ORGANIZATION ANALYSIS ON

“ JK tyres”

Submitted to Tumkur University in partial fulfillment of requirements for the award of

the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By: PRADEEP B K

Reg. no: P11MS22M015091

UNDER THE GUIDANCE OF

Mr. Hemanth kumar

Assistant Professor

SRI SIDDHARTHA INSTITUTE OF MANAGEMENT STUDIES,

(Affiliated to TUMKUR UNIVERSITY approved by AICTE, Delhi)

Maralur, Tumkur-572105, Karnataka

2023
TABLE OF CONTENTS

CHAPTER CONTENTS PAGE NO

01 INTRODUCTION ABOUT THE 1-4

ORGANISATION AND INDUSTRY
PROFILE
MARKET SIZE
GOVT INITIVES
ROAD AHEAD
GDP
02 ORGANIZATION PROFILE OBJECTIVES

• BACKGROUND 5-6
• NATURE OF THE BUSINESS 6
• VISION, MISSION AND QUALITY
6-7
POLICY
• WORK FLOW CAREER 7-9
• PRODUCT SERVICE PROFILE
9-16
• OWNERSHIP PATTERN
16-17
• FUTURE GROWTH AND PROSPECTS 17
03 MC-KENSY’S 7S MODE AND PORTER’S
FIVE FORCE
18-26
MODEL
MC-KINSEY7S MODEL
STRUCTURE
SYSTEM
STYLE
STAFF
SKILLS
STRATEGY
SHARED OF CUSTOMERS

04 SWOT ANALYSIS 27-29

05 ANALYSIS OF FINANCIAL STATEMENTS 30-39

06 BIBLIOGRAPHY 40
CHAPTER – 01
INTRODUCTION ABOUT THE ORGANISATION AND INDUSTRY

Introduction about organization:

The organization study at JK Tyres and Industries Pvt. Ltd. aims at getting accustomed to the business
of the organisation for a period of four weeks.
JK Tyre industry was incorporated as a private limited company in West Bengal in February 14, 1951 by the
founder Lala Juggilal Singhania and Lala Kamlapat Singhania. Until March 31, 1970, the company was
engaged in the managing agency business. The company is engaged in manufacturing of tyres, tubes and
flaps and JK tyre continues to be amongst the largest exporters of truck / bus bias and radial tyres from
India. The company‟s tyres are marketed in three brands: JK Tyre, Vikrant and Tornel. It is headquartered in
New Delhi with registered office at Kankroli in Rajasthan.
The reason for selecting JK Tyre and Industries Pvt. Ltd. as it is the industry which is having four
departments namely production, finance, human resource and marketing department and this industry
contains all the major areas of study.

This study aims to familiarize with functioning of business organisation and with different departments
in the organisation and their functioning. It helps to understand how key business process is carried out in
organisation and various policies and programs in the organisation. It also helps to understand how
information is used in an organisation for decision making at various levels and how the company will
involve in various activities such as marketing, sales, production, etc.
This study would gain knowledge about the company history, background, vision, mission, financial
position,
SWOT analysis, etc and the overall functioning of business organisation of JK Tyres and Industries Pvt. Ltd.
The word Rubber was made a revolutionary entry in the world. It was a greatest blessing to the human kind.
Because of its multiple utilities in many fields.

The rubber was found above 2000 years ago. In the early stages rubber was sticky during summer
season and shrink during winter season. In the early stages the rubber was hard and it was used in the
manufacturing of Boots,Door mats, Gloves, Rain coats, etc. From a small eraser to the biggest industrial
products and from a small bicycle to a biggest aircraft tyre it is utilities are enormous and countless.
The researchers developed rubber in various method from time to time. Vulcanised rubber was discovered by
Charles Goodyear in 1888. He frirst invented bicycle tyre. Even though the first inventor of the tyre was
Robert W Thomson a Scottish engineer it was failed commercially.
Industry Profile:

History of tyre industry in India

The India Tyre Industries adopted various technologies from other countries to suit the Indian road
conditions. By the adoption of these kind of technologies the Indian tyre industries swiftly developed from
rayon tyres to nylon tyres, from nylon to radial tyres in the span of four decades. As result of Globalisation
the Indian tyre industry has an enhanced global strategies in order to stay in the world market competition.
The original rubber tire was solid rubber, without air, and was used by slow-speed vehicles. Benz
invented the first gasoline car in 1888, fitted with metal tires covered with air-filled rubber. In 1926, Dunlop
Rubber Limited became the first company in India to set up a tyre company in West Bengal. The Indian tyre
industry has grown rapidly. Indian tyre industry now provides direct and indirect employment to nearly one
million persons, including dealers, retraders, growers of natural rubber, employment in raw material sector
etc. At present, India has forty large and medium tyre manufacturing companies, of which the top 10
account for over 90 per cent of the country‟s total tyre production.

Growth of Tyre industries in India.

The Indian tyre industry is expected to clock a tonnage growth of 9-10 per cent over the next five
years, according to a study by Credit Analysis and Research Limited (CARE), a noted rating firm that offers
a wide range of rating and grading services across sectors. While the truck and buses tyres are set to register
a CAGR (compounded annual growth rate) of 8 per cent, the LCV (light commercial vehicles) tyres are
poised for a CAGR of 14 per cent.
According to the CARE study, the growth in the Indian tyre industry will be fuelled by the expansion
plans of the automobile companies, government‟s focus on development of road infrastructure and sourcing
of auto parts by the global Original Equipment Manufacturing (OEMs).
The tyre industry in India recorded a CAGR of 9.69 per cent during 2002-2007. The size of the industry
was estimated at Rs 19,000 crore in 2006-2007 with a total production of 736 lakh units of tyres. In 2006-
2007, the replacement tyres accounted for 53 per cent of the total tyre tonnage offtake, followed by 31 per
cent share of OEM and 15 per cent by exports. Out of the 736 lakh ton of tyres, 54,49,560 units worth Rs
2,600 crore were exported.
The exports from India posted a CARE of 13 per cent in unit terms and 18 per cent in value terms
between 2002-2007.The Indian tyre companies need to explore newer markets as the existing market for
bias truck tyre which accounts for about 45 per cent of the total export volume in nearing saturation. Global
tyre makers offer a wide change of products like tyres with pressure warning systems, run flat tyres, eco-
friendly tyres and energy efficient tyres.
Market Size
The Indian Tyre Industry is an integral part of the Auto Sector – It contributes to 3% of the
manufacturing GDP of India and 0.5% of the total GDP directly. Indian tyre industry has almost doubled
from Rs 30,000 crores in 2010-2011 to Rs 59,500 crores in 2017-2018 of which 90-95% came from
domestic markets. The top three companies- JK TYRES, MRF, Apollo tyres have 60% of the market share
in terms of revenue. JK Tyre & Industries Ltd., having a market cap of Rs 1500.78 Crore operating in Tyre
sector.

Investment
Tyre makers will invest around Rs 20,000 crore over the next three years as the industry is optimistic
that demand would grow by 7-9% during Financial Year 2019-2023.
JK Tyres & Industries Ltd., will be investing Rs 1570 crore in overall capacity expansion. The company will
put in Rs 1430 crore at its new plant in Chennai while another Rs 140 crore will be spent on capacity
expansion at JK Tornel plant in Mexico.

Social work of JK Organisation

 JK organisation has already committed INR 10 crore for the fight against Covid-19.
 As a mass campaign, the local communities residing in nearly 50 villages have been made aware
about the protective measures against Covid-19.
 A large number of banners and posters have been put up at prominent locations to bring awareness
amongst people as Corona virus.
 More than 30,000 masks and sanitizer bottles have been distributed.
 Around 50 general health camps have been conducted.
 Around 10,000 food packets have been distributed.
 The R & D team of JK Tyre has developed a low cost ventilator.
 JK Tyre is actively engaged in prevention of HIV epidemic.
 The adult literacy program, running since year 2004 at all manufacturing locations of JK Tyres has
transformed the lives of more than 50,000 rural illiterate women.
 JK Tyre has adopted 3 Government ITI‟s under public private partnership model to impact job
oriented quality vocational education for the benefit of more than 500 local students each academic
year.
 Many schools are also supported by the JK Company.
 JK Tyre partnered in Governments ambitious “Swachh Bharat Mission” and helped building of total
3,847 toilets in rural areas during last 3 years.
 The reproductive and child health care project-“Parivartan” initiated in tribal dominated Rajsamand
district of Rajasthan in the year 2004.
 Partnering with “Mukhyamantri Jal Swavlamban Abhiyan” of Government of Rajasthan and
NABARD.
 Clean drinking water project at Kankroli Rajasthan.
 Planted more than a million trees at different locations.
 Generate awareness about road safety.
 General health and eye camps are organised regularly.
CHAPTER
– 02
ORGANIZATION
PROFILE

Figure2.1:
ShowsVikrant
biastyreplant,Mysore.

Background
:
Vikrant Tyres
Company is incorporated on 03 October 1973. It is situated in an area of 53 acres in
Mysore. It‟s Corporate Identification Number is (CIN) U00310KA1973PLC002423 and its registration
number is 2423.The Company is certified under ISO 9001, QS19000,
and ISO
ISO/ 1400
TS
16949:2002
certifications,
fordesignmanufacture
andsales of automobile
tyres,tubes,flaps and
treadrubber.
Milestones of Vikrant Tyre Limited (VTL)
1970 – Joint venture by SIEC Pvt. Ltd., and KSIIDC conceived to manufacture Automotive Tyre and
Tubes at Mysore.
1973 – Incorporated as a joint venture company by KSSIDC and SIEC Pvt. Ltd., Madras (Chennai).
1977 – Taken over by government of Karnataka through KSIIDC.
1980 – Commercial production commenced. 1982 – Collaboration with M/S AVON Tyres UK.
1985 – T-Pilot plant setup for manufacturing of Truck Radial Tyre Plant.
1989 – Construction of new Truck Radial Tyre Plant.
1991 – Commercial production of all steel Truck Radial Tyre.
1992 – First against OTR tyre rolled out.
1994 – Certified to IS 9001: 1994 quality management systems.
1997 – JKIL inducted as strategic Alliance Partner (SAP) by government of Karnataka.
1999 – Certified to QS 9001: 1998 QMS and also ISO 14001: 1996 EMS. Tumaround under JK
management within 10 months and declared divided after a gap of 6 years. Massive modernization and up
gradation investing Rs 224.13 crores.
2000 – March-Bias plant-Rs 73.16 crores, December-Truck Radial Plan- Rs 150.97 crores.
2003 – Merged with JKIL. Certified to ISO/RS 16949:2002 process based QMS.
2004 - First Indian Tyre Company to adopt process based management through Business Process Re-
Engineering (BPR).
2005 – Expansion of capacity in the plant.

Nature of business
JK Tyre and Industries Limited is engaged in the manufacturing of tyres, tubes, and flaps. The
Company‟s geographical segments include India, Mexico and others. It offers a range of tires, including
passenger car tires, two / three wheeler tires, commercial tires, farm tires and off the road tires. Its
commercial tires include truck / bus bias tries, truck / bus radial tires, light commercial vehicles (LCV) tires
ad small commercial vehicles (SCV) tires.

Vision, Mission, Quality policy

Vision JK Tyres and Industries Ltd.

“To be amongst the most admired companies in India committed to excellence”.
Mission JK Tyres and Industries Ltd.
 To be a customer obsessed company.
 To be the largest and most profitable tyre company in India.
 To make truck / bus radial operations profitable and retain leadership in the passenger radial market.
 To enhance value to shareholders and service to all stake holders.
 To excel as a value driven organization.
 To be the most preferred tyre brand in India.

Quality Policy of JK Tyres and Industries.

The people of JK Tyre have an organization committed to quality in everything they do. They
continuously anticipate and understand customer requirement, convert these into performance standards for
their product and service and to meet the standards every time.

Work flow model of JK Tyres and industries.

The company opted for BPR (Business Process re-Engineering) with the concept of “Factory with in
Factory „called as Business Units. The primary objective of this concept is to focus on Operational
Efficiency such as production, quality, Cost, Deliverables and other parameters.

This breeds healthy competition amongst the BUs.

BU 1: Mixing, Dipping, Calendaring, Extruders
BU 2: Stock Preparation and Tyre Assembly
BU 3: Tyre molding, Inspection
BU 4: Radial Tyres
BU 5: Tyre Dispatch

BU 1
1) Compound at Banbury:
Compound is the process of mixing the necessary raw materials with selected elastomer in the
Banbury. Banbury is an internal mixer, which consists of a completely enclosed mixing chamber with two
spiral shaped rotors. There is a hoper to feed the ingredients and a door to discharge the mix. The rubber
ingredients like chemicals are weighted as mentioned in specification file and feed into hoper. Then the
mixing process takes place. Required mixing time is fixed to get better quality mixing.

2) Extruder:
The main function of an extruder is to produce tread and side wall, bead, apex. Extrusion is a process of
forcing the mixed compound by means of screw, which rotates inside the barrel. There are two types of
extruder: a) Screw extruder, b) Ram extruder.
3) Zell Plant::Dipping:
The dipping process takes places in a zeal plant. Here rayon, nylon. Polyesters are dipped in a solution
containing normally a latex based resorcinol formaldehyde to improve adhesive properties. Then the fabric is
dried at a temperature of about 280-300 F for 150-180 sec, the fabric is stretches to about 0-15%.

4) Calendaring:
Calendaring is a machine, which consists of three or four rolls held in a frame work used to produce
the rubber sheets of required strength and length. To get a better quality calendared fabric with uniform

gauges, viscosity is important in the same way, hot temperature of about 110-137mm.
BU 2
5) Bias Cutter:
It is a machine used to make ply‟s or to the rubber coated fabrics at required width and angle, which
are used in the production of tyres. Bias angle is the angle of cords in tyres with respect to the central line.
Based on the ideal cured angle, required for particular type size and pattern, bias angle is calculated for the

particular drum.

6) Pocket Making:
It is a process of making the pocket from the angle cutter fabrics. In pocket making section, three types
of pockets are constructed. The ply‟s used for the first and second pocket are known ad inner ply and those

used for third pocket are known as outer ply.

7) Bead Assembly:
Bead wire – High tensile copper coated Steelwire coated with compound wound on a former, fillered

and flipped.
8) Tyre Assembly:
All individual components of tyre Viz Beads, Pockets, Trend and Sidewall are assembled on a Building

drum and the finished products is called as Green Tyre.

BU 3
9) Bladder:
Butyl rubber compound is used for making the bladder. As first, butyl rubber is mixed with specified
chemicals properly and then it enters the extruder section by the use of the extruder, a specific length and
width of slug is extruded. Then the ends of the slugs are cut into the specified angle for proper joining.
10) Tyre Moulding:
Before moulding operations, the green tyre has to be made ready for painting with inner lubricants
inside tyre for easy release from the bladder and the side walls are to be coated with blemish paints.

11) Tyre Curing:

It is a process of cross linking the rubber compounds through heat and pressure. For the pressure of
curing tyres presses are used. These pressed are pre warmed before loading of green tyre is done in the top
ring raise condition with vacuum.

BU 5 Finished Goods Storage and dispatch : Storing of Okay tyres and arranging logistics to various depots /
STUs / OEMs as per the marketing requirements.

BU 5
12) Finished Goods Storage and dispatch :
Storing of Okay tyres and arranging logistics to various depots / STUs / OEMs as per the marketing

requirements.
Product profile.
1. Truck / Bus Bias Tyres
 HI-WAY KING / Mileage and durability.
 JET ACE / Heavy load.
 JET R MILES / Premium mileage.
 JET R PLUS / Load and mileage.
 JET R XTRA / Super premium mileage.
 JET TUFF DIX / Heavy load and high mileage.
 JET ROCK XD / Mileage with excellent cut and chip resistance.
 JET TUFF / Load and mileage.
 JET ROCK XTRA / High mileage.
 JET TRAK MX / Mileage and durability.
 JET XTRA XLM / Highest mileage lug tyre.
 JET XTRA LOAD / Carries extra load effortlessly.
 JET L MILES / Highest mileage lug tyre. Etc.

2. Truck / Bus Radial Tyres

 JETSTEEL JDL / Superior mileage and high fuel savings.
 JETWAY JUM / 3 in 1 tubeless tyre (highest mileage, multiple retreads and fuel efficiency) ➢
JETWAY JUH / Wider shoulder design and high mileage.
 JETWAY JUH5 / EWN technology that ensures 20% extra mileage.
 JETWAY JUC2 / Sturdy all – rounder for an all – rounder performance.
 JETWAY JUC3 / One tyre for all wheels.
 JETSTEEL JDC / Robust tyre for tough application.
 JETSTEEL JDH / Offers excellent mileage and performance on drive axle.
 JETSTEEL JDC3 / High cut and chip resistance for on / off road application.
 JETSTEEL JDH3 / High mileage and multiple retread.
 JETSTEEL JDE ++ / + extra mileage + load.
 JETWAY JUH4 / Made to rule the road. ➢ JETSTEEL JDO XD Etc.

Figure 2.2: Shows HI-WAY KING

Features:

 Wide and flat tread

 Unique buttress window design

 Deep saw toothed sipes

Benefits:

 Excellent wear characteristics

Figure 2.3: Shows JET TUFF DX
Features:
➢ Wide Tread with flat rib and broad lungs
➢ Specially developed tread compound
➢ Superior casing with high strength fabric
Benefits:
➢ High mileage and smooth wear
➢ Very good resistance to tread cuts / lug chipping and rib tearing
➢ Excellent load carrying capacity and re-treadability
Available in sizes:
➢ 10.00-20

Figure 2.4: Shows JET ROCK XD

Features:
➢ Optimally designed lug geometry with strong and heavy lug
➢ Specially designed tread compound
➢ Super strong nylon casing with high fabric strength

Benefits:
➢ Excellent tread life
 Higher mileage and heavy load carrying capacity
 High structural rigidity and longer tyre life
 Good anchoring on rim and withstands heavy load Available in sizes:
 8.25-20, 9.00-20, 10.00-20, 295/95D20

Figure 2.7: Shows JET L MILES

Features:
 Premium tread depth tyre

 Special designed twin lugs

 Most optimised footprint

Benefits:

 Ensures high mileage

 Very strong shoulders and better contact
 Smooth and even wear Available in sizes:
 8.25-20, 10.00-20

Figure 2.8: Shows JETSTEEL JDY

Features:

 New specially designed tread compound

 Extra durable carcass design
➢ High impact resistance and more load carrying capacity
➢ Extra durability for carrying extra load Available in sizes:
➢ 10.00R20

Figure 2.9: Shows JETSTEEL JDL

Features:
➢ Extra rubber in centre with unique hexagonal honeycomb design

➢ Excellent part worn appearance

➢ Special tread compound

Benefits:

➢ Very good mileage with added traction and grip

➢ Runs cooler at high speed for longer duration Available in sizes:
➢ 275/80R22.5, 295/80R22.5

Figure 2.10: Shows JETWAY JUH5

Features:
➢ High tread depth
➢ Wide tread surface

➢ Unique lateral sipe design

Benefits:

➢ Extra initial tread mileage

➢ Uniform pressure distribution from centre to shoulder
vehicle anomaly

➢ Better
wear
resistanc e
against
vehicle
anomaly
Available in sizes;
➢ 8.25R20, 9.00R20, 10.00R20, 295/90R20

Figure 2.11: Shows JETSTEEL JDC

Features:
➢ Block-type lug design
➢ Open shoulders
➢ Higher tread depth
Benefits:
➢ Higher mileage
➢ Runs cooler
➢ Strong block rigidity
Available in sizes:
➢ 12.00R20

Figure 2.12: Shows JETSTEEL JDH3

Features:
➢ Dual curve window at shoulder blocks
➢ New ACNC tread compound and belt package
➢ Wide crown and shoulder blocks
Benefits:
➢ Uniform pressure distribution
➢ Better traction and braking efficiency
➢ Low heat generation enables cooler running
Available in sizes:
➢ 8.25R20, 10.00R20

Figure 2.13: Shows JETSTEEL JDO XD

Features:

➢ Unique block pattern design

➢ Solid tie-bar between blocks

➢ New mining tread compound

Benefits:

➢ Good traction in mining application

➢ High impact resistance and carry load effortlessly
➢ Extra strength and block rigidity Available in sizes:
➢ 10.00R20

Ownership Pattern:
JK Tyres and Industries is a Private Company.
1) Dr. Raghupati Singhania - Chairman
2) Mr. Anshuman Singhania – Deputy Managing Director
3) Arun K Bajoria – President and Director
4) Bharat Hari Singhania – CEO and Managing Director
5) Arvind Singh Mewar – Director
6) Bakul Jain – Director

Achievements and Awards

❖ JK Tyres ranked 16th largest company in the world.
❖ ISO 14001 accreditation for environment and safety.
❖ India‟s first T rated tyre launched.
❖ First tyre manufacture in the world to get QS 9000.
❖ Awarded CEPEXIL‟S highest export for 1997-98.
❖ JK introduced national Go-carting championships.
❖ JK industries received FOCUS LAC EXPORT award for the year 1999 and 2000.
❖ Certified to ISO 9000 (1994 quality management systems).
❖ First Indian Tyre Company to adopt process based management through business process re-
engineering (BPRO).
❖ National export award in 1997.
❖ Awarded as trusted brand in Gold category by Reader‟s Digest 2016.
❖ Awarded as best market campaign for Rural Brand Development by Jagruti se Pragati 2018.
❖ Extraordinary Brand at brand vision summit 2017-18.
❖ Received CAPEXIL award in 2001.

Future growth and prospects:

• To be the No. 1 tyre company in India.
• To be the largest tyre export company in India.
• To be a customer obsessed company.
• High quality of products.
• JK tyre plan to slash 50% of debt by 2023.

Competitors
• Apollo Tyres.
• MRF Tyres.
• CEAT Tyres.
• Goodyear India Limited.
• Falcon Tyres Limited.
• Birla Tyres.
• Balkrishna Industries.
CHAPTER – 03
MCKENSY’S 7S FRAMEWORK AND PORTER’S FIVE FORCE MODEL

Mckensy’s 7S Framework:

Figure 3.1: Shows Mckensy‟s 7s framework

Mckensy‟s 7s model was developed by Robert Waterman and Toms Peters during early 1980s. The
two consulted Mckensy‟s consulting organization. The model is a powerful tool for assessing and analysing
the changes in the internal situation of organisation. It is baesd on 7 key elements, which determine the
organizations success, which should be interdependent and aligned for producing synergistic outcomes. The
model can be used widely in various situations where an alignment is required.
The Mckensy‟s 7s model refers to the seven key integrated elements of an organization which are sub
divided into hard and soft elements. The hard elements are within the direct control of the management as it
can be easily defined and identified and on the other side soft elements can be more difficult to describe and
are less tangible and more influenced by culture.

Table 3.1: Shows hard and soft elements of Mckensy‟s 7s framework

Hard elements Soft elements

Strategy Shared values

Structure Style
System Staff
Skills
Strategy
Strategy
isthedetermination
ofbasiclongtermgoalsandobjectives
ofanenterprise,
andtheadoption
of
course of action and the allocation of resources necessary for carrying out these
devised
goals.
to It is the plan
maintain and build competitive
advantages overcompetition.
the
JKTyresiscommitted
tothequalityit hastakenallmeasures
tocutdowntheoverallexpenditure
without
compromising
in thequalitywith national competitor raising
to stayinthemarket.
One of the important keys for success of the factory is the very careful selection and purchase of raw
material
which is done
withmeticulous care
underthe able
supervision of managing
the director.

Structure
Structure defines how
activities such as task allocation, coordination and supervision are directed
towards the achievements of organization aims. It also determines how information flows between levels
withinthe company.

JKTyrefollowsfunctional
organizational
structure
wherecommunication
flowsfromtopmanagement
in
theorganization.

Chart3.1:Showsstructure
ofJKTyresandIndustries.
1) HR Department:

Chart 3.2: Shows HR Department of JK Tyres

Function
➢ To maintain good industrial relations.
➢ Recruitment and selection.
➢ To manage employee discipline.
➢ To undertaking training and development activities.
➢ To rate the employee performance.
➢ To manage the transportation requirement of the factory.
➢ To manage welfare activities like canteen, sports, clubs, welfare schemes, etc.

2) Finance Department:

Chart 3.3: Shows Financial Department of JK Tyres

Function
 ➢ Maintain the daybook register.
➢ Ensure fund flow.
➢ Prepare fund flow.
➢ Ensure balance sheet.
➢ Ender payments.
➢ Salary payments.
➢ Tax maintenance.

3) Production Department:

Chart 3.4: Shows Production department of JK Tyres

Functions
➢ Production of tyres as per the market requirements.
➢ Rejection control.
➢ Operator training.
➢ Operator safety.
➢ Manpower utilization.
➢ Maintenance of machines.
➢ Maintenance of tools.
➢ Discipline maintains.
➢ Productivity improvement.
➢ Set time reduction.
➢ Capacity management.
➢ Inventory control.
➢ Quality control.
4) Quality control department:

Chart 3.5: Shows quality control department of JK Tyres

Functions
➢ Control of engineering quality.
➢ Control quality of raw materials purchase.
➢ Scheduling
➢ Dispatching
➢ Progressing / follow up.
➢ Controlling of manufacturing quality.

System
It is the daily activities and procedures that staff members undertake to get the job done. The system
in the JK Tyres is as follows:

a) Inventory management and control system.

The inventory management in JK Tyres industries is a complex function, as the management has to
deal with some common consumable stores to most critical items. The fundamental principal of inventory
management as regards raw materials in right quantity is brought at the right price and at the right time
from right source.

b) Material management system.

➢ Ascertain the needs of various departments for stores.
➢ Undertaking periodic review of all types of inventories.
Style
Style of leadership refers to the manner in which an individual uses his or her talents, values,
knowledge, judgement and attitudes to lead and relate to others. Style is the leadership approach of top
management and the organization‟s overall operating approach, also the way in which the organizations
employees present themselves to the outside world, to suppliers and customers. a) Leadership style
In JK Tyres is follow autocratic style of leadership. It is a leadership style characterized by
individual control over all decisions and little input from group members.it is typically make choices based
on their ideas and judgements and rarely accept advice from follower. b) Communication style
Communication style in the JK Tyre follow top management to bottom level management sometimes
some valuable advices are taken from bottom level to top level management.

Staff
JK Tyres believes in employee motivation resulting in:
➢ Team work and cooperation.
➢ Safe and hygienic working environment.
➢ Relation with others.
➢ Promotion and rewards through performance appraisal

Skills
The term skill is defined as “the distinctive competencies that reside in the organization in terms of
people, management practices, system and technology. In JK Tyres they train the employees on the job and
off the job training both they will apply in their organization.

Skill matrix for the new employees is prepared in the basis of

➢ Quality policy.
➢ Quality objective.
➢ Safety and machine handling.

Shared value
These are the core values of the organization that are evidence in the corporate culture. The common

values by the members of the organization are:

➢ Respecting the employees as per the rules and regulations.
➢ Creating
senseofresponsibility
in every
employee.
➢ Empowerment
ofworking
force and having
faithinemployees.
➢ Improving
qualityreducing
scrap.
➢ Total quality
management.
➢ Respect
humanity.
➢ Honesty
is thebest policy
andtrusthas to be
earned among
employees.

fiveforcemodel
Porter’s

Figure3.2:Shows five
forcemodel

Porters five force is a business analysis model that helps to explain why different industries are able to
sustain different levels of profitability. The model was published in Michael E. Porter‟s book, “Competitive
Strategy:
Techniques
forAnalysing
Industries
andCompetitors”
in1980.Themodeliswidelyusedtoanalyse
the industry structure of a company
well as
asits corporate strategy. Porter identified five undeniable forces
that play a part in shaping every market and industry in the world. The fore are frequently used to measure
competition
intensity,
attractiveness,
and profitability
of anindustry
ormarket.Theseforcesare:
➢ Competition
in the industry
➢ Potential
ofnew entrants
into theindustry
➢ Powerofsuppliers
➢ Powerofcustomers
➢ Threatofsubstitute
products
Industry rivalry High,
Because gradually the overseas players are expanding their wings over Indian tyre industry and also a
limited and every player is moving towards automated technology, like ERP and SCM.
Apart from the above mentioned reason, the industry is seeing high competitive scenario at present
because of various reasons like rising inputs costs, low realizations from growing OEM segment where the
vehicle manufactures are not ready to share the burden of tyre firms, the portion of replacement pie
continuously taken away by the retreading sector which is slowly but firmly rising its head and that to in
high realization segment of Bus-Truck tyres and last but not the least the unorganized sector is always there
to give head ache to these established players like JK, CEAT, Apollo and MRF etc.

Threat of substitute products,

It is moderate or as the industry is facing opposition from retreading sector all over the globe. This
cheaper option, around 20-25% of the original tyre cost, is present in developed countries since some decade
back. And this is heading towards strong position here in India too.

Threat of new entrants,

The threat of new entrant is moderate or can be described as low because the industry is highly capital
intensive and the level of technological expertise required is also highly specific.

Bargaining power of suppliers,

Rubber
There are two reasons behind this being low first one is most of the tyre firm‟s get 150day‟s credit for
buying the rubber from international market which is not the case if they buy it from domestic rubber
growers.
And the second reason is, this credit is being offered at LIBOR, which is the London Interbank offered
Rate. It is the rate of interest at which banks borrow funds from other banks.
Other Petro chemical based material (Carbon black, Nylon tyre cord etc.)
The power of suppliers is high in this category as India is limping back in case of Petro based raw
materials like carbon black and chemicals which account low in quantity terms but are high cost generators.
Also the price of NTC fluctuates in line with the prices of Caprolactam (a petroleum derivative)-it‟s main
raw material. The prices of these materials are beyond control of tyre industry.
The main raw material for tyre industry is natural rubber. The production of rubber is not increasing as
much as the demand is. As a consequence, India is now short of natural rubber. In this context, it can be said
that bargaining power for rubber manufacturer is high.
Bargaining power of buyers,
OEM‟s
The OMEs are always in strong position when the bargaining power of buyers is concerned. The reason
behind this is most of them are having contract with their relative tyre manufacturer under which the prices
of tyre remains stable for this OEM irrespective of market price. The benefits are given to them as they are
buying in bulk and the relation gives the tyre firms something called brand association.

Replacement
The scene in replacement segment is quite reverse as the bargaining power for the replacement segment is
moderate due to the fact that the buyers are not that strong as compared to OEMs. The demand in buses and
truck segment is always high because of Indian poor road conditions apart from this the purchase is made in
small units.
The Indian tyre sector has excess of 40 players. The buyers have many options to choose from and can
clearly articulate their needs. Further, there is no significant switching costs involved. Tyre companies cannot
pass on the increased raw material prices fully to the buyers. Hence, bargaining power of buyers is high.
Chapter
–4
SWOT
ANALYSIS

Figure4.1:Shows SWOT
analysis
of JKTyres

SWOT analysis can be an excellent tool for exploring the future possibilities for the institution through
a systematic approach of introspection into both positive and negative
relatively
concerns.
simple
It is way
a
of quickly expanding their vision. Probably the strongest message from SWOT analysis is that, whatever
course of action is decided; decision making should contain each of the following elements such as building
onstrengths, minimizin
g weakness, seizing
opportunities and countering
threats.
It helps to matching the firm‟s resources and capability to the competitive environment in which it operates.
Assuch, it is instrument in strategy
formulation and selection.

 Strengths
Strengths earits resources and capabilities that can be used as a basis for developing competitive
advantage.
It meansthepoweroftheorganization
toutilizetheavailable
resources
inmaximum
extentto
achieve
the goals
ofanorganization.
Thepowermaybeintheformoffinance, HR,
place,ownership
etc.

Weakness
Attributes the
of person or company
those are
harmful to achieving
theobjectives.
➢ Opportunities
External conditions those are helpful to achieving the objectives.

➢ Threats
 External conditions which could do damage to the objectives.

Strength of JK Tyres o Being quality oriented rather than quantity

oriented. o Large product width and line (product mix). o Strong
brand image. o Economies of scale due to optimum capacity
utilization. o Very large distribution channel. o Effective employee
in JK. o Strong financial position. o Absorption of international
technology to suit Indian conditions.

Weakness of JK Tyres
➢ Less brand awareness.
➢ Less concerned about small car segments.

Opportunities of JK Tyres
➢ An enthusiastic workforce and growing middle class population.
➢ High growth potential for its exports, especially in Europe.
➢ Indian customers are mainly value buyers demanding a better overall package. JK is poised in
better position than other players in the market to capitalise on this opportunity.
➢ Excellent brand equity of Indian cross ply / bias truck tyres in the world market
➢ The company has the knowledge of entire tyre industry and businesses conditions prevailing in the
market. So, it can easily start two wheeler tyre productions.
➢ Export culture inculcated enabling participation of small car is expected to give a thrust of auto
component and tyre segment.
➢ Improved road infrastructure especially on the golden quadrilateral and north-south-east-west
national highway project will result in significant increases in moveme goods and passenger traffic
through roads with resulting growth in demand for in tyres.
Threats of JK Tyres
➢ Gradual increasing in natural rubber price.
➢ Competition posed by the national and international market.
➢ Entry of new player with newer and better technologies.
Chapter.05
Analysis of financial statement
Balance sheet as on march 2022
Equities &liabilities
Financial year FY-2022-23 Fy-2021-22

Share capital 49.25 49.25

Reserves &surplus 2839.97 2476.85

Current liabilities 3224.23 3707.58

Other liabilities 1892.57 1911.14

Total liabilities 8006.02 8144.82

ASSETS
Financial year FY-2022-2023 FY-2021-2022

Fixed assets 3479.45 3428.20

Current assets 3642.97 3787.52

Other assets 4363.05 4357.30

Total assets 8006.02 8144.82

INCOME STATEMENT
FINANCIAL YEAR FY-2021-22 FY-2020-2021

ALL EXPENDITURE 10909.66 7795,86

OPERATING PROFIT 9.29 15.24

EBIDTA 241.22 481.53

PROFIT BEFORE TAX 309.01 534.35

TAX 108.71 200.91

NET INCOME 12347.07 9078.90

EPS 8.53 12.97

DPS 0.00 0.00

CASH FIOWS
FINANCIAL YEAR FY-2021-2022 FY-2020-2021
OPERATING ACTIVITIES 346.05 1598.44
INVESTING ACTIVITIES -244.47 -134,41
FINANCING ACTIVITIES -96.19 -1440.76
OTHERS -2.64 -3.70
NET CASH FIOW 5.39 23.27

CORPORATE SOCIAL RESPONSIBILITY IN JK TYRE

JK Tyre is a responsible corporate and giving back to the community is central to the culture of
Company. JK Tyre is not only driven by the need to make the world a better place through the
manufacturing of a safer and technology advanced product, but also by widening its prosperity circle.
Our community development initiatives may largely be categorized in to Education, Health, Livelihoods
and Water Conservation. Through these initiatives, we try to bring about empowerment of local
communities and get them to the mainstream of development.

"Most of our projects were started in underdeveloped rural areas of India. In fact we are proud that
our initiatives changed the socio- economic structures of communities in many backward pockets of
India. Dr. Raghupati

The pandemic COVID-19 is turning out to be a major global crisis. As we have observed, this has
impacted the means of livelihood of weaker sections of people in general, and the migrant workers in
particular.
JK Tyre, part of JK Organization is committed to support the Government's efforts and play its part in
fighting this pandemic with compassion and resilience.

JK Organization has already committed INR 10 Cr for the fight against Covid-19. Over the past few
weeks several initiatives have been implemented by us in response to the crisis as mentioned below;

The pandemic COVID-19 is turning out to be a major global crisis. As we have observed, this has
impacted the means of livelihood of weaker sections of people in general, and the migrant workers in
particular.

JK Tyre, part of JK Organization is committed to support the Government's efforts and play its part in
fighting this pandemic with compassion and resilience.

JK Organization has already committed INR 10 Cr for the fight against Covid-19. Over the past few
weeks several initiatives have been implemented by us in response to the crisis as mentioned below;
As a mass campaign, the local communities residing in nearby 50 villages have been made aware about
the protective measures against COVID-19. Informative sessions about COVID 19 have been organized
for our stakeholders- Business partners, dealers, suppliers, transporters & employees through webinars
in collaboration of PSRI Hospital, New Delhi. A large number of banners and posters have been put up
at prominent locations to bring awareness amongst people as Corona Virus.

More than 30,000 masks and sanitiser bottles have been distributed among employees & local communities to
ensure their safety
Around 50 general health camps have been conducted wherein more than 5,000 patients have been attended
and all the patients suffering from fever/ coughing have been advised to take precautionary measures..

AGRICULTURAL IMPROVEMENT

It's need of the hour to make agriculture more inclusive, technically advanced and sustainable and therefore
efforts have been made to train farmers more specifically the women farmers about modern agricultural
practices like access to latest technology, high-yielding variety/ seeds, optimum fertilizer regime, pesticides
etc. for increasing agricultural production sustainably.

SKILL DEVELOPMENT
Location specific and market oriented trainings on LMV driving, mobile repairing, motor winding, beautician,
tailoring, etc are imparted to unemployed youths to enhance their entrepreneurial and employability skills.
Many of the participants have been employed after skill development trainings, while few trainees have
initiated their …
Chapter : 6
LEARNING EXPERIENCE

Learning is a continuous process by which we can acquire the knowledge that we apply to our future
endeavour. And also learn the activities of the organisation. The various departments of the company to
study its structure and functions and tactics provide an opportunity to grip the valuable information. The
information provided in the secondary data sources made me to enhance skills, functions of Human
Resource, Marketing, Finance, Operations and inventory made me to bridge the gap between theory and
reality. Organisation study helped me to get a clear insight about company’s SWOT Analysis, Mckensy
Frame work and Porter’s five force model. In the company HR department, it concentrated mainly on how to
deal with the problems of employees, how to get the work done, Recruitment of employee etc.

Production department cooperated in knowing the overall process in the department, the different stages of
product developments, the material handlings techniques etc. In Finance department is concentrated on the
finance activities of the company regularly. Marketing department will help to known the market position of
the company product, market mix, how to promote our company products in the market etc..
I come to know the finance position of the company, operations and inventory functions of the company and
analysed the factors……

To conclude, this study gave a lot of insights on the practical working of an undertaking and in
supplementing my theoretical learning. It contributes to an individual to understand, comprehend the
problems faced by the organization and to work under competitive environment. The internship has helped
to acquire skill required to be in competitive in near future.

BIBLIOGRAPHY
❖ Financial Management – Shashi K Gupta, Neethi Gupta, Kalyani Publishers.
❖ Financial Accounting for Management – N Ramachandran, Ram Kumar Kakani, Third Edition,
Vikas Publishing House Pvt Ltd.
❖ Crafting and Executing strategy – A Thompson Jr, Margaret A, and John E Gamble, Mc Graw Hill
Publication, New Delhi.
❖ www.jktyre.com
❖ www.javapoint.com
❖ www.economictimes.com
❖ www.moneytcontrol.com

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