1

A STUDY ON ORGANIZATION AT

APOLLO TYRES LTD

Kalamassery

Submitted in partial fulfillment of the

requirements for the award of
MBA
of the University of MG
by
MRIDULA JAMES
II SEM MBA
MACFAST

Under the guidance of

Prof. John T Varghese Ganesh B Iyer

H.O.D (Dept of MBA) Sr. Executive (HR)
MACFAST Apollo Tyres Ltd
 2

MAR ATHANASIOS COLLEGE FOR

ADVANCED STUDIES

THIRUVALLA, KERALA, INDIA- 689101

ORGANISATIONAL STUDY
CERTIFICATE

This is to certify that the report is a bonafide record of the organizational

study carried out by, Ms. Mridula James, II semester MBA in partial
fulfillment of the requirements for the degree of Master of Business
Administration, of Mahatma Gandhi University.

Prof. John T Varghese Dr. P. K. Abraham

Faculty Guide Director

Rev Fr. Dr. Abraham Mulamoottil

Principal
 3

DECLARATION

I hereby declare that this report based on the

organization study conducted at APOLLO TYRES,
Kalamassery, have been prepared by me under the supervision
and guidance of Prof. John T Varghese, H.O.D. (Dept of MBA)
MACFAST and Mr. Ganesh B Iyer (Sr. Executive HR, Apollo
Tyres) and is being submitted to MG University in partial
fulfillment of the University requirements for the award of MBA
degree.

MRIDULA JAMES

Place: Tiruvalla
Date: 05-06-2007
ACKNOWLEDGEMENT
 4

It is with great pleasure and gratitude I acknowledge my indebt

ness to those who have helped me in completing this project work at APPOLO

TYRES LTD. Let me take this opportunity to express my sincere thanks to all of

them, although they all cant be mentioned here.

I would like to express my profound gratitude to our Principal

Rev.Fr.Dr.Abraham Mulamoottil, and our Director Dr. P.K.Abraham who have

been a constant source of inspiration and have encouraged me with their innovative

ideas.

I am very much obliged to Prof. John T Varghese, H.O.D (Dept of

MBA), MACFAST who was kind enough to guide and support me throughout my

work and helped me in completing my organization study successfully.

I would like to thank Mr. Ganesh B Iyer (Senior Executive- Human

Resources) for giving me permission to undergo training under him and for his timely

guidance in preparing the report.

I am grateful to the staff and employees of APOLLO TYRES LTD for

their co-operation and help during my organization study there.

I thank my parents and all those who have always inspired and

supported me in doing this study.

Above all I wish to thank God Almighty for having blessed me to

complete this study.

MRIDULA JAMES

TABLE OF CONTENTS
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1. INTRODUCTION 1

1.1 Introduction 2
1.2 Objectives 3
1.3 Scope 3
1.4 Methodology 4
1.5 Limitations 4

2. EXTERNAL ENVIRONMENT ANALYSIS 5

2.1 Industry profile 6

2.2 Indian tyre industry 7

3. INTERNAL ENVIRONMENT ANALYSIS 8

3.1 Company profile 9

3.2 Milestones 11
3.3 Board of Directors 12
3.4 Product profile 13
3.5 Vision 14
3.5.1 Core values 14
3.5.2 Strategic goals 14
3.6 Organizational chart 15

4. DEPARTMENT PROFILE 17

4.1 Commercial Department 18

4.2 HR Department 26
4.3 Production Department 35
4.4 PPC, IE and Systems Department 43
4.5 Technical Department 50
4.6 Quality Assurance Department 52
4.7 Engineering Department 54

5. ANALYSIS 58

5.1 SWOT Analysis 59

5.2 Findings and Suggestions 63
5.3 Segment wise performance 64

6. CONCLUSION 66
BIBLIOGRAPHY 67
ANNEXURE 68
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INTRODUCTION

INTRODUCTION
 7

Organizations have gained momentum over the past

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

The organization study's primal focus is to extract the

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

To have a general awareness of the functioning and management of

an organization.
To understand the extent to which management theory matches
with actual practices seen.
To understand the organization structure and working of various
functional departments.
To identify companys strength and weaknesses.
To have an exposure to the working environment.

SCOPE OF THE STUDY

The study mainly focuses on the detailed analysis of the
organization structure. In this study, the overall functioning of
the firm was analyzed as well as the financial performance of the
enterprise. A moderate attempt was made to have the SWOT
analysis of the company. This study also involved the practical
application of theoretical knowledge. This study will help to
know the organization better and to have new insights on the
functioning of the organization.
 9

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

PRIMARY SOURCES
Observation
Interviews
Discussion with managers and employees

SECONDARY SOURCES
Companys manuals
Companys annual reports
Websites

LIMITATIONS
Time allowed for conducting organization study was less.
The study could be conducted only on the general working
hours and so the working conditions of employees could not be
studied.
As the executives were busy with their work, adequate
information couldnt be collected.
The company didnt reveal some official report and documents
as it is kept confidential.
 10

EXTERNAL
ENVIRONMENT
ANALYSIS
 11

INDUSTRY PROFILE
The world is now experiencing the highly mechanized transportation
facilities. The advancement of transportation is the manufacturing face for the growth
of tyre industries, which has created some of major players like Goodyear, MRF,
Apollo and Bridgestone etc. The industry is strongly linked to automobile sector.
R.W.Thomson invented and patented the pneumatic tyre in 1845. His first
design used a number of thin inflated tubes inside a leather cover. This design actually
had its advantages over its later designs. It would take more than one puncture to
deflate the whole tyre and varying pressure could alter the ride conditions.
It was not until the late 19 th century 1888, that John Dunlop invented the
tyre pneumatic tyre. Despite these technological breakthroughs, the solid rubber tyre
continued to be the dominant tyre and it was not until 1889 that the pneumatic tyre
caught on.
Dunlop first advertised his tyres in December 1888 in the Irish cyclist and
in the May of the following year, the tyre had its first breakthrough. A Belfast cycle
race was won on pneumatic rubber tyres and by now the publics were starting to take
note. Unfortunately the original tyres had its drawbacks. The inner tube was difficult
to get at because the tyre was struck to wheel. In 1890, C.K.Welsh patented the design
of a wheel rim and outer cover with inextensible lip. By now we have the basics for
todays tyre. Over years tyre has developed into todays high technology offerings.
Two of the most important technical development includes Michelins
creation of the radical tyre with its vastly superior group 1948 and when Dunlop did
away with inner tube on car tyres in 1972. Time has given the motor industry tyres
capable of many different applications. This ranges from high seed racing such as
Formula One to Heavy plant usage on vehicles as large as a house. All tyres deliver a
comfortable ride, relative puncture resistance, wear and performance. The importance
of a tyre must not be taken for granted. After all a tyre is vehicles only point of
contact with the road.
 12

INDIAN TYRE INDUSTRY

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

FIRST PHASE
In this phase, the multinationals came to India and started selling tyres. This
includes MNCs like Goodyear, Dunlop etc.

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

THIRD PHASE
The third phase of Indian tyre industry began, when the Indian companies
began to produce tyres, which came to be called second generation tyres. Important
among them are MRF, CEAT etc. They started their production in 1960s.
Later in 1970s the third generation tyres started their production. It include
Apollo tyres, Vikrant, Modi tyres etc.
All type of companies which started production after 1970;s and the tyre
companies which are yet to start production are classified under the head fourth
generation tyres. Notable among them are S.Kumar tyres, Rado tyres, Sri Chakra tyres
etc.
 13

INTERNAL
ENVIRONMENT
ANALYSIS
 14

COMPANY PROFILE

A brief history of Apollo tyres Limited

The history of Apollo Tyres Ltd. is about a companys passion,

determination and will to surpass all obstacles and emerge as a leader in the Indian
tyre industry.
Apollo, named after the Greek sun God has created a remarkable identity
for itself in the tyre market. So much so that the name itself has become synonymous
with the brand. The history of Apollo can be traced back to the seventies, when the
hard nosed MNCs and Indian tyre majors dominated the tyre industry. Apollo Tyres
Limited was incorporated in the year 1972. The commercial production started on 8th
March 1975 at Perambra unit. The initial investment of the company was Rs. 36
Crores.
The first manufacturing unit is situated at Perambra in Thrissur District,
near Chalakudy. At the starting time, the production capacity was 54 tones per day.
Since Thrissur is a notified industrial backward area, tax exemption up to 20% of the
assessable income was availed for a period of 10 years from the commencement of
the production, which began in March 1977. This plant is conveniently located near to
major raw materials trading centers like Cochin, Kottayam, and Calicut.
During 1977 to 1981, the company was under heavy loss. The capacity
utilization was only 40 to 50% of the production capacity. But through continuous
efforts, management overcame this situation. The second plant was installed at Limda
village at Baroda in Gujarat. The commercial production of this plant was started on
1991. This unit has the installed capacity of 6.75 Lakh tyres per annum. This is the
biggest plant of Apollo tyres. This unit also enjoys a sales tax exemption
Another production centre is at Kalamassery, where the Apollo Tyres
Limited took over the Premier Tyres Limited, a leading tyre company on lease
agreement in 1995. As per the recommendation of the Board f Industrial and Financial
Reconstruction (BIFR), Apollo tyres took over Premier tyres. Apollo has 76% of
 15

shareholding in Premier Tyres Ltd. So it is a wholly owned subsidiary unit of Apollo

tyres Limited.
The fourth plant was commenced in 1996 and is situated at Ranjangaon
near Pune, Maharashtra. This unit is mainly focused on the production of tubes. It also
produces flaps for the company.

About Kalamassery Unit

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

Capacity: 86 Metrics Tone per day

Total land area: 117908

Number of employees: 1266

 16

MILESTONES

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

Marattukalam, Jacob Thomas and his associates.

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

associates

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

1976 - Apollo Tyres Ltd. was registered.

1977 - Plant commissioned in Kerala with 49 TPD capacities

1982 - Manufacturing of Passenger Car Radial Tyres in Kerala

1991 - The second plant commissioned in Baroda.

1995 - Acquired Premier Tyres Ltd. in Kerala.

2000 - Exclusive Radial capacity established at Baroda

2003 - Radial Capacity expanded to 6600 tyres per day.

- November 17, Joint Venture with Michelin

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

2005 - April 13, Perambra Plant completes 30 Years.

2006 - January 30, Dunlop South Africa is acquired

 17

BOARD OF DIRECTORS
1. ONWAR S KANWAR (Chairman and Managing Director)

2. NEERAJ KANWAR (Chief operating officer and Joint Managing Director)

3. K. JACOB THOMAS

4. K.JOSE CYRIAC (Kerala Government Nominee)

5. M.R.B.PUNJA

6. NIMESH. N. KAMPANI

7. RAAJA KANWAR

8. ROBERT STEINMETZ

9. DR. S. NARAYAN

10. SHARDUL.S.SHROFF

11. SUNAM SARKAR (Chief Strategy & Business, Whole time Director)

12. T.BALAKRISHNAN (Kerala Government Nominee)

13. U.S.OBEROI (Chief- Project and corporate affairs, Whole time Director)
 18

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

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

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

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

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

Domestic Product Range

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

Export Product Range

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

GUARD, HERCULES

2) GIANT TRUCK: CARGO PLUS XR, HAVLUY

3) LCV: CARGO RIB, AMAR

4) LOW PLATFORM TYRES: CARGO MILES

 19

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

C --- Care for customers

R --- Respect for associates

E --- Excellence through teamwork

A --- Always learning

T --- Trust mutually

E --- Ethical practices

STRATEGIC GOALS
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Employee satisfaction
Customer delight
Revenue growth
Operating margin improvement

ORGANISATIONAL CHART

CHAIRMAN AND
MANAGING DIRECTOR

CHIEF OPERATING
OFFICER & JOINT
MANAGING DIRECTOR

CHIEF CHIEF CHIEF CHIEF CHIEF CHIEF

HUMAN RESEARCH MANUFAC MARKETING CORPORAT CORPORAT
RESOURCE AND TURING E AFFAIRS E AFFAIRS
TECHNOLO PROJECTS
GY

Apollo Tyres is headed by the Chairman and Managing Director

assisted by the Joint Managing Director, Chief of various departments. All these top
officials are deputed at the corporate office of the company. Under the manufacturing
HEAD
chief comes the Head of plants. The Head, Kerala factories, controls the plants at
KERALA HEAD HEAD
Perambra and Kalamassery.
BARODA
FACTORIES PUNE

APOLLO TYRES APOLLO TYRES

KALAMASSERY PERAMBRA
 21

ORGANISATION CHART OF APOLLO

TYRES KALAMASSERY

CORDINATOR-
KALAMASSERY PLANT

DIVISIONAL DIVISIONAL DIVISIONAL

HEAD- HEAD- HEAD-
PRODUCTION TECHNICAL COMMERCIAL

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

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

common for the plants at Perambra and Kalamassery. Under him comes the co-
ordinator of the plant; under him comes the different heads.
 22

DEPARTMENT
PROFILE
 23

COMMERCIAL DEPARTMENT
Commerce means interchange of goods on a large scale. Every business
transactions are commonly called commerce. Commercial department of ATL is
concerned with various activities and functions, which are crucial for the companys
smooth working. This department handles financial and non-financial functions.

The various sections under this department are:

Accounts

Costing

Payroll

Excise

Raw Materials Stores

Finished Goods Stores

Engineering Stores

Purchase of Engineering Stores and Purchase of Engineering Goods.

OBJECTIVES OF COMMERCIAL DEPARTMENT

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

2. To ensure proper utilization of funds.

3. To increase profitability of business.

4. To maximize the value of firm.

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

6. To anticipate the financial needs.

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

8. Physical location and stocking of materials.

9. Minimization of obsolescence and damage.

 24

FUNCTIONS
1. Financial forecasting and planning.

2. Financial management other functions is procurement of funds.

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

alternative solutions for any financial difficulty.

4. Co-ordination and control.

5. Help in tax administration and tax planning.

6. Preparation of audit report.

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

materials, finished goods and engineering goods.

8. This department also handles scrap disposal.

 25

STRUCTURE OF COMMERCIAL
DEPARTMENT

DIVISIO
NAL
HEAD
COMM
ERCIAL

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

EXECU EXECUT
EXECU EXECU
TIVE- IVE- EXECU EXECU EXECU
FINISHED TIVE- TIVE- TIVE TIVE- TIVE
RAW
GOODS ACCOUNT PURCHAS
MATERIAL PAYROLL COSTING - STORES
SERVICES S E
STORES

Under Plant Coordinator comes the divisional Head of

commercial department. Under him comes the different sectional heads. This
department has two-group manager, one manager, one associate manager and eight
executives.
 26

This department includes both financial and non-financial divisions.

FINANCIAL
1. Accounts

2. Costing

3. Payroll

4. Central excise

NON-FINANCIAL

1. Raw material stores

2. Finished good stores

3. Engineering Goods Store

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

ACCOUNTS

Accounts section maintains records showing particulars, quantitative details

and current position of fixed assets. Premier Tyres Ltd, which is a subsidiary of
Apollo Tyres, maintains two separate accounts. The day to day affairs are entered into
 27

the books of Premier Tyres Limited and the consolidated monthly transactions are
entered in the books of Apollo Tyres Ltd.

COSTING

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

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

PAYROLL

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

EXCISE

This section is concerned with assessment of the value of the finished

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

2) NON-FINANCIAL

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

finished goods, logistics and scrap disposal. Marketing department forecast the
potential demand in various segments and informs the head office. The head office
 28

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

RAW MATERIALS STORES

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

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

It also has a section to know how much goods are to be reserved. The next step is to
release the stored goods for production. While releasing the goods, First in First Out
(FIFO) rule is followed. To expand on that, the goods that come for storing first
should be released first for production. This prevents goods from being stored above
their life span. This also reduces unnecessary wastage due to spoiling of materials.
Raw Material Stores section handles the scrap also. The scrap is disposed to a scrap
contractor.
 29

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

Natural and synthetic rubber. (50%)

Carbon black (23%)

Process oil (5%)

Steric acid (1%)

Zinc oxide (3%)

Anti oxidants (1%)

Fabrics (11%)

Bead wire (4%)

Others (2%)

ENGINEERING GOODS STORES

Engineering goods store is responsible for storing necessary spare

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

General spares.

Insurance spares.

General consumables.

Furnace oil

Lubricants.

Chemicals.

Building materials.

On receipt of intent from production department, the Engineering stores

arranges for its release. The inventory management technique used is VED (Vital,
Essential and Desirable) Analysis. Almost all the activities of this department are
 30

computerized. The purchase department is intimated whenever re-order level is

reached. A buffer stock is always maintained in the store.

FINISHED GOODS STORE

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

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

They arrange the trucks which are required one day in advance. Daily dispatch is 20
trucks of loads in Kalamassery Plant. In seasons, this will increase up to 30-35 trucks.
 31

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

OBJECTIVES OF HR DEPARTMENT
1. To achieve and maintain good human relationships within the
organization.
2. To ensure the satisfaction of needs of individuals for achieving their
maximum contribution towards organization goals.
3. To select right person for the job.
4. To evaluate the performance of employees.
5. To handle the grievances of the employees.
6. To arrange training and carrier development programs.
7. To provide welfare facilities to the employees.
 32

STRUCTURE OF HR DEPARTMENT

GROUP
MANAGER
HR

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE

SECURITY HR WELFARE SAFETY RECEPTION PERSONNEL

TIME OFFICE
EXECUTIVE

HR department is divided into various sections such as security, reception,

welfare, safety, Human Resource, personnel and time office under a group manager.

FUNCTIONS OF HR DEPARTMENT
1. Recruitment
2. Selection
3. Training
4. Time Office
5. Industrial Relations
6. Reception
7. Promotion
8. Transfer
9. Safety
10. Security
11. Welfare
12. Performance appraisal
 33

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

Apollo Tyres Ltd is using the external source of recruitment which

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

SELECTION
The selection process is done in the companies to choose right type
of candidates to handle various positions. After recruiting, the employees are selected
using different procedures by the company. Technical staffs are selected from
engineering candidates and posted them as graduate engineer trainees. Non
Technical staffs are selected from CA, ICWA, MSW, MBA, or MA and posted as
executive trainees. After training they are absorbed as officers but minimum
qualilfication is SSLC. Their training period is three years in production.

In selection process, company considers the consistency in

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

The employee strength of Apollo Tyres is as follows

Management Staff 140

General Staff 108
Workman 797
Contract Employees 259
Grand Total 1304
 34

TRAINING

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

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

Apollo provides training for both managers and workers. Training

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

A separate register is kept for recording the training activity the

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

TIME OFFICE
The department is concerned with registering the time in and time out of
the workers. Time office registers the time in and out of the workers by punching
system. Other related activities are payment of wages, incentives, arranging for leaves
etc. A separate register is kept for different shifts. A leave record is maintained and it
contains leave balance, leave credited and leave awaited. The daily attendance report
is verified by the supervisor, shift in charge and shift superintendent. It provides
information to pay roll section which uses it for the wage calculation.
 35

WORKING HOURS

General Shift 9 am to 5 pm

A Shift 7 am to 3 pm

B Shift 3 pm to 11pm

C Shift 11 pm to 7 am

Saturdays 9 am to 1pm

INDUSTRIAL RELATIONS

Industrial relations deal with the nature of relationship between the

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

TRADE UNIONS

Trade unions are associations of employees designed primarily to maintain

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

1. Premier Tyres Employees Union (PTEU)

2. Premier Tyres Workers Association (PTWA)

3. Premier Tyres Workers Union (PTWU)

 36

RECEPTION

This section is concerned with attending telephone calls, directing

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

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

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

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

MANAGEMENT HIERARCHY

Executive Type 1

Executive Type 2

Executive Type 3

Associate Manager

Manager

Group Manager

Divisional Head
 37

Plant Head

Chief

Chief Executive Officer\ Joint Managing Director

Chairman\managing Director

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

In ATL transfer is given upon request of employees for their convenience

and also for those who have completed four years of performing a particular job in a
section.

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

1. Outstanding

2. Good

3. Average

4. Below average

The EDR recommendations will be effective from April 1st of the new financial year.
 38

WELFARE
The objective of welfare fund shall be to render financial assistance and to
encourage cultural and social welfare activities among the members. Welfare
activities are of two types namely,

1. Statutory

2. Non-Statutory or settlement grievances.

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

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

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

Non-Statutory welfare schemes are Group Mediclaim Insurance, Group

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

SECURITY

The security division of ATL is very well managed. It controls the movement of both
material and men into the organization. To facilitate security measures, single point
entry is adopted to control visitors and material. For materials separate gate pass are
issued. They looks into the arrivals and departure of employees, punching, control of
out pass and movement pass for workers, visitors pass etc.
 39

SAFETY

Safety section facilitates safe work environment to the employees. The

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

Fire extinguishers are placed at reachable points and employees are

well trained to use if found necessary. Those who work in the production department
are given masks, safety gowns and shoes. Safety book is given to each employee, that
prescribes certain rules and procedures in order to create accident free work
environment.
 40

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

There are three production divisions under the production department.

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

OBJECTIVE OF PRODUCTION DEPARTMENT:

1 Achieving the production targets and productivity.

2. Maintaining the desired quality.

3. Maintain records regarding plant parameters.

4. Coordinate with concerned departments to implement the suggestions

for improvement.

5. Ensure safe work practices

6. Ensure optimum manpower allocation as per the schedule

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

activities to reduce same.

8. To increase productivity.
 41

FUNCTIONS
1. Improving volume of production.

2. Minimizing the scrap.

3. Maintaining delivery schedule.

4. Controlling idle machine and manpower hours.

5. Eliminating accidents.

6. Updating processes and procedures.

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

machine breakdown and take necessary corrective actions.

8. Ensure optimum manpower allocation as per the schedule

STRUCTURE OF PRODUCTION
DEPARTMENT

MANAGER
PRODUCTION

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

EXECUTIVE
EXECUTIVE EXECUTIVE
EXECUTIVE (DIV 2)
(DIV 2) (DIV 3)
(DIV 1) STOCK
TYRE BUILDING TYRE CURING
PREPARATION
 42

Under Plant coordinator comes the divisional head of production

department. There are three production divisions under the production department.
There is a manager who controls all the divisions and under him there is an associate
manager for each production division. They should ensure that target production is
achieved in each division. Shift Superintend is responsible for planning and
scheduling of shifts across the plant. Each divisions under associate manager comes
the executives.
DIVISION 1
In division one, assigning the jobs are compound mixing, fabrics,
dipping, Extrusion and calendaring. These divisions have two executives. One
handling the dipping unit and other handles the other jobs in that division.
DIVISION 2
In division two, works are stock preparation, head preparation, tyre
building. The division has two sections. One in stock preparation and other is tyre
building. Each section has an executive.
DIVISION 3

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

SHIFT SUPRENDENT

Shift Superintend is responsible for planning and scheduling of shifts

across the plant with available manpower to ensure that target production is achieved
with respect to the concerned division. He coordinates material flow between
production centers.
 43

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

Apollo Tyres Ltd is located at Kalamassery industrial area near

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

Total Land Area: 117908 Sq M.

Plant Area: 38595 Sq M

PLANT LAYOUT

A plant layout is a floor plan for determining and arranging the

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

The type of plant layout adopted in Apollo Tyres Ltd is process

layout. The process layout involves a grouping together of like machines based upon
their operational characteristics. A quantity of raw materials is issued to a machine,
which performs the first operation Machineries are arranged in such a manner that the
production process is easily carried out with little waste of time, labour, materials and
other resources. In the plant, raw materials are carried out into the machineries and it
is processed by compound mixing, fabric dipping, calendaring, ply cutting bead
preparation, curing and inspection transporting those depending upon the orders
received.
 44

Production per day

Truck tyres 1150

Tractor tyres 275

Light commercial vehicle 450

Passenger 480

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

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

Polymers-natural and synthetic rubber.

Fillers-carbon black, reinforcing clay.

Process oil

Curing agents-sulfur.

Zinc oxide

Anti oxidants

Retarders.

Fabrics-nylon cord, rayon cord.

Bead wire spools.

Solvent for cements and solutions.

Miscellaneous items paints, colors etc

 45

MANUFACTURING PROCESS at Apollo Tyres is as follows:

1. COMPOUND MIXING

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

2. FABRIC DIPPING

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

3. EXTRUSION

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

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

4. CALENDARING

Fabric calendaring is the process of coating both sides of the dipped

fabric using rubber compound. This is accomplished a 4 roll calendar. The coated
fabric cooled and wound in liners to avoid sticking. This goes to the next stage of ply
cutting.
 46

5. PLY CUTTING (Bias Cutting)

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

6. SQUEEGEE CALENDARING (squeegee application)

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

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

7. BREAD PREPARATION
It consists of three stages

a) Bead winding: -

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

b) Bead filtering: -

Here a triangular shaped continues rubber profile is extruded using a cold

feed extruder and applied on the bead bundle using a filtering machine.

c) Bead flipping: -

The flipper fabric prepared at the bias cutter and stiffer is applied around the
filtered bundles. This is accomplished using a bead flipping machine.
 47

8. TYRE BUILDING

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

a semi finished product called green tyre.

9. TYRE CURING

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

10. POST CURE INFLATION

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

11. INSPECTION

The tyres after post curve inflation are subjected to vent trimming. The
tyres are then inspected for visual defects. The tyres are also statistically sampled and
tested for conformance to specification and then warehoused.
 48

PRODUCTION PLANNING
AND CONTROL, INDUSTRIAL
ENGINEERING & SYSTEMS
DEPARTMENT
This department has three divisions such as

Production Planning and control

Industrial Engineering

System.

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

STRUCTURE OF PPC, IE & SYSTEM

DEPARTMENT

GROUP
MANAGER
PPC, IE & SYSTEMS

ASSOCIATE
ASSOCIATE
MANAGER EXECUTIVE
MANAGER
PRODUCTION SYSTEMS
IE
PLANNING

EXECUTIVE EXECUTIVE
 49

PRODUCTION PLANNING AND CONTROL

Production Planning and Control involves the organization of an
overall manufacturing system to produce a product. Production Planning and Control
function essentially consist of planning the production in a manufacturing
organization before actual production activities start and exercising control activities
to ensure that the planned production is realized in terms of quality, quantity, delivery
schedule and the cost of production.

The main function of this department is to ensure optimum

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

OBJECTIVES OF PPC

1. To ensure maximum utilization of all resources.

2. To maintain optimum inventory levels.

3. To prepare, revise and ensure scheduling of required mould line up and

plan mould change to meet ticket.

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

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

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

 50

FUNCTIONS OF PPC

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

involved in it on the basis of forecast.

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

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

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

inventory control and efficient utilization of all resources.
 51

INDUSTRIAL ENGINEERING
Industrial engineering is concerned with the design, improvement,
and installation of integrated system of men, materials and equipment to improve
productivity. It is responsible to strategize, plan and guide optimum utilization of
resources and 5 Ms (5 Ms includes man, material, machine, money and moment)
resulting into the maximum production for the organization.

The main function of this department is to plan, design implement

and manage integrated production and service delivery systems that assure
productivity, quality, reliability, maintainability and cost control to keep Apollo
globally competitive.

Maintainability of SAD and capacity calculation comes under this

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

OBJECTIVE

1. To optimize the whole activities.

2. To control 5 Ms.

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

4. They are also responsible for layout planning.

5. To conduct manpower planning.

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

7. To generate MIS on performance delays.

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

 52

FUNCTIONS

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

operating costs.

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

various changes.

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

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

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

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

productivity expansion and labour issues.

7. Suggest various cost reduction programs and implementation.

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

absenteeism, over time etc.
 53

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

System department is responsible for implementing and maintaining

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

OBJECTIVE

1. Plan and budget the IT requirements viz Apollo Tyres Ltds IT policy.

2. Manage the implementation of hardware and software.

3. Ensure the uptime of the hardware and links.

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

5. Deploy and monitor IT manpower

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

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

8. Ensure proper disaster recovery measures.

 54

FUNCTIONS

1. Installation of the hardware and software.

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

3. Develop software and trouble shoot when required.

4. Keep proper data backup.

 55

TECHNICAL DEPARTMENT
Technical department is concerned with the implementation of
technology for manufacturing cost effective quality products. Its activities include
development of compound, development of new products and improving engineering
standards. Provide technical support for the production of compounds, treads and
other components.

The technical department plays a very crucial role in the

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

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

 56

FUNCTIONS

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

mixing, dipping, calendaring, cement preparation extrusion and stock
preparation.

2. Preparation of mould surface stamping details specification.

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

4. Processing and curing of new design.

5. Development of compound fabric standard.

6. Troubleshoot the problems arising in the manufacturing process.

7. Issues of :-

Process standards

Finished Product Standards.

Tyre Engineering Standards.

8. To ensure the properties of products during various processes

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

necessary.

10. Initiate and implement corrective measures

 57

QUALITY ASSURANCE
DEPARTMENT
Quality is the totality of characteristic of an entity that bears on its
ability to satisfy, stated implied needs. Quality is refereed to as fitness for use or
fitness for purpose or customer satisfaction or conformance to requirements. QA is
the well-planned and systematic activities implemented within the quality system and
demonstrated as needed to provide adequate confidence that an entity will fulfill
requirements for quality.

Quality Assurance (QA) Department is concerned with assuring

quality in every manufacturing process and controlling the production process.
Management representatives both at corporate and unit level, with the involvement of
heads of the department are responsible to develop, implement and maintain the
quality system in the plant. The quality assurance department in Apollo checks the
components for production from the receipt of raw materials till the production
process is completed and finished goods are stored. The department also tries to
establish and maintain procedure for inspection and testing equipments as well as the
output in each process. In tyre inspection all cured tyres are then physically inspected
for visual defects and excess rubber flashes are removed. The tyre is then checked in
the balancing machine. Tyre after inspection and classification are taken to
warehouse.

For international trade transaction ISO Certification has become

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

Various quality assurance tests are done to assure the quality of

products, which are

1. Rheostat test

2. Specific gravity test

3. Compound tensile test

 58

4. Viscosity test

5. Cord per test

OBJECTIVES

1. Ensure the quality of raw materials.

2. To produce effective results for least total cost.

3. Provides better product satisfaction to customers.

4. To reduce the product defective.

 59

FUNCTIONS

1. To check the quality of the raw materials.

2. To assure the quality in every

manufacturing process.

3. To maintain the ISO 9001 certification.

4. To check machine readings in properly

correct.

5. To ensure the quality of the finished goods.

STRUCTURE OF QA
DEPARTMENT

GROUP
MANAGER
QUALITY
ASSURANCE

ASSOCIATE EXECUTIVE
MANAGER FINISHED EXECUTIVE EXECUTIVE
PRODUCTION
CONTROL
PRODUCT STATISTICS LABORATORIE

SHIFT IN
CHARGE
 ENGINEERING DEPARTMENT

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

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

Engineering department determines the incentives for the workers inside

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

1. Minimize the power consumption.

2. Planning the activities in mechanical workshops and projects.

3. Implementation of projects and modernization activities.

4. Co-ordinate with production department.

5. Maintain discipline in the shop floor.

6. Plan and execute preventives and predictive maintenance job.

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

FUNCTIONS

1. Spares management and preventive planned and breakdown maintenance

activity of all equipments.

2. Operation and maintenance of utility section.

3. Planning the maintenance activities of utility and boiler house

4. Coordinating of energy conservation activities

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

lighting.

6. Maintenance of electrical system.

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

of various drawings.

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

GROUP
MANAGER
ENGINEERING

MANAGER MANAGER
MECHANICAL ELECTRICAL AND
ENGINEERING ELECTRONICS

EXECUTIVE EXECUTIVE
MANAGER EXECUTIVE
INSPECTION & INSTRUMENTATIO
CIVIL & PROJECTS ELECTRICAL
DRAFTING N & CALIBRATION

MANAGER EXECUTIVE
(DIV 2) (DIV 3)

ASSOCIATE ASSOCIATE
MANAGER MANAGER
(DIV 1) BOILER & UTILITY

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

MECHANICAL ENGINEERING

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

ELECTRICAL AND ELECTRONICS

Its primarily responsible to engineer the distribution of electrical power to entire

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

STRENGTHS
Market leadership in the dominant industry segments like truck and bus tyres.
 Dynamic and progressive leadership.

Responsive to changes in market condition and product profile.

Leadership position being maintained through focused marketing strategies

Product innovation and technical superiority.

Joint venture for truck and bus radial tyres with Michelin.

Superior product quality

Strong brand equity.

Largest distribution network.

Quick responsive to market needs.

High consumer and brand recall in a sensitive market.

Significant utilization of IT practices and systems.

Good relationship between employees and employers.

Goodwill of the organization.

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

places.

WEAKNESSES
 No presence in two and three wheeler market.

Share in passenger car segment is low.

Advertisements are less.

No significant presence in global tyre market.

Low presence in radial market.

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

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

High growth prospects in commercial vehicle radicalization.

Leadership position in the commercial vehicle segment will enable the company

to leverage new and related business opportunities.

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

sources for raw materials.

High growth in vehicle production in the immediate future.

Estimated 12% growth in annual demand.

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

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

China.

Higher transaction costs.

Rising cost of raw materials.

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

material cost has witnessed unexpected and unprecedented increase and the

trend is likely to continue.

Integration with the global economy will necessitate lowering of import tariffs

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

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

SUGGESTIONS

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

SEGMENT WISE PERFRMANCE

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

such as:
 Truck and bus tyres 8%

Passenger car radial 82%

Light commercial vehicle tyres 17%

Agricultural usage vehicles 48%

RISKS AND CONCERNS

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

affects operating margins of tyre companies.

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

that are:

1) Some states will charge entry tax.

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

not implemented VAT.

3) Non uniformity of tax rates.

CONCLUSION

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

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

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

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

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

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

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

from Indian market and also from foreign market.

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

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

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

opportunities for a brighter future.

BIBLIOGRAPHY
1) VERVE- Quarterly magazine of Apollo Tyres Ltd.

2) Job description files

3) Annual reports of Apollo Tyres Ltd.

4) Standing orders of Apollo Tyres Ltd

5) Abdul Assiss Koroth, Management information Systems

6) Khanna O.P. Industrial Engineering and Management

7) www.apollotyres.com
ANNEXURE
 PROFIT AND LOSS ACCOUNT
(Annual trends)

Rs in Crores 2002 2003 2004 2005 2006

Sales 1710 2026 2314 2657 3002
Excise duty 333 417 404 431 377
Net sales 1377 1608 1911 2225 2626
PBDIT 139 207 162 165 223
Depreciation 32 33 34 57 73
PBIT 106 173 118 108 150
Other income 3 1 6 20 1
Interest 54 25 19 43 51
PBT 55 150 105 85 101
Exceptional 0 17 0 0 6
items
Tax 18 47 35 17 28
PAT 37 120 70 68 78

BALANCE SHEET
 As at 31st March, 2006

SCHEDULE AS AT 31ST AS AT 31ST

MARCH 2005 MARCH 2006
(Rs in crores) (Rs. in crores)
SOURCES OF FUNDS

SHAREHOLDERS
CAPITAL
Share capital 1 38.34 38.34
Reserves & surplus 2 595.68 538.40
634.02 576.74
LOANS 3
Secured 381.00 348.75
Unsecured 369.00 195.08
750.00 543.81

DEFFERED TAX 105.21 103.35

LIABILITY

TOTAL
1489.23 1223.90

APPLICATIONS OF 4
FUNDS

FIXED ASSETS
Gross block 1310.61 1148.43
Less depreciation 469.94 398.30
Net block 5 840.67 750.13
Capital work in 77.93 84.33
progress 6 918.60 834.46

INVESTMENTS 0.53 54.48

CURRENT ASSETS,
LOANS AND
ADVANCES
Inventories 419.41 330.12
Sundry debtors 7 175.14 156.52
Cash and bank 231.26 110.43
balances

Other current assets 0.21 .02

Loans &advances 184.39 146.46
 1010.51 743.55
LESS CURRENT
LIABILITIES AND
PROVISIONS
Current liabilities 415.72 380.14
Provisions 24.95 28.83
440.67 408.97

Net current assets 569.84 334.58

DEFERRED .26 .38

REVENUE
EXPENDITURE

TOTAL 1489.23 1223.90