Tyre Industry

TYRE INDUSTRY
1.1 Introduction
The Tyre Industry in India is primarily a domestic industry which has an annual
turnover of around Rs 30,000Cr. The industry is majorly dependent on
Automobile Industry for its growth prospects. Also, replacement market gives
a major share of revenues. The industry has now started focusing more on the
exports. The tyre industry has almost 40 manufacturers but is dominated by the
Top 10 manufacturers. Also, it could be broadly divided into 6 categories based
on the different auto segments. Rubber is one of the most important raw
materials for making rubber products. Before 2nd world war people use to move
and transport materials from one place to another place by walking or through
horses or bullock carts etc. This made to introduce rubber, but this was not up
to the mark as rubber was too smooth and was not having the capability of
holding the pressure.
In South America in the year 1839 the rubber had its first practical application
in the industrial world. In this year Mr. Charles Goodyear accidentally dropped
liquid rubber material called as LATEX on a Sulphur bed and the next day he
found that rubber material got stuck to Sulphur bed causing it to mix with the
Sulphur. It was found that the same material was harder and elastic. This process
is called as VALCANISATION.
The plantation tree is called as HEVEA TREE. And material was made as an
essential product from then on for the industrial age. With the invention of the
automobile in the late19th century, the rubber boom began. Of all the materials
provided for man to use as a material for construction, natural rubber is unique.
It is having the characteristics of high reversibility extensibility, fascinate the
enquiring mind. As the year has passed since its introduction to eastern
hemisphere by Columbus and his fellow explorers the role of famous men who
have studied the material has steadily lengthened. These include Mr. priestly
who coined the word “RUBBER”; Faraday, who determined its empirical
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formula Charles Goodyear, who invented vulcanization, Mr. john Boyd
Dunlop, who invented pneumatic tyre, and the noble chemistry prizewinners
Mr. Staudinger, Mr. Flory, Mr. Ziegler and Mr. Natta. Successful utilization of
the engineering properties of elastomers requires an Understanding of what
elastomers is, how it behaves as a material of construction and What limitations
are imposed on it by environmental condition? Although the term rubber is
often used for all types of elastomers, the general classification of elastomers
has a considerably greater total spectrum when the engineering properties of
synthetic materials are carefully considered. Pre- Colombia people of south
and Central America
used rubber- for balls, containers, shoes and waterproof fabrics. Mentioned by
Spanish and Portuguese writersin the 16th century, rubber did not attract the
interest of Europeans until report about it was made (1736- 51) to the French
academy of sciences by Mr. Charles deal and Mr. François Freneau. Pioneer
research in finding rubber solvents and in waterproof fabrics was done before
1800. The first elastic latex liquid rubber was used only for elastic bands and
erasers made by Brazil. Joseph priestly was credited with the discovery, in 1770
of its use as an eraser thus the name rubber emerged.
The first rubber factory in the world was established near Paris in 1803, the first
factory in England by Thomas Hancock in 1802. Hancock was the forerunner
for the masticator (the rollers through which the rubber is passed to partially
break the polymer chains) and in 1835 Edwin Chaffee, an American patented a
mixing mill and a calendar (a press for rolling the rubber into sheets).
In 1823, Charles Macintosh found a practical process for waterproof fabrics,

and in 1839 Charles Goodyear discovered vulcanization, which revolutionized
the rubber industry. The hardness, elongation and strength, abrasion resistance
is some of the characteristics of the rubber after vulcanization. In the latter half
of the19th century the demand for rubber insulation by the electrical industry
and the invention of the pneumatic tyre extended the demand for rubber. In the
19th century, wild rubber was harvested in south and Central America and in
Africa most of it came from the Para rubber tree of the Amazon basin. The
Brazilian rubber market was crushed by the rapid development of the more
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efficient rubber plantation of Southeast Asia. However, the prospects of
developing plantations did not begin on a high note. Rubber seeds, rich with oil
and latex, could notsurvive the long Atlantic journey from Brazil. Finally, in
1876, an English planter, Henry wick ham, collected 70,000 seeds and shipped
them to England.
This shipment remains “a source of controversy. Brazilians, conveniently

forgetting their entire agriculture economy is based on six imported plants-
African oil palms, coffee from Ethiopia, cacao from Colombia and Ecuador,
soybeans from China, and sugarcane form southeast Asia-still speak of the
“rubber theft “as a moment of infamy. Wick ham himself, in his memories, lent
a note of mystery to the deed, no doubt intending to elevate his own profile in
the eyes of his peers. In fact, all evidence suggests that the exportation was a
straight authority in Belem.” In either case, 2800 of the seeds germinated and
were sent to Colombo, Ceylon (presentday sir Lanka). After several false starts,
including one planter in northern Borneo who felled his plantation after finding
no rubber balls hanging from the prospects were grim. One major obstacle was
the success of tea (Ceylon) and coffee (Malaya) gave planters no reason to try
an untested crop. Finally in 1895, Henry rudely, head of Singapore’s botanical
garden, persuaded two coffee growers to plant two acres (.8 ha) of heave trees.
Twelve years later more than 300000 ha of rubber grew in plantations in Ceylon
and Malaya. New innovations increased efficiency and production doubled
every two years. Rubber could be produced at only a fraction of the
cost collecting wild rubber in Brazil. By 1910, Brazilian production had fallen
to 50%.in 1914; Brazil’s marketshare was down around 30%; 1918-20%, and
1940-1.3%.
1.2 Category wise Market Segmentation
The market has been segmented by product category in the following manner.
• Tractors
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• LCV
• Truck & Bus
• Passenger cars
• Two Wheelers
Two Wheelers is the biggest market segment followed by Passenger cars and
Truck & Bus. Although Tractors and LCV are quite old market segments but
they are not very big in size. OTR (Off the Road) has been discovered as the
new niche segment. It is very interesting to note that there are many
manufacturers who are in all the product categories but yet there is clear
demarcation in the product line. Only MRF managers to perform equally well
in the three major segments.
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1.3 Market Shares
The tyre industry in India is a highly competitive sector with a very cut throat
competition among the leading players. The table below shows the details of the
market shares as of 2010-11. Top players in different categories of tyre industry
The above table clearly indicates that the T&B segment is highly competitive
with JK Tyre, MRF and Apolloas the lead players. Also in the Passenger car
segment, Apollo and MRF enjoy an equal market share followed by
Bridgestone.
1.4 Historical performance of tyre industry
Business Models – The companies involved in the tyre industry indulge into
fierce competition with each other for better market share and profits. But still,
some of the manufacturers manage to have a unique business model which
strengthens its market presence.
JK Tyre & Industries caters majorly to Passenger Car and Truck & Bus segment
whereas Balkrishna Industries have discovered and mastered a niche market
segment of OTR or Off the Road tyres for themselves. The company focuses in
manufacturing and supplying tyres for the earthmoving instruments.
Revenue and Sales – MRF seems to be the market leader in the Indian Tyre
Industry across all the segments. Although the company is followed by Apollo
Tyres and JK Tyres, it enjoys a massive difference in the figures when compared
to its nearest competitors.
Balkrishna Industries seems to be a rising star in the Indian Tyre Industry. The
company has recorded a massive growth rate of 27.87 % and a 6-year profit
margin average of 10.55 %. The industry seems to be less crowded at the top
but the competition among the participating firms seems fierce.
1.5 Analysis of the Industry
The five-force analysis of the industry reveals the following facts.
Bargaining power of Buyers – The Industry has more than 40 manufacturers
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which gives the buyers a wide range of choice. Also, the market is fragmented
so Manufacturer penetration is quite less. This gives high bargaining powers to
the buyers. Bargaining power of Suppliers – As the industry is highly Raw
Material driven where the main raw material is natural rubber. The production
of rubber doesn’t increase proportional to its demand and hence the bargaining
power of suppliers is very high. Competitive Rivalry – While the number of
players in the industry is 40, the market share seems to be quite concentrated at
the hands of the top 10 players. Also, in each product category like two-wheeler,
T&B etc. the market share of lead players approximates to 80%. Availability of
Substitutes – The major concern for the Indian manufacturers is the price of the
tyres in the overseas market like China. The price of rubber is the driving factor
for price and when it increases in the domestic market, the Indian manufacturers
are bound to increase the price. The automobile manufacturers then may switch
to the option of importing tyres from international market. Entry Barriers – The
industry is highly capital intensive and margins are very low. This makes it
difficult to sustain for new entrants. Automobile makers although resort to
backward integration. TVS Sri chakra is a prime example of backward
integration by TVS motors.
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1.6 JK Tyre - Presence Across Product & Market Segments
1.7 Market dynamics
Tyre demand originates from two end-user categories OEMs and the
replacement segment. Demand from the replacement segment dominates the
Indian tyre market contributing about 56% of the total volume, while the OEMs
account for the rest Natural Rubber 25%. 44% Consumption by OEMs is
dependent on new automobile sales trend while the replacement segment is
linked to usage patterns and replacement cycles. In the overall sales of tyres in
unit terms, the commercial segment contributes about 21% while the remaining
comes from sales of personal vehicles which include passenger vehicles, two
and three wheelers. Under personal segment, two and three wheelers constitute
about 55% sales while the passenger cars made up for the balance sales.
1.8 Exports
Tyre production in April to August 2019-20 was 764.39 lakh units compared to
just over 798 lakh units in the year ago period. All segments of the automobile
industry showed sharp fall in tyre production with passenger cars and SUVs
down 8%, medium and heavy commercial vehicles down 5% motorcycles and
mopeds down 3%and three-wheelers down 3%. Only scooters were up 3%in the
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period. In contrast exports of 4797456 units in April-August FY 19-20 was up
12% over 4293429 units exported in the year-ago period. Almost all segments
have shown increase in exports-passenger vehicle tyre exports were up 8%
medium and heavy commercial vehicles up 17% motorcycles up 30% scooters
up 20% and three wheelers up 16%. Only niche segments like implements, off-
road tyres, industrial tyres and tractor tyres showed drop in exports. Satish
Sharma, president- Asia Pacific, Middle East, Africa, Apollo Tyres said:
Typically, Indian tyre industry exports 10-12% of their total revenue and the
balance is consumed domestically. So, although exports are up, it impacts a
small base. In the domestic market, demand from vehicle companies has been
very poor but replacement demand has been good. In car tyres, replacement and
OE demand is 50:50. Tractors are more OE skewed while CVs are 70%
replacement market. From value perspective OE market is 27% while
replacement is 73%. Today, the India tyre industry employs as many as one
million people including dealers, re-traders, and growers of natural rubber. The
Indian Tyre Industry is an integral part of the Auto Sector it contributes to 3%
of the manufacturing GDP ofIndia and 0.5% of the total GDP directly.
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K.R.S Road, Metagalli, Mysore – 570016, India.
2.1 BACKGROUND
JK Tyre was incorporated as a private limited company in West Bengal in

February 14, 1951. Until March 31, 1970, the company was engaged in the
managing agency business. Thereafter, the company decided to undertake
manufacturing activities and obtained a letter of intent in February 1972 for the
manufacture of automobile tyres and tubes. JK Tyre &Industries is the flagship
company under the umbrella of JK Organization. JK Tyre and Industries is a
mega corporate entity that is emblematic of excellence, diversification and
pioneering new technologies. A part of JK Organization which ranks among the
top private groups private groups in India, JK Tyre and Industries is committed
to self-reliance and follows an ethic that views customer satisfaction as an index
of achievement. JK Tyre is the pioneer for Steel Radial technology in India.
Over the years, the company has expanded and diversified its business portfolio.
It has developed into a multi-product, multi location corporate entity. The
company produces and sells tyres and tubes under the brand name 'JK Tyre' for
Truck, Buses, Passenger Cars, Jeeps, Light Commercial Vehicles, Multi Utility
Vehicles and Tractors. The company has three plants are located in Rajasthan,
Madhya Pradesh and Karnataka. JK Tyre is thelargest manufacturer of truck and
bus tyres in India. The truck and bus tyres produced account for nearly 74% of
the total tyre business in India, thus giving JK Tyre an undisputed position.
Additionally, JK Tyre is the only manufacturer of truck/ bus steel radial tyres,
and the second largest manufacturer of 4-wheeler tyres in the country.
J.K. Industries acquired Vikrant Tyres, Mysore in 1997. J.K. Industries and
Vikrant Tyres are the only tyre companies in India to have received all three ISO
9001, QS 9000 and ISO 14001 certificates. The company has a technical
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collaboration with Continental AG, Germany, which is among the top five tyre
manufacturers in the world to keep pace with latest technological
developments. To stay at the forefront of technological advancement a state of
art Research & Development Centre, HASETRI, was set up, which remains the
nerve Centre for providing cutting edge technology. In a short span of time, it
has emerged as the 17th largest tyre manufacturer in the world an achievement
in itself.
JK Tyre and Industries Ltd., engages in manufacturing of automobilities, tubes

and flaps in India. The company produces various tyres for Passengers cars,
Trucks, Bus, Off Road Vehicles and Tractors as well as providing retreading
services. The company markets its products in the brand, JK Tyre and Vikrant.
The company has plants located in Chennai, Rajasthan, Madhya Pradesh,
Karnataka and has its registered office located in New Delhi.
JK Tyres customer base covers virtually the entire original equipment

manufacturers (OEMs) in India together with replacement market for four
wheelers vehicles, Defense and State Transport Units. Besides India, they have
a worldwide customer base in over 45 countries across all 6 continents. To keep
pace with the market demand as well as technological leadership in Indian
market, JK industries acquired Vikrant Tyres Limited, Mysore in 1997.
The company has a technical collaboration with M/s Continental AG,

Germany, which is among the top fivetyre manufacturers in the world to keep
pace with latest technological developments. To stay at the forefront of
technological advancements a state of art Research & Development Centre,
HASTERI, was set up, which remains the nerve Centre for providing cutting
edge technology. In a short span of time, it has emerged as the 17th largest tyre
manufacturer in the world an achievement in itself.
JK Tyres are specifically designed in accordance to the different loading and

application requirements of their valued customers. The “Unique SEV System”
in its Truck/Bus and LCV range of tyres ensures a highly efficient and uniform
tyre curve the best option for a wide variation of road and load conditions under
which trucks operate in our country. The SEV system offers the outstanding
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advantages of Super Mileage, Greater Strength and Higher Retread ability- They
Run More to Earn More. Today, JK Tyres products compete with the best
international players in the premium international bias market in more than 55
countries in 6 continents. The exports operate Through a Strong and Dedicated
Distribution Network, And Their Distributors Are Fully supported and
dedicated distribution network, and their distributors are fully supported by the
company’s technical team in terms of continued product development to meet
specificmarket needs. JK tyre had obtained international accreditation for its
products in the US, Europe, South America& the Middle East.
2.1.1 NATURE OF BUSINESS
JK Tyre & Industries Ltd is an Automotive Tyre, Tubes and flaps manufacturing
company based in Delhi, India. The name JK is derived from the initials of
Kamlapatji (1884 –1937) and his father Seth Juggilal (1857 – 1922)
. The Company is the market leader in Truck/Bus Radial tire in India and is the
only tyre manufacturer offering the entire range of 4-wheeler radials for Trucks
Buses and Cars. JK Tyre has a worldwide customer base in over 80 countries
across all 6 continents. It is a part of J. K Organization group of Companies. JK
Tyre acquired Mexican tyre major – Tornal in2015. With state-of-the-art
modern production facilities in all 9 plants, total production capacity is almost
20 million tyres p.a. JK Tyre & Industries Ltd is also part of the JK Organization,
one of India’s leading private sector conglomerates with multi-product, multi-
location, multi-country and multi- business operations founded more than 100
years ago. JK Tyre is one of India’s leading four -wheeler tyre manufacturers
and among the 25largest tyre manufacturers in the world. JK Tyre pioneered
radial technology in India in 1977; the Company is the leader in the country’s
truck /bus radial segment today. We the people of J K TYRES will have an
organization committed to quality in everything we do.
We will continuously anticipate and understand our customer’s requirements,

convert these into performance standards for our products and services and meet
these standards every time. Full-customer satisfaction- both internal and
external- is our mott. Corporation that encourages excellence rewards merit and
initiative, Vast in its operations and massive in its seal of activities JK Industries
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is a megacorporate entity that is emblematic excellence diversification and
pioneering new technologies. A part of J K Organization that ranks among the
top private groups in India, J K Industries is committed to self-reliance and
follow an ethic that views customer satisfaction as an index of achievement.
Aside from J K Tyre, the flagship brand of the corporation, J K Industries
includes JK Sugar – The manufacturer of the best quality sugar in the country.
JK Agri genetics – The Company that is revolutionizing Indian agriculture
through its research and production of pest-resistant and highyield hybrid seeds
and crops. J K International - A diversified trading house that exports a range of
products including textiles and leather goods, pharmaceuticals, tea, coffee,
spices, processed food and de-oiled cakes, to developed countries like USA,
UK, Canada, Germany, Netherlands and the companies.
2.1.1 TODAY JK TYRE:
1) It is the leading manufacturer of Radial tyres for both truck and car
2) It is the only supplier of the tyre for Mercedes Benz
3) First to get the ISO 9001 certificate in the entire world for the entire
operation
4) 2nd largest manufacturer for 4 wheelers in India
5) 16th largest tyre manufacturer in the world
6) First Indian company to export for radials to Europe
7) First Indian company to export over 45 countries across Six Continents
8) First and only Indian company to get the ‘E’ mark Certificate
9) J K Tyre has 25-customer centers around the country.
10) J K Tyre the only Indian Company producing radials for the entire
ranges i.e., Trucks, buses, LCV’s andCars.
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2.2 VISION & MISSION AND QUALITY POLICY
2.2.1 VISION
To be amongst the most admired companies in India committed to excellence

and to be one among the top 25 employers in India.
2.2.2 MISSION
▪ Be a customer obsessed company - customer first 24*7

▪ No.1 tyre brand in India
▪ Most profitable Tyre company in India
▪ Motivated and committed team for excellence in performance
▪ Be a green company
▪ Deliver enhanced value to all stakeholders
▪ Enhance global presence through Acquisition/ JV/ Strategic Partnerships
▪ To contribute substantially Short Term and Long-Term Business results by
aligning our HR initiatives
▪ Facilitating each one of us deliver 125%
▪ An Enabling climate for attracting, retaining and nurturing talent contributing
to organizationalexcellence with an innovative mindset.
2.2.3 QUALITY POLICY
The company is certified under ISO 9001, QS 9000, ISO 14001 and ISO/TS
16949:2002 Certifications, for design manufacture and sale of automobile tyres,
tubes, flaps and tread rubber. JK Industries ltd was inducted as Strategic
Alliance Partner (SAP) during May 1997 with a view to improve the overall
performance of the company. Collaboration agreement was entered with the
M/S Continental tyres Germany in 1980.Vikrant tyres Ltd, JK tyres associate,
manufactures cutting edge innovative products at conformed to the highest
international standards.
2.3 PRODUCTS AND SERVICE PROFILE
2.3.1. PRODUCTS
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The Indian tyre industry produces the complete range of tyres required by the
Indian automotive industry, except for aero tyres and some specialized tyres.
Domestic 31 manufacturers produce tyres for trucks, buses, passenger cars,
jeeps, light trucks, tractors (front, rear and trailer), animal drawn vehicles,
scooters, motorcycles,mopeds, bicycles and off-the-road vehicles and special
defense vehicles. The scenario in India stands in sharp contrast to that in the
world tyre market, where car tyres (including light trucks) have the major share
(88%) by volume followed by truck Tyres (12%).
a. Truck and bus tyres: -
The truck and bus tyre segment accounted for 19% of tyres produced in India
in FY2015. Every truck/bus manufactured generates a Demand for seven tyres
(six regular and one spare) as against three in the case of two-wheelers and five
for passenger cars. In addition, the price of a truck tyre is significantly higher
than that of a passenger car tyre (roughly 10 times) or a motorcycle tyre. Thus,
the demand multiple emanating from the commercial vehicle segment is highest
in value terms. Given the regular use and heavy wear and tear of truck and bus
tyres, the demand from the replacement market in this segment worked out to
68% of the total demand for truck and bus tyres in FY2015; the OEM demand
accounted for around 9% the same year. With the Indian manufacturers of cross-
ply tyres focusing on the export market, this segment accounts for around 22%
of the demand for truck and bus tyres.
b. Passenger car tyres
The passenger car tyre segment accounted for 17% of all tyres produced in India
in FY2015. With passenger car production witnessing a growth of 12% in
FY2015 over the previous year, OEM demand accounted for about 41% of the
total sales that year. The replacement market accounted for around 58% of the
total sales of passenger car tyres in FY2015. Exports accounted for 4% of the
total passenger car tyre demand in FY2015. With the stock of cars increasing,
replacement demand is likely to continue.
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c. Motorcycle tyres
Motorcycles accounted for 76% of two-wheelers sold in the domestic market

in FY2016. Motorcycle tyres constitute the largest segment of the domestic tyre
industry (29% of total tyre demand in FY2015). The replacement market
accounted for around 49.8% of the total motorcycle tyres sold in FY 2015, while
OEM demand accounted for around 50%.
d. Scooter Tyres
Scooters were the dominant segment in the Indian two-wheeler industry till
FY1998, accounting for around 42% of domestic two-wheeler sales. However,
the introduction of new motorcycle models has seen the share of scooters
declining to 19% of domestic two-wheeler sales in FY2015. The OEM segment
accounted for 33 around 34% of the total sales in the scooter tyre segment in
FY2015, with the rest being accounted for by the replacement market.
Segment according to vehicle industry: -
a. Vehicle manufactures or OEMs: -

The demand from the OEM segment is a derived one and directly correlated to
the level of automotive production. The OEMs demand varies significantly
across categories from between 8% for truck and bus tyres to over 50% for some
other segments like, jeeps and mopeds.
b. Replacement Market: -
The replacement market, including State transport undertakings and

Government buying, accounted for around 61% of the total tyre demand in
FY2015 demand in the replacement market depends on the vehicle population,
the level of economic activity, life of the products transported, kilo meter per
vehicle, the price of the tyres and the quality of the existing road
infrastructure. Additionally, the replacement market, which offers better
margins, is extremely competitive. The replacement market is dominated by the
truck and buses segment, which accounted for 22% of all tyre sales in the
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replacement market in FY2015.The large size of the replacement in turn is
determined by the interplay of various factors as discussed below: The
replacement demand may be lower because of longer replacement intervals
and lowerbusiness mileage if the economic activity slows down.
• Replacement demand in India is higher because of a low vehicle scrap page

rate.
• Poor road conditions by lowering the life of tyres, have a positive impact on
• Radicalization of tyres is likely to result in lower replacement demand.
• While car radicalization in the country has reached a level of 65%, truck and
bus radicalization stand at just 15%. Poor road and support infrastructure as well
as traditional vehicle designs act as a barrier to radicalization in the commercial
vehicle segment. Radial technology for trucks and buses would help increase
operating efficiencies by delivering better mileage and minimizing wear and tear
2.3.2. SERVICES
a. Warranty Statement
• Every effort is made by the company to secure the highest possible standard of
excellence of both material and workmanship. The company will not be liable
for any claim whether arising in contract orin tort for any injury, loss or damage
caused to any person or property by or arising out of the use of any company
product.
• Without prejudice to the above paragraph JK Tyre tyres & tubes are warranted
against manufacturing defects arising out of any deficiency in design,
Manufacturing, material or workmanship. Tyres accepted under warranty claims
will be replaced on pro-rata wear based on percentage of treadwear, on the basis of
measurement of remaining Tread depth.
• Warranty claims findings made by JK Tyre Technical Service Personnel
or Trained and AuthorizedPersonnel would be final and binding to all
concerned.
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b. Warranty Period
PRODUCT Warranty Period

CATEGOTY
For a period of three years from the date of manufacture
TRUCK/BUS
or from the date of invoice (Proof of purchase is
BIAS/RADIA
required), or till the tyre tread is worn up to Tread Wear
L TYRES
Indicators (TWI), whichever is earlier, irrespective of
kilometer covered.

LCV/JEEP
TYRE (BIAS
& RADIAL)
kilometer covered.
For a period of five years from the date of manufacture

PASSENGR
CAR TYRE
(BIAS&RAD
IAL)
kilometer covered.

SUV TYRE
(BIAS &
RADIAL)
kilometer covered.
For a period of Six years from the date of manufacture

2/3 WHEEL
TYRE or from the date of invoice (Proof of purchase is
kilometer covered.
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FARM TYRE With effect from April 2021 production, for a period of
Seven years from the date of manufacture or from the
date of invoice (Proof of purchase is required),or till the
tyre tread is worn smooth, whichever is earlier,
irrespective ofkilometer covered.
OTR TYRES For a period of five years from the date of

manufacture or from the date of
Product Warranty Period

category
(Replacement) invoice (Proof of purchase is required), or till the

tyre tread is worn up to3MM, remaining non-skid
depth, whiche ver is earlier, irrespective of hours.
All tubes JK Tyre Tubes are warranted for a period of two

(Truck & years from the date ofmanufacture irrespective of
LCV) kilometer covered.
• Tyre warranty is applicable to the first owner of the product.

• Warranty claims will be routed through OEMs/OEM’s Dealer, JK tyre
authorized dealers to the nearestJK Tyre office with an OEM/dealer warranty
form/letter/telegram or email.
• Tyre/tube under complaint will be examined by Service personnel or JK Tyre
authorized personnel andthe decision will be taken at the time of inspection.
• Warranty claims findings made by JK Tyre service personnel or trained or
authorized personnel would bebinding.
c. Heal the wheel
Heal The Wheel is a tyre check-up campaign for truck and bus fleets enrolled
under the Fleet Management program of JK Tyre. In this activity, all tyres are
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checked for inflation pressure, irregular wear, and removed tyres are checked for
scrap analysis. The Fleet In-Charge also shares and updates the data pertaining
to tyre performance, fuel consumption, and CPKM A detailed report of the same
is then discussed by the Fleet In- Charge with the owner, along with a suggestion
plan for proper care and maintenance to enhance tyre life and reduce CPKM.
d. Tyre care center
JK Tyre understands the importance of service in the commercial segment and

hence was the first company to establish a pan India network of tyre care centres
on important national highways. These centers provide the following services to
transporters:
• Tyre Repairs.
• Inflation pressure check.
• Tyre Rotation.
• Tyre service.
Currently there are 17 Tyre Care Centers located in the following cities:
1. Haryana
2. Delhi
3. Jaipur
4. Rajkot
5. Mumbai
6. Pune
7. Bangalore
8. Chennai
9. Vijayawada
10. Nagpur
11. Indore
12. Cuttack
13. Ambala
14. Ahmedabad
15. Kolkata
16. Cochin
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e. Fleet management
Fleet Management is a concept created by JK Tyre to offer added value to its

customers. The program is aimed at increasing our connection with our
customers. It offers total tyre solutions – from the purchase of new tyres totyre
disposal – to ensure the optimum Cost Per Kilometer (CPKM) to our fleets.
As part of this exclusive service, JK Tyre provides a dedicated Fleet In-Charge
for every fleet who assists in the implementation of best tyre care and
maintenance practices, like fit to application, proper fitment procedures, correct
inflation pressure, timely rotation, and corrective actions for abnormal wear.
Under this program, the company also trains drivers in their role in tyre care and
maintenance. The company also maintains a centralized record book for fleets
to provide data management software for tyre data entry and analysis. Tyre data
records of fleets are synchronized with fleets’ database for vehicle fitness and
the vehicle fitness report is shared with the owner and maintenance staff on a
regular basis.
2.4 AREA OF OPERATIONS
2.4.1 Global
A global force, JK Tyre is present in 105 countries with over 180 Global
distributors. The Company has 12 globally-benchmarked ‘sustainable’
manufacturing facilities - 9 in India and 3 in Mexico – that collectively produce
around 35 million tyres annually. The Company also has a strong network of
over 4000 dealers and 500+ dedicated Brand shops called as Steel Wheels and
Xpress Wheels. JK Tyre is also synonymous with motorsport in the country. For
over three decades, the Company has relentlessly worked towards shaping
India’s positioning as the motorsport hub of Asia, developing the right
infrastructure for the sport and promoting young talent in the arena.
It is the only Indian tyre manufacturer to be included in the list of Super brands
India in 2019 for the seventhconsecutive year. Additionally, JK Tyre was featured
among India’s Best Companies to Work For in 2019 by Great Place to Work®.
JK Tyre recently was awarded the most coveted Safety award in the world -the
Sword of Honor for Safety across its plants by the British Safety Council, UK.
21
2.4.2 National
JK Tyre has 9 modern plants in India which are strategically located at:
• Mysore, Karnataka -3
• Banmore, Madhya Pradesh
• Kankroli, Rajasthan
• Chennai, Tamil Nadu
• Haridwar, Uttarakhand - 3
JK Tyre has also enhanced its global reach by taking over Tornal, a renowned
Mexican company, which has 3 plants in Mexico. All of these plants are
equipped with the world’s most advanced manufacturing and testing machines.
JK Tyre started manufacturing tyres in 1977 with a capacity of 0.5 million tyres
per annum. It has grown multi-fold over the years, and currently has a capacity
of more than 16.6 million tyres per annum from its 12 plants in India and
Mexico. With the commissioning of the Greenfield Project in Chennai, the
capacity across 12 plants has crossed milestone of 20 million tyres per annum.
JK Tyre, in April 2016, acquired Cavendish Industries Limited in Haridwar,

UKD. While the acquisitionadded three modern plants to its portfolio taking the
total count to 12, it helped the tyre major foray into the two/three-wheeler
segment as well
22
2.5 OWNERSHIP PATTERN AND COMPETATIORS INFORMATION
Ownership Pattern
PARTICULARS Sep-2021 Jun-2021 Mar-2021 Dec-2022

Promoter - - - -
Foreign 0.00% 0.00% 0.00% 0.00%
Indian 55.93% 56.23% 56.23% 56.23%

Total 55.93% 56.23% 56.23% 56.23%
Promoter
Non- - - - -
Promoter
Institutions 9.07% 7.64% 5.34% 6.14%
Non- 35.00% 36.3% 383% 37.63%
Institutions
Total Non- 44.07% 43.77% 43.77% 43.77%
Promoter
Custodian 0.00% 0.00% 0.00% 0.00%
Total 100.00% 100.00% 100.00% 100.00%
23
2.5.2 Competitors information
The competitive landscape of India tyre market is consolidated at the moment.

MRF is still the market leader with more than $2 billion annual revenue in FY
2019 and 35% market share down from 48% 4 years ago. MRF has been the
leading Indian tyre manufacturer for more than three decades and is among the
top 20 global tyre manufacturers. Other market leaders include Apollo, JK and
CEAT with 29% and 19% and 16% market share respectively. Apollo has
emerged the strongest contender for market leadership and has grown its
revenue by almost 40% in past four years. Apollo tyres generate less than
5% of it over all sales from OE market. TheCapex allocation for Apollo tyres
is expected to be 2,300 CR INR ($350 Million) in FY 20 and 1,700 CR INR
($215 Million) in FY 2021. JK Tyre India’s biggest commercial vehicle tyre
manufacturer is depending on the growing replacement market and exports to
counter the slowdown in the Indian auto industry. It derives more than 75% of
its revenues from the replacement market.
In FY 2020, CEAT, MRF and Apollo have committed capex to the tune of
$800m, industry in the country is battling severe slowdown across all segments.
Most of the tyre manufacturers in the country have launched new products to
cater to growing segments. For ex-in two-wheeler segment, premium
motorcycles are a growing trend whereas in passenger car segment, SUVs have
been growing in number.
Leading Manufacturers
Although the industry enjoys involvement of 40 players, 90-95 of the market

shares are enjoyed by the top 10 manufacturers. The introductory details of
these major players have been mentioned below.
a. MRF India Ltd. –
MRF started as a toy balloon making factory in 1946. Since then, the company
has continuously adapted to changing market needs and has emerged as the
overall market leader across the three major segments. When it comes to top-of-
24
mind brand recall, MRF beats the rest of the competition hands down. MRF has
for long concentrated on aggressive brand promotion. Sponsoring and
promoting events along with promoting sports celebrities have been a major part
of marketing strategies. It also involves itself in a range of other activities via
its subsidiaries. Funs Kool India, is a Joint venture between Hasbro and MRF,
is a major toy manufacturing company in the country. The expertise of MRF
with the rubber industry comes handy in this venture.
MF Pretreats offers world class precured tyre retreading service. Also, MRF
Muscle flex is involved in making conveyor belts. It is presently under the
leadership of Vino Mammon, son of the late K.M. Mammen Mappillai.
MRF seems to rule the Indian Tyre Industry with a very strong presence across
all the categories.
b. Apollo Tyres Ltd. –
Apollo Tyres was established in the year 1976 when the License system was
very strong in India. Strategic thinking is known to be Apollo’s best trump card
when marketing strategy is discussed. It does a skillful analysisof the trends and
how the market size is affected by them. The company is also known for
excellent product and service planning and distribution networks.
Apollo has been the first company to launch branded retails tyre outlets for
trucks. Also, they are the first to introduce radial tyres in the Farm Equipment’s
category. The company has reached new heights and is presently the 15th largest
Tyre manufacturer in the world under the leadership of Onkar S. Kanwar.
Apollo has increased its marketing and promotion budgets by 50 pc and has
completely rebranded the product.
c. JK Tyre and Industries Ltd. –
JK Tyres is a flagship company of the renowned J K Group which is run by the

renowned Singhania Family. Itis the market leader in radial tyres in India. Also
the firm basically focuses on the passenger car segment and is the market leader
in that particular segment. The group has several other industries as JK Lakshmi
cement, JK Techno soft, JK Papers etc. The company’s customer base covers
25
virtually the entire Original Equipment Manufacturers in India together with
Replacement Market for four-wheeler vehicles, Defense and State Transport
Units. It has a worldwide customer base in 45 countries across all the six
continents. The firm’s marketing strategies usually involve organizing sporting
events like the J K Tyre National Racing Championship and other formula 1
events.
d. CEAT Ltd.-
Ceat Ltd, a part of RPG group, is the second largest tyre manufacturer of India.
The RPG group took over the Indian Operations of this Italian firm in 1982. It
is a very active player in the TRUCK & BUS and PassengerCar categories.
They have a robust national network consisting of 34 regional offices and over
3,500 dealers among which approximately 100 are exclusive dealers running the
CEAT Shoppe outlets for passenger cars segments and 96 exclusive dealers
running the CEAT HUBs for Truck & Bus Segments. The company has their
presence in 110 countries.
CEAT has a very well recognized tagline ‘Born Tough’ is the prime sponsor of
the CEAT Cricket ratings which is one of the most important feathers in the
company’s hat. The company has come up with a very innovative marketing
strategy of ‘Road is full of idiots’ which has gained massive social attention.
e. Balkrishna Industries Ltd. –
It is a conglomerate with diversified products from Paper to Tyres. It is the fifth

ranked manufacturer in the Indian Tyre Industry. Also, the company has
discovered a niche market segment of Off Highway Tyres (OHT). The company
is a leader in this segment and plans to diversify its product line in the near
future. The company operates mainly in the business segment of tires. They
focus on the production of range of off- highway tires that includes agricultural,
industry, material handling, forestry, lawn and garden, construction and earth
moving tires. The company has a worldwide distribution network ensuring
extensive reach and penetration.
26
2.6 CUSTOMERS / CLIENT INFORMATION
In a competitive market place where businesses compete for customers,

customer satisfaction is seen as a keydifferentiator and increasingly has
become a key element of business strategy. In a competitive market place
where businesses compete for customers, customer satisfaction is seen as a key
differentiator and increasinglyhas become a key element of businessstrategy.
In a competitive market place where businesses compete forcustomers,
customer satisfaction is seen as a key differentiator and increasingly has
become a key elementof business strategy. In a competitive market place
where businesses compete for customers, customersatisfaction is seen as a
key differentiator and increasingly has become a key element of business
strategy Organizations are increasingly interested in retaining existing
customers while targeting non-customersmeasuring customer satisfaction
provides an indication of how successful the organization is at providing
products and/or services to the marketplace. Customer satisfaction is an
ambiguous and abstract concept and theactual manifestation of the state of
satisfaction will vary from person to person and product/service to
product/service. Th state of satisfaction depends on a number of both
psychological and physical variableswhich correlate with satisfaction
behaviors such as return and recommend rate. Th level of satisfaction canalso
vary depending on other options the customer may have and
other products against which the customer can compare the organization's
products
Organizations are increasingly interested in retaining existing customers while

targeting non-customers; measuring customer satisfaction provides an indication
of how successful the organization is at providing products and/or services to the
marketplace. Customer satisfaction is an ambiguous and abstract concept and the
actual manifestation of the state of satisfaction will vary from person to person
and product/service to product/service. The state of satisfaction depends on a
number of both psychological and physical variables which correlate with
satisfaction behaviors such as return and recommend rate. The level of
satisfaction can also vary depending on other options the customer may have and
other products against which the customer can compare the organization’s
27
products The International Customer Service Institute (TICSI) has released The
International Customer Service Standard (TICSS). TICSS enables organizations
to focus their attention on delivering excellence in the management of customer
service, whilst at the same time providing recognition of success through a 3rd
Party registration scheme. TICSS focuses an organization’s attention on
delivering increased customer satisfaction by helping the organization through
a Service Quality Model. TICSS Service Quality Model usesthe 5 P's - Policy,
Processes, and People, Premises, Product/Services, as well as performance
measurement. The implementation of a customer service standard should lead to
higher levels of customer satisfaction, which in turn influences customer retention
and customer loyalty.
2.7 ACHIEVEMENTS/AWARDS
• JK Tyres ranked 16th largest company in the world.
• ISO 14001 accreditation for environmental and safety.
• India’s first T rated tyre launched.
• Mercedes Benz launched on JK Tyres radials first tyre manufacture in the

world to get ISO 9001.
• Only tyre manufacture to get E mark certification.
• First tyre manufacture in the world to get QS 9000.
• Awarded CEPEXIL’S highest export for 1997-98.
• JK introduced national GO-carting championships.
• JK industries received FOCUS LAC EXPORT award for the year 1999 and
2000.
• Certified to ISO 9000 (1994 quality management systems).

• First Indian Tyre Company to adopt process-based management process-
based management throughbusiness process re-engineering (BPRO).
• It has ranked No. 1 in customer satisfaction by the JD power Asia Pacific

study.
28
• VTP won the prestigious green tech environment award in gold category on
12-10-S2009.
• JK Tyres and Industrial Ltd. wins the CAPEXIL ‘top’ export award for the
year 2008-2009.
• Employee Branding Awards 2009s.
• JK team owns the top “PAR EXCELLENCE AWARD” in Kaizen competition.

Held in Mysore on 25- 04-2010.
• The company opted for BPR (Business Process Re-Engineering) with the
concept of “Factory within Factory” called as Business units. The primary
objective of this concept is to focus on operational Efficiency such as
production, quality, cost, Deliverables and other parameters.
2.8 INFRASTRUCTURAL FACILITIES AND WORKFLOW MODELS
2.8.1 Infrastructural facilities
• Canteen Assistance for the family of deceased employee

• Safety
• Voluntary retirement scheme
• Accidental insurance scheme
• First aid appliances
• Prohibition of overlapping shift
➢ Raghupati Singhania Center of Excellence, Mysore, Karnataka A state of the

art facility in the heartof Mysore which comprises of
➢ Hasetri (Hari Shankar Singhania elastomer and tyre research institute)
➢ HASETRI is an Independent Research Institute specializing in the area of

Elastomer Research and Tyre Mechanics, established to fulfill the nation's need
for developing newer and better technologies for elastomer and tires.
➢ Tech center (product development center)
➢ JK Tyre Tech Centre, is the nerve center for new product development catering
to current and emerging needs of customers. This center is engaged in
29
product design, development, validation andindustrialization using the most
sophisticated tools and techniques covering all categories like passenger car
radial, light truck radial, light truck bias, truck and bus radial, farm and off the
road tyres.
➢ Raghu Pati Singhania center of excellence for tyre and vehicle mechanics
➢ RPSCOE is the perfect example of an Industry-Institute Collaboration which is

an R&D set up in collaboration with Indian Institute of Technology, Madras. JK
Tyre and Industries Ltd. (JK Tyre), a major tyre manufacturer and pioneer of
radial tyres in India, sponsors this R&D Centre.
CORPORATE SOCIAL RESPONSIBILITY [CSR] ACTIVITY
The company is followed so many corporate social responsibilities. The

company takes the responsibility to improve the education of the illiterate
people in the remote village. The company identifies the 10 -12 passed students.
The company selects these students to teach the illiterate people from the remote
villages. The company makes the batches which will consist of 20 illiterates
who will learn under the selected teachers. The course duration for these
illiterates’ people is about three to four months.
30
RAW MATERIALS USED
The tyre components use a broad variety of materials like different rubber
compounds, different types of carbonblack, fillers like clay and silica, chemicals
or minerals added to accelerate/decelerate vulcanization. The tyres also have
31
several types of fabric for reinforcement, several kinds and sizes of steel. Some
of the steel is twisted or braided into strong cables The above-mentioned tyre
components use a broad variety of materials like different rubber compounds,
different types of carbon black, fillers like clay and silica, chemicals or minerals
added to accelerate/decelerate vulcanization. The tyres also have several types
of fabric for reinforcement, several kinds and sizes of steel. Some of the steel is
twisted or braided into strong cable
Ingredients Passenger car Lorry tyre OTR tyre

tyre
Rubber / 47% 45% 47%

Elastomers
Carbon Black 21.5% 22% 22%
Metal 16.5% 25% 12%
Textile 5.5% -- 10%
Zinc Oxide 1% 2% 2%
Sulphur 1% 1% 1%
Additives 7.5% 5% 6%
Carbon based 74% 67% 76%

materials,total
a. Natural Rubber
Natural Rubber is an elastomer derived from latex; a milky colloid produced by

some of the plants like Hevea Brasiliense’s. These plants produce latex when
they are wounded as a healing mechanism. The latex is collectedin a vessel and
it is allowed to coagulate which gives you the solid rubber which can be further
processed in to sheets. The coagulation process can be controlled by chemicals
like Ammonia, Formic acid. Ammonia decelerates the coagulation process
whereas Formic acid accelerates it. The purified natural rubber is same as
32
polyisoprene. The monomer of Natural Rubber is 2-methyl-1,3-butadiene,
CH2=C(CH3)-CH=CH2. The required properties of rubber like elasticity, is
mainly dependent on the cis form of C5H8 rather than its trans counterpart. As
the natural rubber is formed by coagulation of latex, the relative proportions of
cis and trans are fixed which can result in degradation of desired properties.
b. Synthetic Rubber
Synthetic rubber can be made from the polymerization of a variety of

monomers including isoprene (2-methyl- 1,3-butadiene), 1,3-butadiene,
chloroprene (2-chloro-1,3-butadiene), and isobutylene (methylpropene) with a
small percentage of isoprene for crosslinking. These and other monomers can
be mixed in various desirable proportions to be copolymerized for a wide range
of physical, mechanical, and chemical properties. The monomers can be
produced pure and the addition of impurities or additives can be controlled by
design to give optimal properties. Polymerization of pure monomers can be
stereo specifically regulated through various catalysts to achieve the desired cis
or trans double bonds. Various kinds of synthetic rubbers are used in the tyre
components like Styrene-butadiene, Polybutadiene because of the relatively low
materials cost, low heat-buildup properties respectively. Halo butyl rubber is
used for the tubeless inner liner compounds, because of its low air permeability.
The halogen atoms provide a bond with the carcass compounds which are
mainly natural rubber.
c. Carbon Black
Carbon black is a material produced by the incomplete combustion of heavy

petroleum products such as coal tar, ethylene cracking tar etc., It is a form of
amorphous carbon that has a high surface-area-to-volume ratio and significantly
lower PAH (polycyclic aromatic hydrocarbon). It is u`sed as a pigment and
reinforcement filler in the tyre. It helps in conducting heat away from the tread
and belt area of the tire, reducing thermal damage and increasing tire life. While
a pure styrene-butadiene rubber has a tensile-strength of no more than 2.5MPa,
and almost nonexistent abrasion resistance, compounding it with 50% of its
weight of carbon black improves its tensile strength to 20MPa and considerable
33
wear resistance. The black color of the tyre is due to carbon black, ifwe want to
have any other color with the same reinforcing properties fumed sili`ca is used.
d. Fumed Silica
It is also known as pyrogenic silica as it is produced in a flame, consisting of

microscopic droplets ofamorphous silica fused into branched, chainlike, three-
dimensional secondary particles which then agglomerate into tertiary particles.
The resulting powder has an extremely low bulk density and high surface area.
Its three- dimensional structure results in viscosity-increasing behavior when
used as a thickener or reinforcing filler. Fumed silica also provides better trade-
off for fuel efficiency and wet handling due to a lower rolling loss compared to
carbon black-filled tires. Traditionally silica fillers had worse abrasion wear
properties, but the technology has gradually improved to where they can match
carbon black abrasion performance.
e. Vulcanization
Natural Rubber is sticky, deforms easily when warm, and is brittle when cold.
Vulcanization is a chemical reaction which helps in betterment of some of the
properties like removes the sticky behavior, increases the young's modulus etc.,
in this chemical reaction elements/compounds like Sulphur are added which
have the ability to form cross-links between the long chain polymer molecules,
converting the rubber from a thermoplastic to a thermosetting polymer. The
extent of vulcanization reaction can be controlled by accelerators and retarders.
A derivative of aniline called thiocarbamide, zinc oxide accelerates the action
of sulfur to rubber, leading to shorter cure times.
f. Antioxidant
An antioxidant is a molecule capable of preventing oxidation of other

molecules. We say something is oxidizedif it loses electrons, hence moving to a
higher oxidation state. Oxidation reactions can produce free radicals which can
result in polymerization. As the tyre components are exposed to sunlight free
radicals may get generated, antioxidants essentially terminate these free radicals
preventing extraneous polymerization reactions. Antioxidants basically undergo
34
oxidation reaction themselves, thus preventing oxidation of other compounds.
Antioxidants are reducing agents such as thiols, ascorbic acid, polyphenols.
g. Antiozonant
Rubber contains an unsaturated double bond, as the tyre is always exposed to

atmosphere ozone gas present in the atmosphere may break the double bond in
to aldehydes or ketones. Thus, reducing the degree of polymerization results
into the degradation of properties. Cracks start to appear on the tyre, which are
called as ozone cracks. Antiozonants are chemical compounds that prevent or
slow down the degradation of material caused by ozone gas in the air. Paraffin
wax acts as an antiozonant by the means of formation of a surface barrier.
Tyre Manufacturing Process

a. Compounding and Banbury mixing
A Banbury mixer combines rubber stock, carbon black and other chemical
ingredients to create a homogeneous rubber material. Time, heat and raw
materials are factors utilized to engineer material composition. Theingredients
are generally provided to the plant in pre-weighed packages or are prepared and
weighed by the Banbury operator from bulk quantities. Measured ingredients
are placed onto a conveyor system, and the Banbury is charged to initiate the
mixing process. Hundreds of components are combined to form rubber
utilized for tyre manufacturing. The components include compounds which act
as accelerators, anti-oxidants, anti-ozonates, extenders, vulcanizers, pigments,
plasticizers, reinforcing agents and resins. Most constituents areunregulated and
may not have had extensive toxicological evaluations. Generally speaking, the
Banbury operators' occupational exposures to the raw materials have been
reduced by improvements in administrativeand engineering controls. However,
concern remains due to the nature and quantity of components which make up
the exposure.
b. Milling
Shaping of rubber begins in the milling process. At the completion of the
35
Banbury mixing cycle, rubber is placed onto a drop mill. The milling process
shapes the rubber into flat, long strips by forcing it through two set rolls rotating
in different directions at different speeds. Mill operators are generally concerned
with safety hazards associated with the open operation of the turning rolls. Older
mills usually had trip wires or bars which could be pulled by the operator if he
or she is got caught in the mills. Modern mills have body bars at aboutknee
level that are automatically triggered if the operator is caught in the mills. Most
facilities have extensive emergency rescue procedures in place for workers
trapped in mills. Mill operators are exposed to heat as well asnoise.
c. Extruding and Calendaring
The calendar operation continues to shape rubber. The calendar machine

consists of one or more (often four) rolls, through which the rubber sheets are
forced. The calendar machine has the following functions: • To prepare
compounded rubber as a uniform sheet of definite thickness and width • To
place a thin coat of rubber on a fabric (“coating” or “skimming”) • To force
rubber into the interstices of fabric by friction (“fractioning”) The rubber sheets
coming off the calendar are wound on drums, called “shells,” with fabric
spacers, called “liners,” to prevent sticking. The extruder is often referred to as
a “tuber” because it creates tube-like rubber components. The extruder functions
by forcing rubber through dies of appropriate shape. The extruder consists of a
screw, barrel or cylinder, head and die. A core or spider is used to form the
hollow inside of tubing. The extruder makes the large, flat section of tyre treads.
Extruder and calendar operators may be exposed to talc and solvents, which are
used in the process. Also, the workers at the end of the extrusion operation are
exposed to a highly repetitive task of placing the tread onto multi-tiered carts.
This operation is often referred to as booking treads, because the cart looks like
a book with the trays being the pages. The configuration of the extruder as well
as the weight and quantities of tread to be booked contribute to the ergonomic
impact of this operation. Numerous changes have been made to lessen this, and
some operations have been automated.
d. Component Assembly and Building
36
The tyre assembly machine consists of a rotating drum, on which the
components are assembled, and feeding devices to supply the tyre builder with
the components to assemble (see figure 80.7). The components of a tyre include
beads, plies, side walls and treads. After the components are assembled, the tyre
is often referred to as a “green tyre”. Tyre builders and other workers in this area
of the process are exposed to a number of repetitive motion operations.
Components, often in heavy rolls, are placed onto the feeding portions of the
assembly equipment. This may entail extensive lifting and handling of heavy
rolls in a limited space. The nature of assembly also requires the tyre builder
to perform a series of similar or identical motions on each assembly.Tyre
builders utilize solvents, such as hexane, which allow the tread and plies of
rubber to adhere. Exposure to the solvents is an area of concern. After being
assembled, the green tyre is sprayed with a solvent- or water- based material to
keep it away from adhering to the curing mold. These solvents potentially
expose the spray operator, material handler and curing press operator.
Nowadays, water-based materials are mostly used.
e. Curing and Vulcanizing
Curing press operators place green tyres into the curing press or onto press
loading equipment. Curing presses in operation in North America exist in a
variety of types, ages and degrees of automation. The press utilizes steam to heat
or cure the green tyre. Rubber curing or vulcanization transforms the tacky and
pliable material toa non-tacky, less pliable, long-lasting state.
f. Inspection and Finishing
Following curing, finishing operations and inspection remain to be performed

before the tyre is stored or shipped. The finishing operation trims flash or excess
rubber from the tyre. This excess rubber remains on the tyre from vents in the
curing mold. Additionally, excess layers of rubber may need to be ground from
the side walls or raised lettering on the tyre. One of the major health hazards
that workers are exposed to while handling a cured tyre is repetitive motion. The
tyre finishing or grinding operations typically expose workers to cured rubber
37
dust or particulate. This contributes to respiratory illness in workers in the
finishing area. In addition, a potential exists for solvent exposure from the
protective paint which is often used to protect the side- wall or tyre lettering.
After finishing, the tyre is ready to be stored in a warehouse or shipped from the
plant.
2.9 FUTURE GROWTH AND ASPECTS
According to an industry report the domestic automobile industry which is

currently the fourth largest in the world is expected to become the third largest
by 2021. The industry (including component manufacturing) is expected to
grow at a compounded annual growth rate of 5.9% and reach USD 251.4-282.8
billion by 2026, thereby becoming the fastest growing industry in the country as
per the report. While there have been some headwinds like Kerala floods,
tightened financing, insurance related regulatory changes impacting two-
wheeler (2W) demand, rising fuel and interest costs, among others, the YTD
(year-to-date) sales growth across, most segments have been robust leading to
healthy OE tyre demand growth. Replacement tyre demand, especially in the
truck and bus segment, too has recovered sharply in the last one year supported
by post-effects of goods and service tax (GST), pick-up in infrastructure
activities, and healthy consumption driven demand. Besides, tyre exports have
been steadily increasing in the last one year with recovery in tyre demand from
overseas markets and rising competitiveness of Indian tyre makers, both in terms
of quality and pricing, 1cr stated. The tyre industry in the country has witnessed
large capacity additions in the last decade with a cumulative spend of around Rs
27,800 crore, of which about 70 percent was spent in the last six years and
aspects -
• Is to be the No 1 tyre company in India

• To be the largest tyre export company in India
• To be a customer obsessed company
• High quality of products
• Profit maximizes
38
2.10 ANALYSIS OF FINANCIAL STATEMENT
2.10.1 Cashflow statement of JK tyre
In financial accounting, a cash flow statement, also known as statement of cash

flows, is a financial statement that shows how changes in balance sheet accounts
and income affect cash and cash equivalents, and breaks the analysis down to
operating, investing, and financing activities. Essentially, the cash flow
statement is concerned with the flow of cash in and out of the business. As an
analytical tool, the statement of cash flows is useful in determining the short-
term viability of a company, particularly its ability to pay bills. International
Accounting Standard 7 (IAS 7) is the International Accounting Standard that
deals with cash flow statements
Y/e 31 Mar (In.Cr ) Mar – 21/22 Mar – Mar - 18
20
Profit before tax 497 89.1 118
Depreciation -387 -378 -299
Tax Paid -201 166 -44
Working Capital 1018 1245 843
Other operating - - -
items
Operating 927 1122 618
cashflow
Capital 6604 6216 4374
expenditure
Free cash flow 7532 7338 4992
Equity raised 3130 2854 2753
Investments 59.9 39.5 24.4
Debt financing/ 4179 4079 4001

disposal
Dividends paid - - 34
Other items - - -
39
Net in cash 14901 14310 11804
.
2.10.2 Profit and loss statement of JK tyres
The term profit and loss (P&L) statement refers to a financial statement that
summarizes the revenues, costs, and expenses incurred during a specified period,
usually a quarter or fiscal year. These records provide information about a
company's ability or inability to generate profit by increasing revenue, reducing
costs, or both. These statements are often presented on a cash or accrual basis.
Y/e 31Mar(In.Cr) Mar –21 Mar – 20 Mar – 18

Revenue 9120 8725 8272
Your growth % 4.32 5.47 7.58
Raw Materials -5469 -5337 -5250
As % of sales 60.1 61.2 63.5
Employee Cost -923 -923 -818
As % of sales 10.1 10.6 9.89
Other costs -1404 -1477 -1469
As % of sales 15.4 16.9 17.7
Operating profit 1306 988 737
OPM 14.4 11.3 8.91
Depreciation -387 -378 -299
Interest Expense -466 -549 -466
Other income 43.1 28.4 146
Profit before tax 497 89.1 118
Taxes -201 166 -44
Tax rate -40 186 -37
Minorities and other -14 1.75 3.12
Adj. Profit 282 257 77.5
Exceptional items 37.5 -106 -11
Net profit 319 151 66
40
Your growth % 112 128 -82
NPM 3.51 1.73 0.8
2.10.3 Balance sheet of Jk tyres
In financial accounting, a balance sheet (also known as statement of financial

position or statement of financial condition) is a summary of the financial
balances of an individual or organization, whether it be a soleproprietorship,
a business partnership. a corporation, private limited company or other
organization such as government or not-for profit entity. Assets, liabilities and
ownership equity are listed as of a specific date, such as the end of its financial
year. A balance sheet is often described as a "snapshot of a company's financial
condition". Of the four basic financial statements, the balance sheet is the only
statement which applies to a single point in time of a business' calendar year.
A standard company balance sheet has two sides: assets on the left, and
financing on the right-which itself has two parts; liabilities and ownership
equity.
Y/e 31 Mar ( In.Cr ) Mar – 21-22 Mar – 20 Mar - 18
Equity capital 49.3 49.3 45.5
Preference capital - - -
Reserves 2623 2282 1916
Net worth 2673 2331 1961
Minority interest debt 4656 5549 5811
Deferred tax 927 1018 965

liabilities(net)
Total liabilities 8363 8993 8879
Fixed assets 6542 6666 6451
Intangible assets - - -
Investments 147 140 128
41
Deferred tax assets 605 815 584
(net)
Net working capital 895 1235 1585
Inventories 1789 1618 1448
Inventory days 71.8 67.7 63.9
Sundry Debtors 1575 1848 1545
Debtor days 63.2 77.3 68.2
Other current assets 713 804 831
Sundry creditors -1574 -1688 -1165
Creditor days 63.1 70.6 51.4
Other current -1609 -1347 -1074

liabilities
Cash 174 137 131
Total assets 8363 8993 8879
SHARED VALUE:
Shared values are what engender trust values are identified by which a company
is known throughout the business area. These values must be explicitly stated as
both corporate objectives and individual values. A shared value is an essential
characteristics or attribute promoted by organization to motivate the behavior of
members, of the organization. In simple words, shared values are what engender
areas. These values must be explicitly as both corporate objectives and
individual values. Respect humanity: improving quality reducing scrap.
Reducing cost and improving productivity in one way to do creative work,
which will benefit the society consisting of the consumer, the employee, the
supplier.
42
OTHER ORGANIZATIONS OF JK GROUP
JK Organization, the Rs 21,000-crore conglomerate with a workforce of over

40,000, has business interests across the globe, spanning over 90 countries. The
JK Organization traces its origin in the 18th century, when it came into being
under the leadership of Lala Kamlapatji and his father Lala Juggilalji, therefore
the name ‘J.K.’.While the flagship businesses are Tyre & Industries, Cement
and Paper, the group umbrella also includes Fenner India, JK Seeds, Umang
Dairies and JK Agri Genetics. The group also has a significant presence in the
clinical research and insurance solutions through its companies: Climax
Tangent Research and JK Risk Managers & Insurance Brokers Ltd.
The pioneering spirit of J.K. Organization which has been constantly striving to
provide best products to its consumers also felt the need to have a functionally
effective education system for the growing generations of India. While it
continues to run various schools across its facilities in different parts of the
country under the Lakshmi pat Singhania Foundation, The JK Lakshmi pat
University at Jaipur has taken up the responsibility to shaping up the new-age
new-age technocrats and business leaders.
The conglomerate is also in health care services. While every plant of the group
has primary healthcare facilities for its employees and communities living
around them, it runs the Pushpawati Singhania Research Institute for
Liver, Renal and Digestive Diseases, New Delhi, the JK Institute of Radiology
& Cancer Research, Kanpur and the Lakshmipat Singhania Institute of
43
Cardiology, Kanpur.
The Group on an expansion spree with the three flagship businesses The Tyre
business has recently announced an investment of INR 1,430 crore to expand
capacity for the production of trucks, buses and car radial tyres at its plant near
Chennai over the next 15 months. The other flagship business JK Lakshmi
Cement also announced its expansion plan with a cost structure of Rs 1,550
crore, involving setting up of a 2.7 million-tones-a-year (mtpa) Greenfield
project at Drug, Chhattisgarh along with captive limestone mine and two
grinding units. Continuing the growth momentum is JK Paper business that has
commissioned its Rs 1,750-crore expansion at Rayagada, Orissa, adding nearly
60 per cent to its paper production capacity. And others are
• JK Tyre
• JK Paper
• JK Lakshmi Cement
• JK Risk Manager and Insurance Brokers Limited
• JK Agri Genetics Limited (JKAL)
• Umang Dairies Limited
• JK Lakshmi pat University
• JK Fener (Indian Limited)
• Climax
44
3.1 ORGANIZATIONAL DEPARTMENT STUDY
Organization structure plays an important role in reaching a goal co-operation

between the various departments in an organization plays a vital role in smooth
flow of works. The organization structure must not be planned in such a way,
which way give scope for failure in this company there are different department
headed by their respective managers who look after functioning of
development and also help in co-coordinating the activitiesof various unit
3.2 Functional department analysis:
In order to achieve the objective of the company. The organization is divided in

the departments. Departmentation is necessary to have a good span of control
and also to increase efficiency as well aseffectiveness. In this, persons during
same kind of work/dealing with a common task or using same final of machine
are put under single departments. Thus, the total work is divided among people
working in various departments. The management integrates their effort, so that
their efforts are directed towards a common objective.
The various departments of JK tyres:
45
• Production department.
• Human resource department.
• Stores department.
• Marketing department.
• Quality assurance department.
• Technical department.
• Financial department.
• Purchase department
• Engineering department
• Projects department
3.2.1 Production department:
Managing representative
ꜜ
Production department
Production personnel
Assistants
Workers
CEO plays main roll in production planning. He is the person who takes
decisions regarding productionactivities. He takes decisions regarding what to
produce how to produce how much to produce.
46
Functions of Production Department
a) Identifying Inputs
JK Tyre determines the quantity or volume of goods that should be produced

within a certain time frame and passes the information to the production
department. To meet production targets, the department establishes the
quantity of raw materials and types of machinery and equipment required to
achieve the desired output level, and may collaborate with the purchasing
department to source the inputs. If there isn't sufficient manpower to support
productions process, the production department asks the firm
b) Scheduling Production
JK Tyre determines the quantity or volume of goods that should be produced

within a certain time Frame and passes the information to the production
department. To meet production targets, the Department establishes the
quantity of raw materials and types of machinery and equipment required to
the desired output level, and may collaborate with the purchasing department
to source the inputs. If there isn't sufficient manpower to support productions
process, the production department asks the firm
c) Minimizing Production Costs
The production department is tasked with finding effective ways to lower

production costs. One simple way to do this is to keep the production machinery
and equipment well-maintained so the firm does not regularly incur repair costs.
Along with advising the business to adopt newer technologies, the department
can also assess the production line to identify opportunities for cost reduction.
For example, if the type of wood used a long time to air-dry – requiring an
investment in wood dryers – it could be less costly for a furniture manufacturer
to purchase dried lumber.
d) Ensuring Product Quality
Tyre production department must ensure finished goods meet minimum quality
47
standards. Apart from checking all products for faults as they move through
the production process, the department must perform rigorous tests on
prototypes for new products to ensure they meet quality benchmarks before
undergoing mass production. Techniques such as waste elimination and process
standardization also help to ensure and improve product quality.
e) Improve Existing Product
From time to time, the production department will furnish the research and
development department with information it can use to improve existing
products. For example, when the production department of a smartphone
manufacturer notices that the material it used to make phone casings bend
when subjected tosome pressure, the department must advise the research
team so that it can seek stronger.
2.10.4 WORKFLOW MODEL
A tire is a strong, flexible rubber casing attached to the rim of a wheel. Tires
provide a gripping surface for traction and serve as a cushion for the wheels of
a moving vehicle. Tires are found on automobile , trucks, buses, aircraft landing
gear, tractors and other farm equipment, industrial vehicles such as forklifts, and
common conveyances such as baby carriages, shopping carts, wheel chairs,
bicycles, and motorcycles.
Tires for most vehicles are pneumatic; air is held under pressure inside the tire.
Until recently, pneumatic tires had an inner tube to hold the air pressure, but
now pneumatic tires are designed to form a pressure seal with the rim of the
wheel. Scottish inventor Robert Thomson developed the pneumatic tire with
inner tube in 1845, but his design was ahead of its time and attracted little
interest. The pneumatic tire was reinvented in the 1880s by another Scotsman,
John Boyd Dunlop, and became immediately popular with bicyclists.
Natural rubber is the main raw material used in manufacturing tires, although
synthetic rubber is also used. In order to develop the proper characteristics of
strength, resiliency, and wear-resistance, however, the rubber must be treated
with a variety of chemicals and then heated. American inventor Charles
48
Goodyear discovered the process of strengthening rubber, known as
vulcanization or curing, by accident in 1839. He had been experimenting with
rubber since 1830 but had been unable to develop a suitable curing process.
During an experiment with a mixture of India rubber and sulfur, Goodyear
dropped the mixture on a hot stove. A chemical reaction took place and, instead
of melting, the rubber-sulfur mixture formed a hard lump. He continued his
experiments until he could treat continuous sheets of rubber. Today, large,
efficient factories staffed with skilled workers produce more than 250 million
new tires a year. Although automation guides many of the steps in the
manufacturing process, skilled workers are still required to an assemble the
components of a tire.
49
3.2.2 QUALITY CONTROL DEPARTMENT:
Quality Assurance Head
Quality Assurance Manager
EMS (Environmental Management Services) & Safety Manager
Quality Services Manager
Quality control is maintained by the company’s top authorities in order to

achieve best quality. Several activities are needed to be performed there
must be inspection and control of input of rawmaterial. In JK Tyres has
separate department to carry out all quality control functions.
Functions of quality control department
• Control of engineering quality
JK Tyre CEO assists in evaluation of customer’s requirement to arrive at a clear

understanding of the product quality objectives. After evaluating the customers
requirement and the design proof test for the conformance of quality of product.
The design documents should be assuring all drawing and specification are
correctly used according to the collected information.
• Control quality of raw materials purchase
JK Tyres purchase raw materials from approved suppliers only. Inventory is

maintained for a period of 10 days; suppliers are evaluated half yearly for their
consistency in sullies and consistency in delivering q quality product to the
company. If he doesn’t match the criteria then corrective action is taken and he
is informed for their lapses that are occurring and if he does not correct then
50
another supplier is taken for consideration based on the supply capacity and
consistency.
a) Scheduling
Scheduling is done to avoid bottlenecks in production like overloading the

machinery or the workmen. after the loading it involves the assignment of
starting and completion time for various operation to be performed .it involves
the preparation of time table which would indicate the total time needed for
manufacturing of a productand machines it concerned with when shall be done
scheduling process covers all aspects of the timetabling of production.
b) Dispatching
In this function, dispatches of the finished goods are made as per the delivery
schedule oars per the purchase order need from the customer.
c) Progressing/follow up
Follow up is the last function which managing representative ensures that the
work is carried out as planned or follow up activity is done to examine whether
work is going on as per the plan and if any variation is found a corrective action
or preventive action is taken to ensure that any kind of deviation is from the plan
does not happen.
d) Controlling of manufacturing quality
The output in every stage of production is monitored for process and product
quality. Only after the approval by the quality control personnel the output
product goes to the next stage of production. If the product does not meet the
quality properties the product is identified and kept separately for corrective
action. Satisfaction assessments are done half yearly and repeat orders from
customers indicate high degree of satisfaction.
Certificate of Quality
• ISO 9001
• QS 9000
• Environment Management System [ ISO 14001]
51
• E – MARK
• Dot [ Department of Transformation]
3.2.3 Human resource department:
President and Director
Deputy General Manager
Deputy Manager
Officer
Managing representative maintains and takes decisions of the human resource

department. The management gives value to the suggestions of employees and
if they are helpful to the organization it is implemented. This encourages
employees’ proactive participation for the betterment of the organization.
Functions of Human Resources Department
a) Ensure Compliance with Labor Laws
One of the chief duties of the human resources office of your company is to
ensure the business operates in compliance with all labor laws. The department
has to know and comply with that state’s particular set ofrules employment
regulations. This includes such issues as the number of breaks given per number
of hours worked and the number of hours and the age in which an individual
can become employed.
b) Recruitment and Training
52
Recruiting and training new employees are primary responsibilities of the
human resources team. This part of the job often entails advertising open
positions, interviewing and hiring candidates and setting aside hours devoted to
training the new recruits. The human resources department often publishes
training materialsincluding handbooks detailing all aspects of the job.
c) Record Keeping and Tax Compliance
The HR office is in charge of record keeping for the business. According to the
IRS, your company should keep records regarding income, expenses, purchases
and a summary of business transactions. The human resources department
should also, of course, maintain employees’ records including their individual
tax forms. The company’s business license, inventory statistics, insurance
records and all other pertinent business information should also be on file
d) Payroll and Benefits
The dispensation of payroll comes under the responsibilities of the human

resource office. While payroll Often exists as a separate division in large
companies, in small businesses, it is generally handled by a small resources
staff. Health care benefits are also handled by the human resource department.
e) Employer-Employee Relations
key function of the HR department is the managing of employee relations. When

there is a dispute or misunderstanding between employees or between
employees and a manager, it is the human resource officers who mediate the
situation. Employees are encouraged to bring relational problems to the
attention of thehuman resources staff for resolution.
f) Employee Performance Improvement Plans
The human resources department is often instrumental in setting up

performance improvement plans commonly called PIPs. In general, these are
written proposals designed to help struggling employees improve their work to
raise it to a certain expectation level of the company. The PIP may include a
53
description of the behavior or performance that needs attention, objectives to be
met within a certain time period, a plan for accomplishing the improvement
along with support and detailed consequences if the improvement does not
occur.
Sl. Departments No. of

No Employees
1. Human Resource Department 08
2. Production Department 45
3. Research and Development 04
4. Engineering Development 26
5. Quality Assurance Department 10
6. Industrial Department Engineering and 06

planning Department
7. Stores Department 14
8. Administrative Department 04
9. Account / Finance Department 12
10. Purchase Department 06
11. Projects Department 32
12. Safety Department 06
13. Marketing Department 05
14. Base Stores Department 06
15. Raw Materials stores Department 08
16. Workmen including Apprentices and 1900

Contract (per shift)
TOTAL 2092
54
Factory Maintenance
It includes planning of all maintenance activities like preventive maintenance,

corrective maintenance,replacement policy, replacement of spares, emergency
maintenance etc. It is done to carry out all these function in a systematic
manner so that it fulfills the need of maintenance system.The following details
play an important role in maintenance planning activities.
• Failure analysis for scheduling.
• Planning of maintenance schedule.
• Maintenance recording system
• Monitoring and Control
• Overhauling and re-conditioning.
Types of maintenance system.
• Break down maintenance.

• Preventive maintenance.
• Predictive maintenance.
• Proactive maintenance.
• Total productive maintenance.
Stores Department:
There are three store departments in JK Tyre and industries. Namely...
1. Raw materials stores
2. Engineering stores
3. Finished goods stores
55
2.3.4 FINANCE DEPARTMENT
Managing representative
Finance department
Accountant
ꜜ
Staff member
Finance department is maintained by the representative. Financial planning is

done by the CEO and finance manager of the company. They discuss each other
and make the decisions. The financial department maintains the following:
• Maintain the daybook register.

• Break-even analysis.
• Ratio analysis.
• Turn over ratios.
• Preparation of balance sheet.
Functions of Finance Department
a) Bookkeeping
This involves tracking and recording every single transaction associated with
your startup. The objective of the finance department is to maintain flawless
bookkeeping. This role also includes payroll management, and providing the
right chart of accounts for managing MIS expectations of the management.
b) Tax and Compliance
The finance department must ensure that statutory compliances are in order for
56
the startup by submitting all government paperwork accurately and in a timely
manner. A robust maker-checker process can be implemented to reduce any
chances of error.
c) Finance Planning & Analysis
The finance department’s role goes beyond just bookkeeping. It also involves
data analysis to provide insights for decisions that impact the future. The finance
department must be in a position to scrutinize any decisions taken by the senior
management, analyse its efficiency, and assess the risks involved. Providing
timely and accurate information to assist decision-makers is a highly valued
KPI of the finance department.
d) Providing Strategic Guidance
Another key responsibility of the finance department is in crafting strategy that

could potentially drive the growth of the start-up. The availability of data
collected from sophisticated tools, combined with the right expertise and refined
strategy can help set realistic long-term goals for the startup. Some of the areas
where the finance department can add significant value is in identification of the
right pricing strategy, target market, and even product mix.
e) Fund Raising
Startups seeking to raise funds in the near future must ensure a well-kept
book. The right way toconvince an investor of your startup’s capabilities could
lie with your finance department. Operational excellence is critical to fund
raising and can be driven by a team of financial experts.
Commercial services:
1. Accounts
2. Costing
3. Banking and treasury
4. Purchase-capital equipment
5. Contracts
57
6. Customer co-ordination and licenses
3.3 Budgetary control at JK tyres Ltd:
It is a process by which financial control is exercised within an organization.

Budgets for income/revenue and expenditure are prepared in advance and then
compared with actual performance to establish variance. Managers are
responsible budgetary period and are required to take remedial variants are
regarded as excessive. JK Tyres and industries Itd follows the technique of mix
method using R&D department helps and standardizes costing for the production
and for the purpose of comparing with actual cost to find the difference between
actual budgets.
3.3.1 Steps followed for budget in JK Tyres Itd:
Basically, as all organization follows, JK Tyres also ascertain the previous

year data on sales production cashand fund flow, raw material supply etc. Based
on these information budgets is prepared Majority based on market and
production budget relative to sales and production is prepared. After the
ascertainment of previous year data and discussion with various budget related
department like technical department, administrative department, finance
department, production department, meeting will be held and with the minutes
budget related to respective department are fixed.
3.3.2 Budgetary methods followed in JK Industry:
1.Material Cost:
related to production to reduce the cost of production with same quality level.
JK Tyres followa fix variance analysis. Normally standards costing method is
used to check the difference between actual and budgeted if the variance is there
it is tried to balance with budgeted by change the purchase in material cost.
2.Labor Cost:
58
JK Tyres and Industries to maintain labor cost as per budgeting labor are
educated about the material handling to reduce and skilled and unskilled labor
are provided in department where required to maintain their salary cost.
For example: instead of employing 2 skilled labors for engineering department.
1 skilled and I unskilled labor can be utilize for shifting small tool and for
housekeeping purpose etc.
3.4 Fight against COVID-19
The pandemic COVID-19 is turning out to be a major global crisis. As we have

observed, this has impacted the means of livelihood of weaker sections of
people in general, and the migrantworkers.JK Tyre, part of JK Organization
is committed to support the Government's efforts and play its partin fighting this
pandemic with compassion and resilience.
JK Organization has already committed INR 10 Cr for the fight against Covid-
19. Over the past few weeks several initiatives have been implemented by us in
response to the crisis as mentioned below.
As a mass campaign, the local communities residing in nearby 50 villages have

been made aware about the protective measures against COVID-19.
Informative sessions about COVID19 have been organized for our
stakeholders- Business partners, dealers, suppliers, transporters & employees
through webinars in collaboration of PSRI Hospital, New Delhi. Many banners
and posters have been put up at prominent locations to bring awareness amongst
people as Corona Virus.
59
More than 30,000 masks and sanitizer bottles have been distributed among
employees & local communities to ensure their safety.
Fumigation/ dis-infection of manufacturing plant premises, transportation

vehicles, supplier'strucks, nearby localities, etc have been done.
60
Around 50 general health camps have been conducted wherein more than
5,000 patients have been attended and all the patients suffering from fever/
coughing have been advised to take precautionary measures
Around 10,000 food packets have been distributed comprising dry food materials
(Atta, Rice, Dal, etc ) among poor and needy people.
The R&D team of JK Tyre has developed a low cost and affordable ventilator
prototype and after approval, mass production of these ventilators may be done
depending on the need from District administration/Health Department.
61
4.1 SWOT ANALYSIS
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and so a
SWOT analysis is a technique for assessing these four aspects of your business.
SWOT Analysis is a simple tool that can help you to analyses what your
company does best right now, and to devise a successful strategy for the future.
SWOT can also reveal areas of the business that are holding youback, or that
your competitors could exploit if you don't protect yourself. In this article, video
and infographic, we explore how to carry out a SWOT analysis, and how to put
your findings into action. We also include a worked example and a template to
help you get started on a SWOT analysis in your own workplace.
4.1.1 Strength
Strengths are things that your organization does particularly well, or in a way
that distinguishes you from your competitors. Think about the advantages your
organization has over other organizations. These might be the motivation of
your staff, access to certain materials, or a strong set of manufacturing
processes. In JK tyres the strength are in as follows
• A strong pool of functional Vice President / General Manager

• Process based organization
• Involvement in people practice
• Strong HR process
• Strong employee relation
• JK tyre is the only company which has adopted TPM (Total Production
Maintenance)
• Absorption of International technology to suite Indian conditions
• Exports to more than 68 countries in the world
[It has 21% market share in India]
4.1.2 Weakness
Weaknesses, like strengths, are inherent features of your organization, so focus on

your people, resources, systems, and procedures. Think about what you could
improve, and the sorts of practices you should avoid. The weakness of the JK Tyre
• Rising employment cost
62
• High absenteeism among workmen
• Poor in change management and execution
• Ineffective succession planning
4.1.3 Opportunities
Opportunities are openings or chances for something positive to happen, but
you'll need to claim them for yourself! They usually arise from situations outside
your organization, and require an eye to what might happen in the future. They
might arise as developments in the market you serve, or in the technology you
use. Beingable to spot and exploit opportunities can make a huge difference to
your organization's ability to compete and take the lead in your market. The
opportunities of the JK tyres are as follows
• Talent management system

• ERP / TPM implementation
• Automation of work
• Excellent brand equity of India cross ply / bias truck in the world market
• Traffic through roads with resulting growth in demand for tyres
4.1.4 Threats
Threats include anything that can negatively affect your business from the
outside, such as supply-chain problems, shifts in market requirements, or a
shortage of recruits. It's vital to threats and to take actionagainst them before you
become a victim of them and your growth stalls.
Think about the obstacles you face in getting your product to market and selling.
You may notice that quality standards or specifications for your products are
changing, and that you'll need to change those products if you're to stay in the
lead. Evolving technology is an ever-present threat, as well as an opportunity. JK
tyres also having the threats and they are
• Attribution of talent to Non tyre industry

• Gradual increasing in natural rubber price
• Faster pace of opening up of economy will increase import of tyres
• Reduction of import duties will lead to high volume of tyres import
• Competition posed by National and International market
63
• Too much intervention by the Head Office.
4.2. MCKINSEY’S 7’S FRAME WORK

4.2.1 Structure:
Organization structure refers to the relatively more durable organizational
arrangements andrelationship. JK Industries Ltd., has both formal and informal
type of organizations
4.2.2 System:
System refers to the procedure and process such as the information process,
budgeting and the control process. The JK Vikrant plant has a wide scope and
covers almost all areas of human resources; mainlyit covers the following areas:
• Environment Management System: JK Tyre recognizes the impact that their
business has the environment and takes the responsibilities for maintaining
harmony with nature. JK Tyres are the first tyre company in India to receive ISO
14001 certification for multi-location operations in 1999.
• Internal Control System: The philosophy of the company with regard to
adequacy of internal control system has been the formulation of effective
systems & their strict implementation to ensure that assets& interests of the
company are safe guarded, checks & balances are put in place to determine the
accuracy & reliability of financial data
4.2.3 Strategy:
• The main strategy is to ensure maximum utilization of available resources. For

this purpose, the company believes in mainly prompting from within the
organization and there by encourages its people to strive for higher management
stability.
• Marketing Strategy: Strategic thinking is key to the evolution of successful
marketing strategies of JK tyre. This involves the following analyses:
• Product and Service Planning: Analysis of the customer’s promotion of the
brand, both of the firm and competitors, besides an analysis of the situation in
which the customer uses the product.
64
• Distribution: Structural changes in inventory management, mobile distribution
is some of the key factors that are going to affect the distribution process in the
Indian market.
• Waste Elimination Strategy: The Company insists one education on continuous
basis for the workers andthe staff. Total productive maintenance (TPM) and
quality circle is practiced from the lowest level, as a management seeks
continues improvement from workers in every record. There exist clarity of
vision and goal within the company as a result of which the productive
efficiency of the company goes up energy conversation strategy. The company
maintained its focus on energy-on-energy consumption in face of rising energy
costs by continual investment in latest energy efficient system.
4.2.4 Skill:
Skill is the ability knowledge, understanding and judgment to accomplish a

task. Skills may be defined asthe company does best, the distinctive capabilities
and competencies that reside in the organization. The skills differ with respect
to performance of the skill differ with the performance they require a post
graduate with specification in Human Resource Management.
• Technical Skills: A technical skill refers to the ability and knowledge in using
the equipment, technique and procedures involved in performing specific tasks.
• Human Skills: Human Skills consists of the ability to work effectively with
other people both as individual and as member of a group, at JK Industries Ltd.
4.2.5 Style:
Style can be thought of as the culture of the organization, the overall attitudes,
or simply the way people behavearound one another at the office and within the
organization. There’s an old business saying coined by Peter Drucker; “Culture
eats strategy for breakfast,” (Rick, 2020). If true, (Drucker was a pretty smart
guy, so it’s a safe assumption) we can see that this is an essential aspect of
running a successful organization. If those around you are working hard and
taking pride in their work, you’ll be more likely to do the same. If everyone is
working slowly and taking little care to get things right, then you’ll feel less
pressure to perform yourself. The situational approach to leadership seems the
65
best suited to this organizational aspect, (Northouse, p. 93). Leadersneed to be
able to assess the situations at hand and make appropriate decisions based on
that. These leaders needto be extremely attuned to the feelings, behaviors and
culture of the organization, but a certain finesse is necessary to maintain morale
and overall focus. A good leader will understand when to inspire, when to offer
incentives, and when to crack the proverbial whip in order to keep the culture
strong in their organization.
4.2.6 Staff:
The person in an organization is called staff. Here it is very useful to think not
about individual personality but corporate demographics. An analysis of the
corporate demographics of JK Tyres reveals that most of the workerand staff
belong to the 30-40 age groups. 8900 employees in Jk tyre industries, including
subsidiaries and associates. 5,633 male employees and 3,267 female employees
4.2.7 Shared values:
JK industries Ltd, take initiative to do social project such activities like literacy
Tyre -The Green Citizen: JK Tyre is known for adopting environment-friendly
program for village people. Thus, some of the values that are shared by the both
employees and the management at JK industries limited is as follows:
• Jk Tyre - A Socially Responsible Corporate Citizen: JK tyre as a corporate

citizen has consistently to improve the quality of life of people in around its area
of operations & society at large. During the year under review.
• Jk practices. In yet another pioneering effort in India. In association with the
Footwear Design & Development Institute, innovative use of old Tyres was
explored.
• Shared values are what engender trust values are identified by which a stated
as both corporate objectives and individual values. A shared value is an
essential characteristics or attribute promoted by organization to motivatethe
behavior of members, of the organization.
• In simple words, shared values are what engender areas. These values must be
explicitly as both corporate objectives and individual values.
66
LEARNING EXPERIENCE
Day - 1
Date - 12/12/2022
We are interested and we got opportunity to do our Internship at Tyre Industry Jk

tyre at plant 1, Metagalli mysore.
Mr. Srinath K.S Sir [Asst. Manager HR & IR].
Mr. Jagadesh R Sir [ Sr. Gm - HR, IR EHS]
They gave us opportunity to do Business familiarization. Report on their company.
JK Tyres plants 1 mysore plant - (VTP) - Karnataka
mysore plant. 2 (VTP Radial) - Karnataka - Kankroli Rajasthan Etc. Vikrant tyre
Itd is situated. in an area of 53 acres in Mysore, VTL is a major tyre manufacturing
company and one of the most successful industrial ventures in the state of
Karnataka
• It helped me to know the overall functioning of departments in the organization.

• How the employees are motivated and trained in the organization towards
achieving their goals set by the organization.
• I have established a good relationship with the employees in the organization.

Throughout the program,
DAY 2
DATE 13/12/2022
On day to We visited JK plant 1 Mr. Srinath sir explained that the tyre industry as
almost 40 manufacturers but is terminated by top 10 manufacturer also it could
divide into 6 categories based on the different auto segment
67
Different types of that categorized market segment like as follows
Tractor
LMV
Truck and bus tyres
Passenger cars
Two-wheeler
The plant was very clean and it was well organized into different categories no
space is wasted the category are store room warehouse and test units
• It was much different from the study as part of my study. The learning experience
gained by me during the internship training was much practical oriented.
• Mostly all the concepts and theories which I studied in the class, are applicable
practically.
DAY-3
DATE 14/12/2022
I learned about Time management It also helped me to know the Co-ordinations

between the different levels in the organization, and also helped me to know the
leadership skills it gave me a practical experience of the various functional area of
which
I only had a theoretical knowledge so far This company cleanly maintain the
daybook register, Break-even analysis, Ratio analysis,
Turn over ratios, Preparation of balance sheet.
• In JK Tyres has separate department to carry out all quality control function There
are 2092 employees are working in this department.
68
• HR department to manage employee discipline and also maintain the housekeeping,
cleanliness, garden.
• inventory and preparing a current estimate of quantities of store to various

consuming centers.
DAY 4
DATE 15/12/2022
On Day 4 We Prepared the Soft Copy of Our BFR Report and Showed to The
Srinath Sir to Take Our Certificate of Completion and Also Sir Provided the
Essential Information Regarding the Measures Taken in Covid 19 Time
The overall study of the organization reveals that the company has grown
tremendously. I also learned that participative leadership style motivates each and
every employee to greater height possible.
DAY 5
DATE 16/12/2022
I could also analyze the strengths and weakness of the company. I broadened my
views and improved my communication skills, Besides, I found that having flexible
mind and attitude which is very important in the business world.
Srinath sir also given the information about the swot analysis and other
information which helped us a lot.
It is a safe and hygienic working environment It’s a good material management system
maintaining an economic level of investment.
69
BIBLIOGRAPHY
• www.jktyre.com
• www.//en.m.wikipedia.org
• www.madehow.com
• http://m.economictimes.com
70

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TYRE INDUSTRY

In 1823, Charles Macintosh found a practical process for waterproof fabrics,

This shipment remains “a source of controversy. Brazilians, conveniently

1.2 Category wise Market Segmentation

1.4 Historical performance of tyre industry

1.5 Analysis of the Industry

The five-force analysis of the industry reveals the following facts.

Bargaining power of Buyers – The Industry has more than 40 manufacturers

1.7 Market dynamics

JK Tyre was incorporated as a private limited company in West Bengal in

JK Tyre and Industries Ltd., engages in manufacturing of automobilities, tubes

JK Tyres customer base covers virtually the entire original equipment

The company has a technical collaboration with M/s Continental AG,

JK Tyres are specifically designed in accordance to the different loading and

2.1.1 NATURE OF BUSINESS

We will continuously anticipate and understand our customer’s requirements,

2.1.1 TODAY JK TYRE:

2) It is the only supplier of the tyre for Mercedes Benz

4) 2nd largest manufacturer for 4 wheelers in India

5) 16th largest tyre manufacturer in the world

6) First Indian company to export for radials to Europe

7) First Indian company to export over 45 countries across Six Continents

9) J K Tyre has 25-customer centers around the country.

To be amongst the most admired companies in India committed to excellence

▪ Be a customer obsessed company - customer first 24*7

2.2.3 QUALITY POLICY

2.3 PRODUCTS AND SERVICE PROFILE

a. Truck and bus tyres: -

b. Passenger car tyres

Motorcycles accounted for 76% of two-wheelers sold in the domestic market

Segment according to vehicle industry: -

a. Vehicle manufactures or OEMs: -

The replacement market, including State transport undertakings and

• Replacement demand in India is higher because of a low vehicle scrap page

• Radicalization of tyres is likely to result in lower replacement demand.

PRODUCT Warranty Period

For a period of three years from the date of manufacture

For a period of five years from the date of manufacture

For a period of three years from the date of manufacture

For a period of Six years from the date of manufacture

OTR TYRES For a period of five years from the date of

Product Warranty Period

(Replacement) invoice (Proof of purchase is required), or till the

All tubes JK Tyre Tubes are warranted for a period of two

• Tyre warranty is applicable to the first owner of the product.

c. Heal the wheel

d. Tyre care center

JK Tyre understands the importance of service in the commercial segment and

Fleet Management is a concept created by JK Tyre to offer added value to its

2.4 AREA OF OPERATIONS

JK Tyre, in April 2016, acquired Cavendish Industries Limited in Haridwar,

PARTICULARS Sep-2021 Jun-2021 Mar-2021 Dec-2022

Indian 55.93% 56.23% 56.23% 56.23%

The competitive landscape of India tyre market is consolidated at the moment.

Although the industry enjoys involvement of 40 players, 90-95 of the market

a. MRF India Ltd. –

b. Apollo Tyres Ltd. –

c. JK Tyre and Industries Ltd. –