APOLLO TYRES LTD

CHAPTER - 1
INTRODUCTION

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INTRODUCTION
Apollo Tyres is one of the largest tyre manufacturing companies in India.
The company was incorporated in 1972 and commenced its production in
1977. It was the first company to receive ISO91 accreditation in Indian tyre
industry.
The company can !e traced !ac" to the 7#s when hard$nosed %&'#s and
Indian tyre ma(or dominated the tyre industry. Apollo set up its very first
manufacturing unit in )eram!ra* +erala in 1977* with a very huge production capacity
of 1,- tonnes. It was in 19,2* that Apollo formulated and put into action a series of
pragmatic pro(ect generating policies that led towards a turn around. A dynamic new
management team under the leadership of .ice$'hairman and %/* %r. On"ar S
+anwar too" over the helm of the company affairs. O!(ectives were redefined and
service aggressive mar"et penetration and e0pense containment !ecame order of the
day.
Apollo Tyres 1td. is the leading Indian tyre manufacturing with annual
revenues of over 2S 3 1 !illion. In fact it is the first Indian tyre company to reach this
milestone. In 24* Apollo ac5uired /unlop Tyres of South Africa. The company has
its operations in India* South Africa and 6im!a!we with a networ" of over 7*
dealerships in India alone. Sometime in 8anuary* the company also announced its
plans to start its operations in 9ungary.
%y pro(ect at Apollo tyres ltd. )eram!ra in Thrissur is a hum!le effort to
understand and comprehend its organi:ation. The pro(ect is intended to access and to
ac5uire the "nowledge regarding the functional as well as the management aspect of
the firm.
OBJECTIVES OF THE STUDY
The organi:ation study is to familiari:e ourselves with the wor"ing of various
departments for a particular period* so that one can have an e0posure to the practical
side.
The o!(ectives include;
1. To understand the organi:ational structure of Apollo tyres
2. To understand the various "ey functional areas of the company
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<. To get an idea a!out e0isting !usiness operations at Apollo tyres
7. To interact with managers at various levels of the organi:ation hierarchy
-. To analy:e the practical aspect in relation to the theoretical aspect of the
organi:ation
4. To gain a clear picture a!out the challenges and activities faced !y the
organi:ation
7. To o!serve the wor" culture e0isting in the organi:ation
,. To identify the strength and wea"ness of the organi:ation
9. To analyse competition within the industry.
SCOPE OF THE STUDY
Apollo Tyres* )eram!ra has all those function areas such as production*
finance* personal* and mar"eting etc. The study is focused on the functioning of each
department of the organi:ation giving emphasis to their wor"ing.
METHODOLOGY
To conduct the study* different methodologies have !een adopted. The study
was underta"en !y visiting the plant. =oth )rimary and Secondary data are used.
DATA COLLECTION
1. Primary Sor!"#
o /irect interview with the department heads
o /iscussion with the divisional heads
o Interaction with wor"ers in the company
o /ata collected !y o!serving the function of the organi:ation
$. S"!o%&ary Sor!"#
Annual reports of the company
/epartment manuals
)eriodicals* !oo"s* etc. pu!lished materials !y the company
Internet we!sites >www.apollo.com* www.google.com?
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LIMITATIONS OF THE STUDY
The time period availa!le for the study was limited
The study was conducted only during the day shift and hence the
wor"ing conditions of those employees wor"ing during the evening
and night shifts could not !e e0amined
CHAPTERISATION
C'a()"r 1
Introduction @ O!(ectives* Scope of the study* %ethodology* Sources of data*
1imitation of the study* chapterisation
C'a()"r $
Industry )rofile @ 9istory of tyre industry @ Aorld scenario* Indian Scenario* State
Scenario* Blo!al position of Apollo Tyres.
C'a()"r *
'ompany )rofile @ Organisational goal* 9istory of company* 'ompany#s
vision* 'ompany#s %ission* O!(ectives of company* corporate social responsi!ility*
Achievements* =an"s of the company. )roduct )rofile @ Truc"* 1ight commercial
vehicles* )assenger car radials* Carm. %ar"et )rofile @ %DC* A)O11O TEDFS* 8+
industries* 'FAT* BOO/EFAD I&/IA
C'a()"r +
Organisational Structure @ Organisational chart
C'a()"r ,
Analysis of functional departments
C'a()"r -
SAOT Analysis @ 'ompany#s Strength* Aea"ness* Opportunities G Threats
are e0plained.
C'a()"r .
)orter#s five force in Apollo
C'a()"r /
Cindings* conclusion G suggestions
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=i!liography
Appendi0
CHAPTER 0 $
INDUSTRY PROFILE
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1ORLD SCENARIO
Aorldwide* the automo!ile industry is the single largest consumer of natural
ru!!er in the form of auto tyres and tu!es certain other parts and accessories. Cor
instance* 8apan#s =ridgestone 'orporation is the world#s third largest producer of
tyres. It consumes < la"h tones of natural ru!!er annually to produce 4, different
types of tyres. Italy#s )irelli SpA consumes 12 tonnes of natural ru!!er in the
production of tyres. Fconomic recession anywhere first hits this industry !efore any
other industry. Therefore* the world price of ru!!er goes through a cycle o few years
of !usts with the state of world economy.
The engineers forecast that tomorrow#s tyres will have possi!ly have inflation
with gases* which is heavier than air to prevent inflation loss. The advent of computer
has revolutioni:ed the tyre technology and tyre industry. The tyre industry was grown
to one of the largest industries in the world.
1ORLD RUBBER 2 TYRE FORECASTS FOR $311 2 $31-
The world tyre industry is worth around 2S 3 7 !illion. The industry is
mar"ed !y the presence of around half a do:en ma(or players who together occupy to
7H of the world mar"et share. The glo!al demand is to rise 7H annually through
211. Aorld ru!!er consumption is forecast to increase 7. percent annually to 24.-
million metric tonnes in 211. Bains will directly !enefit from solid growth in world
motor vehicle production* as well as a strong glo!al economy. 'ountries li"e the 2S*
'hina and 8apan dominate glo!al ru!!er consumption* and will continue to do so*
collectively accounting for more than half of the mar"et in 211. 'hina has !ecome
the leading consumer of ru!!er worldwide* following more than a decade of strong
growth in motor vehicle production and industrial goods manufacturing. The country
overtoo" 8apan as the second largest ru!!er mar"et in the late 199#s and !y 21 had
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essentially caught up with the 2S as the world#s leading consumer. Ahile 'hina will
continue to e0tend that lead* the 2S and 8apan will remain leading mar"ets
worldwide* !ecause of their e0tensive motor vehicle and tyre industries.
The strongest gains are forecast for 'hina* though the dou!le digit annual
gains that characteri:ed 'hina#s ru!!er mar"et from 21 to 24 are forecast to slow
significantly as its domestic mar"et matures and motor vehicle production decelerates.
The 'hinese mar"et will !e sustained primarily !y e0panding demand for industrial
ru!!er products such as hoses* !elts and gas"ets* offsetting slower* though still solid*
growth for tyre ru!!er. A!ove average gains also are forecast for most of the
AsiaI)acific region* e0cluding 8apan* which will !enefit from strong economic growth
and rising motor vehicle production. In addition the growing tyre industries in these
nations will support demand for ru!!er. Among the ma(or developed regions* the
large &orth American* Aest Furopean and 8apanese mar"ets will all see gains !elow
the glo!al average. Fach of these regions will suffer from a wea" outloo" for the
regional motor vehicle industry and competition from nations with lower la!our or
raw material costs.
MAR4ET SHARE OF VARIOUS COMPANIES
'O%)A&E %AD+FT S9ADF >H?
%ichelin 19.7
=ridgestone 19.7
Boodyear 14.4
'ontinental 7.1
Sumitomo 7.9
)irelli <.9
Eo"ohama <.-
+umho 1.7
Others 2<.-
>Ta!le &o ; 2.1?
The tyre industries were classified under three heads. The first generation
industries vi:. /unlop and Cirestone >new =om!ay Tyre International 1td? were set
up in the last <#s and early 7#s.The second generation companies came up in 4#s
are %DC Tyres* 'FAT* Boodyear Tyres and )remier Tyres.

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The third generation companies that were set up in 7#s are 8+ Tyres*
.i"rant Tyres* Apollo Tyres and %odi Du!!er. Fver since the first Indian company
/unlop Du!!er 'ompany was incorporated in 1924 the tyre industry is growing
rapidly and today its turnover is 1 million and earning an income of Ds. 1
crore per annum for e0ports. The industry had a growth rate of 11H over last decade.
Indian tyre industry comprises 12 ma(or companies* 1< minor ones and <7
minor plants manufacturing low technology products* such as small tyres* tu!es and
flaps. There are top players in this field having 49H of mar"et share.
MAR4ET SHARE OF LEADING TYRE COMPANIES
'O%)A&E %AD+FT S9ADF >H?
%DC 21.2
8+ Tyres 17.1
Apollo 14.2
'FAT 17.-
/unlop 7.
Boodyear 4.
Others 1,.
>Ta!le &o 2.2?
Tyres are !asically two types;
'ross ply
Dadial
In cross ply tyres* nylon or rayon tyre cords are arranged diagonally across. In
radial tyres* polyester* nylon* fi!re glass or steel cords are arranged perpendicular to
the circumstances.
Dadial technology is an improvement over cross ply and radial tyres are priced
at >of 2-$<H? premium. They are long lasting and have lower incidence of flats.
In domestic industry mar"et demand for cross ply tyre is more !ecause of
rough conditions and also it is cheaper than radial. India is still in the in the cross play
age when developed countries are into radial and tu!eless tyres. The tyre industry in
India is predominantly dependent on natural ru!!er as against synthetic ru!!er.
Analysis !y F0perts reveals that the ratio of natural ru!!er usage to synthetic ru!!er is
,;2 in Indian tyre and <;7 in worldwide.
Indian tyre industry even though in its infant stage has !een striving hard to
esta!lish itself in the glo!al mar"et. There are threats from glo!al players who en(oy
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su!stantial economies of scale dominant mar"et. The fortune of the tyre industry
depends on the agricultural and industrial performance of the economy. The
transportation needs tyres and vehicles. 9ence* this is a very sensitive industry* which
has to adopt itself to a highly volatile environment.
INDIAN SCENARIO
The origin of the Indian Tyre Industry dates !ac" to 1924 when /unlop
Du!!er 1imited set up the first tyre company in Aest =engal. %DC followed suit in
1974. Since then* the Indian tyre industry has grown rapidly.
Transportation industry and tyre industry go hand in hand as the two are
independent. Transportation industry has e0perienced 1H growth rate year after year
with an a!solute level of ,7 !illion ton freight. Aith an e0tensive road networ" of
<.2 million "m* road accounts for over ,-H of all freight movement in India.
The Indian tyre industry is mainly dominated !y the organi:ed sector and
consists of four ma(or players who together account for appro0imately ,-H of the
industry#s turnover @Apollo Tyres 1td.* %DC 1td. 8+ Tyre G Industries 1td* and
'FAT 1td. These companies have a presence in all the ma(or segments of the tyre
industry @ the replacement mar"et* Original F5uipment %anufacturers >OF%s? as
well as e0ports and conse5uently* offer the consumer a well diversified product mi0.
There are many other companies* some in the unorgani:ed sector and mostly smaller
in si:e* with a focus only on one or two categories of tyres* tu!es and flaps primarily
for the replacement mar"et.
2nli"e the international tyre industry where passenger car radials dominate the
mar"et* in the Indian industry commercial vehicle tyres ta"e the lead and account for
appro0imately 7H of the industry#s turnover. As a result* the growth of the entire
tyre industry depends on primary factors li"e agricultural growth* overall B/)
growth* industrial production* growth in vehicle demand and secondary factors li"e
infrastructural development* prevailing interest rates and financing options. Cor the
last 1 years* Apollo Tyres has maintained its leadership position in the commercial
vehicle tyres segment.
Although the automotive sector in India saw negative growth in the medium
and heavy commercial vehicle segments* this downward trend was in contrast to the
strong demand witnessed !y the tyre industry. 1ed !y replacement mar"et growth of
over 1H* the tyre industry registered a high single digit growth. The tyre industry is
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highly raw material intensive and a ma(or consumer of ru!!er. Aith raw material
costs accounting for 7 H of the cost of production* any change in the price of ru!!er
or the crude !as"et has a direct impact on the cost of production. The comparatively
sta!le raw material prices in the first half of CE 27$,* coupled with price increases
underta"en !y the industry in CE 24$7* resulted in all the ma(or players reporting
improved operating profit margins. This was after tour consecutive years of raw
material cost$push* !oth for natural ru!!er and crude oil$ lin"ed raw material !as"et.
The second half of CE 27$, again saw an upward trend for all ma(or raw
material prices and the same is anticipated for the year ahead. As a result* margins are
once again under pressure* even while the demand$supply situation continues to !e in
favour of the industry.
Sa5i"%) 6"a)r"# o6 I%&ia% )yr" i%&#)ry
Adapta!ility and a!sorption
F0ports
Innovation
Indigenous and ready availa!ility
Technology progression
Aide product range for diverse use
Self sufficiency and vi!rant mar"eting setup
INDIAN TYRE INDUSTRY HIGHLIGHTS
The Indian tyre industry is a 9 crore industry
The fortune of this industry depends on agricultural and industrial
performance of the economy* the transportation needs and the production of
vehicles
The tyre industry is mainly dominated !y the organi:ed sector* the
unorgani:ed sector holds away in the !icycle tyres
The ratio of natural ru!!er content to synthetic ru!!er content is ,;2* in
Indian tyres the ratio of natural ru!!er to synthetic ru!!er is <;7.
DEMAND AND SUPPLY FACTORS
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The drivers of demand in the Tyre industry are
Industrial and freight activities
)ersonal purchasing power
Fconomic activity
APOLLO 7i% )'" I%&ia% #!"%ario8
Apollo Tyres 1td. is the leading Indian tyre manufacturer* with annual
revenues of over 2S3 1.2 !illion >27$,?. It was founded in 197-. Its first plant was
commissioned in )eram!ra in +erala state. In 24 the company ac5uired /unlop
Tyres International of South Africa. The company now has four manufacturing units
in India* two in South Africa and two in 6im!a!we. It has a networ" of over 7
dealerships in India* of which over 2- are e0clusive outlets. In South Africa* it has
over 9 dealerships* of which 19 are /unlop Accredited /ealers. In early 2,* the
company announced plans to open a manufacturing plant in 9ungary.
Apollo Tyres 1td.J has !een a pioneer in the implementation of KSi0
SigmaJ among all the tyre companies in India* and is in the list of top 1-
manufacturers of the world in terms of Devenues.
12 sales* services and stoc" points
19 state offices
7 L !usiness partners
21 L Apollo tyre world
19 L Apollo Dadial world
14 L Tu!eless service points
4 L Apollo )aragati +endras
STATE SCENARIO
Apollo had secured Cifth place in the state of +erala. In the state of +erala
%DC has secured the first position with <H o the mar"et shares under its control.
This is followed !y 8+ with 27H of the +erala state shares. 'FAT* Bood Eear follow
8+ with 17 and 12H respectively. Apollo holds the fifth position with 1H of the
mar"et shares in +erala.
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CHAPTER *
COMPANY PROFILE
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ORGANI9ATION GOAL
MEou can#t stop the power of thought* nor can you stop the people !ehind it#.

HISTORY OF THE COMPANY
&amed after the Bree" Sun Bod* Apollo* the company Apollo Tyres has
created a niche for itself in the Indian tyre mar"et. After three decades of consisted
growth* today it is the premier tyre manufacturing company of India.
K)FO)1F /F1I.FD I&&O.ATIO&
I&&O.ATIO&S /F1I.FD S2''FSS
A CFA OC T9F /ICCFDF&'FS O2D )FO)1F %A/FJ
The history of the company dates !ac" to the early 7#s. In 1972* license was
o!tained !y %r. %athew T %arattu"alam* 8aco! Thomas and his associates. The
company was ta"en over !y /r. Dauna5 Singh and associates in 1977. It is one of the
flagships companies of Dauna5 group. The plant is situated at )eram!ra -"ms north
of 'ochin. Total area covered was 97 acres which was !ought from the people who
stayed there at a cheaper rate. At the starting time the production capacity was -7
tonnes per day.
The Apollo Tyres 1td. owned !y Dauna5 group of industries plays an
important role in the world tyre industry. The products include tyres* tu!es and flaps
for all "inds of vehicles. The head office of the company is at &ew /elhi and the
registered office is at 'ochin. The main mar"eting activities are concentrated in &ew
/elhi and 27 e0clusive dealers for Apollo cover the entire area of India.
/uring 1977 to 19,1 the company was under a heavy loss. The capacity
utili:ation was only 7 to - percentages. The emphasis is given on growth* 5uality
and o!(ectives were re$defined when %r. On"ar. S +anwar too" over the company#s
affairs. 'ompany !egan to earn profits and accumulated losses of 24 crores were
wiped out within a short span of time.
Their second plant was installed at 1imda village at =aroda in Bu(arat* which
started production 1991 having capacity of 4.- la"h tyre per annum. This is the most
modern plant. The DG/ centre is also functioning at this location.
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The third plant at +alamassery was ta"en over !y Apollo Tyres from )remier
Tyres. Ahile ta"ing over this plant* it was a sic" unit. After the ta"e over Apollo spent
a large amount in moderni:ing the plant and now it is a profit earning unit. The fourth
plant was commissioned in 1994 at )une for manufacturing tu!es. The entire
re5uirement of tu!es for all plants of Apollo is done from here.
In truc" tyres it has more than < percentage mar"et share. The !rand NT7
!ecame the largest selling truc" tyre in the country. The vision of the company is to
!e a leader in the Indian tyre industry and a significant glo!al player.
APOLLO TYRES PERAMBRA
YEAR OF
INCEPTION
1974
LAND AREA 97 A'DFS
BUILDING AREA 49*- SO.%TS
PRESENT
CAPACITY
< %TI/AE
PRODUCT
RANGE
Truc"*
1'.* Dear
Tractor*
Carm
Dadial*
)assenger
G A/.
Tyres
>Ta!le no <.1?
APOLLO TYRES OUTLOO4
B#i%"## A!)i:i)y; %anufacturers and sale of tyres
A55i"& B#i%"##"#; Tread ru!!er for commercial vehicle tyres and distri!ution of
alloy wheels for passenger cars.
A!"5"r"1'""5<; )remium alloy wheels* first from a tyre company in India.
A(o55o Dra Tr"a&#; India#s !est pre$cured tread ru!!er.
A(o55o Dra Tyr"; India#s first !randed re$treaded tyre* dedicated retreading plant
which is launched in %ay 27.
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So)' A6ri!a; /istri!ution of 'ooper Tyres and steel wheels for commercial
vehicles.
Fi%a%!ia5 Y"ar; April 1 to %arch <1
I%&ia N") Sa5"# Tr%o:"r FY $33,-3-; Ds. 24.< !illion >22.<? or 2S3 -< million
>79-?* Ds 1-.2 !illion or 2S3 <<2 million.
So)' A6ri!a CY $33,; Dand 1<<9 million or 2S3 21 million* Dand 792 million or
2S3 117 million.
No. o6 "m(5oy""#; 13333=
Cor(ora)" H"a&>ar)"r#; Apollo 9ouse* 7 Institutional Areas* Sector <2* Burgaon*
9aryana1221* India. )hone; L91$127$2<,<2 to 1. Ca0; L91$ 127$2<,<21I 17
So)' A6ri!a O66i!"; 24- Sydney Doad* /ur!an 71* +wa6ulu &atal* South Africa
The R"?i#)"r"& O66i!"; 4th Cloor* 'herupushpam =uilding* Shanmugham Doad*
'ochin* +erala 4,2<1* India. )hone; L91$ 7,7$2<,192* 2<,19<
Ma%6a!)ri%? Fa!i5i)i"#; Three >India?* Two >South Africa?* One >6im!a!we?
Pro&!) Ra%?"; Truc"* =us* 1ight Truc" Dadial and 'ross$ )ly* )assenger 'ar
Dadial* Carm Dadial and 'ross$ )ly* Off$ The @Doad* Farthmover Industrial
O:"ra55 Ca(a!i)y; <17 tonnesI year
4"y Bra%&#; Apollo* /unlop* India Tyres* +ai:en* Degal Tyres
O)'"r Bra%&# Ma%6a!)r"&; &ove0* %aster Steel* %ilestone* TEfoon* and
.elocity.
APOLLO TYRES LTD-PERAMBRA PLANT IN FOCUS
AT1 )eram!ra 2nit is the mother plant of Apollo family
It is the single largest truc" tyre plant in India
Castest growing plant in Apollo Camily
7
th
fastest growing tyre company in the world
Cirst tyre company to o!tain ISO 91 certification
)resent production capacity of <7 %TI day
It has nearly 27 employees
Cour different trade unions
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Gro@)' o6 )'" Or?a%i<a)io%
Apollo Tyres 1td. have 7 manufacturing plants in India is having a mar"et all
over the country. Indian passenger car radial tyres have also !een gaining acceptance
in the developed mar"ets. India is leveraging its cost competitiveness to emerge as a
ma(or player in the segment of industrial tyres.
9ead Ouarter ; Burgaon
)lants ; =aroda* 'ochin >2?* )une
6onal Offices ; =angalore* +ol"ata* /elhi* 8aipur
G %um!ai
Dedistri!ution centre ; =aroda* 'oim!atore* /elhi* Ichapuram*
Indore*8aipur*9u!s in +ol"otha*
Buahati and )atna.
9owever* the large and growing domestic mar"et has meant that the e0port
portfolio has always contri!uted a smaller portion of revenues. This is more so given
that reali:ations are !etter in the domestic mar"et.
In recent years* e0ports have !een a growth area for Apollo Tyres* even
though it comprises only ,H of overall revenue. )roducts e0ported primarily include
truc" !ias* light truc" !ias and passenger car radial.
The "ey e0port mar"ets include South America* Africa* %iddle Fast and
South Fast Asia. Inroads are now !eing made into Furope and Australia with high
performance passenger car radial tyres. Apollo tyres recently ac5uired /unlop tyres
South Africa and started its operation over there.
DREAM OF APOLLO
To !ecome a 9 crore company !y the year 21
COMPANY VISION
KA significant player in the glo!al tyre industry and a !rand of choice
providing customer delight and continuously enhancing sta"eholder valueJ
COMPANY MISSION
KTo !ecome a 2S/ 21 million company !y the year 21J
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KTo create the first Indian Singles Brand Slam 'hampion !y the year 21,J
OBJECTIVES OF THE COMPANY
9igh volume* high mar"et share* cost effectiveness in all segments.
9igh 5uality* technically superior products.
'onsistent production through harmonious industrial relations.
Achievements of customer delight through !enchmar"ing glo!al practices.
Strengthen supply chain management.
Devenue growth.
Operating margin improvements.
Fmployee satisfaction.
HUMAN CAPITAL
1a!our &o. of people
%anagement staff 21<
)ermanent staff 1927
Aor"men trainees 11<
'ontract wor"men 7-<
Total 27<
>Ta!le no; <.2?
GOAL OF APOLLO
1earning and /evelopment
Fmployee safety
Camily Cocus
9ygienic Cactor
Fmployee Involvement and 'ultural =uilding
Fmployee satisfaction
'ustomer delight
Devenue growth
Operating margin re5uirements
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AUALITY PLEDGE
KAe the people of Apollo Tyres 1td will create an enterprise committed to
5uality. It is our policy to design* manufacture and services our products to provide
the level of 5uality and valve that meet every customer#s need.
Ae will aim to generate customer enthusiasm through continuous improvement in our
products and servicesJ.
APOLLO ONE FAMILY
Arts /ay
Sports /ay
Cactory /ay
Safety /ay
Onam 'ele!ration
Summer 'amps
APOLLO -A RESPONSIBLE CORPORATE
Indirect $- persons
/irect $27< persons >1- are locals?
PLANTS IN INDIA
Sl.&o )1A&TS
1 A)O11OTEDFS1T/* )FDA%=DA
+FDA1A
2 A)O11O TEDFS 1T/ *
+A1A%ASSFDE* +FDA1A
< A)O11O TEDFS 1T/ * =ADO/A
B28ADAT
7 A)O11O TEDFS 1T/* )2&F
%A9ADASTDA
- A)O11O TEDFS 1T/* '9F&&AI
TA%I1 &A/2
>Ta!le no <.<?
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PLANTS ABROAD
Sl.&o )1A&TS
1 A)O11O TEDFS *
=21AAAEA*
6I%=A=AF
2 A)O11O TEDFS*
1A/E%IT9 SO2T9
ACDI'A
< A)O11O TEDFS*
/2D=A& SO2T9
ACDI'A
>Ta!le no <.7?
GLOBAL POSITION OF APOLLO TYRES LTD
EFAD )OSITIO&
27 17
2- 14
24 1-
27 17
2, 17
>Ta!le no <.-?
APOLLOBS CORPORATE SOCIAL RESPONSIBILITY
=y giving !ac" to society in every way possi!le* one !uilds synergies with the
core !usiness* leading to a sustaina!le effort. Apollo Tyres !elieve true sustaina!ility
is only ensured !y the positive impact of !usiness practices. The company has
invested in efforts to !uild awareness a!out AI/S and has underta"en to !ring
solutions to the pro!lems of the community at large. Decogni:ing that an optimistic
and progressive environment not only enhances productivity* !ut also promotes a
feeling of well !eing* all around* our initiatives in 'orporate Social Desponsi!ility are
an integral part of the !usiness activities and not outside them. The principles of
sustaina!ility are inherent in our vision statement focusing on Mcontinuously
enhancing sta"eholder value.#
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'SD is recogni:ed as a "ey strategy to manage the !usiness and operational
challenges. The organi:ation#s strategy is to !uild "ey partnerships and lin"ages to
optimi:e the e0isting resources in reaching out to more people. The organi:ation is
conscious of the triple !ottom line concept and is wor"ing towards putting advanced
and integrated management system on environment* health G safety and social aspect.
=eing a people centric !usiness* at the onset* Apollo Tyres undertoo" to !ring
awareness and solutions to the pro!lems effecting those mem!ers of the pu!lic that
are in closest contact with the company$ the truc"ing community. Crom then on* the
'SD activities have e0panded to include women* children and the disadvantaged* in
colla!oration with &BO#s and other e0ternal agencies.
The current and planned 'SD programs are primarily focusing on health and
education* in !road alignment with %illennium /evelopment )rograms of 2&/). All
programs* e0cept 9I.$AI/S* are currently in the domestic mar"et. As the
geographies of operations e0pand* 'SD programs will !e underta"en after due needs
assessment of the location. Some of the planned activities will re5uire local &BO
support.
9I.$AI/S initiative is the !iggest an most comprehensive programs at
Apollo. The organi:ation recogni:es it as a development and wor"place issue
and has a detailed action plan covering "ey sta"eholders. Apollo Tyres 9ealth
'are 'linics >for customer#s i.e. truc"ers? have !een esta!lished in and around
cities li"e 2ttar )radesh* Tamil&adu* %aharashtra* Da(asthan* &ew /elhi* and
other large transportation hu!s in India. Dun !y 5ualified doctors* counsellors*
pharmacists* and outreach wor"ers* the 'linics focus on diagnosis and
treatment of se0ually transmitted diseases* condom promotion and effective
communication to promote !ehavioural change$ Aor"place programs
>employee? in India and SA. Training and leveraging supply chain in ta"ing
the message forward in line with Apollo Tyre#s commitment to capacity
!uilding. Sample surveys were also carried out to record the "nowledge*
attitude* !ehaviour and practices.
Fmergency %edical Services >F%S? around our manufacturing locations in
India.
Fsta!lished highway rescue pro(ect in Bu(arat and city F%S in
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.adodara
)lan to launch in +erala.
9ealth 'amps G %edical assistance in the villages surrounding the
manufacturing location generate awareness a!out deadly diseases li"e
9I.IAI/S* %alaria* T=* 'hic"engunia* etc. 9ealth camps on 9I.IAI/S* T=
and %alaria are panned for truc"ers in the 9ighway regions as well as in the
remote villages.
)rovision of artificial lim!s to war wounded soldiers.
Adult 1iteracy classes for villages.
S"ill development for women in villages with a view to ma"ing them self
sustained mem!ers of the community. Tailoring classes are arranged on an
ongoing !asis and an Anganwadi >crPche? was also provided to ta"e care of
the children from economically underprivileged families.
)rimary education in "eeping with %illennium /evelopment Boal in the
villages involved awarding scholarships to support !right students from
economically !ac"ward sections of society.
%aintenance of school !uilding in the villages.
)rovision of computers to the schools in the villages.
)rovision of water tan" for the village as well as laying a pipe line to !ring
supply of drin"ing water for the - students of the Bovernment Birls 9igh
School* +oda"ara* )eram!ra.
Opportunity of self employment I entrepreneurships to war wounded soldiers
resulting in revenue generation for them and the organi:ation.
'ustomer promotion on safe drive environment
'onducting Safe /rive 'ampaign on the national e0pressways* which
included chec"ing the tyres for damages or wear patterns to ensure that they
were safe for an e0pressway (ourney.
'ustomers were also given Safe /rive !oo"lets.
2 such Safe /rive campaigns have already ta"en place across the country this
year. Twenty more are planned.
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Aind Fnergy pro(ect initiated si0 months !ac" along with Su:lon* has ena!led
tapping in to a , %egawatt 'apacity of wind power* with an e0pected
generation of appro0imately 1.7 million units of power every year.
Technology 2p gradation along with waste heat recovery has resulted in
appro0imately <9* 'FDs !eing granted !y 2&C'''.
/unlop* South Africa has launched the MAar on Aaste# campaign* a company
@wide initiative to responsi!ly dispose all waste generated in factories and
offices* in an effective and environment friendly manner.
Steam energy to replace use of D1&B under an agreement with BAI1. The
pro(ect* !ased on Aaste 9eat Decovery System from BAI1#s Bas Tur!ines
e0haust* is conceived as a 'lean /evelopment %echanism >'/%? pro(ect
under +yoto )rotocol. This initiative would ena!le Apollo Tyres to generate 7
%A of power and allow the two companies to save around 9<- %illion +ilo
'alories of energy in producing process steam* there!y also avoiding
formation of --* tonnes of 'O per 2 annum.
Activities are continuously redesigned and shaped to suit the dynamic
re5uirement of various programs. Some activities will need to !e managed through
e0pert &BO#s. Cor the future* Apollo Tyres aims to further develop its alliances with
the !usiness community* educational institutions* social organi:ations and community
gatherings to spread awareness and ta"e action.
I%6ra#)r!)ra5 Fa!i5i)i"#
P"ramCra P5a%) 74o!'i8
Apollo Tyres# first manufacturing unit located in )eram!ra in +erala and
!egan its commercial production in 1977 with a capacity of -7 tonnes. 'urrently the
production capacity is 27- tonnes a day. It is manufacturing truc"* 1'.* tractor tyres.
The plant is having following certifications;
OS $9; 199,*27 certifications for Ouality %anagement Systems
Degistered with /BSG/ and /efence >'OA.?
Degistered with /OT >/epartment of Transportation* 2SA?
F'F 'ertification
In$%etro >=ra:il? 'ertification
SASO >Saudi Ara!ia? 'ertification
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ISO 91 'ertification
Initial capacity of the )lant ; 79 tonnes per day
F0isting capacity of the )lant; < tonnes per day
&um!er of )eople ;2714>including contract employees?
GOLDEN ACHIEVEMENTS OF THE COMPANY
Apollo Tyres 1td. )eram!ra unit was ran"ed the first among large scale
industries for productivity and energy conservation in the year 22$2< !y
+erala state in year 2- G 27 at productivity council
Apollo Tyres received the pollution control award !y the central government
during the year 2<$27
Apollo tyres received the &ational Safety 'ouncil Award in the year 2- G
27
Apollo Tyres ac5uired the Fnergy 'onservation Award in the year 24
Apollo Tyres received the award for Doad Safety in 24
Apollo Tyres ac5uired the Ouality 'ircle Award in 24
Cirst tyre company to get ISO 91 'FDTIIATIO& >Octo1 199-?
One of the few tyre manufacturers with OS 9 certification >%arch 21?
'onsistently rated as e0cellent in 5uality audit !y colla!oration %IS
continental AB
%anufacturing facility and tyre testing la!oratory certified !y MInmetro# of
=ra:il
BAN4S OF THE COMPANY
State =an" of India
=an" of India
=an" of =aroda
)un(a! &ational =an"
State =an" of %ysore
State =an" of )atiala
State =an" of Travancore
I'I'I =an" 1td
2nion =an" of India
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A(o55o D"y &i66"r"%)ia)io% )o o)'"r 6irm#
Superior product 5uality
Strong !rand e5uity
'ommitted mar"eting team
9igh consumer loyalty
)roduct segmentation in truc" tyres
=enched mar"ed for planning efficiency parameters
)ower consumption
Ouic" response to mar"et needs
1east scrap generation.
MILESTONES OF APOLLO TYRES
1972 The companyQs license was o!tained !y %r %athew
T %arattu"alam* 8aco! Thomas and his associates.
1977 The company was ta"en over !y /r. Dauna5 Singh
and his associates.
197-
April 1<* )eram!ra )lant Coundation stone was laid
down.
1974 Apollo Tyre 1td. was registered.
1977
)lant commissioned in +erala with 79 T)/
capacity.
19,2
%anufacturing of )assenger 'ar Dadial Tyre in
+erala.
1991 The second plant commissioned in =aroda.
199- Ac5uired )remier Tyre 1td. in +erala.
2 F0clusive Dadial capacity esta!lished at =aroda.
2< Dadial 'apacity e0panded to 44 tyre per day.
&ovem!er 17* 8oint.enture with %ichelin.
27
1aunch of Apollo Acelere$ Q9Q Speed Dated 'ar
Dadials.
2- April 1<* )eram!ra )lant completes < Eears.
24 8anuary <* /unlop South Africa is ac5uired.
27 1aunch /ura Tyre >Detarded Tyre? for the first time
in India
27 1aunch Degal truc" and !us radial tyres
27 1aunch KApollo Tennis Initiative G %ission 21,
2, Announce pu!lic Breenfield plant to !e ready !y
21 for the Furopean mar"ets
29 Announce the ac5uisition of .==. Tyres *
&etherlands
>Ta!le no <.4?
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PRODUCT PROFILE
TRUC4

Overload Technology
1oadstar Super
1oadstar Super 9ercules
1oadstar Super Bold
+ai:en -1
1oad G %ileage
Technology
NT 7
NT 7 9aulug
NT7 Bold
Amar
Amar /elu0e
'ommando
+ai:en <41
+aisen 99 plus
+aisen 77D
)remium %ileage
Technology
NT$9
NT9 Bold
Amar Bold
+ai:en NT/
%ileage Technology
Segment
'hampion
'hampion /N1
'hampion Bold
Amar AT Di!
+ai:en 271
> Ta!le no <.7?
LIGHT COMMERCIAL VEHICLES
1oad and mileage
Technology
%ile Star
Overload Technology
1oad Super Star
)remium %ileage
Technology
Amar /elu0
Amar Bold Di!
NT9
NT9 Bold
/uramile>radial?
Degular %ileage
'hampion
>Ta!le no <.,?
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PASSENGER CAR RADIALS
Tu!eless Dadial passenger
'ar
Acelere
Ama:er 10
Tu!eless Dadial %2. G
S2.
9aw"s
Tu!e Type Dadials Cor
)assenger 'ar
Amar
Ama:er N1
Ouantum
Tu!e Tyre Dadial Cor
%2. G S2.
Amar
Ama:er N1
Storm
9aw"s
)assenger 'ar G 8eep =ias
Armour
)anther
Bripper %aha Trooper
>Ta!le no <.9?
FARM
'ultivation
+risha" Super
Sarpanch
9aulage
)ower 9aul
%ultipurpose
Carm +ing >Dadial?
+risha" )remium >=ias?
Tractor Trailer Type
/hruv
9unter
>Ta!le no. <.1?
MAR4ET PROFILE
1. MRF
%DC is the mar"et leader among tyre manufactures in India* with a 27H
share in terms of revenues.
Its leadership position coupled with its strong !rand recall and high 5uality* %DC
commands the price @ ma"er status. %DC has a strong presence in the T G = segment*
the largest segment of the tyre industry* and commands around 19H mar"et share in
the segment. It is the leader in the 2I< wheeler segment >including motorcycles? and
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APOLLO TYRES LTD

tractor front tyres and holds second place in the passenger cars and tractor @ rear tyres.
F0ports accounts for around 12H of the gross sales in the %DC. The company has a
distri!ution networ" of 2- outlets within India and e0ports within India and e0ports
to over 7- countries worldwide.
2. A(o55o Tyr"# 7ATL8
Apollo tyres is the second largest in the Indian tyre industry* with a mar"et
share of 22H in terms of revenues* and largest player in the T G = segment* with
around 22H mar"et share and ,2H of its product
mi0 coming from this segment. It also en(oys a strong !rand recall. AT1 derives ,H
of its revenues from the replacement mar"et. AT1 is a strong player in the domestic
mar"et* with (ust 2H of sales coming from e0ports.
*. J4 I%&#)ri"#
8+ industries have a 17H mar"et share* in terms of revenue ma"ing it the
third largest player in the industry. The company ran"s first in the %9'. and
)assenger 'ar Tyre segments with 79H and 7H of its product mi0 coming from these
segments respectively. F0ports account for appro0imately 17H of its gross sales.
+. CEAT
'FAT has a 17H mar"et share in terms of revenue and is an average
player.4,H of its product mi0 comes from %9'. segment. Its leading !rands in the
T G = segment are 1ug N1* %ile N1 and Du! N1* Secure in two wheelers and
Cormula @ 1 in passenger radials. In terms of profita!ility* 'FAT has lower margins
compared to its peers* in spite of deriving 4H of its revenues from the replacement
mar"et.
-. Goo&y"ar I%&ia
Boodyear India with its presence across the glo!e has a mar"et share of 4H in
the Indian Tyre Industry in terms of revenues. It has a significant mar"et share in the
tractor tyres segment* with 22H in tractor @ front tyres and a <H share in tractor @
rear tyres. It derives 7-H of the product mi0 from the %9'. segment and <1H from
the tractor tyres segment.
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CHAPTER - +
ORGANISATION STRUCTURE
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ORGANISATION STRUCTURE

'hart no; 7.1
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APOLLO TYRES LTD


CHAPTER 0 ,
FUNCTIONAL DEPARTMENT
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1. PURCHASE DEPARTMENT
The main function of purchase department is to provide right material at right
time in right place at right 5uantity.
STRUCTURE OF PURCHASE DEPARTMENT

>'hart no -.1?
This department is concerned with the purchase of !oth indigenous and
imported materials. It covers procurement of indigenous Fngineering and
miscellaneous items other than raw materials. This department is headed !y senior
manager and under him there are a num!er of officers and staff. The department is
provided with the latest communication facilities and computers.
The main items of purchase are;
Fngineering spares
'onsuma!les
Curnace oil
/iesel
IMK ADOOR Page <1
BDO2) %A&ABFD
ASSO.%A&ABFD ASSO.%A&ABFD ASSO.%A&ABFD
FNF'2TI.FS FNF'2TI.FS FNF'2TI.FS
APOLLO TYRES LTD

'hemicals
1u!ricants
Some raw materials
The purchase may !e corporate purchase or plant purchase. 2nder corporate
purchase the raw material is purchased after considering what the mar"et re5uire for
the month. 2nder plant purchase* purchase may !e of stoc" item or of non stoc" item.
Stoc" items are purchased for regular use. They are having material codes.
They are purchased after considering the reordering level* reorder 5uantity* lead time
etc. Cor non stoc" items there is no regular purchase. /ifferent departments have to
prepare purchase re5uisitions. The items purchased are engineering items* oils and
lu!ricants* local raw materials* import of spares etc.
OCE"!)i:"#;$
To ensure continuous availa!ility of material.
%a"e purchase at most economic price.
/evelop good supplier relation.
Fnsure alternate source of supply
Fnsure 5uality products to reduce wastage and material loss.
1. )urchase re5uisition is formed
Ahat re5uired
Ahere re5uired
9ow much re5uired
2. .endor analysis !ased on
Ouality
)rice
Time of delivery
Pr!'a#" Pro!"##;-
1. Deceiving purchases re5uirement.
2. Fnsuring sources of supply and choosing suppliers.
<. )reparation and e0ecution of purchase order.
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7. Deceiving and inspecting of materials.
-. 'hec"ing and passing of !ill of payments.
V"%&or #"5"!)io%
This includes a list of steps involved in selecting the right vendor for stac"
items identified as critical !y the department to ena!le a smooth functioning of the
plant. .endors are generally identified as
1. %anufactures
2. /ealers
<. Cirms offering various services
%anufactures are divided into two
1. OME7Ori?i%a5 E>i(m"%) Ma%6a!)r"
The O%F shall !e identified as a vendor for the supply of e5uipment* spares*
components etc.
$. OCM 7Ori?i%a5 Com(o%"%) Ma%6a!)r"#8;
Cor all spares* components and consuma!les* attempts are made to identify the
manufacturer and source the items directly from them so as to get 5uality products or
services at optimum cost. Information availa!le on supplier#s manuals* catalogs*
details availa!le on the nameplates of machines etc shall !e used for the purpose.
The capital purchases and raw material purchase is done through centralised
purchasing i.e !y the corporate office situated at &ew /elhi. Fach item of the
engineering stores will have a serial num!er along with code num!er. They are
identified with that num!er.
The products to !e purchased are automatically generated !y the help of
computer and this process id called %D) >%aterial De5uisition )lan?.A reorder level
will !e fi0ed for each and every item >spares? and whenever the stoc" is !elow the
reorder level the %D) will !e run and the order is placed to the vendor >supplier?.
The purchase order will !e placed for the total 5uantity i. e if the stoc" is 1 and the
reorder level is 7* out of which , were ta"en to the plant then the order will !e placed
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for entire 1 items and not !alance , items. At this stage the stoc" will !e a!ove the
actual stoc" i. e 12 as a!ove situation.
Ahen the goods for purchase are without product code then these items are
purchased when the re5uired departments will have to place the order manually. The
purchase department will ta"e decision on such purchase order !y calling a meeting.
And if the decision is ta"en regarding the order then a tender will !e issued for the
purchase of goods. The lowest rate 5uoted will !e fi0ed. The products so purchased
will have to !e collected !y respective departments manually from the factory gate
>other purchase items i. e items with product code will !e unloaded at respective
departments?.
On receipt of the goods the respective department will have to prepare a goods
receipt >BD? and should !e send to purchase department.
PURCHASING RECORDS
)urchase Order Decords Decord pf all materials purchased
.endor Decords 1ist of all vendors* their mailing address*
and other details.
=lueprint and
Specification Decord
/rawing
%any items are purchased !y !lueprint
specification and are "ept in separate files
with inde0 showing their location and
where the copies have to !e send.
'ontract Ciles 'ertain goods may !e !ought under a term
contract. In such cases the purchase
department must maintain a record of such
contracts.
Ta!le no -.1
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2. STORES
FLO1 OF AUTHORITY
DA&+ /FSIB&ATIO& /2TE TO =F )FDCOD%F/
1 %anager %anagerial functions
2 Associate %anager
Stores
'oordinate all activities of various
stores li"e D%S* CBS A&/ F%S.
'oordinate with transporters supply
chain management of /elhi depot*
e0cise and OF customers.
< Sr. Officer stores /espatch and receipts of in and out
various materials.
7 8r. Officer Deceipts and related documentation
of incoming materials
- 8r. Officer /espatch documentation and
account "eeping
Ta!le no -.2

RA1 MATERIAL STORES
Pro!"##;$Deceipt handling* stores* pac"aging* forwarding and delivery of material
to internal and e0ternal customers with proper documentation to meet their
re5uirements.
Pr(o#";$To supply right material in right time to produce right 5uality product
without any interruption.
S!o(";$Deceipt* handling* storage and issue of raw materials and to the customer.
SIPOC
S @ Supplier R 'orporate purchase.
I @ Input R Daw materials.
) @ )rocess R Deceipt handling* storage* preservation G issue of raw materials.
O @ Output R 'onfirming D% receipt* storage G delivery.
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' @ 'ustomer R %anufacturing* mi0ing centres other unit of AT1 G internal
customers.
RA1 MATERIAL HANDLING PROCESS
1. .erification of documents at security gate @ The security officers will chec" the
various documents li"e
Serial num!er
Suppliers name
/escription of item
Truc" registration num!er
/ate and time of arrival
/ate and time of departure
2. Aeightment of the truc" is ta"en after passing the gate. A computeri:ed
weighment machine is maintained.
<. .erification of documents at the Daw %aterials Stores @ .arious documents
su!mitted at D%S will !e e0amined and verified* which includes delivery 'helan*
sales ta0 papers* e0cise papers* pac"ing list* duplicate copy for transporters of
invoice for availing modvat credit.
7. Testing @ The various raw materials are tested at the la! and only then the raw
materials will !e unloaded on the plant store or in the tan"s.
-. 9andling and storage @ All materials e0cept materials in tan"ers will !e unloaded
manually. 'aged pallets or platform pallets are use for storing of raw materials.
Fach caged pallet will carry a ma0imum of 1-"g of materials. Those items in
the tan"ers will !e directly unloaded to respective tan"s.
4. )reservation @ The various raw materials are preserved as follows;
'ar!on !lac" and chemical are stored in 2
nd
floor.
&atural ru!!er* wa0 etc stored in 1
st
floor.
Ca!ric* !ead wire* late0 etc stored in ground floor.
%aterials received in tan"ers will !e pumped in storage tan"s.
7. De(ection @ If the items are tested are displayed with a re(ected tag !y the
technical department then if the item is small 5uantity then it will !e "ept in
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re(ection area and if the 5uantity is large it will !e "ept in the same area till the
disposal.
VARIOUS RA1 MATERIAL USED IN THE MANUFACTURE
OF TYRES
)O1E%FDS @ &atural ru!!er* synthetic ru!!er* car!on !lac"* reinforcing
clays
Cillers
'uring agent
)rocess oil
'uring agents I sculpture
Accelerators I activators
Antio0idants I antio:onents >wa0es?
Det ardors
)epticers for natural ru!!er mastication
Det order
=ead wire
Ca!rics
spools
Solvent for cement and solutions
%iscellaneous items li"e paints* colour* crayon* scrap fla"es etc.
Pro!"&r" 6or 'a%&5i%? o)#i&" miFi%? o("ra)io%#
Pr(o#"; To define a procedure for identifying sources of e0ecuting contracts*
arranging for transportation
and maintenance of records.
S!o("; All operation regarding outside mi0ing to !e carried out !y stores department
are consolidated in the )rocedure.
R"#(o%#iCi5i)y; 9ead of the /epartment.
R"#or!"#; %i0ing 'entres* Stores /epartments* Technical production planning
control and production.
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RECEIPT OF RA1 MATERIALS
VERIFICATION OF DOCUMENTS AT SECURITY GATE
The security inspector at main gate shall verify all documents pertaining to the
consignments !rought to the factory !efore allowing entry in to factory premises and
note the following details. Serial no* suppliers name* description of item* 'hallan
5uantity* challan 5uantity* challan no and date or 1D no and date* truc" reg no* date
and time arrival* date and time departure.
1EIGHMENT 7BY THE COMPUTERISED 1EIGH BRIDGE8
Security shall inform raw material stores a!out the arrival of the vehicles at
the gate. The security guard and a representative from D%S shall record weighment
of truc" (ointly. The weighment slip shall indicate the following;
Serial no* time and date of receipt* suppliers name* gross weight with
materials* SID no and date. After recording the a!ove details in the computerised
weighting !alance the vehicles shall !e directed to the respective unloading !ay. In
AT1 weighment will !e done in a weigh!ridge closer to the factory under the
supervision of security and D%S personnel after ensuring that the weigh !ridge
posses a valid certificate from weight and measure department.
=oth security and D%S personnel shall sign on the computerised weighment
slip. One copy of the weighment slip will !e filed in D%S along with concerned
delivery challan and the second copy will !e returned !y security department.
VERIFICATION OF DOCUMENTS AT RMS
The receipt in charge shall verify the documents to ascertain the no of
pac"ages* description of material code and weight of the material. If any discrepancy
is found the same shall !e orally reported to the officer concerned !efore unloading.
9e in turn will ta"e decision suita!ly. The dispatch documents include; /elivery
challanI invoice* sales ta0 papers* pac"ing list and duplicate copy for transporters of
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invoice for availing %O/.AT credit. In case of non receipt of any of the a!ove
documents the consignment will not !e unloaded unless and otherwise instructed !y
the competent authorised after compliance of all conditions stated a!ove* the materials
will !e unloaded as instructed !y the receipt in charge and lead to the respective area.
HANDLING STORAGE AND PRESERVATION
All the incoming materials e0cept the materials coming in tan"ers will !e
unloaded manually or with the help of for"lift as instructed !y the receipt in charge.
'aged pallets or platform pallets are used for storing of materials so far as possi!le to
facilitate easy handling at the time of issue. Fach caged pallets will carry a ma0imum
of 1- "g of materials. 'aged pallets will !e stac"ed one over the other.
PRESERVATION
'ar!on !lac" and chemicals are stored in the 2
nd
floor* natural ru!!erI S=D*
wa0 etc in the 1
st
floor and fa!rics* !ead wire* late0 etc in the ground floor. In case of
space constrains in the respective floors* the respective floors* the materials may !e
"ept in the ground floor and other places as directed !y the storage in charge.
%aterials received in tan"ers* after chec"ing the seal and dip reading and sample test
!y OA will !e directly pumped into the storage tan". =efore unloading the receipt in
charge will ma"e sure the availa!ility in the storage tan".
De(ection items are identified !y displaying a re(ection tag !y technical
department. In case of re(ection of voluminous 5uantities the materials are "ept in
respective areas till disposal* while small 5uantities will !e removed and stored in the
re(ection area duly displayed with the re(ection tag.
ENGINEERING STORES DEPARTMENT
Fngineering goods stores is responsi!le for storing the necessary spare parts*
components re5uired for smooth functioning of the plant. On receipt of indent from
production department* the engineering stores arrange for its release. The inventory
management techni5ue used is .F/ Analysis. Almost all the activities of this
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department are computeri:ed. The purchase department is initiated whenever reorder
level is reached. A !uffer stoc" is always maintained in the store. Another system
followed in the engineering stores is .%I @ .endor %aintain Inventory. In this the
vendor supply the raw material in large 5uantities and payment is made only for
consumed items.
The engineering store "eeps record and stoc" of engineering materials and
consuma!les. The actual stoc" and item list are maintained !y the computer. The
various types of items in the engineering store are tools* glows* mas" etc which are
re5uired for the wor" to progress.
A reorder level is maintained for each item and when the stoc" is either e5ual
or less than the re order level the computer will automatically place the purchase order
!y running the %D) >material re5uisition program?.The purchase department will see
to it and place s the order to the regular suppliers. If new suppliers enter the mar"et
the !est 5uoted price will !e ta"en. The materials to the engineering department will
!e sealed !y the security at the gate and the actual stoc" and order will !e verified. If
the materials received is correct the goods received receipt is prepared and sent to the
purchase department. If there is any shortage then it is also informed to the purchase
department.
ENGINEERING MATERIALS
The total num!er of item codes in engineering stores is <,- appro0imately*
out of which 2<- are spares and 1- are consuma!les.
1. Co%#maC5"# 7G"%"ra5 #)or"# i)"m#8
'onsuma!les >Beneral stores items? are standard engineering items >!earing*
!elt etc?. It is decided to identify common codification scheme for all consuma!le
items. All the items shall !e !rought under this codification scheme.
$. S(ar"#
Spares are parts of e5uipments. F5uipments are varying from plant to plant !y
ma"e and model. It is decided to
Identify common e5uipment !y same ma"e and model.
Assign uniform code to e5uipment ma"e and model wise* which is common
across plants.
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Assign representative plant spares with code of e5uipment.
In general the item code for consuma!les will !e common across all
plants and item codes for spares will !e plant specific with respect to common
e5uipment code. %aterial classification in SA) will !e used to trace the spares to
common machines. %aterial master codification will follow the e0ternal num!ering

FINISHED GOODS STORES
Cinished goods stores >CBS? is the place where the final goods are stored from
where these are ta"en away from the plant. All finished goods after final inspections
are "ept at the transferring area in each shift. The staff of final finishing will prepare a
finished goods transfer note in triplicate which will !e countersigned !y the staff of
CBSI TTC. After verification finished goods transfer note will !e serially num!ered
and have the following details.
%aterial code
/escription
Ouantity
The original copy of the transfer note will !e issued to central e0cise wing
after entering the details in stoc" statement* duplicate will !e given !ac" to the
production as their file copy and triplicate will !e issued the production planning.
One staff each from production and CBSI TTC will separately verify 5uantity* si:e*
ply rating
R"mo:a5;
The finished goods re5uired for dispatch "ept at the transferring area* after
preparing the transferring notes* will !e removed to the loading !ay and !alance will
!e removed to stores for storage* after completing pac"ing for re5uired item.
The various processes to !e performed for handling* preservation and storage are
listed !elow;
a? Application for &on @ OD >&on Original F5uipment?
Cinished goods stores is fully covered and protected from
sunlight and rain water.
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Tyres are rolled from transferring area to the stores and stored
on si:e wise. Fach stac" with ma0imum of ten for truc" tyres* ,
for DT and 12 for 1TIpassenger.
All tu!es are pac"ed in 9/)F !ags and !ought to the storage
area directly !y tu!e production.
Claps are !undled and transferred using trolley.
All seconds tyres stored in CBS are identified using a white
!and and tyre using a red !and.
A stoc" statement is made as on the closing of the day. This is
made !ased on the receipt and despatch.
After preparing the stoc" statement the finished goods transfer
note is transferred over to factory e0cise wing for recording and
filling.
!? Application for OF >Original F5uipment?
Truc" OF tyre if not despatched within 27 hrs should !e stac"ed
in the warehouse. =ottom most tyre will !e stac"ed with tu!e
value facing upwards and for others with tu!e value facing
downwards >same practice is followed while loading the tyre in
truc" also?.
CICO system is followed
Truc" inspection is carried out !efore loading the tyres.
In case of higher inventory levels it is not possi!le to store all the
tyres in the godown* temporary sheds will !e restored for storing
those tyres.
Stoc" levels of CBS are controlled !y supply chain management
at head office level.

/ISTDI=2TIO& OC CI&IS9F/ BOO/S
%ain responsi!ility is for the head of department.
Supply chain management department give the despatch schedule
day to day !asis.
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/estination to which truc"s are re5uired is arranged day in
advance.
1oad slips are prepared as per the plan made.
Stores men will "eep the loads as per the load slips at the loading
!ag.
Staff of CBS* security and representative of transported will chec"
the loads.
After chec"ing the load* slip will !e signed !y the staff and given
for preparing transport documents and goods will !e loaded on to
the 1orries.
The lorries will !e inspected for cleanliness of the platform to
ensure that there are no items which will damage or dirty the
tyres. All truc"s are despatched to outstation are covered using
tarpaulin and tied safely !efore leaving the factory premises
/espatch documentation is made.
Sales ta0* road permit are handed over to the transporters.
Invoice distri!ution
a? Original @ =uyers
!? /uplicate @ Transporter
c? Triplicate @ Assesse
d? Ouatriplicate @ F0tra copy
1ist of serial num!er of tyres !eing despatched will !e provided
when ever necessary.
All documents re5uired for transportation are prepared and handed
over to the transporters after getting paper ac"nowledgement and
lorry receipt from him.
All finished goods after final inspection are "ept at the transferring area in each shift.
The staff of final finishing will prepare a finished goods transfer note in triplicate
which will !e countersigned !y the staff of CSB. After verification finished goods
transfer note will !e serially num!ered and have the following details;
Deceipt
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%aterial 'ode
/escription
Ouantity
Demoval

The original copy of the transfer note will !e issued to central e0cise wing
after entering the details in stoc" statement* duplicate will !e given !ac" to production
as their file copy and triplicate will !e issued to production planning. One staff each
from production and CSB will separately verify the 5uantity* si:e* ply rating of the
finished goods and compare against the entry in the transfer note.
The finished goods re5uired for dispatch "ept at the transferring area* after
preparing the transferring notes* will !e removed to the loading !ay and !alance will
!e removed to stores for storage* after completing pac"ing for re5uired items.
*. HUMAN RESORCE DEPARTMENT
9uman Desource and Administration department is one* which facilitates
smooth wor"ing of the organisation !y loo"ing into the human resource side
and also the overall administration of organisation.
9D department is divided into three sections namely Industrial and
)ersonal Delations* Security and Administration. 9eads of each section are in
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direct contact with the department head. Among the three sections Industrial
Delations is the !iggest section having four su!sections loo"ing into )ersonnel
and Industrial Delations* Fmployees Arrival and /eparture* Time * 9ealth and
Safety.
VISION OF HR DEPARTMENT
Our 9D vision is to !e a strategic partner to the !usiness and create
value for the organisation !y developing the human capital.
MISSION OF HR DEPARTMENT
To create 9D policies and process which are employee friendly.
To !uilt a culture which is warm forthcoming and professional with a
sense of ownership and pride.
To encourage innovate thin"ing.
To encourage transparency and teamwor".
To develop leaders at all levels with general mar"eting s"ills.
To create a learning organisation.
To develop competencies and s"ills through training and development.
To constantly raise levels of employee productivity.
To create 9D !rand.
To wor" towards a attaining and sustaining the !est the !est employer
status.
STRUCTURE OF HR DEPARTMANT

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APOLLO TYRES LTD


C'ar) %o ,.$
The ma(or functions of 9D /epartment
1. Decruitment.
2. Selection.
<. Training.
7. Industrial Delations.
-. Aelfare.
4. Time office.
7. Security and Safety.
1. RECRUITMENT
IMK ADOOR Page 74
9AF/ @ 9D G

A/%I&ISTDATIO&
%A&ABFD $ 9D
ASSO'IATF
%A&ABFD
ASSO'IATF
%A&ABFD
ASSO'IATF
%A&ABFD
FNF'2TI.F FNF'2TI.F
BDO2) %A&ABFD$9D
FNF'2TI.F
%A&ABFD
A/%I&ISTDATIO&
FNF'2TI.F
FNF'2TI.F
APOLLO TYRES LTD

Decruitment is done through advertisement and a good opportunity is
given to the child of wor"er. This increases family loyalty towards the
company. They are call for the interview and the 'hief e0ecutive ta"es the
final decision.
$.SELECTION
a. Ma%a?"m"%) #)a66.
Technical @ =. Tech* Braduate Fngineer trainee.
&on technical @ 'AII'AAI%SAI%=AI%A >)%?; F0ecutive Trainee.
After training* they are a!sor!ed as officer.
'riteria include.
'onsistency in academic performance.
Broup discussion.
)ersonal interview.
C. Em(5oy"" !'i5&r"% #Di55 &":"5o(m"%) #!'"m".
Three year production apprentice.
One year training in production.
/ependant of employees.
%inimum 5ualification $,
th
standard.
)hysical fitness >height$14,'m* weight$-+g? .
!.I%&!)io% P5a%.
Aor"ers $ 2 days induction training.
Associate managers $ 7 days.
%anagement staff $ 1- days to 1 month.
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*.TRAINING
The organisation provides training for !oth managers and
wor"ers. Training program for managers consist of !oth internal and e0ternal
program. A three dimensional s"ill frame wor" is used to identify the training
needs of wor"ers as conceptual s"ills* functional s"ills and human s"ills.
T'" )rai%i%? #y#)"m i%!5&"#G
&eed identification.
Setting o!(ectives.
Training design.
Training implementation.
Training evaluation.
Training impact assessment.
Ar"a# !o:"r"& i%!5&";
For ma%a?"m"%) #)a66.
'onceptual.
Cunctional.
'ross$functional.
=ehaviour.
For @orD"r#.
Systems.
Technical aspects.
Aor" culture.
Specialised training for trade unions.
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TRAINING AND DEVELOPMENT PROCEDRE
Training and development of AT1 )eram!ra aims to accomplish the
following o!(ectives;
To e5uip the personnel with conceptual* functional and !ehaviour s"ills
those are necessary to perform the (o! at hand.
To provide a nature for the wor" is to down of an individual where in
heIshe can e0plore and optimally use hisIher innate and talent
potentialities leading to hisIher individual growth and development.
To create a culture of continuous leading among the all employees
through systematic training with the ultimate o!(ective of ma"ing AT1 a
performance driven organisation.
TRAINING RECORDS
< types of training records will !e maintained !y 9D /epartment.
Trai%i%? !ar&#.
The training card will contain the details of all training programme
that are attended !y an individual employee. The card will !e maintained in
the prescri!ed from CD$4$A$7.
Or?a%i#a)io%a5 )rai%i%? (ro?ramm" mo%i)or.
In order to consolidate and mention various training programme
conducted* an organisational training programme maintained as per from CD$4$
A$-
Individual training programme monitor.
Cor those programmes attended !y more than - individuals* the list of
participants will maintained in the individuals training programme in the
prescri!ed from CD$4$A$4.
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TRAINING PROGRAMMES.
Training on communication and interpersonal s"ill programmes for
associate managers and managers.
Training on 8yotirgamaya for !lue collared employees.
Safety and fire training conduct for !lue collared wor"men.
Aith a view to develop multi s"ill among engineering trainees* they are
given e0posure to engineering* production and technical fields.
TRAINING IN THE FORM OF THEME CENTERED
INTERACTION.
JYOTIRGAMAYA;
On each wor"ing day a!out 4$7 employees are selected for training in
a classroom atmosphere* a!out the productivity* 5uality G scarp reduction. The
employees are provided training specialty a!out the company and the tyre
industry in general.
8yotirgamaya provide information regarding the changes happening in the
industrial field. It#s o!(ective is to give training for all the employees in the
unit within a period of 1 year.
SIH SIGMA ;7 introduced on April 14
th
27?
Si0 sigma is !asically meant for increased production and for running
the organisation profita!ility. I t is for finding out areas where unneeded
e0penses are occurring and for reducing. It using scientific techni5ues with a
disciplinary approach. A si0 sigma organisation means the defects in the
production of 1 la"h parts must !e !elow <.<7H. Ahen the employees
!ecome aware of si0 sigma and they come into contact with the machineries
used for this* then the organisation will achieve an une0pected growth. This
helps to find out the defects in production and for finding out remedy. It also
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helps to understand the fact that consumers are the owners and also to
produce 5uality products.
+. INDUSTRIAL RELATIONS
There e0ists a good relation in the company. The management and the
employees (ointly find the solution for the pro!lems. There e0ists a well
maintained relation !etween the employees and employers.
Tra&" U%io%#
ATEU - Apollo Tyres Fmployees 2nion.
AT1M- Apollo Tyres Aor"ers %ovement.
ATS1U-Apollo Tyres Staff and Aor"ers 2nion.
ATMS -Apollo Tyres %a:door Sangh.
,. 1ELFARE
The organisation provides good welfare services to its employees. The
company runs a su!sidised canteen on contract !asis. Dest rooms with loc"er
and washing facility* arts and sports clu!* and well maintained li!rary are other
facilities provided.
A well transportation facility is given to all the employees from
different destinations for which they have to pay a very less amount. All
employees drawing a salary !elow Ds.4 are covered under group accidental
policy and medi claim policy.
The various schemes for the employees are;
1. Fmployee deposit lin"ed insurance scheme.
2. Aor"men#s compensation scheme.
<. Broup hospitalisation scheme.
7. 'anteen facilities.
-. Transportation facilities.
4. 9ousing loan interest su!sidy and so on.
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Ta"ing the health aspects of employees those who in the night shift get
2ml of mil" pac"ets. It is given to retain their lost energy in the night shift
and give motivation to the employees to come for night shifts.
Apart from its soaps is distri!uted for the cleanliness of employees.
Fach wor"er gets soap fully off cost and those who wor" in their production
units < in num!er per month.
1"56ar" a!)i:i)i"# ar" o6 $ )y("#G
Statuary.
Settlement grievances.
S)a)ary @"56ar" a!)i:i)i"#.
FSI
Bratuity
Som" o6 )'" #"))5"m"%) ?ri":a%!"# ar"G
Gro( Sa:i%? Li%D"& I%#ra%!" S!'"m" 7GSLIS8.
Gro( P"r#o%a5 A!!i&"%) I%#ra%!" S!'"m" 7GPAIS8.
Gro( M"&i!5aim I%#ra%!" Po5i!y 7GMIP8.
Ma%a?"m"%) #)a66
Broup hospitalisation scheme.
Broup personal accident policy.
Two wheeler scheme @ 7H !orne of the company.
'ar scheme @ Asst. manager G a!ove $ 7H !orne of the company.
Super annuation @ Asst. manager and a!ove.
Fmployee self development scheme.
1orD"r#
Broup personal accident policy.
%edical claim.
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9ousing loan interest su!sidy$-H.
2 wheeler interest su!sidy$7H.
Cinancial assistance co$operative society.
)eriodically medical chec" up.
The aim and o!(ective of welfare fund shall !e to render financial
assistance and to encourage cultural* sports* social games and other welfare
activities among them a spirit friendship * co$operation and understanding.
-.TIME OFFICE
This is concerned with registering the time in and out of the wor"ers.
Other activities related to payment of wages* incentives* leaves etc..../ifferent
registers are "ept for different shifts for the effective functioning.
A leave !oo" is maintained G it contains*
1eave !alance.
1eave credited.
1eave waited.
The daily attendance reports for the employees specify the following;
SectionIdepartment.
Shift.
/ate.
'loc" no.
Brade.
9ours wor"ed.
Schedule shift.
Apart from it * a punching system is maintained. Fach employee has to
punch his !adge in the electronic punching system while arriving for duty. The
same is repeated while leaving the factory premises.
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Attendance is cross chec"ed with the attendance report of the wor"man
and the attendance register maintained at various sections for the staff and
managerial persons. )erformance reports are maintained at various sections for
the staff and managerial persons. )erformance reports are maintained in each
section. These are done with a view to reduce the a!senteeism in employees
and motivate them to increase production. A leave !oo" is maintained and it
contains leave !alance* leave credited and leave awaited. The daily attendance
report is verified !y the superior * shift engineer and shift superintendent
department head.
SHIFTS OF 1OR4ERS
Shift Aor"ing hours
A 4am$2pm
B 2pm$1pm
C 1pm$4am
D7G"%"ra58 9am$-pm
>Ta!le no -.<?
..SECURITY AND SAFETY
S"!ri)Y
The security is concerned with the physical movement of men and
material. Security staff headed !y the chief security officer wor"s at all the
shifts. To facilitate the security measures* single point entry is adopted to
control visitors. Cor materials* separate gate passes are issued.
JoC &"#!ri()io% ;-
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- =e responsi!le for security of men* machinery * finished goods* raw
materials * process materials * highly sophisticated e5uipments etc.... Their
inward and outward movement is monitored as per the system prevailing.
- /evelopments of security staffs in line with the re5uirement of the
organisation and to "eep a high morale of the forces.
Pri%!i(a5 a!!o%)aCi5i)i"# o6 !'i"6 #"!ri)y o66i!"r.
1. %onitor and control all inward and outward movement of vehicles *
material and personal.
2. /eploy of contract wor"force to various department for routine as well
as pro(ect wor".
<. %aintain the data !ase of all indirect wor"force including contract
wor"men.
7. Fnsure high degree of liaison with police * local administration * fire force
and government authorities.
-. 2p"eep of environment management system * including house"eeping of
plant.
4. +eep strict vigilance * gather and assimilate intelligence for smooth
functioning of the plant in an unionised environment.
E:"%) ma%a?"m"%);-
The security department plays a significant role in factory day* safety
day* OnamI'hristmas cele!rations and plant visit !y important officials.
Safety
The organisation follows all the provision under the Cactories Act 197,.
The plant is well e5uipped with safety machines and directions are given for
the same. Safety directions are placed at noticea!le points in and around the
plant premises. Cire e0tinguishers are placed reacha!le points and employees are
well trained to use if necessary comes. Those who wor" in production
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department are given mas"s * safety gowns and shoes. In Apollo * a separate
!oo" is given to each employee * which prescri!es certain rules and procedures
in order to create a wor"ing environment free of accidents. &o ma(or accident
was occurred in the plant for past 1 years.
A=' of safety
A$Always
=$Be
'$Careful
FIRST AID
M"&i!a5 o66i!"r ; -
There are 2 doctors in Apollo Tyres 1td* )eram!ra plant to cater to the
medical needs of the company. One among them is a general surgeon . The
various services provided !y the medical officers are listed !elow.
a? 'ausality services @ The main purpose is the causality function. The
in(ured will !e provided first aid !y the medical officers. All the facilities
availa!le within the company will !e utilised and when further treatment is
re5uired the patients will !e referred to near!y hospitals. If the in(ured re5uire
any leave or rest * then a !rief investigation report will !e prepared and
su!mitted.
!? %edicines @ =asic medicines will !e availa!le in the first aid counter
itself and other medicines will !e prescri!ed to the patients to !e purchased
from outside.
c? Decord "eeping @ A chart called the M1 chart# is maintained for the
employees where all details regarding the various diseases of the employee will
!e recorded.
d? Advisory services @ Advisory and counselling services are provided the
employees with regard to their physical as well as mental pro!lems.
e? 'lasses and Seminars @ %edical officers conduct classes and seminars
regarding the harmful effects of alcohol * drugs * smo"ing etc... and ma"e them
understand the ways in which this will affect the health of the company.
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f? )osture and e0ercises - A healthy mind and strong !ody is re5uired for
the company to perform successful. The 5uality of wor" depends on the
individual. Therefore the medical officers also advices regarding good posture to
!e maintained* e0ercises to !e performed to maintain !ody and mind healthy
and activity
Em"r?"%!y (5a%;-
Fmergency is a situation warrented to see" e0ternal help or
resources for controlling an eventuality which adversely affect the environment *
man and material or o!(ectives of emergency plan are to assign the individual
roles and duties to perform in an emergency situation.
a? To avoid panic and confusions.
!? To effective utilise the availa!le resources.
c? To e5uip them.
=ut if the facilities not enough * then advance intimation shall !e
passed to hospitals for immediate receipt of patients. The procedures to !e
performed for such a situation are listed !elow;
a? The details of the causalities that are ta"en to the hospitals will !e
intimated to the welfare officer.
!? 9e will also inform the Apollo Tyres 1td head * engineering head * 9D
and administration head * finance head * safety manager * security manager and
medical officers over the phone.
c? Aelfare officers shall co$ordinate with hospital to give utmost care and
attention to the victims.
Incident controller shall prepare a !rief accident report >CID? to !e
su!mitted to the management immediately after the situation has come under
control.
OTHER ADMINISTRATIVE ACTIVITIES
1. Selection )rocedure.
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2. Induction )lan.
<. )erformance Appraisal.
7. A!senteeism %anagement.
1. S"5"!)io% Pro!"&r"
a. Ma%a?"m"%) #)a66.
Technical ; =.Tech* Bradate Fngg Trainee
&on$Technical ; 'AII'AAI%SAI%A>)%?;F0ecutive Trainee
After @ trainee a!sor!ed as officer criteria
'onsistency in academic performance
Broup discussion
)ersonal interview
!. Fmployee children s"ill development scheme
1 year training in production
/ependents of employees
%inimum 5ualification @ ,
th
std
)hysical fitness
$.I%&!)io% P5a%
Aor"ers ; 2 days induction training
%anagement staff ; 1- days induction
Ouality )ledge
Safety procedure
Aelfare measures
Interaction with all department heads
*.P"r6orma%!" A((rai#a5
Fmployee /evelopment Deview>April$%arch?
Three @ Tier system
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9elps in setting individualIteam goals
Dated in respect of the achievements
%id @ year review of the goals
)ersonal attri!utes considered
+.AC#"%)""i#m Ma%a?"m"%)
A!senteeism among wor"men has !een a cause for concern for the
companyS production has suffered heavily in this account recently. It has
therefore !een decided to fight against the a!senteeism contains among the
regular wor"men and production apprentices through attendance monitoring
mechanism.
The control measures are
a. A))"%&a%!"I Di#!i(5i%" 2 D":"5o(m"%) Pro?ramm"
Introduction of A// programme effective in AT1
- An effort to improve the attendance of chronic a!sentees
- To maintain consistent production
Operations of the scheme
o 'hronic a!sentees num!ering 192 are !rought under small group of -
person.
o 192 wor"men are !rought under 2< groups* under each mentor* drawn
from purchasing and other financial areas* on a daily !asis oversee attendance
to ensure availa!ility of his group mem!ers for wor".
o 9D department monitor the attendance and stops those who a!sent from
duty continuously for < days.
o After 1-
th
of each month* attendance data of the group mem!ers are
generated and circulated among the groups.
o 9D department pu!lishes list of a!sentees during 1
st
half of the month
to give them a chance for improvement during the second half of the month.
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o In the 1
st
half of the succeeding month* the attendance for the previous
month is pu!lished and committee meets and decides the course of action
against defaulters.
o AdvisoryIwarning IsuspensionIpending en5uiry etc... are issued !ased on
the gravity of each case.
o Individual appreciation letters signed !y the mentors are sent to the
residence in cases where remar"a!le improvement is shown.
C. Sy#)"m
o /aily follow up
o < days @ meet 9D
o 4 days @ stoppage
o 1 days @ home visit
o 2 days >accident? home visit
!. Ta#D 6or!"
o 'onstitution >19D L11ine )ersonnel?
o 12 tas" forces for 114 mem!ers
o Achievements ; 1 a!sentees were covered to 1H attendance
o Individual )ro!lem solving
o <7H ha!itual a!sentees shows improvement
&. Trai%i%? a%& !o%#"55i%?
o 2 days training module
o Individual counselling
". L"a:" P5a%%"r
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o 12H permissi!le limit or wor" station
o Cestival leave plan
o 1eave sanctioning and monitoring
Sa5ary Paym"%)
All supervisory personnel are re5uired to open a S= account with South
Indian =an"* )eram!ra and intimate the accounting department who in turn will
remit the salary.
In case of non @ supervisory personnel cash payment is done in the following
daysS
Staff and service staff @ 1ast wor"ing day of the month.
)roductionIengineering @ 7
th
wor"ing of the succeeding month.

Em(5oy""# 6o!# 7SHE8
1. Sa6")y A#("!)# ; Primary im(or)a%!"
$. H"a5)'
Cull time doctor
Am!ulance
/ispensary
%edical chec" $ up
*. E%:iro%m"%)
Fco @ friendly surrounding
)ollution free wor" practice
B#i%"## 6o!#
)roduction lin"ed !onus
)roduction lin"ed 1TS>1ong Term Settlement?
6ero over time
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F0pansion of capacity
Dight si:ing
Promo)io%
)romotion is purely !ased on attendance * seniority and performance.
They are all recorded in a systematic way. There is computerised punch card
system followed in the company. Fach entry and e0it to the plant is recorded.
Apart from this is a well maintained payroll system too. A!senteeism is !eing
found out and proper reasoning is o!tained. The attendance of the wor"ers also
account for their promotion.

Thus 9D department is the strongest department of Apollo Tyres 1td *
)eram!ra* which have seven su!sections which are mentioned a!ove. It has a
well esta!lished industrial relation and this department gives more important to
the welfare and safety of the employees * also the time management is very
good here. All these sections are under the direct control of the 9D %anager.


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7. PRODUCTION DEPARTMENT
MANUFACTURING PROCESS
)roduction department is re5uired for the operation* maintain 5uality and
optimum level of production department of AT1* )eram!ra consist of 2 :ones*
namely :one 1 and :one 2.All the production activities are classified under these two
:ones. The production planning starts with receipt of production tic"et from /elhi
which contains the 5uality re5uired for !ranches. The re5uirement is then processed in
the planning department and then converted into e5uivalent for production* and then
the production schedule is finali:ed.
STRUCTURE OF PRODUCTION DEPARTMENT

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APOLLO TYRES LTD

>'hart no -.<?
)DO/2'TIO& )DO'FSS
IMK ADOOR Page 47
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APOLLO TYRES LTD


>'hart no -.7?
Daw materials used in the manufacturing process
%ain raw materials used for the tyre manufacturing are*
IMK ADOOR Page 4-
=an!ury mi0er
%ills
'alander /ip unit /ual e0truder
=ias cutter
=rand !uilding
Thread s"iver
Thread
Tyre !uilding
Tyre curing
)ost cure inflation
Cinal inspection
Aarehouse
Tyre !uilding
=ead !uilding
unit
APOLLO TYRES LTD

%aterials used for various ru!!er components.
%aterials used in for tyre reinforcement.
Au0iliary materials.
%aterials used in ru!!er components
The essential ingredients in ru!!er components are as given !elow;
Daw ru!!er or natural ru!!er.
.ulcani:ed ru!!er
'ar!on !lac"
6inc o0ide
Accelerators
Activators
Deinforcing agents
)rocess oils or Aromatic oils >ma"es easy the mi0ing?
Anti @ degradents
Anti @ o0idants
Cillers
)rocess aids
Special additives
Ra@ rCC"r;
Du!!er as such is a soft semi @ solid material which does not have any
properties re5uired for tyre components li"e elasticity* hardness* resistance etc.
&atural ru!!er occupies the top position as the general ru!!er. It gives good strength*
tear* wear and fle0 resistance* good process a!ility and low heat !uild up and good
a!rasion resistance.
Synthetic !utadiene ru!!er >S=D? is the first synthetic ru!!er developed. It
offers good strength and tear* good crac"* initiation* resistance* well whether
resistance and fine process a!ility. S=D is also recommended for !ead compounds for
higher hardness.
V5!a%i<i%?
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Daw ru!!er when heated with vulcani:ing agents !ecome elastic* stronger
and harder and this process is called vulcani:ing. /uring vulcani:ing* the long chain
ru!!er molecules are cross @ lin"ed to form a networ" there!y ma"ing it elastic. The
cross lin"s are generally achieved !y adding sulphur and sulphur donors.
A!!"5"ra)or#
To increase the speed of vulcani:ation* accelerator is used. Accelerators are
classified on the !asis of the speed of the vulcani:ing imparted !y it.It is also
classified as )rimary accelerator and secondary. A secondary accelerator is the one*
which is used as the !ooster to the primary accelerator.
A!)i:a)or#
Activators are used to improve the efficiency of accelerator and it improves
the elasticity and the strength of vulcani:ing agent. The general activators are :inc
o0ide and stearic acid.
R"i%6or!i%? a?"%)#
A vulcani:ing thus made of raw ru!!er* vulcani:ing agents* accelerators and
activators is still soft li"e ru!!er !and. Cor improving the strength* hardness* tear and
wear and fle0 properties suita!le for a tyre compounding* reinforcing agent are used.
Deinforcing agents are car!on !lac" and silica.
Ma)"ria5 #"& 6or )yr" r" 0 "%6or!"m"%)
'arcass and !ead materials used in a tyre are called tyre re @ enforcement.
Te0tiles in the form of continuous filaments are the primary material for the tyre
carcass. To form a ply* sufficient num!er of continuous filaments is twisted together.
'ords are then woven into fa!rics in special looms* with cords in longitudinal
direction called wrap and thin cotton filaments in the opposite direction called weft.
=ead wire is a special alloy steel wire with !ron:e plating used as a !ead wire for tyre.
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Pro!"## oi5#
Incorporation of re @ enforcing agents in a ru!!er is often difficult and to
facilitate easy incorporation process* oils are used. These are also used to improve
compound process a!ility at calendar and e0truder.
A%)i 0 &"?ra&"%)#
%ost of the ru!!ers are highly suscepti!le to degradation when su!(ected to heat*
fle0* and weather and to ta"e care of these anti @ degradents are added.
Fi55"r#
Often* through not common* low cost su!stance called fillers are added to
reduce compound cost.
Pro!"## ai&#
)rocess aids are those su!stances that are added to ru!!er compounds for
reducing viscosity of the stoc" and for improving process safety.
S("!ia5 a&&i)i:"#
Sometimes special additives li"e !ounding agents* hardening agents* and
corrosion inhi!itor etc are added for specific vulcani:ation properties.
AFi5iary ma)"ria5#
%a(or au0iliary materials used in the tyre manufacturing process are dip solution*
chemicals* solvents* lu!ricants and seperants.
Ma%6a!)ri%? (ro!"## a!)i:i)i"#
The entire production system has !een !roadly divided into three
sections * namely /ivision A* /ivision =* /ivision '.
/ivision A @ Ta"es care of assem!ling activities.
/ivision = @ Ta"es care of !uilding activities.
/ivision ' @ Ta"es care of the curing activities.

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DIVISION-A
1. COMPOUND MIHING
A compound is made !y mi0ing the re5uired additives into ru!!er. This
mi0ing is accomplished in two or more steps using a =an!ury mi0er. This mi0ing
is done in the cham!er of the =an!ury mi0er under high shear and pressure using
the rotors of the machine so that the ingredients and uniformly dispersed inside
the ru!!er matri0. /ifferent ru!!er compounds >differing in the recipe? are used in
the different compounds of the tyre.
The ru!!er compound is then used for the preparation of different
components in su!se5uent stage of manufacture.
1. Tread
2. Sidewall
<. Tread cushion
7. )lies
-. 'hafer
4. Clipper
7. Ciller
,. =ead
9. S5ueegees
1. =rea"ers
&aturally the compounds prepared in the =ar!ary go to the respective
e5uipment and process for further processing.
2. CEMENT PREPARATION
.arious cements* solutions* lu!ricants and paints are prepared in the cement
house sing ru!!er compound solvents and other raw materials. These are then
used at various stages of tyre manufacturing.
<. FABRIC DIPPING;
A raw fa!ric >Dayon and &ylon? is having very poor adhesion to the ru!!er
compound and has poor dimensional sta!ility. /uring the dipping process an adhesive
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coating >eg. Desorcinol* formaldehyde*.) late0 dip? is applied to the surface of the
fa!ric to improve adhesion. The fa!ric is also stretched and hot set to increase the
dimensional sta!ility. /ipping is accomplished in the dip unit and the dipped fa!ric is
then used for the preparation of the different compounds as mentioned a!ove.
7. EHTRUSION;
9ere compounds of the tyre li"e tread and sidewall are prepared from the ru!!er
compound using a /ual e0truder. F0truder is the process !y which the ru!!er
compound is given definite continuous shape. A thin sheet of ru!!er compound
prepared using a small 2$roll calendar is applied to the !ottom side of the tread. This
compound is called tread cushion. The continuous profile is then cooled and cut to
re5uired length which is used in the assem!ling of tyre at tyre !uilding.
EHTRUDERS
F0truders are distinguished !y the diameter of their screw and are a single or dual
type.
a? SINGLE EHTRUDER
Du!!er compounds after !eing !ro"en down and warmed up on %ills* are fed in to
the screw of the e0truder from which with the help of dies* produces a green shape of
treads* sidewalls* and other strips as per specified dimensions and contours* width*
gauge and weights. These strips are cooled in water sprayed conveyors and then cut
out into specified lengths with the help of s"ivers >rotary cutting "nife? and !oo"ed in
metal trays or wrapped in cotton liners. The word green denote uncured ru!!er >i.e.
&on vulcani:ed?
!? DUAL EHTRUDER
Two separate set of mills on which two different types of compounds are !ro"en
down and heated and fed separately to two different screws. The two compounds after
e0trusion are e0truded together in a common head and with the help of performer and
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final dies* emerge into a pre determined shape. The advantage of the dual e0truder is
that two ru!!er compounds of completely different composition can !e e0truded.
-. CALANDER
Ca!ric calendaring is the process of coating !oth sides of dipping fa!ric using
ru!!er compound. This is accomplished using a 7 roll M6# type calendar. The coated
fa!ric is cooled and wound in liner >in continuous length? to avoid stic"ing. This goes
to the ne0t stage of ply cutting.
4. PLY CUTTING 7Hori<o%)a5 a%& :"r)i!a5 Bia# !))i%?8
Cor cutting a tyre several plies are re5uired. Cor e. g a 14 )D nylon truc" tyre
used , plies and 2 !rea"ers. Fach ply is cut from the coated fa!ric rolls prepared !y
calendaring. This process of ply cutting is accomplished in a !ias cutter. Fach ply is
cut at specified widths and angles. The width depends on the type of tyres and the
angle of the cut depends on the type of services re5uired. The cut plies then go to <
roll for
s5ueegee application. 'omponents li"e chafer and flipper are also made at !ias
cutters. These are further slit using a slitter into small widths and would into rolls.
'hafer rolls from slitter go to the tyre !uilding and flipper goes to the !ead flipping.
7. SAUEEGEE CALENDARINGJSAUEEGE APLICATION
S5ueegee calendaring is the process of ma"ing thin sheet of ru!!er compound
usually !y using a < roll or 7 roll calendars. S5ueegees are used at the inner most layer
of the tyre >drum s5ueegee? and also in !etween the different plies >ply
s5ueegee?./rum s5ueegee is prepared in the 7 roll 6 calendar. It is in liners this
s5ueegee roll is sent to tyre !uilding for assem!ling. The ply s5ueegee preparation
and its application on to the cut plies are accomplished simultaneously at the < roll
calendar after s5ueegee application the plies are sent to tyre !uilding for assem!ling.

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DIVISION 0 B
,. BEAD PREPARATION
It consist of three stages;
=ead winding
=ead Cillering
=ead Clipping

a8B"a& @i%&i%?
9ere several wires are passed through the head of a !ead e0truder and coated with
ru!!er compound. The coated tape so formed is wound into !undles of definite turns
and strands and of definite diameter. The process is accomplished using a machine
called the !ead winding machine.
C8B"a& Fi55"ri%?
9ere a triangular shaoed continuous ru!!er profile >called !ead filler? is e0truded
using a cold feed e0truder and applied on the !ead !undle using a fillering machine.
!8B"a& F5i((i%?
The flipper fa!ric prepared at the !ias cutter and slitter is applied around the
fillerd !ead !undle. This is accomplished using a !ead flipping machine.
9. TYRE BUILDING
It is the process of assem!ling various components into the semi finished product
called a Mgreen tyre#. This is accomplished !y a tyre !uilding machine. The
components li"e drum s5ueegee* plies >with s5ueegee applied on it? are assem!led
using a tyre !uilding drum. The flipped !eads are applied from the ends and loc"ed in
using the ply endsS !rea"er and chafer are applied ne0t. Cinally the tread and sidewalls
are applied. The assem!ly >green tyre? is ta"en out after collapsing the drum.
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The different components that ma"e a green tyre are the following;
)lies
=rea"ers
'hafer
=eads
Tread
Sidewall
DIVISION 0 C
1. TYRE CURING
The green tyre inspected and they applied with a lu!ricant inside and an anti$
!lemish paint on the outside sidewall area. The green tyre is also availed to facilitate
easy removal of trapped air during the final shaping and moulding operation. The
green tyre is shaped and given the final contour using appropriate tyre curing moulds
>fitted to tyre curing presses? !y the application of pressure and temperature. The
ru!!er compound gets vulcani:ed during curing and !ecomes tough and elastic and
provides all the desired properties re5uired in the tyre. The curing times vary
depending upon the si:e of the tyre varying from 72 minutes for a passenger car tyre
to ane hour for truc" tyres.
11. POST CURING INFLATION
&ylon tyres after press curing are "ept under high pressure inflation to help
shape retention and to reduce growth in service. This process of cooling tyre under
high inflation pressurenis called post cure inflation >)'I?.

12. INSPECTION
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The tyres after )'I are su!(ect to vend trimming. The tyres are then inspected
1H for visual effect. The tyres are also statistically sampled and tested for
conformation to =IS specification and warehoused.
MAJOR LOSSES DURING PRODUCTION
=rea" down of machineries
1oss of time for setting up of machines
1oss due to difference of machine speed
1oss due to stoppage of production
1oss due to mista"es and correction of mista"es
TOTAL PRODUCTIVE MAINTANANCE 7TPM8
, pillars of T)% are as follows;
1. Autonomus maintenance
2. F5uipment and process improvement
<. )lanned maintenance
7. Fducation and training
-. Ouality maintenance
4. Initial control
7. T)% in office departments
,. Safety* health and environment
)roduction facility is the !ac"!one of any manufacturing !ased
organisation. Apollo Tyres is very much improved in production capacity. The per
day production of Apollo Tyres 1td is 27 tones. This achievement is only
possi!le !ecause of hard wor" of employees.
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,.AUALITY ASSURANCE DEPARTMENT
Ouality is the totality of characteristics of an entity that !ears on its a!ility to
satisfy* stated and implied needs. Ouality is referred to as
Citness for use
Citness for purpose
'ustomer satisfaction
'onformance to re5uirements
STRUCTURE OF AUALITY ASSURANCE DEPARTMENT

>'hart no -.-?
Ouality Assurance is the well planned and systematic activities
implemented within the 5uality system and demonstrated as needed to provide
ade5uate confidence that an entity will fulfil re5uirements for 5uality.
AUALITY ASSURANCE
IMK ADOOR Page 7-
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APOLLO TYRES LTD

>'hart no -.4?
o LAB
All raw materials that come to D%S are released for production only after la!
approval. Cor that samples of raw materials >Du!!er* 'ar!on* 'hemicals and Ca!ric
etc? are given to la!. In la! these raw materials samples are tested. If the test result are
within the re5uired specifications a!ove material is released for production. If the
result is not o"* material is re(ected.
In the same way processed material samples are also given to la! for testing
>e. g ; %i0ed Du!!er 'ompound* /ipped Ca!ric* 'alendared Ca!ric etc?. These
materials are realised for further processing only if the test result is O+. If the test
result is not O+* processed material will !e held up for technical disposal.
o PROCESS CONTROL AND AUDIT ;
In shifts* all the production areas will !e audited !y Ouality Assurance will
chec" whether the processing is done within the re5uired specifications. If any
a!normality is noticed* necessary corrections will !e done and the defective processed
materials will !e held up. Cinished product >cured tyres? will !e also chec"ed !y
Ouality Assurance. If any defect is noticed on finished tyre it will !e held up. Only
O+ tyre will !e released to warehouse.
Samples of cured tyre are tested indoor on a test wheel. The test wheel
simulates the running condition of a tyre* primarily used to detect car ass strength and
heat generation. Tyres are also fitted on different vehicles to study the effect of
different types of roads* loads and climate conditions. Cor Original F5uipment >OF?
IMK ADOOR Page 74
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APOLLO TYRES LTD

there is 1H inspection !y 5uality assurance. The different methods used for
chec"ing are /imension* )ulley wheel and )uncher.
4. SYSTEMS DEPARTMENT

The system department is responsi!le for computeri:ed of different
departments of Apollo Tyres 1td. The main function of this department* operates and
co @ ordinates all systems in the organisation. The simple structure of department
facilitates speedy communication flow with in the department.


>'hart no -.7?

MONITORING FUNCTION
Security pro!lems in the SA) >Systems Application and )roducts? were
solved using 'entral .irus Scanning System and Cirewall at the head office
>Burgaon* 9aryana?.9'1 solve all the pro!lems related to the networ" connection.
MAINTENANCE FUNCTION
IMK ADOOR Page 77
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The systems departments in the plant solved networ" pro!lems as well as
computer pro!lems. Degular !ac"ups were ta"en daily* wee"ly and monthly for
providing relia!ility in the SA) system.
All the computers were connected using !oth point to point and star topology
to form an Internet inside the plant. )roper authentication was given to each
department mem!ers using I/ and a password.
Apollo ma"es 2- different types of tyres today. IT helps them to "eep trac"
of every product* its demand forecast and production cycle. The way the automo!ile
sector is growing* they will need IT to map their production and ensure they don#t
lose new or present customers.
7. PRODUCTION PLANNING AND CONTROL DEPARTMENT
The resources in terms of machines* men* material etc are used in the tyre
plant run into several crores and it is necessary to ma"e !est possi!le use of these
resources to achieve ma0imum economy in production costs. The main o!(ective of
production planning control is therefore to ensure optimum utili:ation of those
resources as well as the capital loo"ed up in wor" in progress inventory.
STRUCTURE OF PRODUCTION PLANNING AND CONTROL
DEPARTMENT

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>'hart no -.,?
The ma(or activities of )roduction )lanning and 'ontrol could !e enumerated
as follows;
1. Scheduling of machines
2. To ensure that machines are !ought out* re5uired components are
ordered at the right time to fit in with the plan of wor" schedule for the
shop floor.
<. To ensure that the proper man is doing the proper wor" in specified time
consuming specified material at specified 5uality.
The ma(or responsi!ilities and functions of )roduction )lanning and 'ontrol
could !e enumerated as follows;
$ Fsta!lishing production program in consultation with mar"eting departments.
$ )lanning and control of production schedule.
IMK ADOOR Page 79
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$ Fnsure ade5uate production and inventory.

The )roduction )rogram of )roduction )lanning and 'ontrol is prepared !ased on the
following;
%achine capacity
1a!our re5uired
Daw material re5uirements
F5uipment and other tools re5uired for manufacturing >moulds* drums etc?.
Ra@ ma)"ria5#
1iaison with material control and technical departments for re5uirement of
raw materials as per the consumption pattern. Authorise D%S for issue of raw
materials to production floor.
S!'"&5i%?
%achine scheduling includes day to day scheduling machine loading in the
most optimum level. Deview of progress and initiation of action to remove !ottle nec"
planning and control of in process inventory at optimum level etc.
Ma!'i%"#
Deview of machine capacity and its limitation with respect to production
programme to initiate corrective actions. Access of material handling e5uipment and
storage systems and arrange for procurement whenever necessary.
Scheduling in !rief is determination of
1. Ahen a (o! will !e done.
2. Ahere to do this (o! >incase where is more than one machine?
<. 9ow much to do in one lot
)roduction planning and control is an important department in any
manufacturing company. )roduction planning will mainly consist of the evaluation
and determination of production inputs such as la!our >man power?* machinery and
e5uipment* materials and utilities to achieve the desired goal.
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,.INDUSTRIAL ENGINEERING DEPARTMENT
Industrial engineering department helps to maintain the machines which
has !een using for the production process. Thus this department helps to avoid the
distur!ance during the production process.
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APOLLO TYRES LTD


>'hart no -.9?
OCE"!)i:"#;
The main o!(ective of this department is to plan* design* implement and image
integrated production and service delivery system that assure productivity* 5uality*
relia!ility* maintaina!ility and cost control to "eep Apollo glo!ally competitive.
F%!)io%#;
1. 'onduct wor"$studies* improvement studies in various e5uipment and fi0ation
of norms.
2. 'apacity calculation in various e5uipments from time to time conse5uent to
various changes.
<. /esign* implementation and follow up of incentive schemes in various :ones.
7. )lanning and assessment of man power re5uirements of various departments
periodically.
-. Studying plant layout and material handling systems and suggesting
improvements.
4. F0plore the possi!ilities of capacity e0pansion and prepare pro(ect report.
7. &egotiation with unions regarding worries* issues li"e incentive schemes*
productivity* e0pansion and la!our issue.
,. Analysis of capital e0penditure re5uest from various department and ma"e
recommendation to senior management committee.
9. )repare !udgetary planning for capital and cash flow re5uirement.
1. )repare documents for long term settlements* !onus settlements etc and
represent the management in the meeting with the unionIla!our departments.
11. .isit other industries for getting information regarding 1TS methods* practice
and other developments.
IMK ADOOR Page ,2
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12. 'onduct various training classes for wor"men* supervisors* other officers and
new recruits.
1<. Apply various industrious engineering techni5ues such as (o! evaluation* O G
% >Organisation and methods? studies* "ai:en* line !alancing etc.
17. Suggest various cost reduction programmes and implementation.
1-. Associate with professional !odies li"e productivity council* &ITTIF etc and
institution of engineers etc.
14. 'onduct daily audit on man power* productivity* lost time* scrap detail*
a!senteeism* overtime etc.
17. Curnish various other management information reports of the top management.
1,. Involve !est practices and processors through glo!al !ench mar"eting in the
conte0t of glo!al competitions and intense customer focus.
19. Optimise inventory levels at various stages such as engineering store* wor"ing
progress and finished goods.
2. 'ontinues improvement of methods and e5uipments designed compati!le to
the !est economic standards.
21. )reparation and presentation of daily review report on critical parameters.
22. )reparation of machine utili:ation report.
2<. 'omputation of "ilogramIman hour.
27. 'omputation of indirect incentive earning rate.
2-. 'omputation of various data and su!mission of application for various awards.
24. 'omputation of plant performance report on a daily !asis and display.
27. F0tent the support to the line function term regarding manpower details*
norms* new products etc.
2,. Incentive earning computation and releasing of incentive earning list.
29. Incentive allowance computation and advice to finance and time office for
payment.
9.FINANCE DEPARTMENT
The corporate office situated at Burgaon does most of the accounting and
ta0ation (o!s of AT1. At )eram!ra plant there is separate accounting and finance
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department. This department deals with salary* wages and costing. F0cise duty of the
raw materials also comes under this department.
STRUCTURE OF FINANCE DEPARTMENT
>'hart no -.1?
Sales is performed and maintained !y the corporate office of Apollo Tyres
1td. The fund for ac5uiring raw materials will !e provided from the corporate office
to Accounts and Cinance /epartment.
Ahen* with regard to e0port of tyres they will !e directly unloaded into the
'ochin Shipyard premises rather than unloading to the corporate office godown and
then to the port. An annual cost audit is also conducted along with the company audit
every accounting year i. e* April 1
st
to <1
st
%arch.
Bross sales during the financial year ended %arch <1* 2, amounted to an
all time high of 72*749.,< million as against Ds.<7* 77<.7< million during the
previous year* recording growth. The strong performance of Apollo is com!ination of
high growth in sale along with enhanced operation management* !etter wor"ing
capital management* aggressive mar"eting and overall cost reduction measures
adopted !y the company.
SECTIONS UNDER FINANCE DEPARTMENT
1. Accounts
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/I.ISIO&A1 9FA/
%A&ABFD %A&ABFD
ASSO . %A&ABFD ASSO . %A&ABFD
FNF'2TI.FS FNF'2TI.FS
APOLLO TYRES LTD

2. 'osting
<. )ayroll
7. F0cise
-. Daw material stores
4. Cinished goods stores
7. Fngineering stores
,. )urchasing of engineering goods
OBJECTIVES
To arrange ade5uate funds for the !usiness
To ensure proper utilisation of funds
To increase profita!ility of !usiness
To ma0imise the value of the firm
To do the analysis and appraisal of financial performance
To anticipate the financial needs
To maintain good relations with suppliers and monitor their performance
)hysical location and stoc"ing of materials
%inimi:ation of damage
FUNCTIONS
Cinancial forecasting and planning
To advise top management on all financial matters and to suggest various
alternative solution for any financial difficulty
'o$ ordination and control
9elp in ta0 administration and ta0 planning
)reparation of audit report
Storage of raw materials* finished goods and engineering goods
9andle scrap disposal
SHARE HOLDING PARTNERS
Coreign holdings 2-.47H
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Bovernment or Cinancial institutions 29H
'orporate !odies >non covered a!ove? 7.7H
/irectors and their relatives <2.7<H
Other including Indian pu!lic ,.,7H
Cinance is the !ac"!one of every organisation. So finance
manager plays an important role* at the same time he has also some responsi!ilities.
The role of finance manager is to prepare the accounts and auditing of all the financial
transactions of the company and have the advisory function in the financial and
esta!lishment matters. The fundamental decision ma"ing areas of financial manager
are capitalisation decision* investment decision decision* financing decision.

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CHAPTER - -
S1OT ANALYSIS
S)r"%?)'#;
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'ontinued mar"et leadership in the dominant industry segment of truc" and
!us tyres.
Blo!al presence with the accusation of Apollo Tyres South Africa >pty? 1td.
>Cormerly "nown as /unlop Tyres International>)ty?1td.
F0tensive distri!ution networ" in India and South Africa.
Strong !rand recall in a price sensitive Indian mar"et.
Desponsive to changes in mar"et conditions and product profiles.
Blo!al 5uality standards* international process and system certifications.
9igh usage of information technology systems to hasten the flow of
information and leverage opportunities across 17 locations in India.
/ynamic and progressive leadership* willing to implement change.
Fconomies of transportation cost* on account of closeness to natural ru!!er
growing !elt.
Blo!al sourcing of raw material.
1"aD%"##;
&o presence in two and three wheeler segment.
'apital intensive !usiness.
%aintain a healthy relationship with trade unions
%ore training facilities must !e given to employees
The company should invest more on advertisement.
O((or)%i)i"#;
1eadership position in the commercial vehicle segment will ena!le the
'ompany to leverage new and related !usiness opportunities.
&ew product segments li"e Truc"I=us Dadial >T=D?* Off The Doad tyres
>OTD* retreading and allied automotive services.
Browth in Overseas mar"ets li"e Furope.
T'r"a)#;
Imports from neigh!ouring countries at competitive prices.
Daw material price volatility.
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CHAPTER .
PORTERBS FIVE FORCES
ANALYSIS
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A MODEL FOR INDUSTRY ANALYSIS;
Por)"rK# 6i:" 6or!"# a%a5y#i# is a framewor" for the industry analysis and !usiness
strategy development developed !y %ichael F. )orter of 9arvard =usiness School in
1979. It uses concepts developed in Industrial Organi:ation >IO? economics to derive
five forces which determine the competitive intensity and therefore attractiveness of a
mar"et. Attractiveness in this conte0t refers to the overall industry profita!ility. An
TunattractiveT industry is one where the com!ination of forces acts to drive down
overall profita!ility. A very unattractive industry would !e one approaching Tpure
competitionT.
The model of the Cive 'ompetitive Corces was developed !y %ichael F. )orter in his
!oo" U'ompetitive Strategy; Techni5ues for Analy:ing Industries and 'ompetitorsK
in 19,. Since that time it has !ecome an important tool for analy:ing an
organi:ations industry structure in strategic processes.
)orter#s model is !ased on the insight that a corporate strategy should meet the
opportunities and threats in the organi:ations e0ternal environment. Fspecially*
competitive strategy should !ase on and understanding of industry structures and the
way they change.
)orter has identified five competitive forces that shape every industry and every
mar"et. These forces determine the intensity of competition and hence the
profita!ility and attractiveness of an industry. The o!(ective of corporate strategy
should !e to modify these competitive forces in a way that improves the position of
the organi:ation. )orters model supports analysis of the driving forces in an industry.
=ased on the information derived from the Cive Corces Analysis* management can
decide how to influence or to e0ploit particular characteristics of their industry.

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T'" Fi:" Com(")i)i:" For!"#
The Cive 'ompetitive Corces are typically descri!ed as follows;
Bar?ai%i%? Po@"r o6 S((5i"r#
The term QsuppliersQ comprises all sources for inputs that are needed in order to
provide goods or services.
Supplier !argaining power is li"ely to !e high when;
L The mar"et is dominated !y a few large suppliers li"e %DC* 8+ Tyres rather than
a fragmented source of supply.
L There are no su!stitutes for the particular input.
L The supplier#s customers are fragmented* so their !argaining power is low.
L The switching costs from one supplier to another are high.
L There is the possi!ility of the supplier integrating forwards in order to o!tain
higher prices and margins.
L The !uying industry has a higher profita!ility than the supplying industry.
L The !uying industry >automo!ile? hinders the supplying industry in their
development >e.g. reluctance to accept new releases of Tyres?*
L The !uying industry has low !arriers to entry.
In such situations* the !uying industry often faces a high pressure on margins
from their suppliers. The relationship to powerful suppliers can potentially reduce
strategic options for the organi:ation.
Bar?ai%i%? Po@"r o6 C#)om"r#
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Similarly* the !argaining power of customers determines how much customers
can impose pressure on margins and volumes.
'ustomers !argaining power is li"ely to !e high when
V They !uy large volumesS there is a concentration of !uyers.
V The supplying industry comprises a large num!er of small operators.
V The supplying industry operates with high fi0ed costs.
V The product is undifferentiated and can !e replaces !y su!stitutes.
V Switching to an alternative product is relatively simple and is not related to high
costs.
V 'ustomers have low margins and are price$sensitive.
V The customer "nows a!out the production costs of the product.
T'r"a) o6 N"@ E%)ra%)#
The competition in an industry will !e the higherS the easier it is for other
companies to enter this industry. In such a situation* new entrants could change ma(or
determinants of the mar"et environment >e.g. mar"et shares* prices* customer loyalty?
at any time. There is always a latent pressure for reaction and ad(ustment for e0isting
players in this industry.
The threat of new entries will depend on the e0tent to which there are !arriers to
entry. These are typically
V Fconomies of scale >minimum si:e re5uirements for profita!le operations?.
V 9igh initial investments and fi0ed costs.
V 'ost advantages of e0isting players due to e0perience curve effects of operation
with fully depreciated assets.
V =rand loyalty of customers.
V )rotected intellectual property li"e patents* licenses etc.
V Scarcity of important resources* e.g. 5ualified e0pert staff.
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V Access to raw materials is controlled !y e0isting players.
V /istri!ution channels are controlled !y e0isting players.
V F0isting players have close customer relations* e.g. from long$term service
contracts.
V 9igh switching costs for customers.
V 1egislation and government action.
T'r"a) o6 SC#)i))"#;
A threat from su!stitutes e0ists if there are alternative products with lower
prices of !etter performance parameters for the same purpose. They could potentially
attract a significant proportion of mar"et volume and hence reduce the potential sales
volume for e0isting players. This category also relates to complementary products.
Similarly to the threat of new entrants* the treat of su!stitutes is determined !y factors
li"e
V =rand loyalty of customers.
V 'lose customer relationships.
V Switching costs for customers.
V The relative price for performance of su!stitutes.
V 'urrent trends.
Com(")i)i:" Ri:a5ry C")@""% EFi#)i%? P5ay"r#
This force descri!es the intensity of competition !etween e0isting players
>companies? in an industry. 9igh competitive pressure results in pressure on prices*
margins* and hence* on profita!ility for every single company in the industry.
'ompetition !etween e0isting players is li"ely to !e high when
V There are many players of a!out the same si:e.
V )layers have similar strategies.
V There is not much differentiation !etween players and their products* hence*
there is much price competition.
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V 1ow mar"et growth rates >growth of a particular company is possi!le only at the
e0pense of a competitor?.
Dia?ram o6 Por)"rK# , For!"#

SUPPLIER PO1ER
Supplier concentration
Importance of volume to supplier
/ifferentiation of inputs
Impact of inputs on cost or
differentiation
Switching costs of firms in the industry
)resence of su!stitute inputs
Threat of forward integration
'ost relative to total purchases in
industry

BARRIERS
TO ENTRY
A!solute cost advantages
)roprietary learning curve
Access to inputs
Bovernment policy
Fconomies of scale
'apital re5uirements
=rand identity
Switching costs
Access to distri!ution
F0pected retaliation
)roprietary products
THREAT OF
SUBSTITUTES
$Switching costs
$=uyer inclination
to
su!stitute
$)rice$performance
trade$off of
su!stitutes

BUYER PO1ER
=argaining leverage
=uyer volume
=uyer information
=rand identity
)rice sensitivity
Threat of !ac"ward integration
)roduct differentiation
=uyer concentration vs. industry
Su!stitutes availa!le
=uyersQ incentives
DEGREE OF
RIVALRY
$F0it !arriers
$Industry
concentration
$Ci0ed costsI.alue
added
$Industry growth
$Intermittent
overcapacity
$)roduct
differences
$Switching costs
$=rand identity
$/iversity of rivals
$'orporate sta"es
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>'hart no 7.1?

CHAPTER - /
FINDINGS AND SUGGESTIONS
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FINDINGS
AT1 is the first tyre company to receive ISO 91 certification and one
the few tyre manufactures to o!tain OS 9 certification.
Aor"ers health and safety are given prime importance
A good co$ordination e0ists !etween different departments.
Trade unions play vital role as !argaining agents. The management is
sometimes forced to accept demands made !y the unions.
The products of the company are "nown for its high 5uality standards.
The wor"ers are not completely satisfied with the wages they are paid.
Fmployees are provided with facilities such as su!sidi:ed canteen*
transportation etc.
Safety posters and slogans are e0hi!ited inside the plant and various
safety awareness programs are also conducted.
The factory premises are "ept clean which comes under a dedicated
system "nown as Fnvironment %anagement System >F%S?
Cactory is located at an ideal location that allows easy access to land* air
and sea transportation.
All departments at the plant are !eing connected through SA) which
gives real time connectivity with each other.
All the plants of Apollo tyre group are !eing connected with the head
5uarters through AA& and SA) which critical decision ma"ing easy.
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SUGGESTIONS
%aintain the relationship !etween employees and employers
There should !e training program for !etter understanding of SA)
A !it more promotional activities could enhance !uilding !rand image
%aintain a healthy relationship with trade unions
%ore training facilities must !e given to employees
The company should enter into twoIthree wheeler mar"ets.
The company should invest more on advertisement.
Fach should have an in house mar"eting department that can ta"e care
of the local fluctuations in mar"et.
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APOLLO TYRES LTD

CONCLUSION
Apollo tyres 1td is the 7
th
fastest growing tyre company in the world. A
fair wage system prevails in AT1. The company provides !etter wor"ing condition
for employees. )roper training to wor"ers and efficiency of the wor"ers must !e
increase to increase production. The industrial relation with the local union is fairly
good.
The company is facing a cut throat competition in Indian mar"et and
international mar"et. /espite of all these challengers Apollo has done well in the past
and with a !ooming economy and a focused progressive leadership at the top.
The employees en(oy wor"ing as a team and with customers to create
superior and distinct production and services. Apollo is focused on fast and fle0i!le*
never ending improvement in order to create an enterprise that is dynamic* ever
e0panding and profita!le and in constant pursuit of customer satisfaction is Apollo
policy to design* manufacture and service our products to provide the level of 5uality
and value that meets ever customer needs.
Apollo stands first in the production of truc" tyres. In spite of recession the
company is still ma"ing sufficient profit. There are good wor"ing conditions and
industrial harmony among the employees. )roper and ade5uate training is given to the
employees* which leads to higher productivity*. The company is facing cutthroat
competition from Indian mar"et as well as foreign mar"et. In spite of fierce
competition and local pro!lems the )eram!ra plant thrives and move forward to its
target of <1 %TIday and there!y achieve their 9 crore goal !y the end of 21.
Apollo tyres !oast a vi!rant and dynamic* profession and non hierarchical
culture. Transparency and communication are cornerstones of corporate practice*
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APOLLO TYRES LTD

across levels* to ensure that each individual employee is aligned with the goals and
aspiration of the company. At Apollo Tyres the three corporate pillars of )eople*
Ouality and Technology underpin all activities and processes. These are the
company#s stated areas of corporate e0cellence* in its (ourney towards !ecoming a
!est in class glo!al manufacturer.
Apollo Tyres* they are always loo"ing out for new opportunities. If
opportunities do not come their way* they go ahead and create opportunities. Over the
years they have created opportunities for growth* opportunities for success and also
opportunities for a !right future.


BIBLIOGRAPHY

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BIBLIOGRAPHY
BooD# r"6"r"%!"
1. /r. Aswathappa +.* 9.D.% G ).%* 7e* Tata %cBraw9ill* /elhi* 2-.
2. Desearch %ethodology$ %ethods G Techni5ues* +othari.'.D* &ew Age
International )u!lishers* &ew /elhi* 24.
1"C Si)"#
www.apollo tyres .com
www.google.com
www.wi""ipedia.com
Ma%a5#
Apollo annual reports
Apollo (ournals
8o! sheet of various departments
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APOLLO TYRES LTD

APPENDIH
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APOLLO TYRES LTD

PROFIT AND LOSS ACCOUNT OF APOLLO TYRES
Sl. &o )articulars Eear ended <1.<.29 Eear ended
<1.<.2,
1. Bross salesIIncome from
operations
7-*794.<2 72*749.,<
2.Other Income 112.77 92.2<
Total 7-*4,.79 72*-42.4
<.Total F0penditure
a? /ecreaseI >Increase? in wor" in
progress G
Cinished Boods
!? 'onsumption of Daw %aterials
c? Staff cost
d? F0cise /uty
e? Other F0penses
24-.,4
27*974.47
2*7-.74
7*791.91
7*14,.77
>--2.77?
2<*,79.4
2*27.--
-*-<.-4
4*7<1.11
Total 72*27,.47 <7*,29.,
7. Operating )rofit <*<4.1- 7*7<2.9,
-. Interest 44,.7< -2.71
4. /epreciation 9,.7 ,7,.1
7. )rofit !efore Ta0 1*711.4- <*<<7.77
,. )rovision for Ta0
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APOLLO TYRES LTD

$'urrent
$/eferred
$Cringe =enefit Ta0
7<9.<
17,.47
72.-
97-.1
121.7<
7-.
9.&et )rofit 1*,1.1, 2*19<.<
BALANCE SHEET
)ADTI'21ADS %ar 9 %ar , %ar 7 %ar 4

%ar-
Apollo Tyres 1td

SOURCES OF FUNDS ;
Share 'apital
Deserves Total
Total Shareholders Cunds
Secured 1oans
2nsecured 1oans
Total /e!t
Total 1ia!ilities
APPLICATION OF FUNDS ;
Bross =loc"
1ess ; Accumulated /epreciation
1ess;Impairment of Assets
&et =loc"
1ease Ad(ustment
'apital Aor" in )rogress
Investments
Crr"%) A##")#I Loa%# 2
A&:a%!"#
Inventories
Sundry /e!tors
'ash and =an"
1oans and Advances
Total 'urrent Assets
L"## ; Crr"%) LiaCi5i)i"# a%&
Pro:i#io%#
-.71
1*<-.<
1*<--.71
742.<9
2<<.1<
49-.-2
2*-1.2<

1*,<,.
497.44
$
1*17<.<7
$
2,1.71
297.7-

717.-
,7.2,
<7.4
19-.77
1*7.7

7,.,-
1*1,.
1*22,.,-
22<.17
2<7.-1
74.4-
1*4,9.-

1*-49.7,
-9,.7,
$
971.
$
97.71
<2.71

-1<.29
1--.1<
24-.,-
191.-<
1*12-.,

74.71
92.71
947.12
77<.74
177.97
41,.7
1*-,-.,2

1*792.-1
-71.44
$
9-.,-
$
,.74
2-,.11

7-1.9-
2<.4
172.
771.<7
1*24,.<,

<,.<7
-9-.4,
4<7.2
<,1.
<49.
7-.
1*<,7.2

1*<1.41
749.97
$
,7.47
$
77.9<
.-<

719.71
17-.17
2<1.<4
<7.1,
1*194.9


<,.<7
-<,.7
-74.77
<7,.7-
19-.4
-7<.,1
1*12.--

1*17,.7<
<9,.<
$
7-.1<
$
,7.<<
-7.7,

<<.12
1-4.-2
11.7<
<-.72
92.79

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APOLLO TYRES LTD

'urrent 1ia!ilities
)rovisions
Total 'urrent 1ia!ilities
&et 'urrent Assets
%iscellaneous F0penses not written
off
/eferred Ta0 Assets
/eferred Ta0 1ia!ility
&et /eferred Ta0
Total Assets
'ontingent 1ia!ilities
74.1<
9-.4<
---.74
7,7.97
.1-
1.94
147.2
$1-4.4
2*-1.2<
2,2.,-
-4-.,<
9<.,
4-,.91
744.,9
.24
11.29
1-2.79
$171.2
1*497.7
22<.-4
-72.2
2,9.12
,<1.<2
7<7.4
.12
1.<,
1<9.77
$129.4
1*-97.-7
11-.27
<,,.42
2<7.4<
424.2-
-49.,7
.24
,.79
11<.7
$1-.21
1*<,7.2
49.7<
<,.17
1,,.7
-4,.21
<<7.-,
.<,
2.24
1-.41
$1<.<-
1*12.--
77.29
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