Objectives of the study y y y y y y y To study about the Indian tyre industry.

To study about the Marketing procedure and documentation. To study the advantages and disadvantages of tubeless tyres. To study and compare the brand image of J.K and its Competitors. To know how internal departments contribute to tyre exports. To know the Marketing channels of J.K Tyre. SWOT analysis of the JK tyre industry

The Founders J K Organization owes its name to Late Lala Juggilal Singhania, a dynamic personality with a broad vision. Inspired by the cause of the Swadeshi movement of Mahatma Gandhi, and driven by the zeal to set up an Indian enterprise, Lala Kamlapat Singhania founded J.K. Organization in the 19th century ushering in a new industrial era in India.

J.K.Tyre Ever since its inception it has been JK Tyre's belief in the value of technological superiority that has made it grow by leaps and bounds. This division produces and sells tyres and tubes under the brand name "JK Tyre" for Truck, Buses, Passenger Cars, Jeeps, Light Commercial Vehicles, Multi Utility Vehicles and Tractors. The company pioneered Steel Radial Technology in India in 1977 and continues to be the industry leader in the Radial segment in India. JK Tyre is the only Tyre Manufacturer in the country to produce high performance 'T' & 'H' -rated steel radial tyres. JK Tyre has consciously followed a policy of continuously modernizing and expanding its tyre manufacturing facilities to retain its edge in the market place. Our customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in India together with Replacement Market for four wheeler vehicles, Defense and State Transport Units. Besides India, we 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, J.K. Industries acquired Vikrant Tyres Limited, Mysore in 1997. J.K. Industries and Vikrant Tyres Limited are the only tyre companies in India to have received all three ISO 9001, QS 9000 and ISO 14001 certificates. This indeed is a true reflection of our commitment to system oriented approach. The company has a technical collaboration with M/s 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 advancements 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. With three plants located in Rajasthan, Madhya Pradesh and Karnataka, JK Tyre is the largest 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.

Also, JK Tyre is the largest exported tyre brand from India. It was awarded the CAPEXIL's Highest Export Award for 1997-98 by FIEO. It enjoys preferred premium brand status in Truck Bias market in USA and across many markets in Africa, Middle East and South East Asia.

ORGANIZATION STRUCTURE

Head Common with SSU # 6

Total Strength
23

QA Head
1

HR Head
1

Technology Head (Bias & Radial)

Manager - I (Tyre Eng., Proddev) Bias 1 Manager - II (Heat Eng - TTF & Bladder) - Bias 1 Manager - III (Field Eng) - Bias 1 Manager - IV (Design Moulds/ Tooling) Manager - V PE - Radial

Information Technology Head Information Technology

1 Manager - I

QA Manager 3

Technical Incharge (Truck Radial)

EMS & Safety Manager 1

Manager - VII Design - Radial Manager - VIII Heat Eng, Test House Manager - IX

Information Technology
2 Manager - II 1

QMS Manager 1

Information Technology
1 Manager - III 1

(RMs, Compounds, Textiles, Steel Wire 1 -Bias & Radial)

Manager - VI (Tyre Eng., Proddev) Radial 1

Note: Centralized at Plant I for Plant I & II

Global Tyre Industry

Sales top 75 Cos. - US$ 70.6 billion Top 10 Cos. Chinese Cos. Indian Cos. J K Tyre - 80 % - 4.5% - 2.5% - 18th largest

JK Tyre - Export Largest Tyre exporter from India Export value (FOB) - Rs. 310 cores Exports 7.7 Lac no (all types) Truck and Bus Tyres 6.2 Lac no

INDUSTRY AND COMPANY PROFILE

The Tyre Industry- A brief Introduction:
The rubber industry in the world made its beginning in 1887. It was because of the invention of the processing of rubber, vulcanization by Charles Goodyear. The growth of the industry, however received a good boost by century end, when John Boyd Dunlop succeeded in making of vulcanizing rubber tyres into inflatable pneumatic tyres. Since then, the tyre industry has continued to be a major segment of rubber industry all over the world.

Indian tyre Industry Past and Present:

The Indian tyre industry is about 55 years old. It is to be noticed that, the tyre industry was covered under essential commodities Act. The predominance of foreign multinationals prevailing in our country till 1960s has been considerably reducing now due to development of technology. The Indian tyre industrys past can be studied under the periods; 1920-1935 1936-1960 MNC trading in tyres. MNC manufacturing in India, and then selling it in domestic market and also exporting the same. 1961-1974 1975 onwards The entry of Indian companies into this sector. Broadening of production bases.

Firestone was the company that started the selling of tyres first in our country. They were then, followed by Dunlop in 1926 and later by Goodyear in 1942. Dunlop set up the first MNC tyre industry at Saharjung, West Bengal, in the year 1939. In 1936, Firestone setup its factory in Bombay. At present there are more than 20 licensed companies and 25 factories, which include 11 large scale sectors manufacturing the full range of tyres and tubes. The Indian tyre are having collaboration with giant tyre companies of USA, UK, West Germany, France and Japan, etc., significant changes have occurred in the tyre industrys manufacturing processes, that is change from Rayon to Nylon and the introduction of radial tyres of both steel belt and fiber glass.

The tyre industry in India has a range of tyres for trucks, busses, light trucks, cars, jeeps, trailers, short and long tillers, off road vehicles, heavy and light earth moving equipments, defense vehicles, aircrafts and specially designed vehicles and two-wheelers. The large tyre unit in India are, Apollo, Bombay tyre international, Ceat, Madras rubber factory(MRF), Dunlop, Good year, JK tyre, Birla tyre, and Vikranth tyres, etc. The company that manufactures tyres primarily for the two-wheeler segments are Srichakra, Falcon, Metro tyres, Ceat, MRF, Stallion. Tubes are produced by the large and the medium sector, of which 80% of the tubes are manufactured from natural rubber as well as imported butyl rubber. The inner rubber is covered under packaged commodities act.

JK Organization:
J.K. Industries is a corporate entity that is emblematic of excellence, diversification and pioneering new technologies. JK Organization ranks among the top private groups in India, J.K. Industries is committed to self reliance and follows an ethic that views customer satisfaction as an index of achievement. Over the years, the company has expanded and diversified its business portfolio. It has developed into a multi product, multi-location corporate entity comprising of following business divisions.

History of JK Tyres:
JK Tyre was founded in 1977. It built its first plant at Jaykaygram near Udaipur in Rajasthan. This was set up in technical collaboration with General Tire International Co, USA. Since then, the wheels of JK Tyre have moved only forward. It now has four plants at Kankroli (near Udaipur), Banmore (near Gwalior) and two at Mysore. To create its mark on the global highways, the company forged a technical partnership with Continental AG of Germany, the fourth largest tyre maker in the world. JK Tyre took over ailing Vikrant Tyres in 1997 and turned it around in ten months. The takeover brought the company to the forefront of the bus and truck segment. These are the three plants located in Rajasthan, Madhya Pradesh and Karnataka. 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. Ever since its inception it has been JK Tyre's belief in the value of technological superiority that has made it grow rapidly. This division 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 pioneered Steel Radial Technology in India in 1977 and continues to be the industry leader in the Radial segment in India. JK Tyres premium brand identity can be attributed to factors such as superior technology, performance and the durability of its products. JK Tyre has pioneered the manufacture of T-rated radials (capable of running at speeds of 190 km/hr) and H-rated radials (capable of running at speeds of 210 km/hr). Its two brands, JK Tyre and Vikrant, together offer a wide range of products catering to almost all the sectors of the automotive industry trucks, buses, light commercial vehicles, cars and tractors. JK Tyre has consciously followed a policy of continuously modernizing and expanding its tyre manufacturing facilities to retain its edge in the market place. The customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in India together with Replacement Market for four wheeler vehicles, Defense and State Transport Units. Also, JK Tyre is the largest exported tyre brand from India. It enjoys preferred premium brand status in Truck Bias market in USA and across many markets in Africa, Middle East and South East Asia. To stay at the forefront of technological advancements 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.

Quality Policy
We the people of JK Tyre 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 motto.

Quality Management:

ISO 9001 JK Tyre was the world's first tyre company to receive 'ISO 9001' certification for its entire operations in 1995 in one go. Our Quality Management System is completely integrated into all aspects of our operations. QS 9000 JK Tyre was the world's first tyre company to receive Quality Management System certification QS 9000', in 1998 for multi location operations. We are using 'QS 9000' system as a tool for continuous incremental improvement. Environment Management System (ISO 14001) JK Tyre recognizes the impact that our business has on the environment and take our responsibilities for maintaining harmony with nature. We are the first tyre company in India to receive 'ISO 14001' certification for multi location operations in 1999. "E-mark" JK Tyre is the only Tyre Company in India having the E-mark certification on their products, a mandatory requirement for exporting tyres to European Markets. "DOT" (Department of Transport) JK Tyre has the DOT certification on its products, a mandatory requirement for exporting tyres to US Market. "INMETRO" (Instituto Nacional De Materiologia - Brazil) We also have the certification from INMETRO a mandatory requirement for exporting tyres to Brazil (South America). This is a product as well as a system certification. Also this is a proof of superior quality of JK Tyre and our ability to meet stringent international standards.

The Company has the following Marketing Networks

The common marketing organization (CMO) manages the marketing of nylon bias tyres. The head office of the CMO is at New Delhi.

The head office at Mysore is connected with various regional offices, district offices, branch offices and carrying and forwarding agents throughout the country.

The truck radial group (TRG) manages the marketing of all steel truck radial tyres. The head office of the TRG is situated at Bangalore.

The Exports of the Company

Vikrant tyre plant exports its products to over 65 countries. The major countries include United States of America, United Kingdom, and New Zealand, Hong Kong and host of Middle East, African and Asian Countries.
Major Customers

The major customers of the company are Ashok Leyland, Telco, Maruthi, Mahindra, and Swarajmazda. State undertaking busses like KSRTC, APSRTC, MPSRTC, TNRTC, and KSRTC BEML. JK Vision To be the amongst the most admire companies in India committed to excellence JK Mission y y To be the largest & most profitable tyre company To retained No 01 position in truck and bus segment and to be amongst top two in all other 4-wheeler tyre y To make Truck/ Bus Radial operation profitable and Retain leadership in the passenger radial market y To be the largest Indian Tyre Export. Continue to be a significant player in the world in truck and bias market y y To be a customer obsessed company To enhance value to shareholders and services to all stake holders

y y
y

To develop a highly motivated team with a sense of Anand To Excel as a values driven organization To be the most preferred tyre brand in India.

JK Policies The policies of JK Include Safety policy, Quality policy, Environmental Policy, Laboratory policy, and TPM Policy
Product Range:

JKIL-VTP is engaged in design, development manufacturing and marketing automotive pneumatic tyres, tubes. The product range includes, Cross ply and radial tyres for trucks and busses, for light commercial vehicles, for passenger cars, for agricultural vehicles, for the off road vehicles and Automotive inner tubes for trucks, busses, light commercial vehicles, passenger cars and agricultural vehicles. y y y First manufacturers to launch T rated tyres in 1994-Ultima. First manufacturer to launch H rated tyres in 1996-97-Ultima 210H. Tyres in 1996-97-Ultima 210H, dual contact high transaction steel radials-Aqua Sonic.

First manufacturer to introduce Indias first range of Eco-friendly coloured tyres

Products

Products (National)

Global

Passenger Car Tyre o Ultima-XPS o Tornado o Rally o Ultima Sport o Ultima Royale o Vectra

LCV Tyre o Steel King o Brut e 4x4 o Brut e_LT o Elanz o

y y

LCV/ Truck Tyre o Jetste el JDH

o Jetway JUH o Jststeel JDH o Fleeting King o Jstxtra JDM o Jet RIB o Steel King o Jet Trak

SWOT ANALYSIS

Strengths: y y Over six decades of experience in tyre manufacturing. Self-sufficiency in tyre production (only some specialized tyre are not produced in the country). y Sizeable export on a continuous basis has created awareness about world market and confidence in competing in other countries. y Competitive domestic market with multiple sub brands offering wide choice to consumers.

Weakness: y y y y y In comparison to global standards, smaller size of plants and hence less economic units. Lower productivity of labor, in comparison to world standards Unwanted controls still stifling manufacturing and other activities Outdated labour laws Proliferation of units.

Opportunities: y Robust economic growth, particularly vehicle production growth resulting in healthy demands growth for tyres in future. y y Export procedure inculcated enabling participation I world tyre markets. Excellent brand equity of Indian cross ply / bias truck tyres in the world market can open the opportunities for export of trucks and passenger car radial tyres.

Threats: y y y y Faster pace of opening up of the economy will increase import of tyres. Reduction in import duties will lead to higher volume of tyres import. Multinationals with financial muscle setting up manufacturing facilities in the country. Confessional import tariffs for countries like china and South Korea under regional trade agreements will lead to additional imports.