INTRODUCTION

Elgi Rubber Company Limited, formerly Elgitread India Limited, is an India-

based company. The Company is engaged in the business of providing solutions

to rubber industry.

Elgi Rubber Company is one of the world's largest single-source suppliers of

retreading solutions. Right from stand-alone machines and equipment to a wide

range of raw materials and retreads for tyres, engineered for varied terrains and

seasons, Elgi Rubber Company Limited offers a complete retreading system that

guarantees good results to a retreader's customers.

Elgi Rubber Company Limited is among those companies that have a range of

services to offer. It is one of the largest suppliers of retreading materials in the

world. It has supplied over 600 retreading plants in 35 countries. The

manufacturing facilities of Elgi Rubber Company Limited include 8 plants in 6

countries to manufacture over 25 million kilograms of retreading material. It also

includes a highly modern facility to manufacture retreading equipment backed by

a well maintained training facility and laboratories. These facilities help in the

research and testing of metals and polymers.

1

COMPANY PROFILE

One of the main activities of Elgi group in the 1970s was bus transport and as a

part of its operations, was involved in the retreading of tyres. Realizing the

potential advantage of precured retreading, the group set up a team to develop the

machinery, the material and the process to introduce it into its own operations.

The objective was to create a small cost effective plant unlike the large and

expensive systems available in Europe and the United States. Using the extensive

light engineering and rubber technology capabilities available with in the group, a

very compact and unique retreading facility was established to cater the retreading

needs of the group. The results were outstanding, with the retreads performing

100% better with only a marginal increase in cost. When the excess capacity was

offered commercially, the response was overwhelming. The group decided to

commercialize the project and established a new company, Elgi Rubber Company

Limited and Tread Limited in the year 1981 for the purpose of franchising

precured retreading systems. All the required facilities were available in the group

except for the technology for large scale production of the retreading materials.

This was acquired through a technical licensing agreement with Oliver Rubber

Company of the United States (from 1984 to 1994).

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The company commenced commercial operations in 1984 and was renamed as

Elgitread (India) limited in 1988. During the year 2007 the company was

demerged in to two companies namely Teadsdirect limited (TDL) and Elgitread

(India) ltd. Subsequently, Elgitread (India) Ltd was renamed as Elgi Rubber

Company Limited (ERCL) with effect from September 12, 2008.

ERCL is manufacturing other rubber products for open market. The combined

turnover of the company for the year 2008-2009 was USD 45 million. ERCL have

accessories facility in Annur near Coimbatore, and facility for the manufacture of

retreading machinery and accessories.

In addition ERCL has established an aircraft tyre retreading facility with state of

the art analytical and physical testing equipment at a cost of over USD 4 million.

The company has factories located at Chenglepet, Kanjikode, Kovilpalayam,

Karur, Arasur, Vellalore, and Annur. Further established two subsidiary units in

Texas and Brazil.

Strategically ERCL has acquired a manufacturing facility for manufacturing of

string repair patches at the cost of US 3 million during May 2009 situated at

Texas, USA. This product is used for repairing of tyres.

Elgi Rubber Company Limited provides various solutions and services to rubber

industry in India and also International. The company provides retreading

equipment, such as inspection spreaders, tyre buffers, tread builders, envelope

expanders, curing chambers, expanding hubs, expanding rims, envelope locking

rings, envelope sealing flanges, curing rims, dust extractors, cement churners,

mono rail station for chambers, and tyre stands.

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Elgi Rubber Company Limited also offers repair equipment, including tyre

vulcanizers and extruder guns; and retreading tools, such as rasps and burrs, hand

tools, knives, and brushes.

In addition, the company provides retreading materials consisting of tread

rubbers, cushion rubbers, vulcanizing cement, aqua coat, aqua lube, curing

envelopes, curing tubes, and curing flaps; and repair materials, such as patches,

chemical vulcanizing cement, extruded rope rubber, and filler gum.

4

HISTORY AND DEVELOPMENT

The Company was incorporated on 13th May 1981, and the Certificate of

commencement of Business was obtained on 4th August.

It was promoted by L. G. Balakrishnan and its brothers along with M/s. L.

G. Balakrishnan & Bros. Ltd., Elgi Equipments, Ltd. and Super Spinning

Mills Ltd.

The Company manufacture procured tyre treads, cushion compounds,

cement, envelopes, etc.

The Company entered into a technical collaboration agreement with

Oliver Rubber Co., U.S.A.

Under this agreement Oliver Rubber Co., U.S.A. were to supply to the

Company technical information, data, documentation and specification

relating to machinery, installation and commissioning of the required plant

and machinery and furnish chemical formula or process for the

manufacture of licensed articles.

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L.G. Varadarajulu(December 15, 1928 – MAY 20, 2010)

L.G. Varadarajulu, Chairman, Elgi Equipments Ltd, he was 82. Varadarajulu,

fondly referred to as LGV, was the son of businessman LRG Naidu and

Ranganayakiammal. After completing his studies in automobile engineering at the

Arthur Hope's College in Coimbatore, he joined his father's bus transport business

in Tirupur. He ventured into manufacturing of automobile garage equipment and

air compressors in 1960. He had served as the Chairman of the Elgi Group of

Companies — Elgi Equipments, Elgi Rubber, Elgi Ultra Industries, and LG

Balakrishnan & Bros. He spent his time in running two schools and contributed to

the establishment of medical facilities for the needy through the LGB and LRG

trusts.

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PRESENT MANAGEMENT TEAM

ELGI RUBBER COMPANY LIMITED

BOARD OF DIRECTORS

NAME DESIGNATIONLG Varadarajulu Chairman

Sudarsan Varadaraj Managing Director

Dr Jairam Varadaraj Director

M John Edward Director

Suresh Jagannathan Director

MD Selvaraj Director

P Vijay Raghunath Director

C N Srivastan Director

KEY EXECUTIVES

NAME DESIGNATION

LG Varadarajulu Chairman

Sudarsan Varadaraj President

SR Venkatachalam Vice President - Finance

K Vijayalakshmi Company Secretary

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AUDITORS

Reddy, Goud & Janardhan

Chartered Accountants

Banglore.

INTERNAL AUDITORS

MS Jagannathan & Visvanathan

Chartered Accountants

Banglore.

BANKERS

State Bank of India

Commercial Branch

Coimbatore.

PLANTS

Thimmavaram. Chengalpattu

Kanjikode, Palakkad

Annur, Coimbatore

Kovilpalayam, Coimbatore

Lorena – SP, Brazil.

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PRODUCTS PROFILE

Elgitread is among those companies that have a range of services to offer. It is one

of the largest suppliers of retreading materials in the world. It has supplied over

600 retreading plants in 35 countries. The manufacturing facilities of Elgitread

(India) include 8 plants in 6 countries to manufacture over 25 million kilograms

of retreading material. It also includes a highly modern facility to manufacture

retreading equipment backed by a well maintained training facility and

laboratories. These facilities help in the research and testing of metals and

polymers.

This company has the appropriate solution for all problems. The products of

Elgitread (India) are:

Retreading Equipment

Retreading Material

Repair Equipment

Repair Material

Retreading Tools

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RETREADING EQUIPMENTS:

The retreading equipments are:

Inspection Spreaders

Tyre Buffers

Tread Builders

Envelope Expander

Curing Chambers

Expanding Hubs

Expanding Rims

Curing Rims

Dust Extractor

Cement Churner and

Tyre Stands etc...

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RETREADING MATERIAL:

The retreading materials are:

Tread Rubber

Cushion Rubber

Aqua Coat

Vulcanizing Cement

Aqua Lube

Curing Envelopes

Curing Flaps and

Curing Tubes

REPAIR EQUIPMENT:

The repair equipments are:

Tyre Vulcanizer and Extruder Gun

REPAIR MATERIAL:

The repair materials are:

Extruded Rope Rubber

Chemical Vulcanizing Cement

Filler Gum and Patches

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RETREADING TOOLS:

The retreading tools are:

Rasps & Burrs, Hand Tools

Brushes, Knives

OTHER RETREADING TOOLS:

The other retreading tools are:

Rasps & Burrs

Hand Tools, Brushes and Knives

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MILESTONE

YEAR EVENTS 1981 - The Company was incorporated on 13th May, and the

Certificate of commencement of Business was obtained on 4th August. It was

promoted by L. G. Balakrishnan and its brothers along with M/s. L. G.

Balakrishnan & Bros. Ltd., Elgi Equipments, Ltd. and Super Spinning Mills Ltd.

The Company manufacture procured tyre treads, cushion compounds, cement,

envelopes, etc.

- The Company entered into a technical collaboration agreement with Oliver

Rubber Co., U.S.A. Under this agreement Oliver Rubber Co., U.S.A. were to

supply to the Company technical information, data, documentation and

specification relating to machinery, installation and commissioning of the

required plant and machinery and furnish chemical formula or process for the

manufacture of licensed articles.

2008 -Elgitread (India) Ltd has informed that Name of the Company

has been changed from Elgitread (India) Ltd to Elgi Rubber

Company Ltd with effect from September 12, 2008.

2007 -Elgitread (India) Ltd has appointed Sri.S.R.Venkatachalam,

Chief Finance Officer of the Company as Compliance Officer of

the Company with effect from 27.01.2007.

2004 -Equity shares delisted from Hyderabad Stock Exchange

-Equity shares delisted from Madras Stock Exchange

2003 -Acquired shares as under: Sudarsan Varadaraj - 24300 shares

(0.57%); ELGI Rubber Products Limited - 5000 shares (0.12%);

Rayalaseema Technologies Limited - 5000 shares (0.12%); LRG

Technologies Private Limited - 30000 shares ((0.70%). The type

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of acquisition is Inter-se Transfer and the date of acquisition is

November 13, 2003. The shareholding after the proposed

acquisition is as follows:- 1. Sudarsan Varadaraj -755371 shares

(17.67%); 2. Elgi Rubber Products Limited -90500 shares

(2.12%); 3. Rayalaseema Technologies Limited -103325 shares

(2.42%) 4. LRG Technologies Private Limited -329250 shares

(7.70%).

2002 - Dr Jairam Varadaraj has been appointed as Director, in June 07,

2002. -Mr. N S K Swamy has ceased to be a Director

1994 - The company proposed to set up new projects in order to broad

base the product range. - 9,50,000 bonus equity shares allotted in

propotion. 1:2.

1993 - The Company proposed to diversify and improve the technology

in related areas of business. The Company identified a suitable

overseas partner to introduce retreading of aircraft tyres in view

of the open sky policy of the Government.

1986 - 7,60,000 right shares issued (premium. Rs. 2 per share,

propotion. 4:5). 1,90,000 additional shares allotted to retain

oversubscription. Another 40,000 shares offered to employees

(premium. Rs 2 per share) the details of allotment of which were

not known.

1985 - 50,000 No. of equity shares at par subscribed for by Oliver

Rubber Companies, USA.

1983 - 3,00,000 No. of equity shares taken up by promoters, etc. and

6,00,000 No. of equity shares offered at par for public

subscription during June.

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ORGANIZATION CHART

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PRESIDENT

VICE PRESIDENT

GENERAL MANAGER

HEAD

MANAGER

EXECUTIVES

SUPERVISORS

TECHNICIANS

HUMAN RESOURCE DEPARTMENT

INTRODUCTION

Personnel management is a link between the top management and the workers or

we can say that its acts like bridge between the employees and the employers. It is

basically concerned with human relationship within the organization and helps in

maintaining smooth relationship with employee and employees. It is the art of

getting thing done by other people.

Human resource is the greatest asset of any business enterprise. The workers are

the heart of the organization. It is the manpower that operates the machines,

processes the raw materials into a finished product and makes it possible to sale in

the market. Henceforth we can say that personnel management is the most

essential department of and organization in order to have a proper manpower

planning, organization, staffing, directing and controlling in order to achieve

individual social and organization goals.

PERSONNEL DEPARTMENT :

It mainly deals in the process of recruitment of manpower and act as a consulting

agent between the officers and the workers.

HR &TRAINING:

It deals with the staff members of and organization and is accountable to the vice president.

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RECRUITMENT AND SELECTION

RECRUITMENT:

“Recruitment is process to discover the sources of manpower to meet the

requirement of the staffing schedule and to employ effective measures for

attracting that manpower in adequate numbers to facilitate effective selection of

and efficient working force.”

The recruiting procedure of Company consists of three segments.

Recruitment of workers

Recruitment of executives and managerial staff

Recruitment of technical personnel

So far as Company is concerned the recruitment procedure is directly depend

upon human forces and is relate to the selection of well-qualified personnel’s.

SELECTION:

The selection procedure is concerned with security relevant information about an

application.

Company recruitment and selection procedure for blue-collar force is as per the

labor laws. For the recruitment of labor in the Company.

The concern supervisor and the labor welfare officer select workers. Physical

fitness. Attitude for work etc. are considered at the time of selection. With

reference to the method Company uses the indirect method more frequently for

the recruitment of its employees

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TRAINING AND DEVELOPMENT

TRAINING:

“Training is an important aspect of personnel which increases the knowledge

and skill of a worker for doing a specific job.”

TRAINING FOR THE WORKERS:

The HR department of the Company prepares schedule for training of the workers

in order to make the familiar with their task and to develop the job. The main

purpose of the company behind imparting training is to make the workers well

converse with the new technology.

TRAINING NEED IDENTIFICATION

The training needs are identified through the annual performance appraisal

system. Both the staff himself and his department head identifies the training need

and mentioned the same in the annual performance appraisal from the employees.

The need identification above is compiled and annual training calendar prepared

by HR Department. Further the corporate HR also suggest that the unit HR

organize some specific training programs based on the needs felt by the corporate

HR.

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TRAINING FOR CLERK AND TECHNICAL STAFF

The Company is not imparting any training courses as far as clerical staff is

concerned. But the supervisors are trained for:

Gaining knowledge to responsibility

Cost control and cost effectiveness

Knowledge of all disciplinary action

Development of leadership quality.

The other purpose of Company behind imparting training is:

To create awareness among the workers regarding the quality of products

and to improve knowledge thereby.

Enhancement of technical knowledge and various safety measurement

techniques.

To improve the discipline of the worker, good conduct and job

responsibility.

EVALUATION OF TRAINING EFFECTIVENESS

Feedback from are filled by employees after every training program to rate the

effectiveness of the training program on the following criteria

Duration of the program

Course content

Overall effectiveness of the program

Effectiveness of the faculty

Physical arrangement of the program

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JOB DESCRIPTION

The job description is nothing but it is the written form of job analysis like what

to do? Where to do? What is the main responsibility? To whom job is

responsible? Etc.

In other words job description means to give the information and guidance to

candidate about his particular job for which he has been selected it is a process of

giving information to candidate about his status duties responsibility etc.

ELGITREAD (India) Ltd the duties and responsibilities of administrative

department are collected through job description is as under.

Observation of employees at the time of work.

Discussion with departmental heads and outside experts.

This job description process is for employees, which are at middle as well as

personnel executives.

MANAGERIAL LEVEL

In this unit when a managerial level person is selected following are the

information given to them.

Nature of job.

Duties and responsibilities

Job summary

Position and status.

Working condition

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PERFORMANCE APPRAISAL

It is the process of evaluating the performance and qualifications of the employee

in term of the requirement of the job, for which he is employed.

The main aim of the evaluation system is to identify the performance gap. This

gap is the shortfall that occurs when performance does not meet the standard set

by the organization as acceptable.

Company the management is using three year of service period is studying

performance appraisal system. When a new candidate is recruited, the

management examines his performance for two year that is called as the

apprentice period.

In this co. normally three years of service period is considered to be qualified

period for getting promotion. At the meanwhile of these three years the

performance of the employee is continuously observed and is taken into account

while giving promotion. During this period the management prepares the

confidential report of the performance and behavior of the candidate.

The performance appraisal system adopted by Company is traditional one. It

conducts the performance appraisal program in the month of June every year and

all the employees are divided into two categories i.e. staff members and operating

workers.

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PROMOTION AND TRANSFER

PROMOTION:

“A promotion and the transfer of an employee to a job which pays more

money or one that carries so preferred status.”

Company has sound personnel policy. The policy is a blend of seniority and merit

consideration stressing more emphasis on seniority. And employee is promoted

considering his ability to deal with problems occurs among the subordinates and

seniors as well as level of proficiency, loyalty, etc.

Promotion is given after every 3 or 4 years on the basis of disciplinary action and

by performance appraisal system.

Employees are promoted within the organization in term of vacancies of creation

of new post. Company adopts to take the advance of the employees, one very well

aware of companies policy and production procedures in term to motivate them.

TRANSFER:

“A lateral shift causing movement of individuals from one position to

another usually without involving any marked change in duties,

responsibilities skills needed or compensation.”

Company runs various units located at different places within the country, yet

under this unit transfer practice is not following. Sometimes some workers are

transferred from on department to another because of physical fitness problem.

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WAGE AND SALARY ADMINISTRATION

“Wage and salary administration” refers to the establishment and

implementation of sound policies and practices of employee compensation”.

WAGE ADMINISTRATION OF COMPANY

It includes wages of operation manpower. Time office prepares wage sheets and

payment is done on the basis of time Rate. In case of late comers, the part of the

amount form their wages are deducted. Payment of wages to the workers is done

dept.

SALARY ADMINISTRATION OF COMPANY

Salary administration involves salary of administration staff and electrical

personnel. Salary sheets are prepared in account office and payment is done on

the basis of time rate and net attendance.

Besides salary the Co. also provide various other incentives to its employees.

Increments are given every three-year. Company has graded its employees

according to their job level. There are grade level as per the rationalization, career

path and qualification of the employees. It provides the car, housing medical and

other facilities as per the grade level of the employee.

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EMPLOYEE SERVICES

UNIFORM & OTHER FACILITY :

Elgitread ( India) Ltd provides uniform to its workers of the company. In this each

employee gets a 10 meter cloth with stitching allowances in the very first month

of the year.

INDEPENDENCE DAY CELEBRATION:

The company celebrates the independence day every year. On this day the

programmed of national flag hosting is followed by sweet distribution.

REPUBLIC DAY:

The company also celebrates the republic day with arranging many sports

activities & other programs.

MEDICAL FACILITY:

Company has its own dispensary in factory. Also in this dispensary workers are

treated up on free of charge. Company has its own doctors for this dispensary.

CANTEEN

The Company is attached with a Canteen where food and other beverages are

provided in subsidy rate. The Canteen is comprised of a lunch room, a separate

dining hall for men as well as women.

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COMPANY SOCIAL RESPONSIBILITY

The company is conscious of its social responsibilities and is carrying them very

well. ELGI Equipments continues founder Mr. LRG Naidu's legacy of giving

back to the community. ELGI's commitment to contribute substantially to the

community has led to the undertaking of projects in the fields of education,

vocational training, community health and advancement. This is accomplished

through the dedicated activities of the following trusts established by the ELGI

family members:

THE ELGI PUBLIC WELFARE TRUST

THE ELLARGI TRUST

THE SILVER JUBLIEE TRUST

THE LRG NAIDU EDUCATIONAL TRUST

SRI RAMASWAMY NAIDU VIDYALAM

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THE ELGI PUBLIC WELFARE TRUST

The Elgi Public Welfare Trust was established in 1983 by Mr. LG Ramamurthy

and Mr. LG Varadaraj. This Trust runs the Elgi Matriculation Higher Secondary

School at Vellalur, Coimbatore which was established in 1989. The school aims

to impart knowledge and global culture in children belonging to the rural areas.

The school caters to the educational needs of children starting from the primary

level (Lower Kinder Garden) up to the higher secondary level (12th standard).

The present strength of the school is about 1004 students. It is well equipped with

a library, computer lab, audiovisual lab, Linguistics lab as well as facilities for a

variety of sports activities.

THE ELLARGI TRUST

The Ellargi Trust established by Mrs. Amiritham Varadaraj and Dr. Jairam

Varadaraj in 1998 is dedicated towards providing medical and educational relief

to the nearby community. The medical assistance provided by this trust comprises

individual medical relief as well as grants to hospitals. The educational assistance

comprises educational scholarships for school and college education as well as

institutional donations to various educational institutions in and around

Coimbatore City.

THE SILVER JUBLIEE TRUST

The Silver Jubilee Trust established in 1991 by Mrs. Amiritham Varadaraj and

Mr. LG Ramamurthy utilizes its funds for the advancement and up liftment of the

physically challenged community in Coimbatore. It works in close coordination

with the Society for the Aid of Handicapped Children, Coimbatore. This society

runs a school and a hostel for the physically and mentally challenged children of

the community.

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THE LRG NAIDU EDUCATIONAL TRUST

This trust founded by Mr. LRG Naidu in 1965 is focused on the advancement of

learning by way of institutional donations; grants and scholarships; and support of

social welfare projects and philanthropic activities.

SRI RAMASWAMY NAIDU VIDYALAM

Sri Ramaswamy Naidu Vidyalayam is a school managed by the members of the

ELGI family. It was established in 1946 at Lakshminaiken Palayam, Palladam,

Coimbatore. The strength of the school is approximately 1200 children mostly

from the rural community. This School turns out brilliant students and has

consistently achieved 100% results.

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MARKETING DEPARTMENT

INTRODUCTIO N

Marketing deals with identifying and meeting human and social needs. One of the

shortest definition or marketing is “meeting needs profitable”

“A market may be considered as a convenient meeting place buyers and

sellers gather together for exchange of goods and services.”

Marketing is a process by which individuals and group obtain what they need and

want by creating and exchanging products and value with others.

Marketing is typically seen as the task of creating, promoting and delivering

goods and services to consumers and businesses. Marketing people are involve in

marketing ten types of entities’ goods, services, experiences events, persons,

places, properties, organizations, information, ideas.

Marketing has often been described as “The Art of Selling Product”.

Customer is not God, Customer is King,

God Forgives, King Doesn’t

The company has a very efficient and excellent marketing department, which tries

to provide maximum satisfaction to the customer while having reasonable.

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OBJECTIVES OF MARKETING

The following are objectives of Elgitread (India) Ltd.

To find new and new customers to sell them more & more of companies

product.

Try to make better and quality product.

To provide a successful distribution of customer products.

To study the market problem according to the circumstances and suggest

the solutions.

To sell their products in new areas to make new customers and satisfied

old ones.

To encourage the customers and know the fault in their products and then

try to make quality or faultless products.

PRODUCT PLANNING AND DEVELOPMENT

“Product planning determines the characteristics of the product best meeting

the consumers numerous desires, characteristics that a stability, to products

and incorporate this characteristics into the finished products.”

Product planning involves three important considerations:

1. The development and introduction of product

2. The modification of the existing products

3. The elimination of unprofitable products.

Company plans its product design according to the demand of the client’s market

situation, and price of the product of its competitors.

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NEW PRODUCT DEVLOPMENT

New product development shapes the company’s future. Given the rapid changes

in taster. Technology and competition a company can’t rely solely on its existing

products.Companies that, fails to develop new products are putting themselves at

great risk. Company can a new products though acquisition and development.

Elgitread (India) Ltd has made efforts in technology absorption and in specific

areas that brings:

1000Kg Free Standing Tyre Buffer

800Kg Free Standing Tyre Buffer

600Kg Free Standing Tyre Buffer

195Kg Free Standing Inspection Spreader

150Kg Free Standing Inspection Spreader

110Kg Free Standing Inspection Spreader

BRAND

The American marketing association defines brand is :

“A name, term, sigh, symbol or design or a combination of them,

intends to identify the goods or services of one seller or group of

sellers and to differentiate them from those of competitors.” Thus

brand identifies the sellers of makers.

With six of the foremost name in the apparels business into its fold, Elgitread

(India) Ltd is today the largest branded Company in the country.

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PRICING

Pricing is a key factor, which remarkably effects the sales operations. Price may

be define as, “The value of the product attributes expressed in monetary

terms which a consumer pay of is expected to pay in change and anticipation

of the expected of offered utility.”

The firm has to consider any factors in setting its pricing policy.

Pricing objective

Determining demand

Estimating cost

Analyzing competitors prices

Pricing method

Selecting final price

Price is the only element in the marketing –mix that produces revenue.

Company has not adopted any clear pricing policy but it follows the mixture of

following pricing strategy.

COMPETITION ORIENTED PRICING POLICY:

Under this policy all the manufacturers meet together at Mumbai and they fix

maximum price level by negotiating with each other. Sometimes the Co. also uses

the prestige pricing method because it is believe that the product with higher

quality can attract the customer with the higher process

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DEMAND ORIENTED PRICING POLICY:

Under this policy the company uses the method of pricing at market. This helps to

avoid the price competition and price war in the market.

COST ORIENTED PRICING POLICY:

Under this policy the company uses the method of target pricing. It fixes a target

return of total cost. It uses break-even analysis for deciding cost plus pricing

which helps it in determining the level of output.

32

ADVERTISING

“Any paid form of non personal communication of Ideas, goods of services

by business firm identified in the advertising message intends to lead to sale

immediately of eventually.”

Advertising is basically used for:

Creating or enhancing goodwill

Preparing ground for new product

Creation of demand

Facing the competition

Company is very sound company producing industrial product.

Elgitread (India) Ltd is use as a raw material in rubber industries that are not

affected by any media of advertisement and that is the reason why the company is

not advertising its product.

The company publishes magazines, which depicts various facts and figures of

companies manufacturing process, EXIM policy, pricing policy, strategies, etc. In

short, the company adopts the direct advertising method.

33

PROMOTIONAL TOOLS

“Promotion consists of those activities that are designed to being a company’s

goods or services to the favorable attention of customer.”

Every company is inevitably cast into the role of communicator and promoter.

SALES PROMOTION

Companies use sales-promotion tools to create a stronger and quicker response.

There is a separate organization, which jointly made efforts for sales promotion

and this organization is followed by Company. This organization is known as

“The Elgi Rubber Company Limited”

The head office of Company does all the activities of the sales promotion. It

promotes its sales via dealers i.e. the product is sale thought middleman.

Following tools have been use in this method;

Buying allowance discount

Display allowance

Dealers contest

Concession on the net sales

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CHANNEL OF DISTRIBUTION

“The middleman is not a hire link in a chain forgets by a manufacturer, but rather

and independent market, the focus of a large group of customers for whom he

buys.”

Company has adopted its own

sales branches and sales offices in context of its channel 0f distribution. The

company has selected the distributed channel keeping in view the demand of the

customer and the current market trend.

In Company the main product is Tyre Buffers so, this unit utilizes level and one

level of channel of distribution. They are conducting the sales activity with the

help of agents dealers, sub dealers etc. in different cities and different state.

Company sales marketing office is at Mumbai, which performs the function of

selling the product of the company. The marketing office collects all the orders

from the different sales branches. All the sales branches of Company maintain the

facilities like storage, after sales service etc.

CHANNLE OF DISTRIBUTION:

35

COMPANY SALES OFFICER CUSTOMER

COMPETITORS

To be successful, the company must to a better job than its competitors of

satisfying target consumers. This, marketing strategies must be adapted to the

needs of consumers and also to the strategies of competitors. Base on its size and

industry position the company must find the strategy that gives it the strongest

possible competitive advantages.

The Company enjoys the monopoly in the market because if its total market of

ELGI Rubber Industry

Apollo Tyres Ltd

Birla Tyres Ltd

The Ceat Shoppe

Paragon Polymer Products Pvt Ltd

M.G.M Rubber Company

Thermofab India.

Goodyear India Ltd

Govind Rubber Ltd

Jk Industries Ltd

Dewan Tyres Ltd

Eastern Treads Ltd

36

PRODUCTION DEPARTMENT

INTRODUCTION

Production means creation of utility and entails the procurement and utilization of

factors of production, which includes manpower, material, buildings and

equipments.Production is fabrication of physical object though use of men,

material and equipment.

“Production management deals with decision marketing related to

production process so that the resulting foods of service is produce according

to specification in the amounts and by Schedule demanded and at minimum

cost.” - E.S.Buffa

Production must be operated in an economic and efficient manner because cost of

production is vital factor in facing market competition and in ensuring normal

profit or return on investment.

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INPUT

Material

Labor

Capital

Energy

Information

Resources

Production process

OUTPUT

Products

Services

Information

Products of services

RETREAD

A retread, or "recap," (or "remould" in the UK) is a previously-worn tire which

has gone through a remanufacturing process designed to extend its useful service

life.Retreading starts with a safety inspection of the tire. The old tread is then

buffed away, and a new rubber tread is applied to the bare "casing" using

specialized machinery.Retreads are significantly cheaper than new tires. As a

result, they are widely used in large-scale operations such as trucking, bussing and

commercial aviation. They are also the most environmentally friendly way of

recycling used tires - in some applications, a tire can be retreaded up to 10 times.

Recycled rubber from retreads can be shredded to make rubber muluch. The

process of "retreading" requires, after the buffing off of the old tread, there to be

coating with another compound like rubber to allow the new tread to adhere to the

used tire casing.

ABOUT RETREADING

* For most fleets, tyres represent either the second or the third largest

item in their operating budget, right after labor and fuel costs.

* The lowest possible cost-per-mile is achieved with a good tyre

management program that includes the use of quality retreads.

* Retreads are the replacement tyre of choice for most truckers.

* Retreads are not only cost effective, but they are also dependable,

reliable and safe. Retreads are used by truckers with scheduled delivery

times, small package delivery companies with guaranteed delivery

times, on commercial and military jets and by most school bus

operators.

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* Retreads are also environmentally friendly. tyres are basically petro-

chemical products. It takes almost 100 ltrs. of oil to manufacture one

new truck tyre. Most of the oil is found in the casing, which is reused in

the retreading process. As a result, it takes only 30 ltrs. of oil to

produce a retread.

* Retreaders, like trucking companies, have experienced considerable

consolidation. Today, the most successful retreaders are those with the

highest quality products, delivering the best possible return on

investment to the fleets. Because of the competitive nature of the

retreading industry, truckers can expect to see continuous improvement

in quality, durability and reliability, as the major retread suppliers

annually invest millions of dollars in research and development.

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TYPES OF RETREADING

Retreading can be done by the following two processes:

1. Conventional Process (also known as 'mould cure' or 'hot cure' process) -

In this process a un-vulcanized rubber strip is applied on the buffed casing

of the tyre.  This strip takes the pattern of the mould during the process of

vulcanization;

2. Precure Process (also known as 'cold cure') - in this process a tread strip,

where the pattern is already pressed and precure is applied to the casing. 

It is bonded to the casing by means of a thin layer of specially

compounded uncured rubber (known as cushion or bonding gum) which is

vulcanized by the application of heat, pressure and time.

The present all India pattern, by type of retreading, is as follows:

Precured - 50%, Conventional 50%.

Retreading is primarly done in the Truck and Bus trye segment. On an average a

Truck/Bus trye is retreaded 1.5 times.

 At present only 3-4 large companies are in the organized sector of tyre retreading

.Organized sector is classified as that comprising of companies which operate

through the franchisee route.

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RETREADING PROCESS

INITIAL INSPECTION

The purpose of initial inspection is to verify that a casting is acceptable for

retreading using a thorough inspection of each tyre, inside and outside. Identify

casing injuries and determines if repairable. Reject or approve the casting for

processing.

BUFFING

The primary objective of buffing is to prepare the worn tread surface of the tyre to

receive a retread. The original tread design and some of the undertread is removed

to provide the casting with the required dimension and surface texture.

TREAD PREPARATION & BUILDING

Building is the process of applying a premoulded retread or new tread rubber to

the buffed and prepared casting.

An uncured cushion gum that will develop the bonding between premoulded tread

casting is applied and splice on the casting.

In the mould cure process uncured tread compound is extruded or applied as a

strip directly to the casting.

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ENVELOPING

In the premould process the uncured cushion compound has to vulcanise while the

premoulded tread has to be kept in position. Therefore the tyre is put into an

envelope which presses through a vacuum system, the premoulded tread

uniformly on the cushion and the casing.

VULCANISING

The purpose of the curing is to apply specific heat and pressure over a period of

time to unvulcanized rubber so that the rubber is cured to the point of best

physical properties and maximum adhension to the surrounding elememts. In the

premoulded process the enveloped tyre is put into an autoclave whereas in the

moulded process the tyre is cured in proper tyre moulds.

FINAL INSPECTION

To insure a quality retread each tyre passes a thorough inside and outside visual

inspection. It is mandatory that the tyre meets all customer and government

regulations. Some retreaders are also using instrumented inspection like X-ray,

Shearographic or High Pressure Tester. Unacceptable tyres are rejected and

scrapped.

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PRODUCT DETAILS

1000KG FREE STANDING TYRE BUFFER

Product Category : Buffer

Elgitread [India] limited is engaged in providing tyre management services &

solutions. They provide everything from market survey, project planning and

know-how, to training, supply of equipment and raw material, service and

technology support. Retreads are the replacement tyre of choice for most truckers.

Tyre buffer - bf5 has the following unique features:

1. Tyre buffer - bf5 has a tyre range of 6.50 x 14 to 12.00 x 24

2. Tyre buffer has an air pressure of 7 kilogram / centimeter2

3. Requires 380 / 415 v 3 ph 50 hertz electrical supply

4. Generates an electrical load of 13.875 kilo weight [18.5 hp]

5. Free standing installation

6. Weights 1000kilogram

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900KG FREE STANDING TYRE BUFFER

Product Category : Automotive Accessories

Elgitread [India] limited is engaged in providing tyre management services &

solutions. They provide everything from market survey, project planning and

know-how, to training, supply of equipment and raw material, service and

technology support. Retreads are the replacement tyre of choice for most truckers.

The tyre buffer - bf4 possess the following salient features:

Tyre buffer has a tyre range of 6.50 x 14 to 12.00 x 24

Buffer has an air pressure of 7 kilogram / centimeter2

Requires 380 / 415 v 3 ph 50 hertz electrical supply

Generates an electrical load of 14.625 kilo weight [19.5 hp]

Free standing installation

Weights 900kilogram

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MATERIAL HANDLING

“Material handling is the art and the science involving the movement

packing and storing of substance in any form.”

Material handling can be defined as “Controlling the amount location movement

and timing of the various commodities used in and produced by the industrial

enterprise.”

Company is totally using the automatic process for production, but at certain stage

it uses equipment for the shifting of raw material. The company uses trolley as an

equipment for material handling in its Viscose Section to brought up the woo pulp

from the storage department an in after treatment department to puts the cakes in

washing an knitting. After the last stage of the production, the final product is sent

to the packing section with the help of trolley.

Many times Company uses.

Conveyers.

Rails.

Cranes.

Trucks.

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QUALITY CONTROL

“Quality is an asset which may be offered to the potential customer of a

product or a service.”

It mainly depends upon two factors:

o Product-Service Design

o Operating System makes a product/provides a service

QUALITY POLICY

We are committed to:

Meet customer’s expectation of quality and services in premium

segment.

Maintain high morale of employee.

Use eco-friendly technology and maintain pollution free

environment.

MAJOR FUNCTION UNDERTAKEN BY COMPANY

Regular checking of set parameters.

Checking individual

Checking of abnormality in the process.

Highlighting the variation from the set operation

procedures/parameters.

TECHNICAL SALES:

Regular market visits to meet consumers demand.

Regular comparison of tread quality and physical properties of

other manufacturer

Checking and suggestion to eliminate market complains.

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IMPROVEMENT CELL:

Analysis of breakdown and stoppage of process

Suggestion for improvement in existing operation system for better

plant control.

To carry out study on specification problem/effect and to suggest

their steps.

To develop different shades/ product for sales promotion.

PLANT MAINTENANCE

“Plant maintenance ensures that all production facilities are in serviceable

condition at required time, causing on production hold-up, interruption, or

loss of individual efficiency for operation.”

The objective of plant maintenance is to improve functional reliability of

production facility to grab opportunities.

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WORLD CLASS MANUFACTURING

The economy is integrated to the global economy and industry is facing global

competition. It adopt WCM model to improve performance and fitting with global

competition.

The following characteristics of WCM are used to fulfill the customer

expectations.

(1) Products of high quality.

(2) Products at the right price.

(3) Product with the enhanced features.

(4) Product in a wide variety.

(5) Products delivered in time, in fact short time.

(6) Products delivered with shorter lead times.

(7) Flexibility in fulfilling the demand for the product.

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FINANCE DEPARTMENT

INTRODUCTION

Financial management is the managerial activity which is concerned with the

planning and controlling of the firms of the financial resources.

“Finance management is concern with the efficient use of an important

economic resource, namely capital fund”. - Solomon

Taking a commercial business as the most common organizational structure, the

key objectives of financial management would be to.

Create wealth for the business

Generate cash, and

Provide and adequate return on investment bearing in mind the risks that the

business is talking and the resources invested.

There are three key elements to the process of financial management.

FINANCIAL PLANNING

Management needs to ensure that enough funding is available at the right time to

meet the needs of the business. In the short term, funding may be needed to invest

in equipment and stock, pay employee.

In the medium and long term, Funding may be require for significant additions to

the productive capacity of the business or to make acquisition.

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FINANCIAL CONTROL

Financial control is a critically important activity to help the business ensure that

the business is meeting its objectives.

FINANCIAL DECISION-MAKING

A key financing decision is whether profits earned by the business should be

retained rather than distributed to shareholders via dividends. If dividends are too

high, the business may be starved of funding to funding to reinvest in growing

revenues and profits further.

FIXED ASSET

As the name suggest, such assets are acquired to be retaining in business on long

term basis to produce goods and services and are not for resale.

Elgitread (India) Ltd has maintained proper records showing full particulars,

including quantitative details and situation of fixed assets. The management

during the year has not physically verified all the fixed assets but there is regular

program of verification, which is reasonable, having regard to the size of the

company and the nature of its assets. No discrepancies were noticed on such

verification.

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CAPITAL BUDGETING

The system of Capital Budgeting is employee to evaluate expenditure decision,

which involve current outlays but are likely to product benefits over a period of

time longer then one year.

These benefits may be either in the form of increased revenue or decreased cost.

There is various method of Capital Budgeting

Internal rate of return

Average rate of return

Profitability index

Payback period

Net present value

Company undertakes Capital Budgeting every year with the help of financial

experts of financial dept on basis of payback period methodology.

The Compan. always aims at increasing and expanding the installed capacity of

Tyre Buffers production. It constantly tries for its success. At present the installed

capacity of plant is US $10000 - 15000/annum.

At present the main objective of Company is replacement and modernization of

machine and fixed assets and business expansion by adding new machineries and

technology. The unit base takes this decision on payback period.

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WORKING CAPITAL

Working capital is concerned with management of current asset. It is and

important and integral part of financial management as short-term survival is

prerequisite for long-term success.

The divisional management of Company manages the working capital within the

broad framework laid by and with consolation of corporation finance division.

Decision regarding its utilization of the current assets is made in accordance with

the policy of company.

The operating cycle can be said to be at the heart of the need for working capital.

Net Working Capital = Current Assets – Current liabilities

Year Rs. (in Crore)

2008-09 =54.03– 25.65

= 28.38

2007-08 = 115.2 – 32.92

= 82.28

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CASH

RECEVIABLE

INVENTORY

CONCLUSION

After going through the training program, functioning of the organization which I

observed from that it can be concluded that ELGITREAD (India) Ltd is the large

scale manufacturing organization and successful player in the tread industry. The

company has the strong financial structure and has a very good reputation in the

market.

In the backdrop of various initiatives taken and strong performance during the

year, ELGITREAD (India) Limited is on the path of superior performance. The

company has strategically moved into various growth businesses and these are

backed by traditional business that generates strong cash flows to drive the

growth.

As concerned with the personnel department it is well organize. If there are

certain problems than they are solve by mutual understanding between the

personnel and the management. Manpower Planning and human assets are well

organized.

The company is also doing its business with the Global Market. In India, the share

of ELGITREAD (India) Limited are highest.

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BIBLIOGRAPHY

BOOKS

B.Mahadevan: “Operation Management”, 3rd Edition 2008, Pearson

Publication.

K. Aswathappa: “Human Resource and Personnel Management”, 4th

Edition, Tata Mc Graw Hill Publishing Company Ltd.

Pandey I.M., “Financial management”, Ninth Edition, Vikas publishing

house private limited. New Delhi.

V.K.Saxena & C.D.Vashist: “Essential of Financial Management”, 1st

Edition 2008, Sultan Chand And Sons.

Philip Kotler: “Marketing Management”, the Millennium Edition,

Prentice Hall of India Pvt. Ltd.

Annual Report of Elgitread (India) Limited, 2007-08

WEBSITES

www.elgitread.com

www.directtread.com

www.elgirubber.com

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