JK Tyre Report Fina

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CHAPTER # 1 EXECUTIVE SUMMARY 1 | Page

Transcript of JK Tyre Report Fina

Page 1: JK Tyre Report Fina

CHAPTER # 1

EXECUTIVE

SUMMARY

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The tyre industry has seen several phases during its evolution. From the

iron rolled wheels to the modern day rubber tires, from ups to downs, the

industry has seen it all. It has been my privilege to intern at a prestigious

organization as JK Tyre & Industries Ltd. I got the opportunity to learn

practically through exposure to the Gurgoan market under the able guidance of

my immediate supervisor and industry mentor.

I set up few objectives and planned to execute in a way that provides me

with the maximum learning and gain through my tenure as internee at JK Tyre

& Industries Ltd. My prime objective was to get to learn about the product

range that the firm offers in various segments and its relative market share. To

achieve this I conducted fitments survey which helped me achieve my prime

objective. My second objective was to learn about the perception of JK Tyre in

the market. For this I conducted the dealers/fleet surveys across various

transport markets in the Gurgoan region. This helped me find out the perception

of JK Tyre as compared to other brands and also conclude the positives and

negatives of the company with the help of these surveys.

The various findings through the surveys conducted and their analysis

helped me to derive the market share of JK Tyre & Industries Ltd in the

Gurgoan region and its scope for development in the Truck and PCR segment.

The potential for expansion of JK Tyre exists in the market with a few changes

in its policies and approach. These suggestions are withheld in the details of the

project report. Some other practical learning were also offered to me through

various interactive programs which complete few more aspects of my learning

such as Customer Interaction Program, etc.

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The future trend in the industry relates a fruitful forecast for the company

through radicalization which has been pioneered by JK Tyre & Industries Ltd in

the market. The company also offers various learning aspects in terms of

personal experience by interactions with the supportive staff of the company.

The findings and conclusions listed at the end of the report are expected to

provide a great boost to the sales in the Truck and PCR segment and increase

overall revenues of the company. This, thus, completes the achievements

desired in terms of set objectives at the start of the project and the subject

selected.

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CHAPTER # 2

RESEARCH

METHODOLOGY

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2.1 OBJECTIVES

The prime purpose of the report is to analyze the market share of JK Tyre

& Industries Ltd in the Gurgoan region and derive the scope for development of

JK Tyre in the Truck and PCR segment. To achieve this, an approach was

designed which revealed an insight into the problem and help conclude the

solution.

The first objective was set to get the product range that the company is

offering and its relative market share.

The second objective was set as deriving the perception and demand of

JK Tyre in the market and the issues constraining such behavior.

2.2 BENEFITS OF STUDY

The set objectives are helpful in deriving the market share of JK Tyre and

get the insights of the problem that faces this organization in the PCR segment.

The study helped in getting the market share of the company and then concludes

the strategies based on the findings. After analysis of these findings the

conclusion was suggested based on which the company is expected to derive

benefits. This study will help company improve its share in the PCR segment

and look into the newer trends in the market.

2.3 RESEARCH DESIGN

The purpose of research is to discover answers to questions through the

application of scientific procedures. The main aim of research is to find out the

truth which is hidden and which has not been discovered as yet. I have tried to

find the solution to the less market share of JK Tyre in the PCR segment

through my study. Hence, this is an Applied Research.

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2.4 SAMPLE DESIGN

The sample to be used in this research is non - probability sampling

because all the population elements do not have an equal chance to get selected

and Convenience method is selected to collect data because it is cheapest and

easiest to conduct. And researchers have the freedom to choose whatever they

find and what is conclusive for their study. I have taken the data from the

various car parking, malls and Udyog Vihar (Maruti Suzuki Parking) of

Gurgoan region.

2.5 SCOPE OF THE STUDY

The study helps in finding out the problematic areas of the PCR segment

tires’ sales in the Gurgoan region for the JK Tyre & Industries Ltd. The

conclusions are based on the study conducted in various malls, parking transport

markets of Gurgoan region and analysis based on that study. The conclusions

are also assisted by personal experiences during the study and away from the

basic surveys conducted. The study and its results are expected to boost the

sales of the company in the PCR segment.

2.6 LIMITATIONS OF THE STUDY

a) The limitations inherent in secondary data are bound to exist in the

research as well.

b) The primary data has been collected from the malls, parking and transport

areas of Gurgoan region and as such is biased to certain extent.

c) The sample size for the research was of 43 dealers and 252 customers.

The accuracy of results is bound to increase with the increment in the

sample size.

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d) The study has been conducted in the Gurgoan region and such its scope is

limited to Gurgoan region only and must not be used to derive

conclusions for overall India or the world.

e) The primary data has been collected during the working hours and as

such reveal the result in its limits.

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CHAPTER # 3

CRITICAL

REVIEW OF

LITERATURE

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The project is in the form of applied research. As such, there had been

no earlier researches done in this regard in the past. But a brief about the

product and its related figures is necessary to understand the scenario in a better

way.

TYRES

A tire (in American English) or tyre (in British English) is a ring-shaped

covering that fits around a wheel rim to protect it and enable better vehicle

performance by providing a flexible cushion that absorbs shock while keeping

the wheel in close contact with the ground. The word itself may be derived from

the word "tie", referring to the outer steel ring part of a wooden cart wheel that

ties the wood segments together.

The fundamental materials of modern tires are rubber and fabric along

with other compound chemicals. They consist of a tread and a body. The tread

provides traction while the body ensures support. Before rubber was invented,

the first versions of tires were simply bands of metal that fitted around wooden

wheels in order to prevent wear and tear. Today, the vast majority of tires

are pneumatic, comprising a doughnut-shaped body of cords and wires encased

in rubber and generally filled with compressed air to form an inflatable cushion.

Pneumatic tires are used on many types of vehicles, such

as bicycles, motorcycles, cars, trucks, earthmovers, and aircraft.

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CONSTRUCTION TYPES

Bias

Bias tyre (or cross ply) construction utilizes body ply cords that extend

diagonally from bead to bead, usually at angles in the range of 30 to 40 degrees,

with successive plies laid at opposing angles forming a crisscross pattern to

which the tread is applied. The design allows the entire tire body to flex easily,

providing the main advantage of this construction, a smooth ride on rough

surfaces. This cushioning characteristic also causes the major disadvantages of a

bias tire: increased rolling resistance and less control and traction at higher

speeds.

Belted bias

A belted bias tyre starts with two or more bias-plies to which stabilizer belts

are bonded directly beneath the tread. This construction provides smoother ride

that is similar to the bias tire, while lessening rolling resistance because the belts

increase tread stiffness. The plies and belts are at different angles, which

improve performance compared to non-belted bias tires. The belts may be cord

or steel.

Radial

Radial tyre construction utilizes body ply cords extending from the beads and

across the tread so that the cords are laid at approximately right angles to the

centerline of the tread, and parallel to each other, as well as stabilizer belts

directly beneath the tread. The belts may be cord or steel. The advantages of this

construction include longer tread life, better steering control, and lower rolling

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resistance. Disadvantages of the radial tire include a harder ride at low speeds

on rough roads and in the context of off-road, decreased "self-cleaning" ability

and lower grip ability at low speeds.

Tubeless

Tubeless tyre, as the name suggests, are tyres without the tube. The tyre is built

in such a way that it can contain the air by itself. It does not require a tube

within it. The tyre and rim assembly form an air container, to “Seal” and

“Contain” the compressed air inside the assembly. The tyre has a halo- or

chloro-butyl lining on its inside which is airtight. Together with the airtight joint

between the tyre and the wheel, the membrane forms a container that holds the

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Fig 3.1 Classification of Tyre

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air for the tyre. A valve is fitted on to the rim for inflation or deflation to the

assembly.

TYRE TYPES

1) Passenger and Light truck types

a) High performance

b) Mud and snow

c) All season

d) All terrain

e) Spare

f) Run flat

g) Heavy Duty Truck

2) Off the road

3) Agricultural

4) Racing

5) Industrial

6) Bicycle

7) Aircraft

8) Motor cycle

a) Sport touring

b) Sport Street

c) Track or slick

EVOLUTIONARY PHASES OF TYRE MANUFACTURING IN

INDIA

Phase Period Characteristics Policy Regime

Phase I 1920-35 No domestic production. Demand met

through imports. Key players included

Liberal imports

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Dunlop (U.K), Firestone & Goodyear

(USA)

Phase

II

1936-60

Domestic production begins by

erstwhile trading companies: Dunlop,

Firestone, Goodyear and India Tyre &

Rubber Company

Imposition of tariff &

non-tariff barriers on

imports

Phase

III

1961-74

Indian companies-MRF, Premier &

Incheck- enter manufacturing sector

with foreign technology; licensing of

additional production capacity

Regulation on capacity

expansion and

repatriation of  profits

of foreign companies;

enforcement of export

obligation on MNC;

protection from

external competition

Phase

IV

1975-91

Entry of large Indian business houses

like Singhania & Modi & technical

collaborations with MNCs, introduction

of radial tyres, vertical integration and

exponential growth in tyre production &

exports

Delicensing of

production, placing of

imports under OGL

with tariff & non-tariff

barriers

Phase

V

1992

onwards

External trade liberalization & reduction

in import duty; re-entry of MNCs either

independently or in collaboration with

Indian capital

Progressive reduction

in import duty;

liberalized imports.

Table 3.1 Evolution Phase for Indian Tyre Industry

Raw material

Raw Materials of   Tyre Industry - Overview      (FY 2009-10)

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Tyre Industry is highly raw-material intensive. Raw materials cost

accounts for approx. 63% of tyre industry turnover and 72% of production cost.

Given below is the composition of raw-materials as a percentage (%) of Total

Raw Material Cost:

Raw material Percentage

Natural Rubber 43%

Nylon Tyre Cord Fabric 18%

Carbon Black 11%

Rubber Chemicals 5%

Butyl Rubber 4%

PBR 5%

SBR 5%

Others 9%

Table 3.2 Usage of Raw Materials in

manufacturing tyre

5.75 lakh tons of consumption of natural rubber

62% of total Natural Rubber consumption is by the Tyre Sector, balance by

rubber based non-tyre industries.

Total weight of raw-materials consumed by tyre industry – 15.50 Lakh M.T.

Total Cost of Raw Materials consumed by tyre industry – Rs.16,000 Crores.

Raw Material Availability

No domestic Production of Butyl Rubber and Styrene Butadiene Rubber

of tyre grades, i.e., 1502 and 1712. Production of Nylon Tyre Cord

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Fabric, Polybutadiene Rubber, Rubber Chemicals, Steal Tyre Cord,

Polyester Tyre Cord insufficient to meet domestic demand.

Tyre industry imports raw materials on account of the following factors:

a. duty-free imports permitted against export of tyres; domestic

demand not sufficient to meet complete requirement; technical and

commercial considerations;

b. business strategy to have multiple sources of supply.

GOVERNMENT POLICIES

Trade Policy - Tyres & Raw Materials

All categories of new tyres can be exported freely.

All categories of new tyres can be imported freely.

No WTO Bound Rates for Tyres & Tubes.

All raw materials required for the manufacture of tyres can be imported

freely (OGL).

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CHAPTER # 4

INDUSTRY

AND

COMPANY

PROFILE

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THE TYRE INDUSTRY

The tire market can be divided into three categories, including the non-

heavy-duty tires for passenger cars and light trucks, the heavy-duty tires for

heavy vehicles and the tires for two-wheel vehicle, agricultural machinery,

OTR, etc.

With the slight leading advantage, Michelin ranked first, and Bridgestone

tightly followed. Goodyear extended its gap from the previous two due to the

shrinkage of its North American market. Continental retained its considerable

performance in the European high-end passenger car market; however, it

experienced a disappointment in the Chinese market. Pirelli maintained its top

position in the markets of South Europe, North Africa, Middle East and Latin

America. Sumitomo Rubber also maintained its leading position in the Japanese

high-end market, especially high-end SUVs.

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Fig 4.1 Global Market Share of Tyre Industry

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THE INDIAN TIRE INDUSTRY

Market profile

While the tyre industry is mainly dominated by the organised sector, the

unorganised sector holds sway in bicycle tyres. The major players in the

organised tyre segment consist of MRF, Apollo Tyres, Ceat and JK Industries,

which account for 63 per cent of the organised tyre market. The other key

players include Modi Rubber, Kesoram Industries and Goodyear India. Dunlop,

Falcon, Tyre Corporation of India Limited (TCIL), TVS-Srichakra, Metro Tyres

and Balkrishna Tyres are some of the other players in the industry. MRF, the

largest tyre manufacturer in the country, has strong brand equity.

Sector specifics

The tyre industry is a major consumer of the domestic rubber production.

Natural rubber constitutes 80 per cent of the material content in Indian tyres.

Synthetic rubber constitutes only 20 per cent of the rubber content of a tyre in

India. Worldwide, the ratio of natural rubber to synthetic rubber is 30:70. Apart

from natural and synthetic rubber, rubber chemicals are also widely used in

tyres.

Most of the RSS-4 grade natural rubber required by the Indian tyre

industry is domestically sourced, with only a marginal amount being imported.

This is an advantage for the industry, since natural rubber constitutes 25 per

cent of the total raw material cost of the tyres.

The two types of synthetic rubber used in tyres are Poly Butadiene

Rubber (PBR) and Styrene Butadiene Rubber (SBR). The former is used in

most of the tyres, while the latter is mainly used in the radials for passenger

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cars. Synthetic rubber accounts for 14 per cent of the raw material cost. Unlike

in the case of natural rubber, India imports 60 per cent of its synthetic rubber

requirements.

Apart from rubber, major raw materials are nylon tyre cord and carbon

black. The former is used to make the tyres strong and impart tenacity to it. The

latter is responsible for the colour of the tyre and also enhances the life span of

the tyre. Nylon tyre cord comprises 34 per cent, while carbon black accounts for

another 13 per cent of the raw material cost. In India, the carbon black used is of

the N660, N220 and N330 variety.

Sector trends

Crossply tyres have been used in India for several decades. In these tyres,

the ply cords run across each other or diagonally to the outer surface of the tyre.

Rayon and nylon tyre cords are used as the reinforcing medium. These tyres can

be retreaded twice during their lifetime and are hence preferred by Indian

transport operators who normally overload their trucks. A vehicle with the

normal carrying capacity of around 12 tonnes is usually loaded with double the

capacity. Moreover, one also has to contend with the bad suspensions and bad

road conditions. No wonder, 95 per cent of the tyres used in India are crossplies.

Radial tyres have their cords running radially from bead at 90 degrees

angle to the rim or along the outer surface of the tyre. The reinforcing mediums

used in these tyres are polyester, nylon, fibreglass and steel. Hence, these tyres

are 20 per cent more expensive than the crossplies. But they have a longer life

and provide lower fuel consumption. The unhealthy condition of the Indian

roads has resulted in radial tyres accounting for only 5 per cent of the tyre

industry as against a global trend of 60 per cent. With two-thirds of the capacity

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of all major tyre manufacturers being reserved for radials, this is a real cause for

concern.

COMPANY PROFILE

The JK Organisation is an industrial conglomerate in India. A major

interest is owned by the Singhania family. The company's name is derived from

the initials of its founders, Lala Juggilal Singhania (1857-1922) and his

son Lala Kamlapat Singhania (1884-1937). It is one of the leading Private

Sector Groups in India, was founded over 100 years ago - it's been a century of

multi-business, multi-product and multi-location business operation.

Jk Tyre and Industries is a mega corporate entity that is emblematic of

excellence, diversification and pioneering new technologies. A part of JK

Organization which ranks among the top private groups private groups in India,

Jk Tyre and Industries is committed to self reliance and follows an ethic that

views customer satisfaction as an index of achievement. Over the years, the

company has expanded and diversified its business portfolio. It has developed

into a multi product, multi-location corporate entity comprising of following

business divisions:

The advent of JK Organization on the industrial landscape of India almost

synchronizes with the beginning of an era of industrial awareness - an endeavor

for self reliance and JK Tyre commenced operations in 1977 when it set up its

first tyre manufacturing plant, with an installed capacity of 500,000 tyres per

annum in Kankroli, Rajasthan. Keeping pace with the growth in the market and

the demand for its products, JK tyre established a new state-of-the-art passenger

radial manufacturing facility at Banmore near Gwalior in Madhya Pradesh.

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In 1997 it made a strategic acquisition of Vikrant Tyre, a Govt. Of

Karnataka undertaking. In a short span, JK Tyre had turned it into a quality-

driven company with all four – ISO 9001, QS 9000, ISO 14001 and TS 16949 –

accreditations to its credit. This indeed is a true reflection of JK Tyre’s

commitment to systems and its quality-oriented approach.

JK ORGANISATION

J.K. Organisation, founded over 100 years ago, is an

eminent industrial group in India. The Group has

multi-business, multi-product and multi-location

operations

 

JK PAPER LTD.

JK Paper Limited is one of the leading

manufacturers of reading and writing paper

JK LAKSHMI CEMENT LTD.

JK Lakshmi Cement Limited is a well respected

name in the cement industry in India

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Fig 4.2 JK Organisation and its Groups

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FENNER (I) LTD.

Fenner (I) Limited is a leading manufacturer of

Industrial and Automotive Belts, Oil Seals, Power

Transmission Accessories and Textile Yarn

UMANG DAIRIES LTD.

The Creme de la creme of dairy foods

JK AGRI-GENETICS LTD.

At JK Agri-genetics limited, concenetrates on

Research and Development, production, processing

and marketing of hybrid seeds.

JK SUGAR LTD.

The company's principle activity is to manufacture

Sugar. However, the company currently operates in

two segments. Power and Sugar

JK RISK MANAGERS AND INSURANCE

BROKERS LTD.

Services rendered to various clients for all facets of

Insurance both life & non-life.

CLINIRX RESEARCH PRIVATE LTD.

Full Service Contract Research Organisation (CRO)

JK TYRE & INDUSTRIES LTD.

VISION

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

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MISSION

Be a Customer Obsessed Company - Customer First 24x7

No.1 Tyre Brand in India

Most profitable Tyre Company in India

Motivated and Committed team for excellence in performance

Be a Green Company

Deliver Enhanced Value to all stakeholders

Enhance global presence through Acquisition / JV / Strategic Partnerships

CORE VALUES

Excellence comes not from mere words or procedures. It comes from an urge to

strive and deliver the best. A mindset that says, When it is good enough,

improve it. It is a way of thinking that comes only from a power within."

Caring for people

Integrity including intellectual honesty, openness, fairness & trust

Commitment to excellence

CHRONOLOGY

YEAR EVENTS 1951 - The company was incorporated as a private

limited company in West Bengal in 14th February, 1951. Until 31st

March 1970, the company was engaged in the managing agency business.

Thereafter, the company decided to undertake manufacturing activities

and obtained a letter of intent in February 1972 for the manufacture of

automobile tyres and tubes.

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The letter of intent was converted into an industrial licence in February

1974 for the manufacture of 4 lakh nos. each automobile tyre and tubes

per annum. The company was converted into a public limited company

on 1st April 1974. The manufacturing project was promoted by Straw

Products Ltd and J.K. Synthetics Ltd.

The company entered into technical collaboration with General Tire

International Co., U.S.A., (a subsidiary of General Tire & Rubber Co.,

U.S.A.) for technical services for a period of 5 years and sales agreement

for the supply of technical know-how, engineering and documentation for

operational facilities (for a period of 8 years from 23.8.73).

Under the collaboration agreement, the Company has the right to use on

its products the wording "Made in collaboration with General Tire

International Co., USA".

1982 - The company's technical collaboration agreement with General

Tire International Co., was renewed for a further period of 5 years.

1987 - The overall working resulted in substantial profits despite a 51-

days strike as well as go-slow from 14th October. The strike had since

then been resolved and amicable settlement was reached. Efforts were on

to launch a new pattern in steel belted radial tyres.

1988 - New steel radial tyres for Maruti Gypsy and Tata mobile were

introduced. The Company proposed to incur an expenditure of Rs 300

lakhs for installationof latest and sophisticated R&D equipment.

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1989 - Several new patterns and sizes of tyres were introduced including

a semi-lug Nylon Truck tyre, all of which were well received in the

market. 1991 - Handeep Investment, Ltd., Hidrive Finance Ltd.,

Panchanan Investment Ltd., and Radial Finance Ltd., J. K. International

Ltd., Shivdham Properties Ltd., and J.K. Asia Pacific, Ltd., are

subsidiaries of the Company.

1992 - The J.K. International division expanded its activities by opening

its office in Moscow besides starting Company's subsidiaries in U.K. &

Honkong. The radial tyres for tractors and business launched in the

previous year were well received.

1993 - New radial tyres `Brute' and `Ultima' were introduced. The

Company was in the process of developing steel belted radial tyres for the

prestigious cars in the Mercedes Benz, Peugeot, Daewoo race and Opel

Astra. A new pattern developed for bus and trucks `PE-T8' was well

received in the market.

1994 - The company maintained its pace of growth, despite steep rise in

raw material and input costs and competition. The Company effected an

all round cost reduction and attained higher capacity utilisation at both

the tyre plants at Jaykaygram and Banmore.

The T-rated Ultima tyres launched for new generation cars found its

acceptance in DCM Daewoo's `Ceilo'. Also J.K. Steel radial was chosen

for Mercedes Benz India.

The Company undertook to develop steel radials for GM's `Astra'. PAL's

`Peugekot' FIAT's, `UNO' and M & M's `Ford'.

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The Company launched a premium truck tyre `Jet Trak' - 39 which was

introduced to meet the need sof the heavy load market. The new tractor

rear tyre `SONA' was well received in the market.

1996 - During this period, a new Car tyre "Jet Drive XS", the widest

nylon car tyre for Maruti 800 was launched. Along with new semi-lug

and heavy duty lug tyre for trucks, a new lug tyre for super heavy load

applications "Jet Trak 39" was also introduced. In the Radial category,

"Ultima XR Radial", a terrain tyre was introduced. All these products

were well received in the market.

Both the tyre plants operated to full capacity. In line with JK tyre, the

radials unit introduced the dual contact high traction and high

performance Aquasonic steel radial car tyre. The unit also developed

India's first and only H-rated ultima Xs' specially for Mercides - Benz

Cars.

2000 - The Company proposes to reduce its debt by Rs 125 crore in the

current fiscal from the current level of Rs 635 crore by way of loan

repayment.

The Company and Indian Oil Corporation have entered into a marketing

alliance for installing digital air pressure guages and setting up sales and

services outlets at IOC petrol stations throughtout the country.

2001 - Raghupati Singhania managing director of J K Industries has been

appointed the 19th Chairman of Automative Tyre Manufacturers

Association, the representative body of tyre industry in India.

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2002- J.K. Industries Ltd has informed BSE that CRISIL has assigned a

P1+ rating to the Commercial Paper programme of the company.

2000 - J.K. Industries Ltd (JKI) has a new Marketing Director in Mr Ajay

Kapila. Before joining JKI, Mr Kapila was Senior Vice-President (Sales

and Marketing) at Kinetic Engineering Ltd. He was also Director on

board and operational head of Kinetic's direct selling arm - Kinetic

Marketing Services Ltd.

Completes its comprehensive restructuring exercise of businesses that

leads to its emergence as a pure automotive tyre company. Along with the

de-merger of its non-tyre business, Sugar and Agri Seeds, into separate

companies namely JK Sugar Ltd and JK Agri-Genetics Ltd, JKI also

completes the merger of Vikrant Tyres Ltd with itself.

J.K.Industries delists from Jaipur Stock Exchange.

Divested its wholly-owned subsidiay called J.K. Drugs and

Pharmaceuticals Ltd to TEVA Pharmaceuticals of Israel.

2004 -JK Industries Ltd has informed that its securities are delisted from

Delhi Stock Exchange Association Ltd (DSE) w.e.f. January 29, 2004.

2007 - JK Industries Ltd has informed that the name of the Company has

been changed from "J K Industries Ltd" to "JK Tyre & Industries Ltd"

w.e.f. April 02, 2007.

Company name has been changed from JK Industries Ltd to JK Tyre &

Industries Ltd.

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2008 -The company has issued rights in the ratio of 1:3 at a premium of

Rs.75 Per Share.

JK ORGANISATION - A CENTURY OF TRUST

Innovation and passion to perform have always been the driving forces at

J K Organisation. J. K. Organisation, is one of the leading Private Sector

Groups in India, was founded over 100 years ago - it's been a century of multi-

business, multi-product and multi-location business operation.

JK Tyre - WHEELS TO

THE NATION

JK Tyre has five

Modern plants in India which

are strategically located at:

Mysore, Karnataka (3)

Banmore, Madhya Pradesh

Kankroli, Rajasthan

JK Tyre pioneered radial

technology in India way back

in 1977, and is the Radial

Leader in the country being the only tyre manufacturer offering the entire

range of 4 wheeler radials i.e. for Trucks & Buses, LCVs, Cars and Farm.

With strong adherence to quality and customer service we are not only a

leading brand in India but also a strong global player with a presence in 77

countries across 6 continents offering a wide range of products backed by world

class technology. JK Tyre enjoys a premium brand status in various advanced

markets, including the USA and Australia.

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Fig 4.3 JK Tyre Display Boards

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OUR FIRSTS - LEADING THE

WAY

Ever since its inception, JK Tyre has been

a leader rather than a follower. We have

garnered many Firsts to our credit like;

First Indian tyre company to introduce

All Steel Truck & Bus Radials in India in 1999.

Pioneered Radial technology in India by introducing passenger radials

in 1977.

First Indian Tyre Company to be

recognized as 'SUPERBRAND' by Global Advertising Professionals.

First in India to launch 'Eco-friendly - Green tyre'.

First in India to launch 'Dual Contact' - Aquasonic tyre.

First to launch 'Asymmetric' tyre.

First in India to launch high performance tyre.

H rated - Speed of above 190 kms upto 210 kms.

V rated - Speed of above 210 kms upto 240 kms.

Z rated - Speed of above 240 kms. Upto 300 kms..

World's first tyre manufacturer to get QS 9000 certification for all its multi-

location operations.

World's first tyre manufacturer to get ISO 9001 certification for its entire

operations.

CUSTOMER SATISFACTION - OUR CREDO

29 | P a g e

Fig 4.4 Green Tyre Transporters

Page 30: JK Tyre Report Fina

Customer Satisfaction has always been

our prime focus. We are indeed proud of our

highly experienced and professional team for

winning the trust of customers and building

strong relationships with them.

Our 115 company owned stocking points

serve over 4000 dealers across the country.

We have set up 130 JK Tyre Steel Wheels -

a unique concept in car tyre retailing which

provides value added services like wheel

balancing, alignment and tyre care to customers.

Our Truck Radial Care Centres offer after-sales service for Truck/Bus

Radials, which operate on 365 days / 24 hours basis. A large number of such

centers have been set up along all major National Highways.

JK Tyre has been among the top two tyre companies in respect of Customer

Satisfaction, as per JK Power Asia Pacific Study, for many years.

R & D - TECHNOLOGY

OUR DRIVING FORCE

We have always been

pushing the limits of possibilities.

Our research centers, have been

our nerve centers for extensive

research and development. These are:

Mr.Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI)

- Jaykaygram, Kankroli (Rajasthan)

and Faridabad (Haryana)

30 | P a g e

Fig 4.5 Customer

Fig 4.6 Designing Tyre in R&D Lab

Page 31: JK Tyre Report Fina

Fig 4.7 JK Tyre Motorsport Campaign

Dr.Raghupati Singhania Center of Excellence for Tyre and Vehicle Mechanics -

Chennai (Tamil Nadu)

MOTORSPORTS - PUTTING INDIA ON THE FAST TRACK

JK Tyre is synonymous with

Motorsports in India. By investing

in infrastructure and instituting

championship, JK Tyre has taken

upon itself to put India on the world

motorsports map.

FUTURE PLANS

India is fast emerging as a global automobile hub particularly for small

cars. It offers immense opportunities for JK Tyre to grow its business both

organically and inorganically.

We have been constantly exploring ways of increasing our presence in

different world markets, through alliances and acquisitions in tyre and related

business. In all our endeavours, our core focus is on customer delight. Enlarging

the customer base, providing them with better quality of services and more

value added products, will continue to be the key areas of our thrust.

OUR COMMITMENT TO SOCIETY

As a responsible corporate organization, JK Tyre is committed to social

and community service. Giving back to society and the environment is one of

our core principles. We have implemented many programmes in order to enrich

people in and around our work places.

31 | P a g e

Page 32: JK Tyre Report Fina

In order to provide an all round development and growth our social programs

are diversified to include:

HEALTH CARE

We have been running and

supporting a number of health

programmes not only for our

employees, but also for people living

in and around the areas we operate

from. Some of our efforts in this

area are:

Free Medical Camps were organised at our Tyre Plants in collaboration with

various reputed hospitals in rural areas where no medical facilities are

available.

Around 1000 people availed the

benefit of general medical treatment.

Eye Camps were organized ar

Banmore. Almost 2500 people for

tested and 500 eye operations were

conducted.

Programme on Development of

Mentally Retarded Children was

supported by donations and contributions made by employees of Vikrant Plant

at Mysore. This was organized in

collaboration with the District Hospital.

In collaboration with Population Foundation of India, we adopted 60 villages in

the Rajsamand District of Rajasthan for running a Population Control

32 | P a g e

Fig 4.8 JK Tyre Health Care Campaign

Fig 4.9 JK Tyre Health Care Campaign in Rural

Page 33: JK Tyre Report Fina

Programme titled "Parivartan". Services such as Ante-Natal and post - natal

Check-ups, Immunization, Growth Monitoring of Children upto 5 years,

identification and treatment of various diseases and other common ailments are

provided free of cost. This has significantly reduced Maternal and Child

Mortality rates. The programme also regularly counsels the community

members on issues of Family Welfare and Population Control, including free

distribution of contraceptives.

"Pushpawati Singhania Research Institute" (PSRI)which is a Super

Speciality Hospital for Digestive, Liver and Renal Diseases, Delhi is an

initiative by JK Tyre. The Institute organises a number of health care

programmes like, Free Medical-check ups, Blood Donation Camps etc.

We provide all support to TCI and the Bill & Melinda Gates Foundation in their

endeavor to spread awareness forHIV /AIDS. Centers have been set up on the

National Highway / Transport Nagar to help and councel truck drivers who are

considered to be highly vulnerable to the diseases. So far, more than 12,000

people have attended the clinics, of which 25% were treated for sexually

transmitted infections. We also support "Infotainment Melas" which are held

near these clinics, where education is combined with entertainment for

spreading the message for HIV/AIDS awareness.

EDUCATION

We recognize the great importance of education for building the future of

our country, and are committed to its contribution. With this

belief, Lakshmipat Singhania School at Jaykaygram was established. It gives

us great pride to note that our students have excelled and are recognized for

their efforts in Rajasthan. We also help and support various educational

33 | P a g e

Page 34: JK Tyre Report Fina

institutions who are involved in providing quality education for the children in

villages. This includes free distribution of books, computers etc.

We are also helping raise the level of education amongst the elders by

initiating Adult Literacy Programmes in remote and backward villages.

Example: small villages adjoining Mysore (Karnataka), Kankroli (Rajasthan)

Banmore (Madhya Pradesh) etc. 

Children Career Counseling is provided for almost 500 children in

Mysore. 10 Ekal Vidyalayas are active in remote villages of Rajasthan. Mid

Day Meal programmes are given to a number of schools.

We have so far spread our programs across 33 locations benefiting more than

3,500 people.

ENVIRONMENT

Environment Management is taken up as a

critical function at all our locations. Massive

plantation programmes have been organized at

all the manufacturing locations to improve

ecology. Some of these initiatives are:

In the last five years, 1,00,000 Trees have been planted.

In an effort to increase greenery in the surrounding villages, public parks have

been adopted.

Assistance is provided to Government authorities for maintenance of civic

amenities like parks, bus shelters, etc.

Public conveniences has been constructed by our Company at village schools

in Mysore.

Neighbouring villages have been adopted and temporary water huts are

provided during summer months.

34 | P a g e

Fig 4.10 JK Tyre Campaign road and

Page 35: JK Tyre Report Fina

We arrange the spraying of special chemicals on large water bodies so that

water evaporation can be reduced and it can be conserved during the long

summer months.

SPORTS

Our various sporting activities not only

encourage a team spirit amonst our employees,

but is also extended to sports enthusiasts of the

neighboring areas. Apart from conducting

different innovative sports events, we also

promoting indoor and outdoor sports

facilities for our employees.

Our Company also sponsored Indian Jaycee's Gwalior Alankaran

Samaroh 2007 wherein eminent personalities of different fields were honoured.

JK Tyre is also known for its efforts in the field of Motor Sports, having

started the annual events for "JK Tyre National Racing Championship" in

1997 and "JK Tyre National Karting Championship" in 2000. We are

extremely proud of this initiative as it has nurturing talent such as, Narain

Karthikeyan, Karun Chandhok, and Aarman Ebrahim, and many others. and

putting India on the World Car Racing Map.

The export (See the figure for export operation on next page) operations

of JK Tyre & Industries Ltd from its plants to the ports for export happen in

following pattern. The various plants follow specific port routes for ease and

economy in operations.

Head Office

35 | P a g e

Fig 4.11 JK Tyre Sports

Page 36: JK Tyre Report Fina

NEW DELHI

MYSORE

KTP, KANKROLI

BTP, BANMORE

NHAVA SHEVA

CHENNAI

AMRTISAR

PETRAPOLE

Ports

Plants

JK TYRE COMPETITORS

The company is one among the major players in the Indian tyre industry

the main competitors being. Apollo, MRF, CEAT, Birla Good year Bridgestone.

The competition is not restricted to the product mix only but also to the

price mix, promotion mix product range quality product development product

positioning and other areas in preview of marketing management.

36 | P a g e

Fig 4.12 JK Tyre Export Operations

Page 37: JK Tyre Report Fina

J.K Tyre has successfully overcome the prevailing recession in the

economy and further strength then its position vis-à-vis competitors by

improved operations cost reduction and aggressive consumer focused

marketing. The rate of growth is much higher than the comparative growth in

the industry.

BRIEFING ABOUT THE COMPETITIOR

The various tyre companies studied as competitors are:

a. GOODYEAR

b. MRF

c. DUNLOP

d. CEAT

e. APOLLO

f. BRIDGESTONE

g. BIRLA TYRES

GOODYEAR INDIA LTD.

Goodyear India ltd. is

subsidiary of Goodyear an

American multinational that is one

of the largest tyre manufacturers in

the world. Goodyear has a

substantial share in the global

market and in 1955 it was 3rd

among the top 20 tyre manufacturers in the world with sales of $10105million.

37 | P a g e

Fig 4.13 Goodyear Tyre Logo

Page 38: JK Tyre Report Fina

But Goodyear indicated is relatively enjoying a market share of about 6% and

despite strong brand loyalty has not been able to overcome its increase in its

cost. Goodyear's presence in India is over 80 years old, with two plants, one

each in Ballabgarh and Aurangabad.

Goodyear India rolls out the Excellence series – a new collection of

luxury passenger car tyres. Designed with the ultimate '3 -Zone Technology’,

and ECO- Sil Silica Tread Compound Technology, the tyre provides superior

comfort and precise handling on both wet and dry conditions for premium car

drivers.

MRF

MRF ltd was established in 1960

manufacturers automobile tyre in

collaboration with mans field tyre and rubber

company U.S.A. MRF becomes the largest

manufacturer in 1993 with a turnover of Rs

1500crore. The company makes automotive

tyres conveyor belts tubes leather products

and surface coaching. It was the largest

producer of tyre in each and every segment in

1995-1996. MRF enjoys high brand equity as well as a very good reputation

both between consumer and dealers. Today MRF has a vast network spanning

3000 dealers across India around 50 to 100 new dealers joining up every year.

38 | P a g e

Fig 4.14 MRF Tyre Logo

Page 39: JK Tyre Report Fina

Fig 4.15 Dunlop Tyre Logo

Today the company spends about Rs 40 crorers on advertising, which

revolves around strengths and the vision of its pneumonic the MRF muscleman.

A special factory dedicated entirely to the manufacture of radials is being

built up at Pondichery, MRF tyres were also chosen for fitment on the ford opal

and feat uno further proofs its superior quality. MRF TYRES, India's No. 1 tyre

manufacturing company manufactures an extensive range of superior quality

tyres in six production facilities in India. MRF exports its products to over 75

countries worldwide. The company established its first office in 1949 at

Chennai, Tamil Nadu, India.

DUNLOP INDIA:

Dunlop worldwide had been at the fore

front of every development of pneumatic tyres,

which is the actual name of tyres we use for

100 years after 100 years of establishment

Dunlop tyre group is a global network, fully

geared to meet the growing needs of the world

market. Today Dunlop has the size economies

and scale that enable it to invest in research and

development and in modern facilities to

manufacture products of highest quality. It has got technical collaboration with

sumitomo rubber industries Japan Dunlop ltd U.K. currently under takeover of

Mr. Chhabria. Dunlop Tyres is the sole tyre supplier to British Touring Car

Championship for 2003 to 2006 and the V8 Super cars Championship from

39 | P a g e

Page 40: JK Tyre Report Fina

2002 to date. Dunlop also supplies tyres to the Deutsche Tourenwagen Masters

and the American Le Mans Series.

CEAT LTD.

Set up in 1958 management under

R.P. Goenka, technical collaboration

with Yokohama rubber company Japan.

Ceat ltd enjoys a market share of about

20%. It has found its position amongst

the top manufactures in the country. It

has manufactured a wide range of tyres

and boosts of capacity utilization of 55%. It

is the second largest car tyre manufacturers in the world with a turn over of

$322million. The company also exports a range of tyres to over 130 countries.

EAT has a wide distribution network of over 3500 dealers, 33 regional offices

and more than 100 C&F agents.

The company’s manufacturing plants are located in Mumbai and Nasik.

CEAT manufactures largest range of tyres in the industry which incorporate

both crossply and radial technology. The range of tyres covers virtually all user

segments – from giant earthmovers to specialty tyres for scooters and

motorcycles. The company also markets tubes and flaps.

40 | P a g e

Fig 4.16 CEAT Tyre Logo

Page 41: JK Tyre Report Fina

APOLLO TYRES

Set up in 1972 in Karla by industrialist

Raunaa Singh with technical collaboration

with general tyre international. Apollo is one

of the fastest growing tyre companies in the

world. Its strength lie in its aggressive

marketing and this is reflected in sales

growing of over 30% per annum for the last 5

years, the company produced truck lcv

passenger car tyres. Apollo is tied up with Kumar’s to manufacture-2

wheeler tyre to sell under the Apollo brand name.

Apollo is among top three manufacturers in the country and in 1995 it

was 16th amongst the top 25 tyre manufacturers in the world with a turnover of

about $376 million. The Group's principal activities are to manufacture and sell

automobiles tyres, tubes and flaps. It operates through its subsidiaries namely,

Apollo Mauritius Holdings Pvt Ltd, Apollo Tyres AG, Apollo South Africa

Holding Pty Ltd, Apollo Tyres Pt Ltd, Apollo Tyres Nigeria Ltd, Apollo Tyres

South Africa Pvt Ltd, Dunlop Africa Marketing United Kingdom Ltd, Apollo

Tyres GmbH and Apollo Tyres Zrt. The Groups plants located in Kerala and

Gujarat. The Group operates in India, South Africa and Internationally.

BRIDGESTONE INDIA

41 | P a g e

Fig 4.17 Apollo Tyre Logo

Page 42: JK Tyre Report Fina

Bridgestone, in a short stint of 10

years in India has grown to tremendous

heights. It has become one of the major

suppliers to almost all the reputed car-

manufacturing companies in India. Quality

has always been a premium at Bridgestone

and the strict standards followed, are

certified by the world's leading authority in quality certifications.

In the past decade India has seen a tremendous growth in the automobile

segment. Bridgestone has been able to spearhead its contribution in this

booming passenger car market and has become one of the preferred OEM

suppliers to major car manufacturers in India.

With a vast network of more than 1,000 dealers spread across India,

efforts are being constantly taken to increase this penetration level and make the

quality tyres available even in the remotest corners of the country.

BIRLA TYRES

Ever since its inception in 1991, Birla Tyres, a division of the B K Birla

flagship Kesoram Industries Limited has traversed a long path in order to be

recognized as one of the best tyre manufacturers in the business today.

 

42 | P a g e

Fig 4.18 Bridgestone Tyre Logo

Page 43: JK Tyre Report Fina

• The First plant in Balasore was set up in Technical collaboration with Pirelli in

the year 1991.

• The new state-of-the-art factory at Laksar-Haridwar, Uttaranchal was built in a

record time of 10 months. This Ultra Modern Rs. 2300 crore Haridwar factory

today has a combined production capacity of over 44 lakh truck tyres per year.

• The company experienced a remarkable leap

from a turnover of Rs. 1947.22 crore in 2008-09 to Rs. 2849.61 crores in 2009-

2010; and is looking ahead to reach a target of Rs. 5500 crore.

• The Haridwar plant has a total projected Investment of Rs. 2300 crores.

• Birla Tyres is exporting to over 50 countries and export turnover has

crossed Rs. 375 crore mark in 2009-10.

• The robust domestic network is supported by 10 Zonal offices. The Sales

Depots have grown into a 170+ points from the earlier 80 points.

• More than 171 new sales engineers have been appointed at major locations to

provide 24-hour Claim Settlement.

• Dealers are partnering the progress of Birla Tyres with a network of over

3200+ in number. Many attractive & productive schemes have been worked out

to multiply dealer benefits.

43 | P a g e

Fig 4.19 Birla Tyres Logo

Page 44: JK Tyre Report Fina

SWOT ANALYSIS OF JK TYRE

Strengths:

Clearly articulated vision.

Consumer confidence in the product.

Motivated and committed team of people.

Dedicated dealer network.

Consistently improving efficiency levels of manufacturing facilities.

Research and Technological advances.

Weaknesses:

Low presence in the latest car models like Hyundai, Accent, Mitsubishi

Lancer,etc

No presence in two/three wheeler segment.

Few Promotional campaign and advertisements.

Opportunities:

Robust economic growth, particularly in the production of vehicles, is expected

to result in healthy demand for tyres in the future.

Excellent brand equity of Indian cross ply / bias truck tyres in the world market

can open market opportunities for export of truck and passenger car radial tyres.

Emergence of India as a hub for production of small cars is expected to give a

thrust to auto component and tyre segment.

Newer entrants in 2-3 wheeler manufacturing companies like Honda Motors

would boost demand for 2-3 wheeler tyres.

44 | P a g e

Page 45: JK Tyre Report Fina

Improved road infrastructure - especially on the Golden Quadrilateral and North

South East - West National Highway project - will result in significant increase

in movement of goods and passenger traffic through roads with resultant growth

in demand for tyres.

Reduction in import duty of raw materials in the next Union Budget and further

Rupee Appreciation could lead to reduction in cost of inputs.

Threats:

Rising cost of raw materials, specially natural rubber in the international as well

as domestic market.

Reduction in import duties could lead to higher volume of tyre imports.

Competition in manufacturing from multinationals setting up new facilities in

the country or region.

Concessional import tariffs for countries like China and South Korea under

Regional Trade Agreements could lead to stiff competition on prices.

Increased retreading by bus operators.

Cheap imports from China and Far East.

45 | P a g e

Page 46: JK Tyre Report Fina

CHAPTER # 5

DATA

46 | P a g e

Page 47: JK Tyre Report Fina

DATA COLLECTION

Once the research design has been decided the next stage is that of

selecting source of a data. Essentially, there are two type of source of data.

1.) Primary data

2.) Secondary data

The data required for this study has been basically primary but the

conclusion had not been possible without the secondary data.

Primary data: The primary data are those which are collected afresh and

for the first time, and thus happen to be original in character. The primary

data was collected through various surveys conducted in the different

markets of Gurgoan region. The various markets include- Metro Parking

area of Huda City Centre, Iffco Chowk, MG Road, Transport Nagar,

Maruti Suzuki Parking area, etc. Survey also included 43 dealers

(including fleet account dealers) and 252 four wheeler owners.

Secondary data: The secondary data are those data, which are collected

from earlier research work and are applicable as well as usable in study of

research. The secondary data is collected from JK Tyre & Industries Ltd,

Gurgoan.

47 | P a g e

Page 48: JK Tyre Report Fina

CHAPTER # 6

FINDINGS

AND

ANALYSIS

48 | P a g e

Page 49: JK Tyre Report Fina

Findings

Fitment Survey for PCR Segment

Make Count of MakeBridgestone 198JK Tyre 167MRF 155Goodyear 108Apollo 107Michelin 32Ceat 10Yokohama 5Continental 4Jinyu 4Duran 3KUMHO 2Tryace 2Triangle 2Linglong 2Passage 1Wanli 1Modi 1Rotalla 1Longmarch 1Tianfu 1Chinyong 1Grand Total 808

49 | P a g e

Table 6.1 Fitment Survey of 202 cars

Page 50: JK Tyre Report Fina

50 | P a g e

Bridges-tone

JK Tyres

MRF

Goodyear

Apollo

Michelin

Ceat

Yokohama

Continenta

l

Jinyu

Duran

KUM

HO

Tryace

Triangle

Linglong

Passage

Wanli

Modi

Rotalla

Longmarch

Tianfu

Chinyong

Total

198

167

155

108

107

32 10 5 4 4 3 2 2 2 2 1 1 1 1 1 1 1

25

75

125

175

Fig 6.1 Chart Showing Market Capitalization according to fitment survey

Page 51: JK Tyre Report Fina

Row Labels Count of Brand Percentage ShareBridgestone 198 24.505

JK Tyre 167 20.668MRF 155 19.183

Goodyear 108 13.366Apollo 107 13.243

Michelin 32 3.960Ceat 10 1.238

Yokohama 5 0.619Continental 4 0.495

Jinyu 4 0.495Duran 3 0.371

KUMHO 2 0.248Tryace 2 0.248

Triangle 2 0.248Linglong 2 0.248Passage 1 0.124Wanli 1 0.124Modi 1 0.124

Rotalla 1 0.124Longmarch 1 0.124

Tianfu 1 0.124Chinyong 1 0.124

Grand Total 808 100

51 | P a g e

Table 6.2 Market Share (%)

Page 52: JK Tyre Report Fina

52 | P a g e

24.505

20.668

19.183

13.366

13.243

3.960

1.2380.6190.495 0.495 0.371 0.248 0.248 0.248 0.248 0.124 0.124 0.124 0.1240.1240.1240.124Market Share

Bridgestone

JK Tyres

MRF

Goodyear

Apollo

Michelin

Ceat

Yokohama

Continental

Jinyu

Duran

KUMHO

Tryace

Triangle

Linglong

Passage

Wanli

Modi

Rotalla

Longmarch

Tianfu

Chinyong

Major Player Minor

Players

Fig 6.2 Pie Chart showing market share (%)

Page 53: JK Tyre Report Fina

Dealer’s Questionnaire Findings

Question) With which tyre brands you are currently associated

BrandCount

Percentage

JK Tyre 14 33%Bridgestone 17 50%MRF 14 33%Goodyear 16 37%Apollo 18 42%Michelin 6 14%

53 | P a g e

JK Tyre Bridgestone MRF Goodyear Apollo Michelin0

2

4

6

8

10

12

14

16

18

20

14

17

14

16

18

6

Table 6.3 Dealers associated with brands of tyre

Fig 6.3 Graph showing Dealers associated with brands of tyre

Page 54: JK Tyre Report Fina

The Dealers for Bridgestone Tyre are highest with 50%, followed by Apollo Tyres.

Question) Which Brand do you recommend to your customer.

Brand CountJK Tyre 2Bridgestone 8MRF 3Goodyear 4Apollo 5Michelin 2Customer Preference 19

54 | P a g e

JK Tyre

Bridge

stone

MRF

Goodyear

Apollo

Micheli

n

Customer

Prefere

nce0

3

6

9

12

15

18

21

2

8

34

5

2

19

Table 6.4 Dealers recommendation of tyre to customers

Fig 6.4 Graph showing Dealers recommendation of tyre to customers

Page 55: JK Tyre Report Fina

Out of total dealers cover Bridgestone was with highest recommendation, followed by Apollo.

Question) With which brand you will match the given attributes?

  Attributes

Brand Life Durability Safety Looks VarietyPuncture Resistance

Ridding Comfort

JK Tyre 6 9 7 6 7 2 6

Bridgestone 8 14 7 4 5 0 5

MRF 7 10 9 6 4 2 5

Goodyear 10 11 5 4 4 2 7

Apollo 9 12 8 5 3 2 4

Michelin 10 14 7 0 5 3 4

55 | P a g e

0

2

4

6

8

10

12

14

16

6

9

76

7

2

6

8

14

7

45

0

5

7

109

6

4

2

5

1011

54 4

2

7

9

12

8

5

32

4

10

14

7

0

5

34

JK Tyre

Bridgestone

MRF

Goodyear

Apollo

Michelin

Table 6.5 Association of attributes as per dealers for tyre brands

Fig 6.5 Graph showing Association of attributes as per dealers for tyre brands

Page 56: JK Tyre Report Fina

Question) What Type of Benefits do you want to receive from company to promote their product?

Benefits CountSales Policies 25Reward against Sales 21Gift Items 12Free Service Camp 7

The best way to promote brand is sales policies , followed by reward against sales .

56 | P a g e

Sales Policies Reward aganinst Sales Gift Itmes Free Sevice Camp0

5

10

15

20

25

30

2521

12

7

Table 6.6 Dealers liking for promotional scheme of tyre Brands

Fig 6.6 Graph showing Dealers liking for promotional scheme of tyre Brands

Page 57: JK Tyre Report Fina

Question) Which tyre brand has maximum complaint?

Brand

Complaint

JK Tyre 8Bridgestone 5MRF 6Goodyear 4Apollo 4Michelin 2

57 | P a g e

JK Tyre Bridgestone MRF Goodyear Apollo Michelin0

1

2

3

4

5

6

7

8

9

8

56

4 4

2

Table 6.7 Number of complaints for different Tyre Brands

Fig 6.7 Graph showing Number of complaints for different Tyre

Page 58: JK Tyre Report Fina

Most of the complaint was regarding swelling and cutting of tyres .

58 | P a g e

Page 59: JK Tyre Report Fina

Question) Rate the companies for after sales services?

  Rating

Brand Poor

Satisfactory

Good

Very Good

Excellent

JK Tyre 3 6 5 5 4Bridgestone 0 2 8 7 4MRF 0 3 6 6 5Goodyear 3 5 7 6 4Apollo 0 2 4 9 8Michelin 0 1 6 5 3

59 | P a g e

JK Tyre Bridgestone MRF Goodyear Apollo Michelin0

1

2

3

4

5

6

7

8

9

10

3

0 0

3

0 0

6

2

3

5

2

1

5

8

6

7

4

6

5

7

6 6

9

5

4 4

5

4

8

3

PoorSatisfactoryGoodVery Good Excellent

Table 6.8 Rating of tyre Brands on After Sale Services

Fig 6.8 Graph showing Rating of tyre Brands on After Sale Services

Page 60: JK Tyre Report Fina

Customer Feedback Findings

Question) Which is the present fitment in your car

PercentageBrand Maruti Hyundai Tata GM Toyota M&M HondaJK Tyre 42 34 12 31 27 59 0

Bridgestone 38 48 69 42 63 28 42MRF 12 0 16 0 2 5 2

Goodyear 3 6 0 11 8 0 41Apollo 4 10 3 6 0 8 0

Michelin 1 2 0 10 0 0 15

In Maruti, M&M JK Tyre was mostly used, whereas in Hyundai, Tata, GM

Bridgestone was the mostly used tyre.

60 | P a g e

Table 6.9 Customer present tyre fitments

Fig 6.9 Graph showing Customer present tyre fitments

Maruti Hyundai Tata GM Toyota M&M Honda

JK Tyre 42 34 12 31 27 59 0

Bridgestone 38 48 69 42 63 28 42

MRF 12 0 16 0 2 5 2

Goodyear 3 6 0 11 8 0 41

Apollo 4 10 3 6 0 8 0

Michelin 1 2 0 10 0 0 15

10

30

50

70

90

Page 61: JK Tyre Report Fina

Question) Are you satisfied with your tyre 'wear life'

Brand Yes NoJK Tyre 58 42

Bridgestone

67 33

MRF 74 26Goodyear 46 54

Apollo 49 51Michelin 59 41

In MRF customer were the most satisfied with the wear life of tyre

61 | P a g e

Table 6.10 Customer tyre wears life satisfaction

JK Tyre Bridgestone MRF Goodyear Apollo Michelin0

10

20

30

40

50

60

70

80

90

100

58

67

74

4649

59

42

33

26

5451

41YesNo

Fig 6.10 Graph showing Customer tyre wears life satisfaction

Page 62: JK Tyre Report Fina

Question) Are you satisfied with the cornering and braking of your car due to tyre

Brand Yes NoJK Tyre 67 33

Bridgestone

79 21

MRF 68 32Goodyear 71 29

Apollo 68 32Michelin 72 28

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Table 6.11 Customer Cornering & Braking satisfaction

JK Tyre Bridgestone MRF Goodyear Apollo Michelin0

10

20

30

40

50

60

70

80

90

100

67

79

6871

6872

33

21

3229

3228

YesNo

Fig 6.11 Graph showing Customer Cornering & Braking satisfaction

Page 63: JK Tyre Report Fina

In Bridgestone customer were the most satisfied with the cornering &

braking of tyre

Question) Are you satisfied with your comfort level

Brand Yes NoJK Tyre 78 22

Bridgestone

83 17

MRF 81 19Goodyear 79 21

Apollo 81 19Michelin 82 18

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Fig 6.12 Graph showing Customer Level satisfaction

JK Tyre Bridgestone MRF Goodyear Apollo Michelin

0

10

20

30

40

50

60

70

80

90

100

Yes

No

7883

8179 81 82

22

17 19 2119

18

YesNo

Table 6.12 Customer Comfort Level satisfaction

Page 64: JK Tyre Report Fina

The customer are currently satisfied with the current fitment in their car

Question) Do you regularly check air pressure

Option

Percentage

Yes 78No 22

78 percent of the customer regularly checks the air pressure in the tyre

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YesPer-cen-tage78%

NoPer-cen-tage22%

YesNo

Table 6.13 Customer awareness regarding Checking of Air Pressure

Fig 6.13 Graph showing Customer awareness regarding Checking of Air Pressure

Page 65: JK Tyre Report Fina

Question) Do you regularly get your car checked for Wheel Alignment and Wheel Balancing

Option

Percentage

Yes 83No 17

83 percent of the customer regularly checks the wheel alignment and wheel

balancing

Question) Name the company which comes first in your mind for car radial tyre

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YesPercentage

83%

NoPercentage

17%

YesNo

Table 6.14 Customer awareness regarding Check of Wheel alignment and Wheel Balancing

Fig 6.14 Graph showing Customer awareness regarding Check of

Wheel alignment and Wheel Balancing

Page 66: JK Tyre Report Fina

Ranking

Brand1st Ran

k

2nd Rank

3rd Ran

k

4th Ran

kJK Tyre 20% 23% 14% 12%

Bridgestone

28% 17% 9% 17%

MRF 20% 18% 17% 14%Goodyear 13% 13% 22% 19%

Apollo 15% 18% 19% 21%Michelin 3% 10% 17% 5%Others 0% 0% 2% 12%

Bridgestone is the first brand which customer connects with Radial Tyres.

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JK Tyre Bridge-stone

MRF Goodyear Apollo Michelin Others

1st Rank

0.2 0.28333333333333

3

0.2 0.13333333333333

3

0.15 0.03333333333333

33

0

2nd Rank

0.22826086956521

7

0.17391304347826

4

0.18478260869565

2

0.13043478260869

6

0.18478260869565

2

0.09782608695652

17

0

3rd Rank

0.13793103448276

1

0.08620689655172

42

0.17241379310345

0.22413793103448

3

0.18965517241379

3

0.17241379310345

0.01724137931034

48

4th Rank

0.11904761904761

9

0.16666666666666

7

0.14285714285714

5

0.19047619047619

3

0.21428571428571

4

0.04761904761904

76

0.11904761904761

9

3%8%

13%18%23%28%

Table 6.15 Brand that comes for radial tyres

Fig 6.15 Graph showing Ranking of brands for radial tyre

Page 67: JK Tyre Report Fina

Fig 6.16 Graph showing Customer next purchase preference

Question) Which brand of tyres will be your next purchase

Brand Percentage

JK Tyre 6Bridgestone 14

MRF 9Goodyear 6

Apollo 10Michelin 9Others 5

Not Decided 41

41

percent of the customer decides the next purchase at the time when it is

required

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JK Tyre6%

Bridgestone14%

MRF 9%

Goodyear6%

Apollo10%

Michelin9%

Others5%

Not De-

cided41%

Table 6.16 Customer next purchase preference

Page 68: JK Tyre Report Fina

Question) What is your priority while purchasing a new tyre?

RankFactors Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6

Price 9 11 34 39 2 5Safety 67 29 3 1 0 0

Durability 12 43 0 2 43 0Ride Comfort 0 2 67 25 0 6

Availability 0 1 45 51 3 0Fuel Efficiency 6 5 23 47 17 2Brand Name 6 9 23 0 56 6

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Price Safety Durability Ride Com-fort

Availability Fuel Effi-ciency

Brand Name

Rank 1 9 67 12 0 0 6 6

Rank 2 11 29 43 2 1 5 9

Rank 3 34 3 0 67 45 23 23

Rank 4 39 1 2 25 51 47 0

Rank 5 2 0 43 0 3 17 56

Rank 6 5 0 0 6 0 2 6

5

15

25

35

45

55

65

75

85

95

Chart Title

Axis

Title

Table 6.17 Customer preference of attributes

Fig 6.17 Graph showing Customer preference of attributes

Page 69: JK Tyre Report Fina

CHAPTER # 7

RECOMMENDATIONS

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Page 70: JK Tyre Report Fina

RECOMMENDATIONS

The fitments survey and the customer/fleets and customer survey helped

me to derive various conclusions that are helpful in me putting forth some

suggestions. I expect the company to benefit from my suggestions and hope it

further excels in all its dealings and plans.

1) I suggest the company to increase efforts in its advertising through mass

media.

2) I suggest company to print leaflets and pamphlets in local languages as

well.

3) I suggest the company to increase the frequency of customer interaction

programs on regular basis.

4) I suggest company to try and acquire share in Chinese tires and merge

them into itself in long term view.

5) I suggest the company to acquire more OEM rights in local fleets as well.

6) Company should introduce some more patterns of the tyres because

customers are always ready to purchase new patterns.

7) Most of the customer prefers the company fitted as a next purchase.

8) Company should arrange awareness program regarding the tubeless tyres

so that customers can know about it and buy it as a next purchase.

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Page 71: JK Tyre Report Fina

CHAPTER # 8

CONCLUSION

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Page 72: JK Tyre Report Fina

CONCLUSION

I have studied customer’s satisfaction with original fitted tyre in the

Gurgoan market and I found that most of the customers of city are brand

conscious and very few customers are quality conscious.

There are lots of customers who are not aware about the tyre and they

depend on the preference of dealer. Which dealer will suggest that they prefer as

a next purchase. For higher end vehicles like Honda, GM, Toyota etc. customers

are ready for new technology like tubeless tyre. They expect such technology

from MNCs.

After analysis I have given rank to different factors responsible for ‘Customer

Satisfaction Level’, these factors are as follows:

Factors Rank

Wear life 1

Comfort level 2

Cornering & Breaking 3

Puncture Resistance 4

Noise Level 5

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Page 73: JK Tyre Report Fina

CHAPTER # 9

BIBLIOGRAPHY

BIBLIOGRAPHY

URLs

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Page 74: JK Tyre Report Fina

http://www.domain-b.com

http://www.valuenotes.com

http://www.wikipedia.com

http://www.jktyre.com

http://www.tireindustrty.org

http://www.reportlinker.com

http://www.atma.com

http://www.worldtirereport.com

http://www.business-standard.com

http://www.ghallabansali.com

OTHER REFRENCES

Area office, JK Tyre & Industries Ltd, Gurgoan, Haryana

Head Office, JK Tyre & Industries Ltd, Link House, New Delhi

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Page 75: JK Tyre Report Fina

CHAPTER # 10

ANNEXURES

ANNEXURE-I

TYRE BASICS

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Page 76: JK Tyre Report Fina

HOW TO READ A TYRE

TYRE DIMENSIONS

ANNEXURE-II

TYRE DESIGNATION

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Fig 7.2 Different types of dimensions of a Tyre

Fig 7.1 Different types of markings on a Tyre

Page 77: JK Tyre Report Fina

There are two types of tyre designations, which are used. These are:

Numeric Metric

10.00-20 16 PR JET TRAK 185/65R14 VECTRA 82 T

10.00R20 16PR JS JDH 146/142 K 215 R14 C 10PR STEELKING

11R22.5 16 PR JW JUH 295/80R22.5 16PR JS JUH

Understanding Tyre Designation

Truck Bias Tyre Truck Radial Tyre

Truck Radial Tubeless Tyre Car Radial Tyre

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ab

Table 7.1 Different type’s designation of a tyre

Fig 7.3 a) Truck Bias and Radial Tyre Designation

Page 78: JK Tyre Report Fina

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Fig 7.3 b) Truck Tubeless Radial and Car Radial Tyre Designation

Page 79: JK Tyre Report Fina

Speed Category Symbol

Speed (km/h)

Speed Category Symbol

Speed (km/h)

D 65 Q 160E 70 R 170F 80 S 180

G 90 T 190

J 100 U 200

K 110 H 210

L 120 V 240M 130 W 270N 140 Y 300P 150 ZR *240

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Table 7.2 Speed Symbol Shown On the Tyre and the Maximum Speed

Page 80: JK Tyre Report Fina

ANNEXURE-III

JK TYRE MANUFACTURING PLANTS

JK Tyre has five Modern plants

in India which are strategically located

at:

Mysore, Karnataka (3)

Banmore, Madhya Pradesh

Kankroli, Rajasthan

JK Tyre has also enhanced its global reach by taking over Tornel a renowned

Mexican company, which has 3 plants in

Mexico.

All these plants are equipped with World’s most advanced manufacturing and

testing machines. 

 

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Fig 7.4 a) Plant in Mysore

Fig 7.4 b) Plants in Banmre, Kankroli, Mysore (Vikrant)

Page 81: JK Tyre Report Fina

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Corporate office ( New Delhi)

Plant Location Production Capacity Production Range

Plant (Million units / year) Product Range

Kankroli; 1.41 BIAS (Truck, Bus, LCV,

Rajasthan (180 T / day) Passenger & Farm)

Banmore; 2.71 BIAS (as above)

Madhya Pradesh (120 T / day) RADIAL (Passenger & LCV)

Vikrant; Mysore 1.08 BIAS (as above plus OTR)

(BIAS) (120 T / day)

Vikrant; Mysore 0.23 RADIAL (Truck, Bus )

(TRUCK RADIAL) (80 T / Day) TOTAL 5.43

Fig 7.5 Plant Location with Production Capacity

Page 82: JK Tyre Report Fina

ANNEXURE -IV

INDIAN TYRE INDUSTRY PRODUCTION

YearTotal Tyre Production

(In Thousands)

Growth Rate

(% YoY)03-04 54690 704-05 60082 1005-06 60032 1106-07 73545 1307-08 81103 1008-09 82107 209-10 97136 1810-11 120000 23

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Table 7.3 Indian Tyre Industry Output Comparison

Fig 7.6 Graph Showing Indian Tyre Industry Growth Rate (in % YoY)

03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-110

5

10

15

20

25

7

1011

13

10

2

18

23

Growth Rate (% YoY)

Growth (% YoY)

Grow

th R

ate

Page 83: JK Tyre Report Fina

03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-110

20000

40000

60000

80000

100000

120000

140000

5469060082 60032

73545

81103 82107

97136

120000

Total Tyre ProductionIn India (In Thousand)

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Fig 7.7 Graph Showing Indian Tyre Production

Page 84: JK Tyre Report Fina

ANNEXURE -V

Dealer’s Questionnaire

I am doing a market research project on Tyre Industry; kindly give us few minutes of your valuable time

Name of the Dealer _________________________ Address of the Dealer _________________________

_________________________ _________________________

Contact No _________________________

Question 1) With which tyres brand(s) you like to do business (please the brands)

a.) Bridgestone b.) JK Tyre c.) MRF d.) Goodyeare.) Apollo f.) Michelin g.) Others (please Specify) ________

Question 2) Which tyre brand do customer prefer to buy

_________________________________________

Question 3) Which brand do you recommended to your customer, also mention the reason

_____________________________________________________________

Question 4) With which brand you will match the given attributes

Attributes (please the corresponding attributes)

Brand Life Durability Safety

Looks Width PunctureResistant

Riding Comfort

Mileage

Bridgestone

JK Tyre

MRF

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Page 85: JK Tyre Report Fina

Goodyear

Apollo

Michelin

Question 5) What type of benefits you like from company to promote their product?

a.) Sale Policies (Discounts, Credit,etc)b.) Rewards against salesc.) Gift Itemsd.) Free Service Campe.) Any Other ____________________________________________

Question 6) What type of awareness sources do brands use

a.) Advertisements b.) Other dealer’s c.) Exhibitions

d.) Print Media e.) Others, please specify

Question 7) Which tyre brand has the maximum complaints and also mention the type of complaint

Tyre Brand with model Complainti.) a.)ii.) b.)iii.) c.)iv.) d.)

Question 8) Rate the companies on after sales service ( select as 1 Poor 2 Satisfactory 3 Good 4 Very Good 5 Excellent)

a.) Bridgestone b.) JK Tyre c.) MRF d.) Goodyear e.) Apollo f.) Michelin

Question 9) Is there any information which you would like to share with us, which can help tyre Industry and tyre brands to improve their products or services

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Page 86: JK Tyre Report Fina

Kindly, provide the feedback about the survey and questionnaire used, by the appropriate smiley gesture

Date ____________________________

Place ____________________________ E-Mail Address _____________________________

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Page 87: JK Tyre Report Fina

ANNEXURE -VI

Customer’s Questionnaire

I am doing a market research project on Tyre Industry; kindly give us few minutes of your valuable time

Name of the Customer _________________________ Address of the Customer _________________________ _________________________ _________________________

Contact No _________________________

Question 1) Which car brand do you own

a.) Maruti Suzuki b.)Hyundai c.) Tata d.) GMe.) Toyota f.) M&M g.) Honda

Question 2) Which is the current tyre fitment in our car

a) Front Left _______________b) Front Right _______________c) Rear Left _______________d) Rear Right _______________

Question 3) Are you satisfied with the current fitment ‘Wear-Life’

a) Yes b) No

Question 4) Are you satisfied with the cornering and braking of your car due to tyre

a) Yes b) No

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Page 88: JK Tyre Report Fina

Question 5) Are you satisfied with your comfort levela) Yes b) No

Question 6) Do you regularly check air pressure

a) Yes b) No

Question 7) Do you regularly get your car checked for Wheel Alignment and Wheel Balancing

a) Yes b) No

Question 8) Name the company which comes first in your mind for car radial tyre

b.) JK Tyre c.) Bridgestone d.) MRF e.) Goodyear f.) Apollo g.) Michelin h.) Others

Question 9) Which brand of tyres will be your next purchase

a.) JK Tyres b.) Bridgestone c.) MRFd.) Goodyear e.) Apollo f.) Micheling.) Others h.) Not Decided

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Page 89: JK Tyre Report Fina

Question 10) What is your priority while purchasing a new tyre

a.) Price b.) Safety c.) Durability d.) Ride Comfort e.) Availability f.) Fuel Efficiency g.) Brand Name

Date ____________________________

Place ____________________________ E-Mail Address _____________________________

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