CHAPTER - I INTRODUCTION

An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job. Organization is an identifiable group of people contributing their efforts towards attainment of goals. An organization begins when people combine their efforts for some common purposes. The organizational objective is considered to be more important in the organizational context. Thus, the individual efforts need to be directed and coordinated towards the organizational objectives. Since the organization comprises of a combination of individual efforts, it is necessary to understand how the individual behaves in the organization, how the individuals efforts coordinated to the success of the organization. Organizational study is the systematic study and careful application of knowledge about how people as individuals and as groups act within an organization. It studies about the various departments in an organization, how it is connected towards the organizational goal. Organizational structures developed from the ancient times of hunters and collectors in tribal organizations through highly royal and clerical power structures to industrial structures and today's post-industrial structures. In the 21st century, organizational theorists such as Lim, Griffiths, and Sambrook (2010) are proposing that organizational structure development is very much dependent on the expression of the strategies and behaviour of the management and the workers as constrained by the power distribution between them, and influenced by their environment and the outcome. An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizations are a variant of clustered entities. An organization can be structured in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and
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individual. Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organizations actions. Apollo Tyres Ltd. is one of the largest tyre manufacturing companies in India. The company was incorporated in 1972 and commenced its production in 1977. It was the first company to receive ISO 9001 accreditation in Indian tyre industry. In 2006, Apollo acquired Dunlop tyres of South Africa. The company has its operations in India, Zimbabwe, Netherland, Korea and South Africa with a network of over 4000 dealerships in India alone.

Scope of the study

Organisation structure of companies varies from company to company and it is complex to understand. A study of this kind will facilitate in knowing the organisation structure prevalent in Apollo Tyres Ltd. and the factors related to it.

Objectives of the study

1. To study the organization structure of Apollo Tyres Limited. 2. To understand the various key functional areas of the company. 3. To get an idea about existing business operations at Apollo tyres. 4. To interact with managers at various levels of the organizational hierarchy. 5. To analyze the practical aspect in relation to the theoretical aspect of the organization. 6. To gain a clear picture about the challenges and activities faced by the organization. 7. To observe the work culture existing in the organization. 8. To identify the strength and weakness of the organization.

9. To analyse competition within the industry. Methodology

The study has been conducted in Apollo Tyres Ltd., Kalamassery. The study is undertaken by visiting the plant. The study is based on both primary and secondary data.

1. Primary Sources
Direct interview with the department heads Discussion with the divisional heads Interaction with workers in the company Data collected by observing the function of the organization

2. Secondary Sources
Annual reports of the company Department manuals Periodicals, books, etc. published materials by the company

Internet websites (www.apollo.com, www.google.com) Tools of study

The data collected are systematically presented in tables, charts and diagrams. Further analysis is done using ratio, trend and SWOT analysis.

Period of study
The study is done for 30 days at Apollo Tyres Ltd., Kalamassery.

Limitations of the study

1) The time period available for the study was limited 2) The study was conducted only during the day shift and hence the working conditions of those employees working during the evening and night shifts could not be examined.

Chapterisation
The study includes eight chapters. I. First chapter begins with an introduction of organization and organization structure, scope of study, objectives of study, methodology, tools of study, period of study, limitations and chapterisation.

II.

Second chapter is industry profile consisting of International and Indian scenario of tyre industry.

III.

Third chapter gives a description of Apollo Tyres Limited consisting of the history, mission, objectives, goals, product profile and future growth plans of ATL.

IV.

Fourth chapter deals with the organisation structure and design, explaining the type, approach and factors of organisation structure adopted in Apollo Tyres.

V.

Fifth chapter is the departmental profile describing the functions, role and structure of various departments in Apollo Tyres Limited, Kalamassery.

VI.

Sixth chapter shows the financial highlights of Apollo Tyres Limited for last three years.

VII.

Seventh chapter is the SWOT (Strengths Weaknesses Opportunities Threats) Analysis of Apollo Tyres Limited.

VIII.

Eighth chapter explains the findings, conclusions and suggestions derived from the study.

CHAPTER II INDUSTRY PROFILE

INTERNATIONAL SCENARIO
The world tyre industry is worth around US$70bn. The industry is marked by a presence of around half a dozen major players who together occupy 70% of the world market share. The table below indicates the individual market share of the major players.

Companies Michelin Bridgestone Goodyear Continental Sumitomo Pirelli Yokohama Kumho Others Source: The Financial Times

Market share (%) 19.4 19.4 16.6 7.1 4.9 3.9 3.5 1.7 23.5

The worldwide tyre industry is likely to witness more restructuring efforts after the deal between Goodyear and Sumitomo of Japan. Analysts are speculating that there will be only six to seven major players across the globe. The 'big three' of the industry i.e. Michelin, Bridgestone and Goodyear (before its alliance with Sumitomo) each had annual sales of US$12bn. Inevitably, the alliance has increased the competitive pressure on second-tier majors, notably Continental of Germany, Pirelli of Italy and Yokohama of Japan. They would also have to go on the acquisition route in order to survive. The structural developments are taking place against a background of continuing overcapacity in the industry, estimated at

around 30% and slow growth in Latin America and the Asia-Pacific region in the wake of their financial crises.

Worldwide Sales of Tyres Mn nos. OEM Replacement Total Cars 217.7 482.4 700.1 % of total Truck 31.10 68.90 100.00 50.6 198.2 248.8 % of total Total 20.3 79.7 100.0 268 681 949 % of total 28.3 71.7 100.0

Source: The Financial Times

One striking feature, which comes out prominently from the above table, is that major part of world sales of car and truck tyres is to the replacement market. The replacement market is self-perpetuating and has inbuilt growth despite short-term setbacks from time to time. As the worldwide automotive sales are rising by a marginal 2% per annum, sales to the replacement segment will continue to dominate. However, some recent trends in new vehicle manufacturing will go to help the OEM segment. World over the time needed to bring a car from the drawing board stage to the market place has shrunk from six to two years in the last decade. Today, tyres are being purpose-developed for each new model with technicians working alongside car suspension engineers. Secondly, new markets like India and China offer the world major tyre producers a large market to exploit. In its latest industry analysis, the Economic Intelligence Unit (EIU) forecasts that sheer muscle in terms of marketing and technical development will enable the three biggest players to continue to take an ever-larger share of the global market, reaching 70% by 2005 from little more than 50% now.

INDIAN SCENARIO
The Indian Tyre Industry is an integral part of the Auto Sector and its fortunes are interdependent on those of the Automobile players. For the year 2010-11 the industry has clocked a turnover of almost Rs. 30,000 Cr. of which 90-95% has come from the domestic market. While there are around 40 tyre manufacturers in India, the top 10 tyre players account for around 90-95% of the total tyre production in India. The tyre industry can be divided into 6 categories based on the different auto segments that they are manufactured for. The table given below gives the category wise production for 2010-11. On a volume basis, the 3 major segments for the tyre industry are Two-wheelers, Passenger Cars and Truck and Bus (T&B).

The table given below gives the list of the top 3 players (considering their market share as per volumes) in these 3 major segments.

As seen in the above table, the T&B (Truck & Bus) segment is highly competitive with the top 3 players having market share very close to each other. JK Tyre is slightly ahead with a 22% market shares. Apollo Tyres is the market leader in Passenger Car segment with 24%. MRF which has a good presence in all the segments is the leader in Motor Cycle with 28% share.

Review of the Tyre Industry

MRF is a market leader in the Indian Tyre Industry with a market share of ~30%. It has total turnover of Rs. 8589.68 Cr. with average margin of 3.37% which is lower than industry average of ~4%. Its Net Sales has grown strongly with a 5 year CAGR of close to 18%. It also has one of the highest Net Profit growth rates with a growth of 68.3% CAGR over the last 5 years. However, in terms of net sales growth and highest profit margins, Balkrishna Industries Ltd. is far ahead from other industry players. Its Net Sales has grown strongly with a 5 year CAGR of 27.87%. It also has highest profit margin of 10.55% (5 year average) in the industry. This is because it operates in Off-the-Road tyres, a niche segment. Other major players are Apollo Tyre, JK Tyre & Industry, CEAT and Goodyear India.

CHAPTER - III COMPANY PROFILE

History of Apollo Tyres Limited

Named after the Greek Sun God, Apollo, the company Apollo Tyres Limited has created a niche for itself in the Indian tyre market. After three decades of consistent growth, today it becomes a premiere tyre manufacturing company of India and the world itself. The history of the Apollo tyres can be traced back 70s when MNCs and Indian tyre majors dominated the tyre industry. Apollo Tyres Ltd. A leader in the Indian tyre industry and significant global player, providing customer delight and enhancing shareholder value was registered in 1972. The license was firstly given to Ruby Rubber Works to start a rubber factory in Changanassery. In 1975 Raunaq Singh purchased the license from Ruby Rubber Works. It is one of the flagship companies of Raunaq Group. The plant is situated at Perambra 50km north of Cochin. Total area covered where 97 acres which was bought from people who stayed there at a cheaper rate. At the starting time the production capacity was 54 tonnes per day. Apollo Tyres Ltd., owned by Raunaq Group of industries plays an important role in the world of tyre industry. The products include tyres, tubes and flaps for all kinds of vehicles. The head office of the company is at New Delhi and registered office is at Cochin. The main marketing activities are concentrated in New Delhi and around 2400 exclusive dealers for Apollo cover the entire area of India. During 1977 to 1981 the company was under heavy loss. The capacity utilization was only 40 to 50 percent. The objectives of the company was redefined when Mr. Onkar S. Kanwar took over the companys affairs. Company began to earn profit and accumulated loss of 26 crores was wiped out within a short span of time. The second plant of Apollo Tyres Ltd. was installed at Limda village at Baroda in Gujarat, start production in 1991 having a capacity of 6.5 lakhs tyre per annum. Research & Development center is also functioning at this location. The third plant at Kalamassery was taken over by Apollo Tyres Ltd. from Premiere tyres. At the time of takeover Kalamassery plant was a sick unit. After the takeover Apollo spent a good amount in modernizing the plant
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and now it is a profit earning unit. The fourth plant was commissioned in 1996 at Pune for manufacturing tubes. The entire requirement of tubes for all plants of Apollo is done here.

History of Apollo Tyres Ltd. through years

1972 The companys license was obtained by Mr. Mathew T. Maratukalam, Jacob Thomas and associates. 1974 1975 1976 1977 1982 1991 1995 2000 2003 The company was taken over by Dr. Raunaq Singh and his associates. April 13, foundation stone of the Perambra plant was laid. Apollo Tyres was registered Plant commissioned in Kerala with 49 TPD capacities Manufacturing of passenger car radial tyres in Kerala Second plant commissioned in Baroda Acquired Premiere tyres in Kerala Exclusive radial capacity established in Baroda Exclusive radial capacity expanded to 6600 tyres per day, November 17, a joint venture with Michelin 2004 2005 2006 Launch of Apollo Aclere H speed rated car radials April 13, Perambra plant completes 30 years January 30, acquires Dunlop South Africa August 7, announced the launch of new plant in Chennai 2008 Announce possible green-field in Hungary ready by 2010 for European market; announce plant in Chennai(Tamil Nadu), India 2009 Acquired Vredestein Banden B V in Netherland

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Vision
A significant player in global tyre industry and a brand of choice providing customer delight and continuously enhancing stakeholder value. The one word that symbolizes all that Apollo believe is CREATE. C - Care for customers R Respect for associates E - Excellence through team work A - Always learning T - Trust mutually E - Ethical practices

Mission
To create the first Indian Singles Grand slam Champion by the year 2018.

Objectives
High volume, high market share, cost effectiveness in all segments. High quality, technically superior products. Consistent production through harmonious industrial relations. Achievements of customer delight through benchmarking global practices. Strengthen supply chain management. Revenue growth Operating margin improvements. Employee satisfaction

Goals
Employee safety Employee satisfaction Customer delight
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Revenue growth Operating margin requirements Responsibility Learning & Development. Family Focus. Hygienic Factors. Employee Involvement & Cultural Building.

Apollo key Differentiation to Other Firms

Superior product Quality. Strong Brand Equity. Committed Marketing Team. High Consumer Loyalty Product Segmentation in Truck Tyres. Benched marked for planning efficiency parameters. Power consumption. Quick response to market needs. Fuel efficiency. Least scrap generation

Profile of products
The company manufactures and sells a range of tyres of both Bias and Radial, tubes and flaps. The major products are trucks and bus tyre and trailer tyres. Besides these, Apollo also produces passenger tyres, light commercial vehicles tyres etc.

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Segment
Truck Apollo

Product
Loadstar Super Hercules Loadstar Super Loadstar Super Gold XT 7 XT 7 Haulug XT7 Gold XT-9 XT-9 Gold

Champion Champion DXL Champion Gold Amar Amar Deluxe Amar Gold Amar AT-Rib

Kaizen

50 L 36 L Commando XDT Loadstar Super Amar Deluxe Amar Gold XT-9

27 L 77 R 99 R Plus

Light Truck

XT-9 Gold Duramile Milestar Champion

Passenger Car

Car Radials

Tube

Type

(Amazer

XL

Tubeless Radials

Quantum) 4x4 Radials

Hawkz Storm

Amazer XL

Alloy Wheels

Haste Torque

Inspire Slay

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Nirvana Frost Quest

Multispoke Sphere Cinco

Tubeless Radials

Acelere Amazer XL

Hawkz

Conventional Tyres (Bias Tyres)

Car Armour Panther

Jeep Gripper Maha Trooper

Farm

Pure Cultivation Segment

Sarpanch

Krishak Super

Pure Haulage Segment

Powerhaul

Mixed Application Bias Segment

Krishak Premium

Mixed Application Radial Segment

Farmking Gripper

Jeep

Maha Trooper

Future plans for growth of the organization

In 2011, Apollo Tyres had realized its dream of becoming a US$2 billion company by venturing into the global markets. Apollo, a family-run business, went through changing leaderships over generations. It eventually emerged as the leading player in the industry. Apollo Tyres had big plans for the future. Some of the future growth plans are as follows:
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1. AGILE (Apollo Growth Innovation Leadership Excellence) 6*16

After tasting success with the overseas ventures, fulfilling aspirations, and making a mark in the global market, the company set out to become a US$6 billion company by 20152016. To lead the company toward achieving its goals, the company executives were keen on further expansion into China and the ASEAN region. Apollo planned to grow three times to US$6 billion by 2015-2016 and aimed to break into the league of the global top 10 tyre companies. "We have set our 'vision' to be a $6-billion company by 2015-16," said Satish Sharma (Sharma), Chief, India operations.

2. Apollo Tyres Mission 2018

The Apollo Tyres Mission 2018 is a programme to identify, nurture and create worldclass tennis players in India who will challenge, perform and win on the world stage, with at least one becoming a Singles Grand Slam champion by the year 2018. Thus Apollo becomes one of the largest corporate investors in developing sporting talent through its Mission 2018, which is focused on nurturing and training youngsters in the sport of tennis to enable an Indian to win a Singles Grand Slam Championship by the year 2018.

At the grassroots level of schools, academies and the tennis loving population, Apollo is encouraging youngsters to actively take up the sport with the full support of their parents. On the talent level, company conduct selection camps every year in four cities (called the Mission 2018 Challenge) to identify, nurture, train and groom talent from across the country. Aged between 6 and 14 years of age, they are given national and international exposure and facilities, to enable them to realise their potential and become future champions. The four cities change every year to ensure the Mission spreads far and wide in the task of encouraging participation from all corners.

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CHAPTER - IV ORGANISATION STRUCTURE & DESIGN

An organization can be structured and designed in many different ways, depending on their objectives. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. On the other hand organization design is the process of defining and coordinating organizational structure elements. This is an architectural task. The purpose is to create a design that will coordinate organizational tasks & motivate people to achieve objectives. Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Second, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organizations actions. The set organizational structure may not coincide with facts, evolving in operational action. Such divergence decreases performance, when growing. E.g., a wrong organizational structure may hamper cooperation and thus hinder the completion of orders in due time and within limits of resources and budgets. Organizational structures shall be adaptive to process requirements, aiming to optimize the ratio of effort and input to output. The organization design process is often defined in phases. Phase one is the definition of a business case, including a clear picture of strategy and design objectives. This step is typically followed by "strategic grouping" decisions, which will define the fundamental architecture of the organization - essentially deciding which major roles will report at the top of the organization. The classic options for strategic grouping are to organize by: Behavior Function Product or category Customer or market Geography

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Matrix

Organization Structure of Apollo Tyres Limited

From the study, it is understood that organization structure of Apollo Tyres Ltd. is designed on the basis of functions. So Apollo follows functional organization structure.

Functional Organization Structure

The functional structure group positions into work units based on similar activities, skills, expertise, and resources. Production, marketing, finance, and human resources are common groupings within a functional structure. As the simplest approach, a functional structure features well-defined channels of communication and authority/responsibility relationships. Not only can this structure improve productivity by minimizing duplication of personnel and equipment, but it also makes employees comfortable and simplifies training as well. Employees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with software engineers. This leads to operational efficiencies within that group. However it could also lead to a lack of communication between the functional.

Functional Organization Structure in Apollo Tyres Ltd.

The functional organization structure is best suited for Apollo since it is a producer of standardized goods and services at large volume and low cost. Coordination and specialization of tasks are centralized in a functional structure, which makes producing a limited amount of products or services efficient and predictable. Moreover, efficiencies groups within an organization, making the organization slow and inflexible. It can further be realized as functional organizations integrate their activities vertically so that products are sold and distributed quickly and at low cost. For instance, a small business could make components used in production of its products instead of buying them. This benefits the organization and employees faiths. Like the two sides of a coin, organisation structure of ATL is also characterised by both merits and demerits. They are as follows:

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Advantages
Since the people are arranged on the basis of their common interests, they can learn a lot from each other. Problem solving becomes easier in a functional organizational structure. Skilled employees of the same group can find more skilled employees for the company. Control in functional structure is increased because people will try to supervise each other work. Team work is more found in a functional organizational structure.

Disadvantages
It has few downsides that may make it inappropriate for Apollo. Here are a few examples: The functional structure can result in narrowed perspectives because of the separateness of different department work groups. Decisions and communication are slow to take place because of the many layers of hierarchy. Authority is more centralized. Measurement problems are created like it becomes difficult to analyze which person is more efficient and which is not. Strategic problems are not given significant focus in this structure because coordination the top management is always busy in finding the solutions of problems.

Factors Affecting Organizational Design

Although many things can affect the choice of an appropriate structure for an organization, the following five factors are the most common: size, life cycle, strategy, environment, and technology.

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Organizational size
The larger an organization becomes, the more complicated its structure. When an organization is small such as a single retail store, a two-person consulting firm, or a restaurant its structure can be simple. In reality, if the organization is very small, it may not even have a formal structure. Instead of following an organizational chart or specified job functions, individuals simply perform tasks based on their likes, dislikes, ability, and/or need. Rules and guidelines are not prevalent and may exist only to provide the parameters within which organizational members can make decisions. Small organizations are very often organic systems. As an organization grows, however, it becomes increasingly difficult to manage without more formal work assignments and some delegation of authority. Therefore, large organizations develop formal structures. Tasks are highly specialized and detailed rules and guidelines dictate work procedures. Inter organizational communication flows primarily from superior to subordinate, and hierarchical relationships serve as the foundation for authority, responsibility, and control. The type of structure that develops will be one that provides the organization with the ability to operate effectively. That's one reason larger organizations are often mechanisticmechanistic systems are usually designed to maximize specialization and improve efficiency.

Organization life cycle

Organizations, like humans, tend to progress through stages known as a life cycle. Like humans, most organizations go through the following four stages: birth, youth, midlife, and maturity. Each stage has characteristics that have implications for the structure of the firm. Birth: In the birth state, a firm is just beginning. An organization in the birth stage does not yet have a formal structure. In a young organization, there is not much delegation of authority. The founder usually calls the shots. Youth: In this phase, the organization is trying to grow. The emphasis in this stage is on becoming larger. The company shifts its attention from the wishes of the founder to the wishes of the customer. The organization becomes more
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organic in structure during this phase. It is during this phase that the formal structure is designed, and some delegation of authority occurs. Midlife: This phase occurs when the organization has achieved a high level of success. An organization in midlife is larger, with a more complex and increasingly formal structure. More levels appear in the chain of command, and the founder may have difficulty remaining in control. As the organization becomes older, it may also become more mechanistic in structure. Maturity: Once a firm has reached the maturity phase, it tends to become less innovative, less interested in expanding, and more interested in maintaining itself in a stable, secure environment. The emphasis is on improving efficiency and profitability. However, in an attempt to improve efficiency and profitability, the firm often tends to become less innovative. Stale products result in sales declines and reduced profitability. Organizations in this stage are slowly dying. However, maturity is not an inevitable stage. Firms experiencing the decline of maturity may institute the changes necessary to revitalize. Although an organization may proceed sequentially through all four stages, it does not have to. An organization may skip a phase, or it may cycle back to an earlier phase. An organization may even try to change its position in the life cycle by changing its structure. As the life-cycle concept implies, a relationship exists between an organization's size and age. As organizations age, they tend to get larger; thus, the structural changes a firm experiences as it gets larger and the changes it experiences as it progresses through the life cycle are parallel. Therefore, the older the organization and the larger the organization, the greater its need for more structure, more specialization of tasks, and more rules. As a result, the older and larger the organization becomes, the greater the likelihood that it will move from an organic structure to a mechanistic structure.

Strategy
How an organization is going to position itself in the market in terms of its product is considered its strategy. A company may decide to be always the first on the market with the newest and best product (differentiation strategy), or it may decide that it will produce a product already on the market more efficiently and more cost effectively (cost-leadership

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strategy). Each of these strategies requires a structure that helps the organization reach its objectives. In other words, the structure must fit the strategy. Companies that want to be the first on the market with the newest and best product probably are organic, because organic structures permit organizations to respond quickly to changes. Companies that elect to produce the same products more efficiently and effectively will probably be mechanistic.

Environment
The environment is the world in which the organization operates, and includes conditions that influence the organization such as economic, social-cultural, legal-political, technological, and natural environment conditions. Environments are often described as either stable or dynamic. In a stable environment, the customers' desires are well understood and probably will remain consistent for a relatively long time. Examples of organizations that face relatively stable environments include manufacturers of staple items such as detergent, cleaning supplies, and paper products. In a dynamic environment, the customers' desires are continuously changing the opposite of a stable environment. This condition is often thought of as turbulent. In addition, the technology that a company uses while in this environment may need to be continuously improved and updated. An example of an industry functioning in a dynamic environment is electronics. Technology changes create competitive pressures for all electronics industries, because as technology changes, so do the desires of consumers. In general, organizations that operate in stable external environments find mechanistic structures to be advantageous. This system provides a level of efficiency that enhances the long-term performances of organizations that enjoy relatively stable operating environments. In contrast, organizations that operate in volatile and frequently changing environments are more likely to find that an organic structure provides the greatest benefits. This structure allows the organization to respond to environment change more proactively.

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Technology
Advances in technology are the most frequent cause of change in organizations since they generally result in greater efficiency and lower costs for the firm. Technology is the way tasks are accomplished using tools, equipment, techniques, and human know-how. In the early 1960s, Joan Woodward found that the right combination of structure and technology were critical to organizational success. She conducted a study of technology and structure in more than 100 English manufacturing firms, which she classified into three categories of core-manufacturing technology: Small-batch production is used to manufacture a variety of custom, made-toorder goods. Each item is made somewhat differently to meet a customer's specifications. A print shop is an example of a business that uses small-batch production. Mass production is used to create a large number of uniform goods in an assembly-line system. Workers are highly dependent on one another, as the product passes from stage to stage until completion. Equipment may be sophisticated, and workers often follow detailed instructions while performing simplified jobs. A company that bottles soda pop is an example of an organization that utilizes mass production. Organizations using continuous-process production create goods by

continuously feeding raw materials, such as liquid, solids, and gases, through a highly automated system. Such systems are equipment intensive, but can often be operated by a relatively small labour force. Classic examples are automated chemical plants and oil refineries. Woodward discovered that small-batch and continuous processes had more flexible structures, and the best mass-production operations were more rigid structures. Organizational design depends on the type of business. The small-batch and continuous processes work well in organic structures and mass production operations work best in mechanistic structures.

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ORGANISATION STRUCTURE OF APOLLO TYRES LIMITED

CHAIRMAN & MANAGING DIRECTOR

VICECHAIRMAN

CHIEF INDIAN OPERATIONS

UNIT HEAD KALAMASSERY

DIVISION HEAD COMMERCIAL

DIVISION HEAD Q - TECH

DIVISION HEAD ENGINEERING

GROUP MANAGER PRODUCTION

GROUP MANAGER HUMAN RESOURCE

ASSOCIATE MANAGER SYSTEM

ASSOCIATE MANAGER PRODUCTION PLANNING & CONTROL

ASSOCIATE MANAGER INDUSTRIAL ENGINEERING

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CHAPTER - V DEPARMENTAL PROFILE

Human Resource

Industrial Engineering

Production Planning & Control

Q-Tech

Production

Engineering

Commercial

Systems

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HUMAN RESOURCE DEPARTMENT

The human resource departments main function is to manage people. It facilitates smooth working of the organization by looking into the human resource side and also the overall administration of organisation.

Key functions:
To design and implement procedures, policies and systems those are transparent and help in achieving company goals. Industrial relations To boost productivity and improve quality through internal customers Developing people and teams Managing change Integrating people into the companys vision, culture and philosophy Manpower planning, recruitment, employee orientation Induction, conformation, campus recruitment and internal recruitment Travel, transfer, ambulance room, statutory compliances Compensation policies, attendance and leave administration, payroll advice, performance appraisal, training and development, benefit administration, disciplinary action and safety

HR Mission
To create HR policies and processes which are employee friendly. To build a culture which has warm forthcoming and is professional with a sense of ownership & pride. To encourage innovative thinking. To encourage transparency & teamwork. To develop leaders at all levels with general management skills. To create a learning organization. To develop competencies & skills through training and development. To constantly raise levels of employee productivity. To be a change agent. To create HR brand. To work towards attaining & sustaining the best employer status.
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HR Philosophy of Apollo Tyres Ltd.

Aims to play an active role in enabling the success and growth of the organization Continuous improvement in the quality of people and their approach towards customer service Providing newer and more effective methods of managing and leading HR oriented growth strategies guide towards top level decisions Strives to maintain a balance between qualitative and quantitative results Creation of an organization wide involvement with the concept of HR

Commitment of the top management, which is the backbone for the success of all new
HR initiatives

Organization Structure of HR Department GROUP MANAGER HR

ASSOCIATE MANAGER SAFETY

EXECUTIVE WELFARE

EXECUTIVE TRAINING & DEVELOPMENT

ASSOCIATE MANAGER SECURITY

Focus areas of HR functions

The main functions of the HR department involve: Manpower planning Recruitment and Selection Performance appraisal Training and development Welfare Safety Industrial Relations Security Career planning and promotion policy of employees

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MANPOWER PLANNING PROCESS

The manpower planning process is directly linked to the long term business plans of the organization. The manpower planning exercise is conducted annually to assess the manpower requirements of the organization. At the beginning of each calendar year, HR department interacts with each department to collect their manpower requirements in conjunction with the annual projected business plan.

The following factors form the basis for the manpower planning exercise:

Product Mix Optimum equipment capacities Existing manpower Envisaged organization structure Comparison of actual versus expected productivity ( measured in terms of Kg/manhour)

Inter-unit comparisons for common functions.

Keeping in mind these factors, each Department/Function is expected to make an estimation of the human resource requirement phase wise at each location, along with the profile of people needed and the sources from where they can be obtained. The manpower plan covers all levels viz., workmen, staff, officers, and managers. The total manpower requirement is discussed with the president/VC & MD. After the formal sanction has been given, HR incorporates the manpower requirements into its Annual Requirement Schedule. Attempts are made to look into possibilities of relocation and redeployment for filling up the vacant positions before resorting to recruitment from external sources. Once the annual manpower plan has been frozen, the norm is to ensure that no deviations are there in terms of requisition for additional vacancies at a later stage during the year.

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PERFORMANCE APPRAISAL
Performance Appraisal is the process of evaluating the performance of the employees in comparison to a set of standards and then communicating that information to the employees. Such appraisal is also known as performance review, performance evaluation, employee rating, employee evaluation or result appraisal.

Objectives
To review the performance of the employees over a given period of time and reward for good performance. To judge the gap between the actual and desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior-subordinate and management employees. To diagnose the strengths and weaknesses of individuals so as to identify the training and development needs for the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personnel decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other HR functions of thee organisation such as recruitment, selection, training and development. To reduce the grievances of the employees.

Performance Appraisal in Apollo Tyres Ltd.

Employees The performance of employees is evaluated on the basis of: 1. Daily attendance monitoring system. 2. Performance management for the performance appraisal. 3. Promotion policy.

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Executives
Apollo conducts an efficient performance appraisal system for their executives. It is a centralized appraisal system. The online appraisal is known as PACE (Performance Appraisal & Career Enhancement). It is done in every quarter and the annual review time period will be from April 1st to March 31st. The appraisal process begins with goal setting. Goal setting process starts with corporate goal setting, department and individual goal setting. Key Result Area (KRA) has to set by each executive. KRA is the particular area or responsibility or target area for an executive along with their manager. At the time of appraisal, the reporting supervisor along with the section manager assesses the attained performance of the executive and evaluates the performance in the light of set standards for performance.

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Process of Performance Appraisal

Establishing performance standards

Communicating standards & expectations

Measuring the actual performance

Comparing with standards

Discussing results (providing feedback)

Decision making and taking corrective actions

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RECRUITMENT & SELECTION

Recruitment is done through advertisement and a good opportunity is given to the child of worker. This increases family loyalty towards the company. They are called for the interview and the chief executive take final decision. 1. Management Staff Technical B.Tech, Graduate Engineer Trainee Non Technical - CA/ICWA/MSW/MBA/MA (PM); Executive Trainee After training, they are absorbed as officer. Criteria include: a) Consistency in academic performance b) Group Discussion c) Personal interview 2. Employee children skill development scheme a) One year training in production b) Dependant of employees c) Physical fitness [height -165 cm, weight 50 kg] d) Minimum qualification- 10th standard

INDUSTRIAL RELATIONS
Union management relation:Mutual trust + Understanding = Teamwork. A good industrial relation exists in the organization. The management and the employees jointly find the solutions for the problems. There exists a well relation between employer and employees. There are four main trade unions recognized by the company are: ATSWN (Apollo Tyres Staff and Worker Union) ATEU (Apollo Tyres Employees Union) ATMS (Apollo Tyres Mazdoor Sangh) ATWM (Apollo Tyres Workers Movement)
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TRAINING & DEVELOPMENT

The organization provides training for both managers and workers. Training programme for managers consist of both internal and external programme. The workers have internal programmes. The training system includes: Need identification Validation of needs Annual training plan Selection and preparation Post training programme Training impact assessment

Objectives
Training program at Apollo Tyres Ltd., Kalamassery aims to accomplish the following objectives: To keep track of the competence and awareness level of employees, performing work affecting product quality, environment, safety and health and to provide training based on specific requirements. To provide training to personnel with product design responsibility in applicable tools and techniques based on specific requirements. To provide training to employees on specifically identified training needs and also to improve the general awareness level of employees in various areas. To motivate employees to achieve quality objectives, to make continuous improvements and to create an environment to promote innovation.

Types & Methodology of Training

Training on communication and interpersonal skill programmes for Associate managers and managers. Training called jyothirgamaya for blue collared employees. Safety and fire training conducted for blue collared workmen. With a view to develop multi skill among engineering trainees, they are given exposure to engineering, production & technical fields.
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Jyothirgamaya
On each working day about 10 employees are selected for training in a classroom atmosphere, about the productivity, quality and scrap reduction. The employees are provided training specialty about the company and the tyre industry in general. Jyothirgamaya provide information regarding the changes happening in the industrial field. Its objective is to give training for all the employees in the unit within a period of 1 year.

SIX SIGMA: (introduced on April 16th 2007)

Six sigma is basically meant for increased production and for running the organization profitability. I t is for finding out areas where unneeded expenses are occurring and for reducing. It uses scientific techniques with a disciplinary approach. A six sigma organization means the defects in the production of 10 lakh parts must be below 3.34%. When the employees become aware of six sigma and they come into contact with the machineries used for this, then the organization will achieve an unexpected growth. This helps to find out the defects in production and for finding out remedy. It also helps to understand the fact that consumers are the owners and also to produce quality products.

WELFARE MEASURES
The organization provides good welfare services to its employer. The company runs a subsidized canteen on contract basis. Rest rooms with locker and washing facility, arts and sports club, well maintained library are other facilities provided. A well transportation facility is given to all the employees from different destinations from which they have to pay a very less amount. All employees drawing a salary below Rs.6000 are covered under group accidental policy and medi claim policy. The welfare department ensures proper blend in the mental and physical health of the employees. Positive measures are taken in maintaining the health of the employees.

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Welfare measures
Canteen: Companies normally provides canteen facilities for its employees. It

is running in a one year contract based level. The company pays a monthly subsidy of Rs.1225000 to the canteen contractor. An amount of Rs.20 is collected monthly from employees. Transportation Facility: Company provides transportation facility to all its

employees working in night shifts, they provides bus and tempo for travelling Locker room: It is provided for safe deposit to personal documents and money Toilets Hot water Cooler Rest room Waiting room Uniforms Shoe allowances

SAFETY
The organization follows all the provision under the factories Act 1948, the plant is well equipped with safety machines and directions are given for the same. Safety directions are placed at noticeable points in and around the plant premises. Fire extinguishers are placed reachable points and employees are well trained to use if necessity comes. Those who work in the production unit are given masks, safety gowns and shoes. In Apollo a separate book is given to each employee, which prescribes certain rules and procedures in order to create a working environment free of accidents. No major accident has occurred in the plant for past ten years. The following are some of the safety policies of Apollo Tyres Ltd.

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Accidents resulting in personal injury and damage to property and equipment represent needles human to economic waste, which must be prevented by every reasonable means available.

All personal injuries are prevented. The protection of human life demand a complete and continuing to eliminate accidents. Officers of all level have a primary responsibility for the safety and well being of all persons who report of him.

Safety motto: ABC- Always Be Careful Safety Measures

Medi-claim policy Mock drill practice 24 hours ambulance facility Firefighting facility Personal protective measures Shoes, face mask Ear phones for reducing sound Water pollution checked by Kerala Pollution Control Board Air pollution check-up Periodic safety check-up Safety training programs License renewal Two medical officers for 24 hours First aid training

SECURITY
The security is concerned with the physical movement of men and material. Security staff headed by the associate manager works at all the shifts. To facilitate the security measures, single point entry is adopted to control visitors. For materials, separate gate passes are issued.

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The major functions of this section are: Heading security functions Laison with police/Govt. & other external agencies Vigilance on trade union activities Indirect labor management: Contract labors are co-ordinated & their database is maintained by Security wing. Training and Development functions Event Management: Factory Day, Safety Day, Onam celebrations, Plant visit by important authorities are organized and conducted by security wing. External Environment Maintenance: Contacts to be maintained by the security department.

CAREER PLANNING & PROMOTION POLICY OF EMPLOYEES

The team at Apollo is young, dynamic and thrives on challenges. Life revolves around the key attribute of passion. The passion to excel in all respects, the passion to be the most innovative organization, the passion to contribute to society, the passion to deliver par excellence and most of all, passion towards teamwork!

Apollo Tyres boasts a vibrant and dynamic, professional and non-hierarchical culture. Transparency and communication are cornerstones of corporate practice, across levels, to ensure that each individual employee is aligned with the goals and aspirations of the company. At Apollo Tyres the three corporate pillars People, Quality and Technology underpin all activities and processes. These are the company's stated areas of corporate excellence, in its journey towards becoming a best-in-class global manufacturer. In its passion to innovate, Apollo constantly looks to be proactively different from others in the industry. Its core values of ethics, respect and care, ensure that all Apolloites bring their own brand of uniqueness and passion to drive the company to greater heights.

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Culture of Career Promotion Apollo

An online, matrix-driven performance management system called PACE or Performance And Career Enhancement, allows for objective goal-setting and performance evaluation. Quarterly appraisals and bonus payouts, in accordance with corporate and individual achievements, ensures a tracking of each individual's performance and training need-fulfillment over a career span at Apollo Tyres. PACE provides greater objectivity in measuring performance by providing metrics for tracking the performance, growth and potential of each individual. Annually, the basket of competencies at each level is evaluated.

All training programmes are consolidated under the Apollo Laureate Academy. In collaboration with leading institutes like the Indian Institutes of Management, Management Development Institute, IMD, Dale Carnegie Training and knowledge partners like Mercer and Thomas Profiling, domain-specific training needs are identified and programmes are developed.

The Apollo Laureate Academy encourages individuals to attend seminars, meets, conferences and workshops taking place in the public domain, to ensure both professional growth and learning, as well as to build relationships and network with similar communities across industries. For the vital sales and marketing and manufacturing teams, specialized programmes have been developed to enhance skills, and identify individual areas of strength.

Promotion Policy
Each section has a channel of promotion. An executive can be promoted step by step and have the opportunity to become a division head. The promotion policy for executives is as follows:

E1

E2

E3

Associate Manager

Manager

Group Manager Division Head

Normally, promotions for regular workers from L-2 to L-11 grades are given based on
seniority in the concerned promotion channel. However, in the case of certain selection posts such as Junior Asst., Senior Asst., Grader, Green Tyre Inspector, Technician-Test Wheel, Instrument Technician, Machinist-B, Leading Hand-RMS applications will be invited from
38

the eligible employees. Selection for promotion will be based on the performance in the written test and interview. Usually, promotions are based on following factors: 1. Experience 2. Qualification 3. Marks for Attendance Marks for Attendance Percentage of attendance Marks 100 99 98 97 96 95 94 93 or less than 93 20 19 18 17 16 15 12 9

PRODUCTION PLANNING AND CONTROL DEPARTMENT

The production planning and control department is responsible for fixing monthly production levels, meeting production targets, scheduling machines as per the requirements, employees, developing subordinates and the preparation of raw material requirements based on monthly production ticket.

Structure of PPC Department

UNIT HEAD KALAMASSERY

ASSOCIATE MANAGER PPC

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Other function of the PPC Department includes:

Conduct work studies, improvement studies in various equipments and fixing of norms. Capacity calculation in various equipments for time to time inquest to various changes. Design, implementation and follow-up scheme in various zones. Planning and assessment of manpower requirement in various

departments periodically. Study plant layout and material handling systems and suggest for improvements Explore the possibilities of capacity expression and prepare the report Visit other industries for industries for getting information regarding new developments. Suggest various cost reduction programmes. Conduct improvement of methods and equipment design compatible to best economic standards Evolve various strategies to optimize inventory levels at various stages such as engineering stores. Preparation of monthly production plans Communication of organizational goals down the line Prepare adjust and issue of different operations based on the programs, inventories, programs of work and specifications Follow up programs of work in all sections Report relevant details and assist to maintain steady progress of work Take physical inventories from the stores of finished goods and raw materials Maintain records of inventories Report shortage, rejection and delay in the operations and take corrective measures Maintain good housekeeping Ensure that no material is leftover when size changes occur Keep record of non moving material, unidentified material ,scrap generated, obtained disposal instruction, report follow up actions and to clean up materials Preparation of raw material requirement based on monthly production ticket

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INDUSTRIAL ENGINEERING DEPARTMENT

The main objective of this department is to plan, design, implement and manage integrated production and service delivery systems that assure productivity, quality, reliability, maintainability and cost control to keep Apollo globally competitive.

Structure of Industrial Engineering Department

UNIT HEAD KALAMASSERY

ASSOCIATE MANAGER INDUSTRIAL ENGINEERING

Major Functions
1. 2. 3. Bench marking Key result area identification GAP Analysis Incentive Planning

4.

Other Functions
Conduct work-studies, improvement studies in various equipment and fixation of norms. Capacity calculation of various equipment from time to time consequent to changes. Design, Implementation and follow up of incentive schemes in various zones. Planning and assessment of manpower requirements of various departments periodically. Studying plant layout and material handling systems and suggesting improvements. Explore the possibilities of capacity expansion and prepare project reports.
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Negotiations with unions regarding various issues like incentive schemes, productivity and expansion and labor issues.

Analysis of capital expenditure request from various departments and make recommendations to Senior Management Committee

Prepare budgetary planning for capital and cash flow requirement Prepare documents for long-term settlements, bonus settlements etc. and represent the management in the meetings with the Unions / Labor Departments.

Visit other Industries for getting information regarding LTS methods, practices and other developments.

Conduct various training classes for workmen, supervisors, other officers and new recruits.

Apply various Industrial Engineering techniques such as job evaluation, O & M (Organization & Methods) studies, Kaizen, Line Balancing etc.

Suggest various cost reduction programs and implementation. Associate with professional bodies like Productivity council, NITTIE, and Institution of Engineers etc.

Conduct daily audit of manpower, productivity, lost time, scrap details, absenteeism, overtime etc.

Furnish various other management information reports to the top management. Evolve best practices and processes through global benchmarking in the context of global competitions and intense customer focus.

Optimize inventory levels at various stages such as engineering stores, work in progress are finished goods.

Continuous improvement of methods and equipments design compatible to the best economic standards

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SYSTEMS DEPARTMENT
The systems department is responsible for computerization of different departments of Apollo Tyres Limited. It operates and co-ordinates all systems in the organization. At Apollo Tyres Ltd., Kalamassery an associate manager is in charge of systems department. He directly reports to the unit head.

Structure of Systems Department

UNIT HEAD KALAMASSERY

ASSOCIATE MANAGER SYSTEMS

Apollo uses Enterprise Resource Planning (ERP) as an IT enabler across the company to develop integrated database. The ERP package implemented in ATL is SAP R/3, which stands for System, Application and Products in data processing. Since ATL is following SAP system in all its departments, system department plays a pivotal role in the day to day smooth functioning of the company. In collaboration with IBM, SAP was successfully implemented at ATL on 1st February 2004. ATL was the first manufacturing concern in India to implement SAP for the whole organisation without defects within a short span of time. Since the implementation in 2004, till today no major problems were reported. That shows the efficiency of systems department of ATL.

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Primary functions
The two primary functions of systems department are as follows:

1. Monitoring function
Security problems in the SAP were solved using central virus scanning system and firewall at the head office (Gurgaon and Haryana). HCL solve all problems related to the network connection.

2. Maintenance function
The systems department in the plant solves the network problems as well as the computer problems. Regular backups were taken daily and monthly for providing reliability in the SAP system. All the computers were connected using both point to point and star topology to form an intranet inside the plant. Proper authentication was given to each department members using a user ID and password.

PRODUCTION DEPARTMENT
Kalamassery plant with an installed capacity of 100 MT/day contributes approx. 300 Cr to the total turnover of the Apollo group. The daily production target of the Kalamassery unit is 100.81 metric tons. Production is carried out in three shifts. Every month end, production intends are obtained from the marketing department of Apollo tyres Ltd, Delhi stating how much tyres need to be manufactured. Kalamassery plant primarily focuses on the bias tyres production. The production department is divided into three main divisions based on the various stages of tyre manufacturing: The main functions of Division 1 are: 1. Mixing 2. Dipping 3. Calendaring 4. Extrusion

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Division 2 has the following functions: 1. Bias cutting 2. Band building 3. Stock preparation 4. Tyre building

Division 3 mainly deals with: 1. Tyre curing 2. Final inspection

ENGINEERING / MAINTENANCE DEPARTMENT

The engineering department is the service department and provides its service to various departments such as production, technical, quality, assurance and engineering. The major function of the engineering department is manufacturing, installation, maintenance and repair of machines. All machines are checked regularly. The machine history is recorded so that the life of a particular machine can be known and used respectively. Maintenance is the key function of this department, and is classified as: 1. Preventive maintenance 2. Breakdown maintenance Preventive maintenance means preventing the machines from any possible breakdown and breakdown maintenance means repairing the faulty machines. Engineering department undertakes periodic checking of all machines. Shift engineers study the problem in detail and the required repair work is done. The required spares are available from various engineering stores. The machine is then checked and production officers close the notification.

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COMMERCIAL DEPARTMENT
Organization Structure of Commercial Department

DIVISION HEAD COMMERCIAL

MANAGER COMMERCIAL (RMS, FGS, EXCISE, ACCOUNTS, FINANCE & COSTING)

GROUP MANAGER ENGINEERING STORES & PURCHASE

ASSOCIATE MANAGER EMS MANAGER FGS EXECUTIVE RMS ASSOCIATE MANAGER EXCISE

EXECUTIVES (2) PURCHASE

EXECUTIVES

ASSOCIATE MANAGERS (3) ACCOUNTS, FINANCE & COSTING

EXECUTIVE PAYROLL

PURCHASE SECTION
The main function of purchase department is to provide right material at right time in right place at right quantity. This department is concerned with the purchase of both indigenous and imported materials. It covers procurement of indigenous. Engineering spares, general engineering and miscellaneous items other than raw materials. This department is headed by senior manager and under him there are a number of officers and staff. The department is provided with the latest communication facilities and computers.

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The main items of purchase are:

Engineering spares Consumables Furnace oil Diesel Chemicals Lubricants Some raw materials

The purchase may be corporate purchase of plant purchase. Under corporate purchase the raw material is purchased after considering what the market require for the month. Under plant purchase, purchase may be of stock item or of non stock item. Stock items are purchased for regular use. They are having material codes. They are purchased after considering the reordering level, reorder quantity, lead time etc. For non stock items there is no regular purchase. Different departments have to prepare purchase requisitions. The items purchased are engineering item, oils, & lubricants, local raw material, import of spares etc.

Vendor Selection
This includes a list of steps involved in selecting the right vendor for stack items identified as critical by the department to enable a smooth functioning of the plant. Vendors are generally identified as: 1. Manufacturers 2. Dealers 3. Firms offering various services

Manufacturers are divided into two 1. OEM (Original Equipment Manufacturers)

The OEM shall be identified as a vendor for the supply of equipment, spares, components etc.

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2.

OEM (Original Component Manufacturers)

For all spares, components and consumables, attempts are made to identify the

manufacturer and source the items directly from them so as to get quality products or services at optimum cost. Information available on supplier's manuals, catalogs, details available on the nameplates of machines etc. shall be used for the purpose.

PURCHASING RECORDS
1. Purchase Order Record: POs of all materials bought. 2. Vendor Record: List of all vendors & their complete mailing addresses. 3. Blue print and specification record Drawing:- Many items are purchased by blue print specification are kept in separate files with index showing their location and where the copies have been sent. Thus for repeat order to old supplier it is not necessary to send new copies of the specification. 4. Contract file: Certain goods may be bought under a term contract if so, the purchasing department must maintain a record of such contract.

RAW MATERIAL STORES:

Process: Receipt, handling, storage, packaging, forwarding & delivery of material to internal and external customers with proper documentation to meet their requirements. Purpose: To supply right material in right time to produce right quality product without any interruption. Scope: Receipt, handling, storage & issue of raw materials & to the customer.

(a) Raw material handling process: Activity description

1. Upon receipt of the raw material, the document related to transporter, supplies are verified for authenticity of the supply.

48

2. Identification of the supply with full details of material code, date of receipt, suppliers name & truck no: will be carried out and transferred to the pre identified location. Upon receipt of the raw materials GR will be prepared. 3. Based on the GR, Quality assurance will collect the samples as per the pre-determined frequency and OK the material if the results are meeting the requirement by releasing the GR. 4. The materials if rejected from lab will be sent back to supplier and all accepted material will be accounted in the inventory. 5. Issue of raw material will be carried out to internal customers & external customers

(b) Receipt of raw materials: 1. Verification of Documents at Security Gate:

The security inspector at main gate shall verify all documents pertaining to the consignments brought to the factory before allowing entry in to factory premises and note the following details. Serial no, suppliers name, description of item, challan quantity, challan no and date or LR no and date, truck reg. no., date and time of arrival, date and time of departure.

2. Weighment (By the Computerized Weigh Bridge)

Security shall inform raw materials stores about the arrival of the vehicles at the gate. The security guard and a representative from RMS shall record weighment of trucks jointly. The weighment slip shall indicate the following. Serial no, time and date of receipt, suppliers name, gross weight with materials, SIR no and date. After recording the above details in the computerized weighing balance the vehicles shall be directed to the respective unloading bay. In ATL weighment will be done in a weighbridge closer to the factory under the supervision of security and RMS personnel after ensuring that the weigh bridge posses a valid certificate from weight and measure department.
49

Both security and RMS personal shall sign on the computerized weighment slip. One copy of the weighment slip will be filed in RMS along with concerned delivery challan and the second copy will be returned by security department.

3. Verification of Documents at RMS

The receipt in charge shall verify the documents to ascertain the no. of packages, description of materials code and weight of the material. If any discrepancy is found the same shall be orally reported to the officer concerned before unloading. He in turn will take decision suitably. The dispatch documents include: Delivery challan/invoice, sales tax papers, packing list and duplicate copy for transporter of invoice for availing MODVAT credit. In case of non receipt of any of the above documents the consignment will not be unloaded unless and otherwise instructed by the competent authorities after compliance of all conditions stated above, the materials will be unloaded as instructed by the receipt in charge and lead to the respective area.

(c) Handling storage and preservation

All the incoming materials except the materials coming in tankers will be unloaded manually or with the help of forklift as instructed by the receipt in charge. Caged pallets or platform pallets are used for storing of materials so far as possible to facilitate easy handling at the time of issue. Each caged pallets will carry a maximum of 1500 kg of materials. Caged pallets will be stacked one over the other.

ENGINEERING GOODS STORES

Engineering goods stores is responsible for storing the necessary spare parts, components required for smooth functioning of the plant. On receipt of indent from production department, the engineering stores arranges for its release. The inventory

management technique used is VED Analysis. Almost all the activities of this department are computerized. The purchase department is initiated whenever re order level is reached. A buffer stock is always maintained in the store. Another system followed in engineering stores is VMI-Vendor Maintain Inventory. In this the vendors supply the raw material in large quantities and payment is made only for consumed items.
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1. Consumables (General stores items) are standard engineering items (bearing, belt, etc). It is decided to identify common codification scheme for all consumable items. All the items shall be brought under this codification scheme. 2. Spares: Spares are part of equipments. Equipments are varying from plant to plant by make and model. It is decided to, 1. Identify common equipments by same make and model. 2. Assign uniform code to equipment make and model wise, which is common across plants. 3. Assign respective plant spares with code of equipment. In general; 1. Item code for consumables will be common across all plants. 2. Item code for spares will be plant specific with respect to common equipment code. However, material classification in SAP will be used to trace the spares to common machines. Material Master Codification will follow the external; numbering.

FINISHED GOODS STORE (a) Receipt of Finished Goods

All finished goods after final inspection are kept at the transferring are in each shift.

(b)

Removal of Finished Goods

The finished goods required for dispatch kept at the transferring area, after preparing

the transferring-notes, will be removed to the loading bay and balance will be removed to stores for storage, after completing packing for required item.

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FINANCE & COSTING SECTION

Finance Department of ATL is concerned with the planning and controlling of the financial resources. In ATL the statement is prepared in accordance with the requirement of companies ACT 1956 and applicable accounting standards issued by the institute of Chartered Accounts in India. The management of ATL accepts that the integrity and objectivity of their financial statement has been made on a prudent and reasonable basis in order that the financial statements retain the forms of transactions. Companies state of affairs and profit of the year. The corporate office does most of the accounting jobs of ATL. At Kalamassery Plant, they have separate department that deals with salary, costing, excise duty on raw material.

1. Payroll Section
It involves the handling of wages, salaries, keeping records of employees including information about their basic allowances maintaining their attendance etc. for the convenience of employee, payments and dispersed through banks of ATM's. Basic allowances are provided by HR dept. and absenteeism rate are given by time office dept.

2. Costing
The process of costing is based on the financial accounts. The price of a single tyre is determined by taking into consideration the actual cost involved in making tyres. The company follows the rate of having only 0.5 less percentage of scrap and this helps in minimizing cost.

3. Control
It includes monitoring the electricity charges, wastage scrap and other avoidable expenses. Distribution of payment through it is step also taken under this function. This has helped in reducing manpower security requirements and also other risks to be taken by the company. It maintains the maximum inventory of 6-7 days as this is required for again time of tyre. A total 1,32 hours is needed to make a tyre, make it heat resistant, strong, loud etc.

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4. Pricing Pricing is done as per the change in price of raw material and on basis oaf competitors pricing policy.

5. Control excise
All has to pay 16% excise duty for dutiable items of domestic purposes to the central government for exports on excise duty has to be paid at gives about 2.3 crores excise duty in spite of all these measures.

6. Basis of accounting
The financial statements are prepared on historical cost convention with the exception of certain fixed asset which was revalued based on occurred method of accounting and in accordance with the accounting principle generally accepted in internationally.

7. Sources of fund
The major source of funds is from shareholders funds, share capital, reserves and surplus and loans are funds either secured or unsecured. But the unit of Kalamassery receives funds from head office New Delhi.

8. Budgeting
Budgeting is done on the basis of production. Here no sales takes place hence budgeting is done on the basis of production.

9. Applications of funds
Funds are used for purchasing of fixed assets, meeting depreciation, making new investments, purchase of inventories and meeting current liabilities. Apollo Tyres Ltd. of Kalamassery uses its funds for making payments tax payments and purchasing raw material. Rest all the funds are allocated by the head office for other needs and requirements.

Management of accounts receivables Every firm likes to sell its goods or services for cash. But competitive pressure force most firms to sell goods or services on credit. Another motive for selling goods or services on credit is to attract more business. When goods are sod on credit, inventories are reduced, but receivables are created .Receivable constitute on important portion of current asset of several firms.
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Q TECH DEPARTMENT
Q-Tech department is a recently introduced department by merging the technical and quality assurance department.

Organization Structure of Q-Tech Department

DIVISION HEAD COMMERCIAL

GROUP MANAGER TYRE ENGINEERING

MANAGER COMPOUNDING

ASSOCIATE MANAGER HEAT ENGINEERING

GROUP MANAGER LAB & QUALITY SYSTEM

MANUFACTURING MANAGEMENT

ASSOCIATE MANAGER LAB

ASSOCIATE MANAGER QUALITY ENGINEERING

ASSOCIATE MANAGER ZONE 1

ASSOCIATE MANAGER (3) ZONE 2

CELL MANAGEMENT

SHIFT A

SHIFT B

SHIFT C

TECHNICAL DEPARTMENT
Technical department looks after tyre engineering and related matters and the department has close contracts with production department. Technical department plays a crucial role in the organization.

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Functions
1. To issue specification to the production plant 2. Develop compound Fabric standard 3. Accessories drawing 4. Processing machine specification 5. Processing and curing of new design 6. To inspect all the production activity 7. To test the tyre 8. To stop production if there is any unconformity found during analysis 9. To make appropriate changes in production process and specification if necessary 10. Initiate and implement corrective measure.

Technical Department is divided into

1. Compounding Department: This department holds all the specification concerned with compounding and ensures all processes as per specification 2. Tyre engineering department: This department holds all the specifications with building and curing. This department can make any changes in the specifications as required and is concerned with conducting various tests on the final production.

QUALITY ASSURANCE DEPARTMENT

The main duty of the quality assurance department in the determination of the quality standards, measurements of the actual quality, compares it against standard controls measures are tables.

Functions
1. Inspection of incoming raw material. 2. Auditing involving the control of non-confirming material or process. 3. Auditing of finished products 4. Solving customer complaints 5. Testing process

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Tools of quality Assurance Dept.

1. Quality Manual- It states the policies and principles of the quality s/m use. 2. S/m procedure- It functions as guidelines to units ensuring uniformity in the quality S/M. 3. Quality meetings- Such meetings are held every month and each department gives suggestions for the scope of improvement. Internal quality credit is held every 6 months. 4. Quality policy- ATL follows strict quality control policy to enhance customer delight and also pays special attention to retain quality of products. At present is department has been integrated with the technical department under manufacturing.

Functions 1. Raw material testing

Quality of all the raw material as tested in lab in 3 different section.

a. Fabric laboratory
The laboratory test all fabric and steel wires received and at all stage of the process.

b. Chemical laboratory
This laboratory carries out test for all polymers, fillers and chemicals.

c. Physical laboratory
All rubber compounds in process are tested in the lab each stage i.e., after mixing in the Banbury, after extrusion and calendaring and after curing.

2. Tyre Testing
Samples of cured tyres are tested indoors on a test wheel. The wheel stimulates the running condition of a tyre/primarily used to detect carcass strength and heat generation. Tyres are fitted on different vehicles to study the effects of different types roads, load and climate.
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For international trade transaction ISO certification has become inevitable. Apollo Tyres Limited got the privilege to have ISO 9001 certification. ISO 9001 covers the quality system and model for QA in design, development, installation and servicing.

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CHAPTER - VI FINANCIAL HIGHLIGHTS

Statement showing the trend of Working Capital

Particulars 2009
Current Assets: Inventories Sundry Debtors Cash & Bank Other Current Assets Loans & Advances 6302.15 2247.35 3620.91 5.33 2053.90

Rs. in millions 2010

9928.72 7869.00 3489.82 44.18 2372.23

Trend Percentage 2009

100.00 100.00 100.00 100.00 100.00

2011
17537.51 9501.80 1908.86 ----3947.67

2010
157.55 350.15 96.38 828.90 115.50

2011
278.28 422.80 52.72 0.00 192.20

Total(A)

14229.64

23703.95

32895.84

100.00

166.58

231.18

Current Liabilities: Current Liability Provisions 5860.44 1141.00 13122.16 2336.92 17127.32 4003.25 100.00 100.00 223.91 204.81 292.25 350.85

Total(B)

7001.44

15459.08

21130.57

100.00

220.79

301.80

Working Capital(A-B)

7228.20

8244.87

11765.27

100.00

114.07

162.77

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NET PROFIT
7 6 Rs Billion 5 4 3 2 1 0 1.4 4.4 6.5

2009

2010

2011

EBIDTA
14 12 Rs Billion 10 10 8 6 4 2 0 4.4 12.8

2009

2010

2011

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CAPITAL EXPENDITURE (Capex)

14 12 Rs Billion 10 8 6 4 2 0 3.1 7.9 11.7

2009

2010

2011

NET SALES
100 90 80 70 60 50 40 30 20 10 0 81.2 88.7

Rs Billion

49.8

2009

2010

2011

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Return on Capital Employed

35 30 % Return 25 20 15 10 5 0 14 16 32.4

2009

2010

2011

CAPACITY
1600 1400 1200 1000 800 600 400 200 0 1395 1160 950

MT/DAY

2009

2010

2011

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BSE STOCK PRICE FOR LAST 3 YEARS

NSE STOCK PRICE FOR LAST 3 YEARS

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CHAPTER - VII SWOT ANALYSIS

Strengths
1. Apollo Tyres' diversified market base across 3 continents has enabled it to reduce its dependence, and thereby, the inherent risks of banking on a single market, as compared to its Indian competitors. 2. The presence of strong and established brands in the Company's portfolio, in each of its country operations, lends credence to its growth plans. The key brands are Apollo in India, Dunlop in South Africa and Vredestein in Europe. 3. An extensive distribution network supporting Apollo Tyres' brands and products in all its 3 key operations. 4. Continued leadership position in the commercial vehicle tyre segment in India, including price leadership in the cross ply segment. 5. A leading position in the fast-growing passenger car tyre segment in India, reaching the #1 position in production and #2 in market share. 6. Strong player in the ultra high performance (UHP) passenger car tyre segment in Europe, particularly in high margin winter tyres. 7. Dynamic and progressive leadership.

Weakness
1. Absence in the two-wheeler and three-wheeler tyre segment in India, which is large and continues to show good growth. 2. Sub-optimal production facilities in terms of economic size in South Africa. 3. Market dynamics and intense competition in some key markets do not allow passing on cost pressures as and when reasonably required.

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Opportunities
1. Apollo Tyres' enjoys an early mover advantage, with a large production capacity in the rapidly growing truck-bus radial segment in India, well ahead of key competitors. 2. Entry into truck-bus radial retreading segment in India, by further leveraging its leadership position in the commercial segment this enables the Company to provide a complete solution to its customers and thus, enhance its brand equity. 3. Cultivating a sizable market for brand Apollo in Europe by capitalising on the existing European distribution network. This further improves brand recognition and enhances profitability. 4. Increased sales of brand Vredestein tyres by providing competitive cost production base out of India and/or sourcing tyres from other players. 5. Entry into the off-highway tyre segment in India. 6. Introduction of truck-bus and off-highway tyres in Europe. 7. Penetrating newer markets in Africa, including tapping into the potential of the Dunlop brand. 8. Entry into high potential markets like South America, Australia and Eastern Europe.

Threats
1. Potential growth slowdown in the Indian economy due to rising interest rates. 2. Increased competition from global players like Michelin and Bridgestone as they enter the truck bus radial segment in India. 3. Degrowth in the truck cross ply segment faster than anticipated. 4. Extreme raw material price volatility and cost pressures. 5. Exposure to the South African market which continues to face both a country and currency risk. 6. Economic downturn in Europe leading to decline in demand.

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CHAPTER - VIII FINDINGS, CONCLUSIONS & SUGGESTIONS

FINDINGS
ATL is the first tyre company to receive ISO 9001 certification and one the few tyre manufactures to obtain QS 9000 certification. Workers health and safety are given prime importance A good co-ordination exists between different departments. Trade unions play vital role as bargaining agents. The management is sometimes forced to accept demands made by the unions. The products of the company are known for its high quality standards. The workers are not completely satisfied with the wages they are paid. Employees are provided with facilities such as subsidized canteen, transportation etc. Safety posters and slogans are exhibited inside the plant and various safety awareness programs are also conducted. The factory premises are kept clean which comes under a dedicated system known as Environment Management System (EMS) Factory is located at an ideal location that allows easy access to land, air and sea transportation. All departments at the plant are being connected through SAP which gives real time connectivity with each other. All the plants of Apollo tyre group are being connected with the headquarters through WAN and SAP which critical decision making easy

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CONCLUSION
Apollo tyres Ltd is the 7th fastest growing tyre company in the world. A fair wage system prevails in ATL. The company provides better working condition for employees. Proper training to workers and efficiency of the workers must be increase to increase production. The industrial relation with the local union is fairly good and satisfactory at Apollo Tyres Ltd., Kalamassery unit.

The Company is facing a cut throat competition in Indian market and international market. Despite of all these challengers Apollo has done well in the past and with a booming economy and a focused progressive leadership at the top. The employees enjoy working as a team and with customers to create superior and distinct production and services. Apollo is focused on fast and flexible, never ending improvement in order to create an enterprise that is dynamic, ever expanding and profitable and in constant pursuit of customer satisfaction is Apollo policy to design, manufacture and service our products to provide the level of quality and value that meets ever customer needs.

Apollo stands first in the production of truck tyres. In spite of recession the company is still making sufficient profit. There are good working conditions and industrial harmony among the employees. Proper and adequate training is given to the employees, which leads to higher productivity,. The company is facing cut throat competition from Indian market as well as foreign market. In spite of fierce competition and local problems the Kalamassery plant thrives and move forward to its target of 310 MT/day and thereby achieve their 9000 crore goals by the end of 2010. Apollo tyres boast a vibrant and dynamic, profession and non hierarchical culture. Transparency and communication are cornerstones of corporate practice, across levels, to ensure that each individual employee is aligned with the goals and aspiration of the company. At Apollo Tyres the three corporate pillars of People, Quality and Technology underpin all activities and processes. These are the companys stated areas of corporate excellence, in its journey towards becoming a best in class global manufacturer.

Apollo Tyres, they are always looking out for new opportunities. If opportunities do not come their way, they go ahead and create opportunities. Over the years they have created opportunities for growth, opportunities for success and also opportunities for a bright future.

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SUGGESTIONS
Maintain the relationship between employees and employers There should be training program for better understanding of SAP A bit more promotional activities could enhance building brand image Maintain a healthy relationship with trade unions More training facilities must be given to employees The company should enter into two/three wheeler markets. The company should invest more on advertisement. Each should have an in house marketing department that can take care of the

local fluctuations in market.

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