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Submitted in partial fulfillment of the requirement for the Degree of MASER OF BUSINESS ADMINISTRATION

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ACKNOWLEDGEMENT This project. I am also thankful to PROF. Asst Product Manager. Last but not the least I am also grateful to all the staff members of JK tyres for their kind cooperation and help during the course of this project. was a good experience providing me great insight into the market dynamics of tyre industry. Chief Product Manager and Mr. They have taken keen interest in my work and were always available to help me out with my problems. as a part of my training. Ajoy Shah. 3 . This work has helped me in understanding some of the intricacies and complexities involved in the tyre industry in particular. Amit Surekar. VIJAY NAGRANI (Faculty. my internal faculty guide who helped me as and when required with his big reservoir of experience and knowledge. in spite of their busy schedule. All this would not have been possible without the humble support and able guidance of my mentors Mr. buyer behavior and the sales & marketing of JK Tyre. IMM).

JK Tyre is the only Original Equipment Manufacturer (OEM) suppliers to Maruti for Their Swift Model. which was necessary in the process of problem finding and giving adequate recommendations and suggestions. For the basic understanding and to get every insights of the project. but the research shows that majority of the consumers would prefer to buy the replacement tyre from dealers. So here. So almost every consumer of the Maruti Swift have JK tyre fitted in their cars. This was followed by a fitment survey in order to find the market existence of all the tyre manufacturers as tyre 4 . the Works Manager of all the Maruti Dealer Workshops were visited and their feedback were taken into consideration. And most of the consumers feel that price of the tyre affect their purchase decision. JK tyre should try to provide their consumers with more economical tyres with all features so that the consumers can get satisfied. This formed a basis to understand JK Tyre. By SWOT analysis & secondary research the position of JK Tyres in Indian Tyre Industry was ascertained.EXECUTIVE SUMMARY In order to start the project the first thing needed was the understanding of the JK Industries as a whole. A detailed set of questionnaire were prepared which included problems and other comments from the dealer cum service station respondents and 62 respondents of the Swift owners who were after all the end users. The consumers have not replaced their tyre since the purchase of their Swift.

This analysis was based on a survey of about 100 cars in Connaught Place region of Delhi. (Restricted to Delhi region).suppliers for various models of cars present in the Delhi region. This research is exploratory in nature. thus finding solutions for these problems. 5 . Recommendations and suggestions were given for JK tyre based on the research findings. which involves fact-findings including problems faced by the end consumers and the dealers cum service stations. thereafter it was confirmed that JK Tyre stood second with a market share of 20% & Bridgestone Tyre at the first position with a market share of 42%.

0· To find out the areas of improvement in a tyre from JK Industries Ltd. Tyre Alignment & Tyre pressure. Project Objective: 0· To study the market share of JK Tyre. 6 . 0· To find out consumer knowledge regarding Tyre Rotation.OBJECTIVE OF THE STUDY This report is based on the Data collected through the survey of Maruti Swift consumers and Maruti service stations. 0· To study the reasons for Tyre change & influencing factors of tyre purchase by consumers. 0· To study the consumer behaviour of a buyer of tyre.

A separate questionnaire was filled through the end consumers. Sample size: 24 Dealer cum service stations 62 Swift owners Survey of 100 cars randomly for fitment analysis. Data Collection: Communication approach was followed throughout. End consumers ( Maruti Swift ) Across Delhi. Data was collected by visiting the service stations for the filling of the structured questionnaire designed for them. 0· Data was edited to ensure consistency across respondents and to locate omissions 0· Fitment survey was carried out through monitoring in order to find out the market share of all the competitors in the OEM as well as replacement segment of various cars prevailing in the 7 .RESEARCH METHODOLOGY Sample: Authorized Dealers cum Service Stations of Maruti Swift.

Also for discovery of associations among different through a fitment form. 8 . Surveyed 100 cars randomly in different parts of Delhi. ᄋ Descriptive research for understanding the characteristic associated with the subject population. ᄋ Exploratory research through in depth interviewing and participant observation. ᄋ The time dimension: Cross sectional study was undertaken under the research.

he is the Vice-Chairman and Managing Director of JK Industries Ltd. by group companies Straw Products and JK Synthetics. He has headed various Chambers of Commerce & Industry as well as Government bodies and also contributed significantly as a Leader of delegations to various countries across the world. Mr. was promoted in 1951.MAIN REPORT/ ANALYSIS Background JK Industries. His remarkable visionary ability blended with innovative & experimental zeal has been best demonstrated in his pioneering effort of ushering radial technology in India way back in 1977 when all other tyre companies in the country were grappling with intricacies of bias technology. which belongs to the Laxmipat Singhania faction of the JK group. He is also Chairman of Automotive Tyre Manufacturers Association (ATMA). Raghupati Singhania. “Continuous innovation and state of the art technology backed by quality is the mantra of success at JK Tyre and this has given us a clear competitive edge over our competitors 9 . is an eminent industrial & business leader. In one of the exclusive interviews he mentions. He is a technology savvy business leader and also keeps himself tuned with changing times.

JK Organization has been a forerunner in the economic and social advancement of India. Industries is committed to self reliance and follows an ethic that views customer satisfaction as an index of achievement.K. technical and medical research. education. religious values and providing better living and recreational facilities. by adopting the latest technology as well as developing its own know-how. J. Trusts are devoted to promoting industrial. With the spirit of social consciousness uppermost in mind. JK Organisation is an association of industrial and commercial companies and charitable trusts. A part of JK Organization which ranks among the top private groups in India.K. multi-location corporate entity. Organisation is committed to the cause of human advancement. The HS Singhania group has completed a major restructuring exercise recently. diversification and pioneering new technologies. It has also undertaken industrial ventures in several other countries. It has developed into a multi product. Its member companies.K. J. employing nearly 50.000 persons are engaged in the manufacture of a variety of products and in diverse fields of commerce. J. It always aimed at creating job opportunities and to provide high quality products. Over the years. It has striven to make India self reliant by pioneering the production of a number of industrial and consumer products. The restructuring primarily involved the 10 . Industries is a mega corporate entity that is emblematic of excellence. the company has expanded and diversified its business portfolio.

The decision by the group to restructure is a strategic one and is aimed at creating stronger business entities. sugar and agrigenetics. JK Tyres is a company that has pioneered the passenger car radials and the truck radials in India. truck/bus and passenger cars. which makes radials for the entire range. enjoying leadership in the truck/bus segment with a market share of 25%. which has been bolstered by the Vikrant merger. JK Industries Limited. In order to focus on the tyre business. The overall objective seems to be that of maximisation of shareholder wealth. Pre-restructuring. At present it 11 . It is the only company. which would help them to leverage their respective core competencies a lot better. the company is ranked second in the Indian tyre industry with a 21% market share.segregation of the tyre and non-tyre businesses of the group and is likely to have significant implications for its flagship company. JK Industries was into three different lines of business tyres. light commercial vehicles. The merger is expected to lead to increased synergies across all functional lines of activity within the company. going forward. The company also has a 24% market share in the light commercial vehicles segment. It has simultaneously merged its tyre subsidiary (Vikrant Tyres with itself and has thereby emerged as an integrated automobile tyre giant. the company has demerged its non-tyre businesses into independent entities. resulting in improved profitability. In fact. JK Industries is one of the few companies which manufactures automotive tyres for nearly all the segments including tractor.

It has its technical collaboration with Continental of the only company producing truck radials in India. 12 .

To be the largest & most profitable tyre company in India. fairness & trust.Vision “To be amongst the most admired companies in India committed to excellence. 0· Strive to increase production 5% year over year with productivity/ efficiency improvements. Commitment to excellence. 0· Strive to reach a premium price position and use it as driver to improve profitability.” Values 1. Integrity including intellectual honesty. Corporate Strategies – 0· Become the least cost manufacturer in the Indian tyre industry & strive to achieve the lowest cost in the comparable global parameters. 0· Use Outsourcing as a stable strategic partnership tool to improve top line & bottom line growth without investments. 13 . 2. 3. Caring for people. openness. Mission 1.

2. 0· Be in the forefront of E-business related areas. 0· Use service as a brand differentiation. systems and procedures in all areas of management in order to leverage on the strengths of two brands. To make Truck/ Bus Radial operations profitable & retain leadership in the Passenger Radial Market. To retain No. 0· Focus on Rural Markets to get the tactical marketing edge. large fleet owners and OE driven route. 0· Get EFQM award by the year 2003. Corporate Strategies – 0· Aggressively pursue Truck & Bus radialisation in India through STU. 0· Put IT to innovative use to streamline processes and for most effective and swift decision making. 14 . Corporate Strategies – ᄋ Continuously improve product and develop new products keeping in mind the customer needs and expectations.1 position in Truck & Bus segment & to be amongst top two in all other 4 wheeler segments.0· Exploit Multi locational advantage to address all price segments & improve plant efficiencies & customer service. 3. 0· Integrate JK & VTL management philosophy. policy.

15 . 0· Maintain continuous focus on radial capacity to retain leadership.0· Reduce cost through weight rationalisation.

To enhance value to shareholders & service to all stakeholders. 5. To be the largest Indian tyre exporter. 0· Ensure technical support in the development & service of the products. Continue to be a significant player in the World in Truck Bias segment. 0· Become the best in the “Speed of response” in the Indian Tyre Industry. 6. 0· Use RTAs/ FTAs to increase sales & profits.4. Corporate Strategies – 0· Enhance development of low cost products as per the specific regional needs. 0· Achieve highest internal & external customer satisfaction. Corporate Strategies – ᄋ Manage and enhance customer service and customer relationship. 0· Become a Tyre focussed company. . Corporate Strategies – 0· Follow the Code of Corporate Governance. To be customer obsessed company.

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0· Contribute to society at large. 0· Care for the environment. 17 .

To excel as a values driven organisation. Corporate Strategies – 0· Invest in Brand Building. 0· Practice transparency. 18 . 0· Create enterprenual spirit.7. To develop a highly motivated team with a sense of Ananda. 0· Be a learning Organization. 0· Match organizational goals with Departmental and individual goals. 0· Be highly responsive to people issues. 0· Put high emphasis on team work. 9. Corporate Strategies – ᄋ Strengthen the performance management system with opportunities for people to be recognized and rewarded. 0· Develop a culture of continuous improvements. 8. Corporate Strategies – 0· Rededicate to our core values. To be the most preferred tyre brand in India.

ᄋ Take up brand building as a company wide exercise. 19 .

conserve and restore our natural habitat and to conduct all our activities in an environmentally friendly manner. convert these into performance standards for our products and services and meet these standards everytime. innovative and in cost effective way.Quality Policy “We the people of JK Tyre will have an organisation committed to quality in everything we do. Full customer satisfaction-both internal and external-is our motto. Increasing environment awareness amongst our employees and subcontractors through training and communication.” Environmental Policy We at JK Tyre are committed to protect. We will continually improve our environmental performance by : Complying with all legal environmental requirements. Enhancing effectiveness of Environmental Management through reviewing its objectives and targets. 20 . Taking measures to protect the environment by being proactive. minimizing waste and supporting environment friendly programmes. We will continuously anticipate and understand customer’s requirements. Conservating natural resources and energy by optimizing efficiency.

We foresee the industry growing by 10-12% for the FY. 0· With auto industry in growth phase. we believe the tyre industry is in a growth phase. benefits accruing from economies of scale and lower interest costs.We commit to communicate this policy to all employees and to make it available to the public on request. we expect revenues to grow by 16% in the FY04. With this and realization improving by 2%. with global trend in outsourcing picking up. enjoying leadership in the truck and bus tyre segment with 25% market share. Growing Big ᄋ JK Industries is ranked as the second best company in tyre industry in India with 21% market share. We expect growth in auto sector and Government emphasis on early completion of road projects with largely drive growth. we foresee a strong growth potential and expect exports to contribute 20% by FY05.04-05. 0· JK is the largest exporter of tyres from India (28% of India’s tyre exports). 0· With fortunes of tyre industry linked to growth in auto sector. While it presently exports 17% of revenues. we expect earnings to grow by 105% in FY04. we foresee JK’s volume growing by 15% outperforming the industry growth of 10-12%. Its strong brand ‘JK Tyre’ and wide distribution gives it an edge over peers. With this. 21 .

its efforts to restructure and focus on tyre business are early signs of this event. 0· It is world’s first tyre company. which enabled it to be a tyre technology leader in India.Its focus on R&D. 0· JK Tyre has the largest distribution network of 4000 dealer across India. increases capacities (5.0· Given JK’s leadership in truck and bus tyres.” 0· It is ranked as the 18th largest tyre company in the world. In our opinion. 22 . 0· It has a turnover of around Rs. 0· It has technical collaboration with Continental AG of Germany (world’s 4th largest tyre company). 0· JK Tyre is determined for delivering the best and the most reliable products to its customers.7mn tyres) and offer radials for the entire range of 4 wheelers to service a wide customer base has further strengthened its presence in the industry.2500 Crore. strong presence in 4 wheelers radials and focus on increasing exports. we believe the outlook is strong. efforts to widen product range. For this JK Tyre has built Hari Shankar Elastomer and Tyre Research Institute (HASETRI) in Rajasthan. which is given ISO 9001 certification for “Multi-location operations.

JK Tyre is the world’s first tyre company to receive ‘ISO 9001’ certification for its Quality Management. Product Range: 23 . JK Tyre has received certification for Environment Management System (ISO 14001). Technology: “Sabse pahle aur sabse behtar” defines the technology of JK Tyre. This is the only tyre company to receive the prestigious status. JK Tyre has always been ahead in technology to give its consumers the best products.ᄋ It has been awarded “Superbrand”. 0· It has been rated as the best by JD Power Consumer Satisfaction Survey. which ventured into Radial technology. JK Tyre is the first Indian Tyre Company. JK Tyre is the world’s first tyre company to receive Quality Management System certification ‘QS 9000’. JK Tyre has received The Rajiv Gandhi National quality Award for the year 2001. 0· It is known as the most consumer friendly company. It means that the consumers who use JK tyres are the most satisfied.

24 . Karnataka. Radial tyres are manufactured at the Banmore plant. Banmore near Gwalior in Madhya Pradesh and Mysore. Kankroli in Rajasthan.JK Tyre manufactures tyres for a wide range of vehicles and offers the most comprehensive range of products to suit the requirements of its customers. Plant Locations: JK has tyre plants at Jaykaygram. Presently JK offers tyres for: Trucks Light Commercial Vehicles ( LCVs) Jeep Car Racing Car Tyres Tractor Trailer Animal Driven Vehicles. They also have the Vikrant plants which are located in Bangalore and Mysore.

Buses. The company pioneered Steel Radial Technology in India in 1977 and continues to be the industry leader in the Radial segment in India. JK Tyre has consciously followed a policy of continuously modernizing and expanding its tyre manufacutring facilities to retain its edge in the market place. Passenger Cars. Multi Utility Vehicles and Tractors.JK TYRE Ever since its inception it has been JK Tyre's belief in the value of technological superiority that has made it grow by leaps and bounds. This division produces and sells tyres and tubes under the brand name "JK Tyre" for Truck. JK Tyre is the only Tyre Manufacturer in the country to produce high performance 'T' & 'H' -rated steel radial tyres. Their customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in India together with Replacement Market for four wheeler vehicles. Light Commercial Vehicles. Besides 25 . Jeeps. Defence and State Transport Units.

Industries and Vikrant Tyres Limited are the only tyre companies in India to have received all three ISO 9001. was set up. The company has a technical collaboration with M/s Continental AG. J. This indeed is a true reflection of their commitment to system oriented approach. HASETRI. . To stay at the forefront of technological advancements a state of art Research & Development Centre. In a short span of time it has emerged as the 17th largest tyre manufacturer in the world an achievement in itself. which is among the top five tyre manufacturers in the world to keep pace with latest technological developments. Germany. Industries acquired Vikrant Tyres Limited.K.K. the latest in the automotive industry worldwide. J. which remains the nerve centre for providing cutting edge technology. To keep pace with the market demand as well as technological leadership in Indian market. QS 9000 and ISO 14001 certificates and now are soon to get the TS16949 Certification.India. Mysore in 1997. they have a worldwide customer base in over 45 countries across all 6 continents.

The truck and bus tyres produced account for nearly 74% of the total tyre business in India. thus giving JK Tyre an undisputed position.With three plants located in Rajasthan. JK Tyre is the only manufacturer of truck/ bus steel radial tyres. Also. “We the people of JK Tyre will have an organization committed to quality in everything we do. Full customer satisfaction . Middle East and South East Asia. It was awarded the CAPEXIL's Highest Export Award for 1997-97 by FIEO.both internal and external” is their motto. JK Tyre is the largest exported tyre brand from India. . and the second largest manufacturer of 4-wheeler tyres in the country. Madhya Pradesh and Karnataka. convert these into performance standards for our products and services and meet these standards every time. It enjoys preferred premium brand status in Truck Bias market in USA and across many markets in Africa. We will continuously anticipate and understand our customer's requirements. Additionally. JK Tyre is the largest manufacturer of truck and bus tyres in India.

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They are using 'QS 9000' system as a tool for continuous incremental improvement. mark mandatory requirement for 28 . QS 9000 JK Tyre the world's first tyre company to receive Quality Management System certification QS 9000'. a exporting tyres to European Markets. "E-mark" JK Tyre is the only Tyre Company certification on their in India having the Eproducts. Environment Management System (ISO 14001) JK Tyre recognizes the impact that our business has on the environment and take our responsibilities for maintaining harmony with nature. in 1998 for multi location operations.QUALITY MANAGEMENT ISO 9001 JK Tyre world's first tyre company to receive 'ISO 9001' certification for its entire operations in 1995 in one go. their Quality Management System is completely integrated into all aspects of our operations. They are the first tyre company in India to receive 'ISO 14001' certification for multi location operations in 1999.

"DOT" (Department of Transport) JK Tyre have the DOT certification on its products. This is a product as well as a system certification. 29 . Also this is a proof of superior quality of JK Tyre and our ability to meet stringent international standards. a mandatory requirement for exporting tyres to US Market.Brazil) They also have the certification from INMETRO a mandatory requirement for exporting tyres to Brazil (South America). "INMETRO" (Instituto Nacional De Materiologia .

South America and the Middle East. Recently . J. The exports operate through a strong and dedicated distribution network. JK Tyre has also been recently recognised by Indian 30 . and their distributors are fully supported by the company's technical team in terms of continued product development to meet specific market needs. making it its fourth consecutive award from India's premier industrial association . JK Tyre had obtained international accreditation for its products in the US .K Tyres is the first tyre company in India to receive ISO 14001 in recognisition of its environmental management systems. Also J. Today. it was honored with ' The Special Export Award 2000-2001' from Capexil.K Tyre has been the recepient of various awards for exports for the last many years for its commitment to offer superior performance standards & path -breaking innovations. JK Tyre's products compete with the best international players in the premium international bias market in more than 55 countries in 6 continents .MARKETING International: JK Tyre is a leading exporter of tyres from India and roughly accounts for about 26% of the total tyre exports from India (along with its associate Vikrant Tyres Limited) It is the first and only tyre manufacture in the world to receive the QS 9000 for multilocation operations : World's first tyre manufacture to receive the ISO 9000 for all its operations in one go. Europe .

it has also actively pursued development of new superior products to adapt to specific requirements of the different markets . with plans to bring in several pioneering technologies and benchmarking customer service standards there's lot which will roll out in future in JK Tyre's unstinted path to winning. ISO/IEC Guide 25 & EN 45001. it pursues excellence by evolving technologies for superior product performance to reduce waste and pre-empt consumer needs. 31 . JK Tyres has hit upon an unconventional selling strategy. J.K Tyres constant endeavor to deliver superior value to its customers and a sound marketing strategy forms the foundation of this spectacularly consistent performance on the international front. The credit goes to the India's biggest in-house R&D centre. Finance scheme to increase sales: With radial tyres for commercial vehicles having failed to excite bus and truck owners in India. However. HASETRI (Hari Shankar Singhania Elastomer and Tyre Research Institute) . Equipped with advanced testing facilities. While JK Tyre has maintained its consistency in its marketing and distribution strategies for the export markets. This Centre for Rubber and Allied Technology was eatablished at Jaykaygram.Trade Promotion Organisation (ITPO) for being the largest tyre exporter to Latin America markets and is the proud recepient of first-ever FOCUS LAC Award for the year 1999-2000. JK Tyre has achieved lot of milestones. They are also recipient of Rajiv Gandhi Quality Award For Excellence for the year 2002 -2003.

25. A 51:49 joint venture to produce 1 mn truck radials in India from sept.00.000 fleet operators together operate around 3. The company has so far invested close to Rs 350 crore in its radial facility in Mysore which has a total capacity to produce about 2. The move is part of an effort to popularise radials tyres for commercial vehicles in India.000 units.It has come out with a money-back guarantee scheme on its radial tyres. 2005.50. which is facing consumer resistance because of higher initial cost.000 buses and trucks. In ’99 JK Tyres became the first company to manufacture radial tyres for commercial vehicles in India.000 units of commercial vehicle tyres were sold per month in the domestic market which in the current year is hovering at around 8. These 5. on an average about 7. The price difference is however expected to narrow down as volumes rise and competition emerges (Michellin Apollo tyres Ltd. The fleet operators and STUs will be reimbursed with the cost of the tyres in case they fail to realise the savings as promised.000 units of radials for commercial 32 .000 fleet operators and six state transport undertakings (STUs) to fit its radials in exchange of performance guarantee. The company has signed up over 5. JK is promising a fuel saving of 7-10% and upto 50% more tyre life on its radial tyres as compared to conventional crossply tyres. Presently radial tyres account for only about 2% of all commercial vehicle tyres sold in the country. Radial tyres are usually 25% costlier than conventional crossply tyres. During ’02-03.). out of which 20% are expected to convert to radial tyres in the coming times.00.

BHARAT JODO ROAD YOGNA & PRADHANMANTRI GRAMIN SADAK YOJNA.) The trucking industry which has been in the hands of uneducated operators since its inception is also undergoing major reforms and rationalisation process. THE GOLDEN QUADILATERAL.vehicles per month.10.2. This is also expected to give a boost to the radialisation of CVs in the country in the coming years.15% by ’07-08.000 units of CV radials per month to all segments in India. (initiated by the honourable Prime Minister of India Shri. at the approximate cost of around Rs. However the four-laning of highways under the National Highway Development Programme. Mr Singhania expects the share of radial tyres in the total domestic sales of crossply tyres to increase to 10 . 33 . A B Vajpayee. NORTHEAST SOUTHWEST CORRIDOR.000 Cr. The company is currently selling around 20.

JK Tyre pioneered radial technology in India by producing radials ways back in 1977 . JK Tyre has been at the forefront of product innovations and introduction of world class products in the Indian market.JK STEEL WHEELS At JK Tyre Customer's needs are continuosly anticipated and understood and these are then converted into Performance standards for the organisation. This has led to a strong association of the "JK Tyre" brand with radial. As radials were a new product line in the country considerable resources were deployed in educating consumers about radials. In anticipation of customer needs arising from the advent of world class cars and MUVS in India JK Tyre has established a state of the art nation wide franchisee chain of retail outlets in major cities 34 . revolutionising the Indian market.

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