cords are then woven into fabrics in special looms, with cords in longitudinal direction called wrap and thin cotton filaments in the opposite direction called weft. Bead wire is a special alloy steel wire with bronze plating used as a bead wire for tyre.

Process oils
Incorporation of re enforcing agents in a rubber is often difficult and to facilitate easy incorporation process, oils are used. These are also used to improve compound process ability at calendar and extruder.

Anti degradents
Most of the rubbers are highly susceptible to degradation when subjected to heat, flex, and weather and to take care of these anti degradents are added.

Fillers
Often, through not common, low cost substance called fillers are added to reduce compound cost.

Process aids
Process aids are those substances that are added to rubber compounds for reducing viscosity of the stock and for improving process safety.

Special additives
Sometimes special additives like bounding agents, hardening agents, and corrosion inhibitor etc are added for specific vulcanization properties. Page 70

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Auxiliary materials
Major auxiliary materials used in the tyre manufacturing process are dip solution, chemicals, solvents, lubricants and seperants.

Manufacturing process activities

The entire production system has been broadly divided into three sections , namely Division A, Division B, Division C. Division A Takes care of assembling activities. Division B Takes care of building activities. Division C Takes care of the curing activities.

DIVISION-A 1. COMPOUND MIXING

A compound is made by mixing the required additives into rubber. This mixing is accomplished in two or more steps using a Banbury mixer. This mixing is done in the chamber of the Banbury mixer under high shear and pressure using the rotors of the machine so that the ingredients and uniformly dispersed inside the rubber matrix. Different rubber compounds (differing in the recipe) are used in the different compounds of the tyre. The rubber compound is then used for the preparation of different components in subsequent stage 1. Tread 2. Sidewall 3. Tread cushion Page 71 of manufacture.

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4. Plies 5. Chafer 6. Flipper 7. Filler 8. Bead 9. Squeegees 10. Breakers Naturally the compounds prepared in the Barbary go to the respective equipment and process for further processing.

2. CEMENT PREPARATION
Various cements, solutions, lubricants and paints are prepared in the cement house sing rubber compound solvents and other raw materials. These are then used at various stages of tyre manufacturing.

3. FABRIC DIPPING:
A raw fabric (Rayon and Nylon) is having very poor adhesion to the rubber compound and has poor dimensional stability. During the dipping process an adhesive coating (eg. Resorcinol, formaldehyde,VP latex dip) is applied to the surface of the fabric to improve adhesion. The fabric is also stretched and hot set to increase the dimensional stability. Dipping is accomplished in the dip unit and the dipped fabric is then used for the preparation of the different compounds as mentioned above.

4. EXTRUSION:
Here compounds of the tyre like tread and sidewall are prepared from the rubber compound using a Dual extruder. Extruder is the process by which the rubber compound is given definite continuous shape. A thin sheet of rubber compound prepared using a small 2-roll calendar is applied to the bottom side of the tread. Page 72

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This compound is called tread cushion. The continuous profile is then cooled and cut to required length which is used in the assembling of tyre at tyre building.

EXTRUDERS
Extruders are distinguished by the diameter of their screw and are a single or dual type. a) SINGLE EXTRUDER Rubber compounds after being broken down and warmed up on Mills, are fed in to the screw of the extruder from which with the help of dies, produces a green shape of treads, sidewalls, and other strips as per specified dimensions and contours, width, gauge and weights. These strips are cooled in water sprayed conveyors and then cut out into specified lengths with the help of skivers (rotary cutting knife) and booked in metal trays or wrapped in cotton liners. The word green denote uncured rubber (i.e. Non vulcanized) b) DUAL EXTRUDER Two separate set of mills on which two different types of compounds are broken down and heated and fed separately to two different screws. The two compounds after extrusion are extruded together in a common head and with the help of performer and final dies, emerge into a pre determined shape. The advantage of the dual extruder is that two rubber compounds of completely different composition can be extruded.

5. CALANDER
Fabric calendaring is the process of coating both sides of dipping fabric using rubber compound. This is accomplished using a 4 roll Z type calendar. The coated fabric is cooled and wound in liner (in Page 73

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continuous length) to avoid sticking. This goes to the next stage of ply cutting.

6.

PLY

CUTTING

(Horizontal

and

vertical

Bias

cutting)
For cutting a tyre several plies are required. For e. g a 16 PR nylon truck tyre used 8 plies and 2 breakers. Each ply is cut from the coated fabric rolls prepared by calendaring. This process of ply cutting is accomplished in a bias cutter. Each ply is cut at specified widths and angles. The width depends on the type of tyres and the angle of the cut depends on the type of services required. The cut plies then go to 3 roll for squeegee application. Components like chafer and flipper are also made at bias cutters. These are further slit using a slitter into small widths and would into rolls. Chafer rolls from slitter go to the tyre building and flipper goes to the bead flipping.

7. SQUEEGEE CALENDARING/SQUEEGE APLICATION

Squeegee calendaring is the process of making thin sheet of rubber compound usually by using a 3 roll or 4 roll calendars. Squeegees are used at the inner most layer of the tyre (drum squeegee) and also in between the different plies (ply squeegee).Drum squeegee is prepared in the 4 roll Z calendar. It is in liners this squeegee roll is sent to tyre building for assembling. The ply squeegee preparation and its application on to the cut plies are accomplished simultaneously at the 3 roll calendar after squeegee application the plies are sent to tyre building for assembling.

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DIVISION B 8. BEAD PREPARATION

It consist of three stages: Bead winding Bead Fillering Bead Flipping

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 strands and of definite diameter. The process is accomplished using a machine called the bead winding machine. b)Bead Fillering Here a triangular shaoed continuous rubber profile (called bead filler) is extruded using a cold feed extruder and applied on the bead bundle using a fillering machine. c)Bead Flipping The flipper fabric prepared at the bias cutter and slitter is applied around the fillerd bead bundle. This is accomplished using a bead flipping machine. 9. TYRE BUILDING It is the process of assembling various components into the semi finished product called a green tyre. This is accomplished by a tyre building machine. The components like drum squeegee, plies Page 75

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(with squeegee applied on it) are assembled using a tyre building drum. The flipped beads are applied from the ends and locked in using the ply ends; breaker and chafer are applied next. Finally the tread and sidewalls are applied. The assembly (green tyre) is taken out after collapsing the drum.

The different components that make a green tyre are the following: Plies Breakers Chafer Beads Tread Sidewall

DIVISION C 10. TYRE CURING

The green tyre inspected and they applied with a lubricant inside and an anti-blemish paint on the outside sidewall area. The green tyre is also availed to facilitate easy removal of trapped air during the final shaping and moulding operation. The green tyre is shaped and given the final contour using appropriate tyre curing moulds (fitted to tyre curing presses) by the application of pressure and temperature. The rubber compound gets vulcanized during curing and becomes tough and elastic and provides all the desired properties required in the tyre. The curing times vary depending upon the size of the tyre varying from 42 minutes for a passenger car tyre to ane hour for truck tyres.

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11. POST CURING INFLATION

Nylon tyres after press curing are kept under high pressure inflation to help shape retention and to reduce growth in service. This process of cooling tyre under high inflation pressurenis called post cure inflation (PCI).

12. INSPECTION
The tyres after PCI are subject to vend trimming. The tyres are then inspected 100% for visual effect. The tyres are also statistically sampled and tested for conformation to BIS specification and warehoused.

MAJOR LOSSES DURING PRODUCTION

Break down of machineries Loss of time for setting up of machines Loss due to difference of machine speed Loss due to stoppage of production Loss due to mistakes and correction of mistakes

TOTAL PRODUCTIVE MAINTANANCE (TPM)

8 pillars of TPM are as follows: 1. Autonomus maintenance 2. Equipment and process improvement 3. Planned maintenance 4. Education and training 5. Quality maintenance 6. Initial control Page 77

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7. TPM in office departments 8. Safety, health and environment Production facility is the backbone of any manufacturing based organisation. Apollo Tyres is very much improved in production capacity. The per day production of Apollo Tyres Ltd is 270 tones. This achievement is only possible because of hard work of employees.

5.QUALITY ASSURANCE DEPARTMENT

Quality is the totality of characteristics of an entity that bears on its ability to satisfy, stated and implied needs. Quality is referred to as Fitness for use Fitness for purpose Customer satisfaction Conformance to requirements

STRUCTURE DEPARTMENT

OF

QUALITY

ASSURANCE

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GROUP MANAGER - Quality assurance

EXECUTIVE Finished products

EXECUTIVES Quality system & capability studies

EXECUTIVE Lab

SHIFT-INCHARGEPurchase / Production

(Chart no 5.5) Quality Assurance is the well planned and systematic activities implemented within the quality system and demonstrated as needed to provide adequate confidence that an entity will fulfil requirements for quality.

QUALITY ASSURANCE
QUALITY ASSURANCE

LAB

PROCESS CONTROL & AUDIT (Chart no 5.6)

o LAB
All raw materials that come to RMS are released for production only after lab approval. For that samples of raw materials (Rubber, Carbon, Chemicals and Fabric etc) are given to lab. In lab these raw materials samples are tested. If the test result are within the required specifications above material is released for production. If the result is not ok, material is rejected. Page 79

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In the same way processed material samples are also given to lab for testing (e. g : Mixed Rubber Compound, Dipped Fabric, Calendared Fabric etc). These materials are realised for further processing only if the test result is OK. If the test result is not OK, processed material will be held up for technical disposal.

o PROCESS CONTROL AND AUDIT:

In shifts, all the production areas will be audited by Quality Assurance will check whether the processing is done within the required specifications. If any abnormality is noticed, necessary corrections will be done and the defective processed materials will be held up. Finished product (cured tyres) will be also checked by Quality Assurance. If any defect is noticed on finished tyre it will be held up. Only OK tyre will be released to warehouse. Samples of cured tyre are tested indoor on a test wheel. The test wheel simulates the running condition of a tyre, primarily used to detect car ass strength and heat generation. Tyres are also fitted on different vehicles to study the effect of different types of roads, loads and climate conditions. For Original Equipment (OE) there is 100% inspection by quality assurance. The different methods used for checking are Dimension, Pulley wheel and Puncher.

6. SYSTEMS DEPARTMENT

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The system department is responsible for computerized of different departments of Apollo Tyres Ltd. The main function of this department, operates and co ordinates all systems in the organisation. The simple structure of department facilitates speedy communication flow with in the department. GROUP MANAGER SYSTEMS,PPC & IE

EXECUTIVE SYSTEMS (Chart no 5.7)

MONITORING FUNCTION
Security problems in the SAP (Systems Application and Products) were solved using Central Virus Scanning System and Firewall at the head office (Gurgaon, Haryana).HCL solve all the problems related to the network connection.

MAINTENANCE FUNCTION
The systems departments in the plant solved network problems as well as computer problems. Regular backups were taken daily, weekly and monthly for providing reliability in the SAP system. All the computers were connected using both point to point and star topology to form an Internet inside the plant. Proper authentication was given to each department members using ID and a password. Apollo makes 250 different types of tyres today. IT helps them to keep track of every product, its demand forecast and production cycle. The way the automobile sector is growing, they Page 81

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will need IT to map their production and ensure they dont lose new or present customers.

7. PRODUCTION PLANNING AND CONTROL DEPARTMENT

The resources in terms of machines, men, material etc are used in the tyre plant run into several crores and it is necessary to make best possible use of these resources to achieve maximum economy in production costs. The main objective of production planning control is therefore to ensure optimum utilization of those resources as well as the capital looked up in work in progress inventory.

STRUCTURE OF PRODUCTION PLANNING AND CONTROL DEPARTMENT

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GROUP MANAGER PPC, IE & SYSTEMS

ASSOCIATE MANAGER - PPC

MANAGER PPC

EXECUTIVE

EXECUTIVE (Chart no 5.8)

The major activities of Production Planning and Control could be enumerated as follows: 1. Scheduling of machines 2. To ensure that machines are bought out, required components are ordered at the right time to fit in with the plan of work schedule for the shop floor. 3. To ensure that the proper man is doing the proper work in specified time consuming specified material at specified quality. Page 83

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The major responsibilities and functions of Production Planning and Control could be enumerated as follows: Establishing production program in consultation with marketing departments. Planning and control of production schedule. Ensure adequate production and inventory.

The Production Program of Production Planning and Control is prepared based on the following: Machine capacity Labour required Raw material requirements Equipment and other tools required for manufacturing (moulds, drums etc).

Raw materials
Liaison with material control and technical departments for requirement of raw materials as per the consumption pattern. Authorise RMS for issue of raw materials to production floor.

Scheduling
Machine scheduling includes day to day scheduling machine loading in the most optimum level. Review of progress and initiation of action to remove bottle neck planning and control of in process inventory at optimum level etc.

Machines
Review of machine capacity and its limitation with respect to production programme to initiate corrective actions. Access of material handling equipment and storage systems and arrange for procurement whenever necessary. Scheduling in brief is determination of 1. When a job will be done. Page 84

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2. Where to do this job (incase where is more than one machine) 3. How much to do in one lot Production planning and control is an important department in any manufacturing company. Production planning will mainly consist of the evaluation and determination of production inputs such as labour (man power), machinery and equipment, materials and utilities to achieve the desired goal.

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8.INDUSTRIAL ENGINEERING DEPARTMENT

Industrial engineering department helps to maintain the machines which has been using for the production process. Thus this department helps to avoid the disturbance during the production process.

DIVISION HEAD

MANAGER

EXECUTIVES (Chart no 5.9)

Objectives:
The main objective of this department is to plan, design, implement and image integrated production and service delivery system that assure productivity, quality, reliability, maintainability and cost control to keep Apollo globally competitive.

Functions:
1. Conduct work-studies, improvement studies in various equipment and fixation of norms. 2. Capacity calculation in various equipments from time to time consequent to various changes. 3. Design, implementation and follow up of incentive schemes in various zones. 4. Planning and assessment of man power requirements of various departments periodically. 5. Studying plant layout and material handling systems and suggesting improvements.

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6. Explore the possibilities of capacity expansion and prepare project report. 7. Negotiation with unions regarding worries, issues like incentive schemes, productivity, expansion and labour issue. 8. Analysis of capital expenditure request from various department and make recommendation to senior management committee. 9. Prepare budgetary planning for capital and cash flow requirement. 10. Prepare documents for long term settlements, bonus settlements etc and represent the management in the meeting with the union/labour departments. 11. 12. 13. Visit other industries for getting information regarding Conduct various training classes for workmen, Apply various industrious engineering techniques such LTS methods, practice and other developments. supervisors, other officers and new recruits. as job evaluation, O & M (Organisation and methods) studies, kaizen, line balancing etc. 14. 15. 16. 17. 18. Suggest various cost reduction programmes and Associate with professional bodies like productivity Conduct daily audit on man power, productivity, lost Furnish various other management information reports Involve best practices and processors through global implementation. council, NITTIE etc and institution of engineers etc. time, scrap detail, absenteeism, overtime etc. of the top management. bench marketing in the context of global competitions and intense customer focus. 19. Optimise inventory levels at various stages such as engineering store, working progress and finished goods. Page 87

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20. 21. 22. 23. 24. 25. 26. 27. 28. 29.

Continues improvement of methods and equipments Preparation and presentation of daily review report on Preparation of machine utilization report. Computation of kilogram/man hour. Computation of indirect incentive earning rate. Computation of various data and submission of Computation of plant performance report on a daily Extent the support to the line function term regarding Incentive earning computation and releasing of Incentive allowance computation and advice to finance

designed compatible to the best economic standards. critical parameters.

application for various awards. basis and display. manpower details, norms, new products etc. incentive earning list. and time office for payment.

9.FINANCE DEPARTMENT
The corporate office situated at Gurgaon does most of the accounting and taxation jobs of ATL. At Perambra plant there is separate accounting and finance department. This department deals with salary, wages and costing. Excise duty of the raw materials also comes under this department. STRUCTURE OF FINANCE DEPARTMENT

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DIVISIONAL HEAD

MANAGER

MANAGER

ASSO . MANAGER EXECUTIVES

ASSO . MANAGER EXECUTIVES

(Chart no 5.10) Sales is performed and maintained by the corporate office of Apollo Tyres Ltd. The fund for acquiring raw materials will be provided from the corporate office to Accounts and Finance Department. When, with regard to export of tyres they will be directly unloaded into the Cochin Shipyard premises rather than unloading to the corporate office godown and then to the port. An annual cost audit is also conducted along with the company audit every accounting year i. e, April 1st to 31st March. Gross sales during the financial year ended March 31, 2008 amounted to an all time high of 42,469.83 million as against Rs.37, 743.43 million during the previous year, recording growth. The strong performance of Apollo is combination of high growth in sale along with enhanced operation management, better working capital management, aggressive marketing and overall cost reduction measures adopted by the company.

SECTIONS UNDER FINANCE DEPARTMENT

1. Accounts 2. Costing Page 89

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3. Payroll 4. Excise 5. Raw material stores 6. Finished goods stores 7. Engineering stores 8. Purchasing of engineering goods

OBJECTIVES
To arrange adequate funds for the business To ensure proper utilisation of funds To increase profitability of business To maximise the value of the firm To do the analysis and appraisal of financial performance To anticipate the financial needs To maintain good relations with suppliers and monitor their performance Physical location and stocking of materials Minimization of damage

FUNCTIONS
Financial forecasting and planning To advise top management on all financial matters and to suggest various alternative solution for any financial difficulty Co- ordination and control Help in tax administration and tax planning Preparation of audit report Storage of raw materials, finished goods and engineering goods Handle scrap disposal

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SHARE HOLDING PARTNERS

Foreign holdings Government or Financial institutions Corporate bodies (non covered above) Directors and their relatives Other including Indian public 25.67% 29% 4.07% 32.43% 8.84% Finance is the backbone of every organisation. So finance manager plays an important role, at the same time he has also some responsibilities. The role of finance manager is to prepare the accounts and auditing of all the financial transactions of the company and have the advisory function in the financial and establishment matters. The fundamental decision making areas of financial manager are capitalisation decision, investment decision decision, financing decision. 11. ENGINEERING DEPARTMENT The engineering department is the service department and provides its services to various departments such as production, technical, quality and assurance and engineering department are manufacturing, installation maintenance and repairs 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 classified as: 1. Preventive maintenance 2. Break down maintenance Preventive maintenance means preventing the machines from any possible break down and break down maintenance repairing the faults in a machine. The engineering department is divided into 3: 1. Mechanical Page 91

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2. Electrical 3. Utilities Utility division The utility division in the source of steam, power , water and compressed air. Electrical division The main job of this department is electrical maintenance including electronic instrumentation. Mechanical division The main job of this department is mechanical maintenance of various machines used in production. QUALITY ASSURANCE DEPARTMENT The main duty of the quality assurance department in the determination of the quality standards, measurements of the actual quality , compares it against standard controls measures are tables. Functions 1. Inspection of incoming raw material 2. Auditing involving the control of non confirming material or process 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 s/m use 2. S/M procedure it functions as guidelines to units ensuring uniformality in the quality S/M.

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3. Quality meetings - such meetings are held every month and each department gives suggestions for the scope of improvement . 4. Quality Policy ATL follows strict quality control policy to enhance customer delight and pays special attention to retain quality of products. Functions 1. Raw material testing Quality of all the raw material as tested in lab in 3 different sections Fabric laboratory

The laboratory test all fabric and steel wires received and at all stages of production. Chemical laboratory

The laboratory carries out test for all polymers, fillers and chemicals. Physical laboratory

All rubber compounds in process are tested in the lab each stage i.e. , after mixing in the Banbury , after extrusion and calendaring and after curing. 2. Tyre testing Samples of cured tyres are tested indoors on a test wheel. the wheel stimulates the running condition of a tyre / primarily used to detect carcass strength and heat generation. Tyres are fitted on different vehicles to study the effects of different types roads, load and climate. For international trade transaction ISO certificationhas become inevitable. APOLLO tyres limited got the privilege to have ISO 9001 certification. ISO 9001 covers the quality system and model for QA in design ,development , installation and servicing. 12. TECNICAL DEPARTMENT Page 93

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Technical department is concerned with the implementation of technology for manufacturing coast 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 consultaion 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. ,reducing Technical shape department problems is mainly main concerned functions with are improving quality of tyres by methods like reduction in curing cycles tyre etc.The development of new design, modification of existing design and comparing competitors design. It involves with every aspects of tyre production. 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 implementating new techniques. 6. Reducing the cost of production without affecting the quality of products FUNCTIONS 1. Development issue and revision of process specification in areas of mixing, dipping, calendaring, cement preparation, extrusion and stock preparation . Page 94

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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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CHAPTER - 6 SWOT ANALYSIS

Strengths:
Continued market leadership in the dominant industry segment of truck and bus tyres.

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Global presence with the accusation of Apollo Tyres South Africa (pty) Ltd.(Formerly known as Dunlop Tyres International(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 across 140 locations in India.

Dynamic and progressive leadership, willing to implement change. Economies of transportation cost, on account of closeness to natural rubber growing belt. Global sourcing of raw material.

Weakness:
No presence in two and three wheeler segment. Capital intensive business. Maintain a healthy relationship with trade unions More training facilities must be given to employees The company should invest more on advertisement.

Opportunities:
Leadership position in the commercial vehicle segment will enable the Company to leverage new and related business opportunities. New product segments like Truck/Bus Radial (TBR), Off The Road tyres (OTR, retreading and allied automotive services. Page 97

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Growth in Overseas markets like Europe.

Threats:
Imports from neighbouring countries at competitive prices. Raw material price volatility.

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CHAPTER - 8 FINDINGS AND SUGGESTIONS

FINDINGS
ATL is the first tyre company to receive ISO 9001 certification and one the few tyre manufactures to obtain QS 9000 certification. Workers health and safety are given prime importance A good co-ordination exists between different departments. Page 99

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Trade unions play vital role as bargaining agents. The management is sometimes forced to accept demands made by the unions.

The products of the company are known for its high quality standards. The workers are not completely satisfied with the wages they are paid. Employees are provided with facilities such as subsidized canteen, transportation etc. Safety posters and slogans are exhibited inside the plant and various safety awareness programs are also conducted.

The factory premises are kept clean which comes under a dedicated system known as Environment Management System (EMS)

Factory is located at an ideal location that allows easy access to land, air and sea transportation. All departments at the plant are being connected through SAP which gives real time connectivity with each other. All the plants of Apollo tyre group are being connected with the head quarters through WAN and SAP which critical decision making easy.

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SUGGESTIONS Maintain the relationship between employees and employers There should be training program for better understanding of SAP A bit more promotional activities could enhance building brand image Maintain a healthy relationship with trade unions More training facilities must be given to employees The company should enter into two/three wheeler markets. The company should invest more on advertisement. Each should have an in house marketing department that can take care of the local fluctuations in market.

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CONCLUSION
Apollo tyres Ltd is the 7 th fastest growing tyre company in the world. A fair wage system prevails in ATL. The company provides better working condition for employees. Proper training to workers and efficiency of the workers must be increase to increase production. The industrial relation with the local union is fairly good. The company is facing a cut throat competition in Indian market and international market. Despite of all these challengers Apollo has done well in the past and with a booming economy and a focused progressive leadership at the top. The employees enjoy working as a team and with customers to create superior and distinct production and services. Apollo is focused on fast and flexible, never ending improvement in order to create an enterprise that is dynamic, ever expanding and profitable and in constant pursuit of customer satisfaction is Apollo policy to design, manufacture and service our products to provide the level of quality and value that meets ever customer needs. Apollo stands first in the production of truck tyres. In spite of recession the company is still making sufficient profit. There are good working conditions and industrial harmony among the employees. Proper and adequate training is given to the employees, which leads to higher productivity,. The company is facing cutthroat competition from Indian market as well as foreign market. In spite of fierce competition and local problems the Perambra plant thrives Page 102

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and move forward to its target of 310 MT/day and thereby achieve their 9000 crore goal by the end of 2010. Apollo tyres boast a vibrant and dynamic, profession and non hierarchical culture. Transparency and communication are cornerstones of corporate practice, across levels, to ensure that each individual employee is aligned with the goals and aspiration of the company. At Apollo Tyres the three corporate pillars of People, Quality and Technology underpin all activities and processes. These are the companys stated areas of corporate excellence, in its journey towards becoming a best in class global manufacturer. Apollo Tyres, they are always looking out for new opportunities. If opportunities do not come their way, they go ahead and create opportunities. Over the years they have created opportunities for growth, opportunities for success and also opportunities for a bright future.

BIBLIOGRAPHY
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BIBLIOGRAPHY

Books reference
1. Dr. Aswathappa K., H.R.M & P.M, 4e, Tata McGrawHill, Delhi, 2005. 2. Research Methodology- Methods & Techniques, Kothari.C.R, New Age International Publishers, New Delhi, 2006.

Web Sites
www.apollo tyres .com www.google.com www.wikkipedia.com

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Manuals
Apollo annual reports Apollo journals Job sheet of various departments

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APPENDIX

PROFIT AND LOSS ACCOUNT OF APOLLO TYRES Sl. No Particulars 1. Gross sales/Income from operations 2.Other Income Total 3.Total Expenditure a) Decrease/ (Increase) in Page 106 112.47 45,608.79 92.23 42,562.06 Year ended 31.03.2009 45,496.32 Year ended 31.03.2008 42,469.83

APOLLO TYRES LTD

work in progress & Finished Goods b) Consumption of Raw Materials c) Staff cost d) Excise Duty e) Other Expenses Total 4. Operating Profit 5. Interest 6. Depreciation 7. Profit before Tax 8. Provision for Tax -Current -Deferred -Fringe Benefit Tax 9.Net Profit

265.86 27,946.64 2,075.46 4,791.91 7,168.77

(552.74) 23,849.60 2,270.55 5,530.56 6,731.11

42,248.64 3,360.15 668.43 980.07 1,711.65 439.30 148.67 42.50 1,081.18

37,829.08 4,732.98 520.41 878.10 3,334.47 975.01 121.43 45.00 2,193.03

BALANCE SHEET PARTICULARS Apollo Tyres Ltd SOURCES OF FUNDS : Share Capital Reserves Total Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities 50.41 48.85 46.41 38.34 38.34 1,305.30 1,180.00 920.71 595.68 538.40 1,355.71 1,228.85 967.12 634.02 576.74 462.39 223.14 473.76 381.00 348.75 233.13 237.51 144.94 369.00 195.06 695.52 460.65 618.70 750.00 543.81 2,051.23 1,689.50 1,585.82 1,384.02 1,120.55 Page 107 Mar 09 Mar 08 Mar 07 Mar 06 Mar05

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APPLICATION OF FUNDS : Gross Block 1,838.00 1,569.78 1,492.51 1,310.61 1,148.43 Less : Accumulated 694.66 598.78 541.66 469.94 398.30 Depreciation Less:Impairment of Assets 1,143.34 971.00 950.85 840.67 750.13 Net Block Lease Adjustment 281.41 94.41 80.46 77.93 84.33 Capital Work in Progress 297.45 302.71 258.11 0.53 54.48 Investments Current Assets, Loans & Advances 417.05 513.29 451.95 419.41 330.12 Inventories 87.28 155.13 203.06 175.14 156.52 Sundry Debtors 340.60 265.85 172.00 231.36 110.43 Cash and Bank 195.77 191.53 441.37 370.18 305.72 Loans and Advances 1,040.70 1,125.80 1,268.38 1,196.09 902.79 Total Current Assets Less : Current Liabilities and Provisions 460.13 565.83 542.20 388.62 380.14 Current Liabilities 95.63 93.08 289.12 237.63 188.07 Provisions 555.76 658.91 831.32 626.25 568.21 Total Current Liabilities 484.94 466.89 437.06 569.84 334.58 Net Current Assets 0.15 0.26 0.12 0.26 0.38 Miscellaneous Expenses not written off 10.96 11.29 10.38 8.49 2.26 Deferred Tax Assets 167.02 152.49 139.44 113.70 105.61 Deferred Tax Liability -156.06 -141.20 -129.06 -105.21 -103.35 Net Deferred Tax 2,051.23 1,694.07 1,597.54 1,384.02 1,120.55 Total Assets 282.85 223.56 115.27 69.73 74.29 Contingent Liabilities

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