INTRODUCTION
With the auto industry facing a slow down, the tyre industry is forced to go on a slow track. The situation is tougher because tyre can be easily imported now and the multinational majors are importing their brands.
The India tyre industry has gone through a gamut of changes in the last few years.
Delicensing over capacity build up, changing market shares, changing ownership patterns, fluctuating input prices, changing technology, entry of global major. The industry has seen all. The cheqeured domestic tyre industry seems to have entered the era of reorganisation and realignment and the long feared gradual shake out process has finally dawnedin. The line with global trends not only are the weaker players being eliminated but industry has, at last, begun it’s race forwards radials.
Evolution
The 76 years of Indian tyre history is replete with the carriage of monarchs. Roots of the tyre industry can be traced to the early 1920’s when three MNC’s – Firestone,
Goodyear and Dunlop commenced their operations in India. Till the sixties, the dominance of the three MNC’s continued. It was during the period 1960-75 some of the Indian players - APOLLO TYRES., M.R.F., Premier entered the ray only to face some hostile competition from the existing players which used their clout to get
1 permission for additional capacities ensuring that the new entrants would barely achieve 35 to 40 per cent capacity utilization.
Now in India there are 40 tyre companies with 53 tyre factories. Out of these 40 tyre companies, 12 major companies account for over 85% of total production. Out of the total production 30% of the tyres are exported to the United States. 20% of truck and bus tyres are exported. “The Automotive Tyre Manufactures Associations”
(ATMA) was formed under the companies act of 1975. All the leading tyre companies in India are members of ATMA.
Members of ATMA
1. Apollo Tyres
2. Birla Tyres
3. Modistone Ltd.
4. Ceat Ltd.
5. APOLLO TYRES. Tyres Ltd.
6. Modi Rubber Ltd.
7. Dunlop India Ltd.
8. M.R.F. Ltd.
9. Falcon Tyres Ltd.
10. Goodyear India Ltd.
2 11. Premier Tyres Ltd.
12. Vikrant Tyres Ltd.
Indian Tyre Technical Advisory Committee (ITTAC) was established in 1966 by
ATMA. It’ role is to evolve industry consensus on specific parameters for tyres, tubes and related items / valves.
FACT’S OF TYRE INDUSTRY:
Industry turn over Rs. 1,00,000 million
Installed capacity Rs. 5,730 million no.
Production Rs. 4,140 million no.
Capacity utilisation 72%
Taxes and duties paid Rs. 28,500 million
Excise duty contribution Rs. 12,530 million
3 Market Segmentation
The tyre industry is divided into three segments.
i. Original Equipment Manufacturers (OEMS). ii. Replacement market. iii. Export market.
ORIGINAL EQUIPMENT MANUFACTURES (OEMS)
The tyre demand from the OE segment is a function of automobile production. If the production of automobiles decrease or increase the demand of tyre in this segment will decrease as increase accordingly. It is directly proportionate to the production of automobiles. Margins are lower is this business and suppliers concentrate on volumes to spread out overheads.
REPLACEMENT MARKET
The demand for this market flows from the vehicles sold in the earlier years. It is the largest segment for more than estimated 61.4% of the over all market. The economic-cum-industrial growth is the other key of demand determinant. The margins are better in this segment as prices are 10-15% more. The replacement segment is lucrative segment as the realizations are estimated to the replacement segment is the reason for it’s number uno position in the vehicular population during
4 the last three years augurs well for the replacement rates old vehicles, poor road conditions and the problems of over leading of vehicles assures a healthy demand for the replacement segment.
EXPORT MARKET
The tyre exports shot up phenomenally in the early nineties to compensate for the
OEM segment but the growth rates have flattered during the last years, awing to strong domestic demand.
Nearly whole of the Indian market exports are of cross plys. Cross ply tyres have excellent acceptance in developed countries. Truck and bus tyres accounts around
72.5% followed by LCV’s with 17.6%. The main target is the large replacement market for older crass ply tyres is the main target.
Features of Tyre Industry
i. HIGH CAPACITY
A tyre industry has a very high capacity cost. It is a capital intensive
industry. Advanced and expensive machinery has to be used for the
manufacturing of tyres. Due to many leady tyre companies lot of marketing
investment is also required.
5 ii. DISTRIBUTION NETWORK
A tyre industry needs a very big distribution network to survive in such a
competitive market. If the demand of consumers are not meet i.e. if there is
no proper channel of distribution then the supply will be affected.
iii. TECHNOLOGY INTENSIVE
A tyre industry has to be technology intensive. It has to manufacture different
types of tyres with least carbon and silica as possible so that there will be
very less pollution.
DEMAND AND DETERMINANTS OF TYRE INDUSTRY
1. GENERAL ECONOMIC & SCENARIO
G.D.P. decides the purchasing power of the people and investments by
industries.
2. FLUCTUATIONS OF RAW MATERIALS
Availability of raw materials decide the increase or decrease in
manufacturing.
3. AUTOMOBILE INDUSTRY
The growth of the automobile industry will lead to the growth of tyres too and
vice-versa.
6 4. RELATIVE IMPORTANCE OF ROAD TRANSPORT
The government is now laying a lot of emphasis in the growth of the rail, this
may affect the road transport.
5. RETREADING
Retreading is now heavily affecting the tyre industry as retreading of old tyres
is much more cheaper than buying new tyres.
6. RADIALISATION
Due to radialisation the tyre industry has gained a lot.
7 In the past decade, the sport of tennis has gradually but surely ensconced itself in the Indian social milieu. This does not come as a surprise considering the success of former Indian tennis legends like Vijay Amritraj, Ramanathan and Ramesh Krishnan. In recent times, tennis’s popularity has risen to new heights following the popularity of players like Leader
Paes, Mahesh Bhupathi and Sania Mirza in the Indian and international arena. Their achievements have both inspired the youth as well as establish tennis as a popular sport which has the potential to unearth fresh talent.
But to keep this blaze of glory alive, India needs younger, fitter talent who can don the mantle passed down from the former and current players to create history. This is a challenging task. New talent needs to be discovered, nurtured and trained to perfection; and of course, backed by dedicated resources in the form of people, time, money and appropriate training facilities and regime.
Apollo Tyres Ltd believes in the philosophy of excellence through teamwork and undertaking activities that enhance stakeholder value. When Apollo Tyres decided to dedicate resources to create Indian sporting champions, tennis somehow picked itself as a natural choice.
8 Apollo Tyres is a rapidly growing company making a mark in the global arena. Tennis is a global sport and is played in over 200 countries Tennis transcends barriers of age, gender, religion and culture. It’s a game which is getting more dynamic and younger by the day
Like tyres, tennis is about precision, power, performance, agility, ambition, mastery and style India has a history of excellence in tennis and the corporate was positive that with the right environment, true tennis talent could be allowed to flower and bring home a Singles
Grand Slam title
The result was Apollo Tyres Mission 2018 – to give India a Singles Grand Slam Champion by the year 2018. Mission 2018 provides youngsters with a platform where they are groomed and given a chance to showcase their talent. The corporate also aims to spread awareness and establish tennis as a sport at the grassroots level; encouraging talented and gifted children to embrace the sport.
9 Apollo Tyres Mission 2018 Batch 2008 has already commenced training at The Tennis
Village, Bangalore. The Tennis Village boasts of state-of-the-art training facilities along with some of the world’s best mentors and coaches.
Mahesh Bhupathi: Padmashree recipient in 2001. He has over 10 Grand Slam titles to his credit – an Indian record. In 1999, Bhupathi won three doubles titles with Leander Paes including Roland Garros and Wimbledon. He and Paes became the first doubles team to reach the finals of all four Grand Slams, the first time such a feat has been achieved in the
Open era. In the April of 1999, they became the World No 1 doubles team.
C G K Bhupathi: Sania Mirza and Mahesh Bhupathi’s first coach, Mr Bhupathi has a knack for identifying talent and nurturing them to become world beaters. Having been involved with the sport both as a player and a coach, he is perhaps India’s most experienced tennis talent scout. He is the Chief Coach and Director of The Tennis Village and personally involves himself with the development of the FIST programme and each of the prodigies.
Prahlad Srinath: One of India’s top coaches and former Indian #1 and Davis Cupper.
Prahlad Srinath is currently Chief Coach for the FIST training programme.
Sandeep Kirtane: The current Indian Davis Cup coach, Arjuna Award winner in 2001 and multiple National Games winner. He is one of the most respected names in Indian tennis.
Manisha Malhotra: Former Indian #1, she is also a former Indian Federation Cup player.
Heath McNeil Mathews: Visiting Physiotherapist, Heath has tremendous experience on both the ATP and WTA tours. Former trainer to Sania Mirza.
Tony Beecroft: A graduate from University of Melbourne in Physiotherapy. He has been 10 working at a sports and spinal clinic in Melbourne since then. His focus is on fitness, conditioning and pre-habilitation. mir Takla: One of Australia's premier musculoskeletal physiotherapists. Consultant physiotherapist to players at the Australian Open, he will be training the FIST children this fall/winter in order to prepare for the new tournament calendar.
Driving habits and tyre care are largely responsible for the state of your Car Tyres. Every car has parts that need to be replaced constantly and the cost of replacing tyres, is more than all these parts. Proper tyre care can substantially prolong their average life apart from allowing you to enjoy more comfortable and safe motoring. To take care of your tyres some basic checks should be followed upon:
One of the most common and important checks is inflation pressure. Always maintain correct inflation pressure in your tyres. To ensure this get the inflation pressure checked on cold tyres every few days. Maintaining correct air pressure keeps the tyre healthy and increase the life of tyre.
Under-inflation When a tyre is under-inflated, the sidewalls flex more, creating a build-up of heat Heat can destroy a tyre from the inside out, causing the tyre to literally come apart
11 Over Inflation Over inflation reduces the ability of the tyre to absorb road shocks resulting in a much harsher ride Excessive over inflation may lead to impact fracture or other casing failures Over inflation will also cause excessive wear of the centre of the tyre. It also results in smaller footprints and less grip
Wheel Alignment should be done once a year or at 20000 Kms whichever is earlier. Properly aligned wheels will roll smoothly, eliminate the dangers of dragging and reduce steering effort. This ensures better driving safety and an even wear of tyres.
When should the alignment be done?
Tyre wear is irregular Tyre wear is excessive Car steers hard or keeps pulling to one side Front suspension or steering linkage components are replaced Car has suffered a front end collision Either wheel has an exaggerated tilt Front tyres are rotated or replaced
12 INDIAN AUTOMOBILE HISTORY
During the 1920s, cars exhibited design refinements such as balloon tires, pressed- steel wheels, and four-wheel brakes.
The origin of automobile is not certain. In this section of automobile history, we will only discuss about the phases of automobile in the development and modernisation process since the first car was shipped to India. We will start automotive history from this point of time.
The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century truned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city.
13 The dawn of automobile actually goes back to 4000 years
when the first wheel was used for transportation in
India. In the begining of 15th century Portuguese
arrived in China and the interaction of the two cultures
led to a variety of new technologies, including the
creation of a wheel that turned under its own power.
By 1600s small steam-powered engine models was developed, but it took another
century before a full-sized engine-powered vehicle was created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles
and Frank Duryea. It was the first internal-combustion motor car of America, and it
was followed by Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver
Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens
and hood, and an aluminum body. It was usually driven by chauffeurs and emphasis
was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-
cylinder engine and an aluminum body.
14 The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited
more to the needs of families. In 1930s, vehicles were less boxy and more
streamlined than their predecessors. The 1940s saw features like automatic
transmission, sealed-beam headlights, and tubeless tires.
The year 1957 brought powerful high-performance cars such as Mercedes-Benz
300SL. It was built on compact and stylized lines, and was capable of 230 kmh (144
mph).
This was the Indian automobile history, and today modern cars are generally light,
aerodynamically shaped, and compact.
15 COMPANY PROFILE
Apollo Tyres Ltd's history dates back to the early Seventies. The company's license was obtained in 1972 by Mr Mathew T Marattukalam, Jacob Thomas and his associates. In
1974 the company was taken over by Dr. Raunaq Singh and his associates. The tyre project was implemented in 1976 in Perembra, Kerala. The commercial production began in 1977 with an installed capacity of 420, 000 each of tyres and tubes.
The man who dares is the man who has dreamt. At Apollo Tyres Ltd. , we firmly believe that no opportunity can be created without a proper plan. Our efforts draw inspiration from that vision and the core values our visionaries have chalked-out for us.
Vision and values that transcend the geographical, as well as the boundaries of the mind.
Establishment Year
Firm Type
Nature of Business
Level to Expand
: 1974
: Public. Ltd.
: Manufacturer , Export / Import
: International
Apollo Tyres, Ltd. engages in the manufacture and sale of tyres, tubes, and flaps in India and internationally. It offers tyres primarily for trucks and buses, light trucks, passenger
16 cars, jeeps, and farm vehicles. The company offers its products primarily under ‘Apollo
Tyres’ and Dunlop brand names. Apollo Tyres, Ltd. also provides retreading material under DuraTread brand, and retreaded tyres under the brand name of DuraTyres. It exports its products to Africa, Middle East, South America, Asia Pacific, and Europe. The company was founded in 1975 and is headquartered in Gurgaon, India.
17 CORPORATE HISTORY
First Indian tyre company to launch exclusive branded outlets -- Apollo Tyre World -- for
truck tyres First Indian tyre company to segment the market on the basis of load and mileage
requirements
First Indian tyre company to introduce packaging for car and two-wheeler tyres and tubes First Indian tyre company to run a customer loyalty programme First Indian tyre company to introduce radial tyres for the farm category First tyre company in India to obtain ISO Certification for all its operations
First Indian tyre company to produce H, V and W-speed rated tubeless tyres First Indian tyre company to run HIV-AIDS awareness and prevention clinics for the
trucking community First Indian tyre company to support the creation of an Emergency Medical Service in an
Indian city First Indian tyre company to execute an overseas acquisition First Indian tyre company to reach a revenue of over US$ 1 billion
1975 Inception 1975 Registered as a company 1977 First plant commissioned in Perambra (Cochin, Kerala) 1991 Second plant commissioned in Limda (Baroda, Gujarat ) 1995 Acquired Premier Tyres in Kalamassery (Cochin, Kerala) 1996 Exclusive tubes plant commissioned in Ranjangaon (Pune, Maharashtra) 2000 Exclusive radial capacity established in Limda 2000 Established Apollo Tyres Health Care Clinic for HIV-AIDS awareness and
prevention in Sanjay Gandhi Transport Nagar, Delhi 2003 Expansion of passenger car radial capacity to 6,600 tyres/day 2004 Production of India 's first H-speed rated tubeless passenger car radial tyres
2004 Support in setting up India 's first Emergency Medical Service in Baroda , Gujarat 2005 Apollo Tyres Health Care Clinics in Udaipur in Rajasthan and Kanpur in Uttar
Pradesh 2006 Expansion of passenger car radial capacity to 10,000 tyres/day 2006 Expansion of passenger car range to include 4x4 and all-terrain tyres 2006 Acquired Dunlop Tyres International in South Africa and Zimbabwe 18 2006 Opening of Apollo Tyres Health Care Clinic in Ukkadam, Tamil Nadu
2006 Launch of DuraTread, treading material and solutions 2006 Launch of India's first range of ultra-high performance V and W-speed rated tyres 2007 Launch of Regal truck and bus radial tyres 2007 Launch of DuraTyre, retreaded tyres from Apollo 2007 Launch of the Apollo Tennis Initiative and Mission 2018
19 Key Advantages Categories
• High Quality • Passenger Car Tyres • Reasonable Pricing • Light Truck and Mini Bus Tyres • Fast Deliveries • Truck & Bus Radial Tyres • Exclusivity • Industrial Tyres • Market Protection • Off The Road Tyres • Mass Advertising • Agriculture Tyres • Flexible Payment Options • After Sales Support
Brands
Brands Courier Corsa Strada KaizenMiller Yanta Triangle Chengshan Origin European Indonesia Indonesia India China China China China Bias & Radial by Radial by Radial by Bias by Bias & Technology Radial Bias Radial by Pirelli Conti Conti Apollo Radial Goodyear LTB,TBB, PCR & PCR & Truck OTR, Range PCR TBR All All HP LTR & Bus Industrial & Agri
20 KEY DEVELOPMENTS
Apollo Tyres Ltd. Opens its Commercial Vehicle Tyre Outlet in Salem 08/31/2008
Apollo Tyres Ltd. opened its first full-service branded commercial vehicle tyre outlet in
Salem, Tamil Nadu. The outlet, `Apollo Trust' is equipped with the latest wheel aligner, balancer, nitrogen gas inflation and manned by trained employees. The company proposes to open five more outlets across the country.
Apollo Tyres Ltd. Announces New Appointments 08/5/2008
Apollo Tyres Ltd. announced the appointment of Salil Gupta as the Chief Financial Officer and Peter Becker as Chief of Research & Technology. The appointments reflect Apollo's commitment to long term goals, while Peter brings with him rich product technology experience, Salil's strength lies in his knowledge of managing diverse businesses. The two posts were created recently as part of expansion plans in the domestic and global markets.
Apollo Tyres Ltd. Announces Consolidated and Standalone Earnings Results for the First
Quarter Ended June 2008 ; Approves Dividend 07/18/2008
21 Apollo Tyres Ltd. announced Consolidated and Standalone earnings results for the first quarter ended June 2008. For the quarter, the company reported a 7.3% increase in consolidated net profit at INR 586.6 million, against INR 546.4 million in the same period last year. Consolidated revenue during the quarter stood at INR 13.2 billion, against INR 11.5 billion in the corresponding quarter a year ago, up 15%. Standalone India Operations net profit was at INR 486.3 million, up 4% from INR 467.6 million. Revenue was at INR 10.7 billion, up 23% from INR 8.7 billion. At the Annual General Meeting of the company, the shareholders approved the annual dividend payout of 50% per share for the year ended March 31, 2008.
Apollo Tyres is the market leader in the truck and bus (T&B) and LCV tyres with a share of 30 per cent. The company earns almost 65 per cent of its revenues from the replacement market and the rest from the OE (original equipment) sales and exports.
The replacement market has been considered the main growth driver for the tyre industry in the past. But the buoyant trends in automobile sales over the past few years and India’s rise as a manufacturing hub for global automakers, has prompted the company to focus on OE sales, especially in passenger cars.
The company is following a strategy of initiating association with a manufacturer as an after-sales partner and becoming an OE partner once volumes pick up. The company is already an OE partner for Tatas, Suzuki and General Motors. It is likely to be the after- sales partner for the Rs 1 lakh car of the Tatas, and is evaluating partnerships with Skoda and Hyundai.
22 To sustain growth amidst stiff competition in the replacement market, the company is enhancing its retail presence by tying up with Reliance Retail for the sale of CV
(commercial vehicle) tyres and is revamping about 500 dealerships into high-end outlets.
The company is also looking at the ‘Tyre Plus’ concept, which will see outlets selling products complementary to tyres such as alloy wheels.
The company is setting up a new plant at the existing location in Vadodara for making off- the-road (OTR) tyres, which may aid higher margins.
Production will commence in the next 12-18 months, for which the company has tied up with BEML (Bharat Earth Movers). Apollo is also planning production of speciality and industrial tyres such as docking tyres and those used in forklifts.
But what may hold better potential from a long-term perspective is the foray into the production of radial tyres for the CV segment. India has low levels of radialisation at less than 5 per cent for trucks and buses due to constraints such as higher costs and maintenance involved and poor road infrastructure.
The fast improving highway infrastructure, the Supreme Court ban on the overloading of vehicles and the move towards a hub and spoke model are expected to indirectly rev-up the demand for radial tyres as they offer better fuel efficiency, have longer life and turn out to be cheaper in the long-run. Apollo Tyres is setting up the required capacities in Tamil Nadu for truck, bus and light truck radial tyres, along with high and ultra-high performance passenger car radial tyre. This will be completed by 2010.
23 The company has also set-up a re-treading facility at Haryana, which could be a cost- effective option for passenger car and small truck owners. The company also plans to build a manufacturing unit in Eastern Europe, which will start off by making radial tyres for passenger cars. The company already has a toehold in Europe (one of the largest tyre markets) through Dunlop Tyres, South Africa, which was acquired last year. Apollo Tyres’ entry into Europe will begin with exporting tyres from its new factory in Tamil Nadu.
For the six months ended September 2007, net sales were up 13 per cent to Rs 1718.45 crore and net profits were up by a whopping 175 per cent.
Operating margins for the April-September 2007 half year has been at the 12-13 per cent levels compared to the 7-8 per cent levels in the same period last year.
24 On May 23, 2007, Apollo Tyres unveiled its long term plans with the mission of popularising the sport of tennis and creating the first Indian Singles Grand Slam Champion by the year 2018. This nationwide sporting campaign is known as the Apollo Tyres
Mission 2018. Indian tennis icon Mahesh Bhupathi is a partner and consultant for the initiative. Mission 2018 is one of the biggest sporting initiatives in the country, with a sum of Rs 1 billion earmarked for the next 10 years.
November-December 2007 witnessed the launch of the Apollo Tyres Mission 2018
Challenge, under which tennis selection camps were held in the four Indian cities of
Bangalore, Mumbai, Kolkata and New Delhi. Children between the ages of 6 to 14 years were eligible to participate. The tennis camps were aimed at selecting young tennis talent who manifested the ability, potential, desire and acumen to become a future champ.
The panel of judges comprised Mahesh Bhupathi and his father C G K Bhupathi, Prahlad
Srinath (former India #1 and Davis Cupper), Sandeep Kirtane (India’s Davis Cup coach and Arjuna Awardee), Manisha Malhotra (former India #1), Heath Mathews (international physical trainer) and Tony Beecroft (eminent physiotherapist).
Nearly 12,000 children registered for the selection camps, with 3,000 children participating actively. Out of these 200 were called back for special assessments. Around 35 children
25 from across India were shortlisted for the finals at Delhi. In the final selection round, 15 children were selected as Apollo Tyres Mission 2018 Batch of 2008.
The chosen 15 have been enrolled in the FIST – Foundation for Indian Sporting Talent – tennis programme at The Tennis Village, Bangalore. The overall annual programme for them includes training sessions at The Tennis Village, strength and conditioning consultation, and assessment at Le Centre d’Expertise de la Performance, Dijon, France,
National Junior Tournaments and the European Junior Tournaments.
Children who were shortlisted, but did not make it to the final 15, were awarded a two- week tennis scholarship at The Tennis Village. All the youngsters are receiving world-class training and mentoring from experts in India and abroad.
The process, of conducting tennis camps and creating a talent pool, will be repeated again this year.
26 27 28 29 MILESTONES OF APOLLO TYRES
1972 The company's license was obtained by Mr Mathew T Marattukalam,
Jacob Thomas and his associates. 1974 The company was taken over by Dr. Raunaq Singh and his associates. 1975 April 13, Perambra Plant Foundation stone was laid down. 1976 Apollo Tyres Ltd. was registered. 1977 Plant commissioned in Kerala with 49 TPD capacity. 1982 Manufacturing of Passenger Car Radial Tyres in Kerala. 1991 The second plant commissioned in Baroda. 1995 Acquired Premier Tyres Ltd. in Kerala. 2000 Exclusive Radial capacity established at Baroda. 2003 Radial Capacity expanded to 6600 tyres per day.
November 17, JointVenture with Michelin. 2004 Launch of Apollo Acelere- 'H' Speed Rated Car Radials. 2005 April 13, Perambra Plant completes 30 Years. 2006 January 30, Dunlop South Africa is acquired.
ACHIEVEMENTS
30 31 SEGMENT AND BRANDS
Products Brands Apollo • Loadstar Super • Champion Hercules • Champion DXL • Loadstar Super • Champion Gold • Loadstar Super Gold • Amar • XT 7 • Amar Deluxe • XT 7 Haulug • Amar Gold • XT7 Gold Truck • XT-9 • Amar AT-Rib
• XT-9 Gold Kaizen • 50 L • 27 L • 36 L • 77 R • Commando • 99 R Plus • XDT • Loadstar Super • XT-9 Gold • Amar Deluxe • Duramile Light Truck • Amar Gold • Milestar
• XT-9 • Champion Car Radials • Tube Type (Amazer • Tubeless Radials XL Quantum) 4x4 Radials • Hawkz • Amazer XL
• Storm Alloy Wheels • Haste • Inspire Passenger Car • Torque • Slay • Nirvana • Multispoke • Frost • Sphere
• Quest • Cinco Tubeless Radials • Acelere • Hawkz
• Amazer XL
32 Conventional Tyres (Bias Tyres) • Car • Jeep • Armour • Gripper
• Panther • Maha Trooper Pure Cultivation Segment • Sarpanch • Krishak Super Pure Haulage Segment • Powerhaul Farm Mixed Application Bias Segment • Krishak Premium Mixed Application Radial Segment • Farmking Jeep • Gripper • Maha Trooper
AMAR AT- RIB
AMARZEN XL
33 Circumferential grooves provide better directional stability
Deep grooves for effective water channeling providing safety against
aquaplaning
Excellent handling at high speeds and improved mileage
Specialist Van tyres
Durable construction for reliable performance
Even tread-wear for longer life
34 BOARD OF DIRECTORS
35 EXECUTIVE OFFICE
As the chief architect of the company's vision, Onkar S Kanwar plays a pivotal role in the company's operations and articulation of its business philosophy. Under his leadership in the 1980s and 90s, Apollo became a professionally-run and competitive Indian tyre manufacturer. Innovation, quality and exclusivity are his guiding principals, which have helped the company achieve pioneering initiatives.
Onkar Kanwar is a former member of the Government of India's National Manufacturing
Competitiveness Council and the Kerala Development and Poverty Alleviation Advisory
Council. He is a Past President of the Federation of Indian Chambers of Commerce &
Industry (FICCI), International Chamber of Commerce (ICC), Automotive Tyre
Manufacturers' Association (ATMA), a former Director, Export Credit Guarantee
Corporation of India and of the Kerala State Industrial Corporation.
A science and administration graduate from the University of California, he is a widely travelled individual and a keen student of modern management practices and their successful application in business. He devotes a large part of his time to reading.
Neeraj Kanwar began his career with Apollo Tyres Ltd in 1995. He joined the company as
Manager, Product & Strategic Planning, where he was instrumental in creating for the first time a bridge between the two key functions of production and marketing. In 1998, Neeraj
36 became Director and Chief, Manufacturing & Strategic Planning. While in this position, he brought in overarching changes in IR management, upgradation of technology, benchmarking on product and efficiency parameters and the extensive use of information technology. In July 2002 he took over as the Chief Operating Officer. As COO, Neeraj
Kanwar has been instrumental in bringing about key changes in HR and IT and in increasing the competitiveness of Apollo products across the board. He was appointed Joint
Managing Director in 2006 and elevated to Vice Chairman in 2008.
A hands-on manager, Neeraj Kanwar graduated from Lehigh University, USA, with a
Bachelor of Science in Industrial Engineering and a specialisation in Management Systems.
An avid sports person, he enjoys playing tennis, swimming & travelling in his leisure time.
37
AIS 044 (India), CQAV (Indian Defence Services), DOT (USA), ECE (EU), In-Metro
(Brazil),
SABS (South Africa), SASO (Saudi Arabia), TS 16949
In operation since 1962
Products manufactured
Truck and bus cross-ply
Light truck cross-ply
Farm cross-ply
Re-treading material
In operation since 2007
Products manufactured
Retreaded tyres
In operation since 1991
Products manufactured
Passenger car radial
Truck and bus radial & cross-ply
Light truck radial & cross-ply
Farm radial & cross-ply
38 In operation since 1977
Products manufactured
Truck and bus cross-ply
Light truck cross-ply
Farm radial & cross-ply
In operation since 1935
Products manufactured
Truck and bus radial & cross-ply
Light truck radial & cross-ply
Farm
Off-the-road
In operation since 1973
Products manufactured
Passenger car radial
Light truck radial
In operation since 1957
Products manufactured
Passenger car radial & cross-ply
Truck cross-ply
Light truck radial & cross-ply
39 Farm
Off-The-Road
Retreading material
In operation since 1926
Products manufactured
Retreaded tyres
40 Key Advantages Categories High Quality
• Passenger Car Tyres • Reasonable Pricing • Light Truck and Mini Bus Tyres • Fast Deliveries • Truck & Bus Radial Tyres • Exclusivity • Industrial Tyres • Market Protection • Off The Road Tyres • Mass Advertising • Agriculture Tyres • Flexible Payment Options • After Sales Support
Brands Brands Courier Corsa Strada Kaizen Miller Yanta Triangle Chengshan Origin European Indonesia Indonesia India China China China China Bias & Radial by Radial by Radial by Bias by Bias & Technology Radial Bias Radial by Pirelli Conti Conti Apollo Radial Goodyear LTB,TBB, PCR & PCR & Truck OTR, Range PCR TBR All All HP LTR & Bus Industrial & Agri
41
OBJECTIVES OF THE REPORT
Objectives of the project are as follows:
♦ To know about the awareness of upsize tyres.
♦ To know the demand of upsize tyres.
♦ To know the future prospect of the new eco-friendly tyre launched by APOLLO
TYRES. Tyres.
♦ To find out whether the domestic tyre industry is able to compte with the
international tyre industry.
♦ To know what consumers expect from a good tyre.
♦ To find out if consumers are ready to pay more for a better tyre.
42 RESEARCH METHODOLOGY
According to Clifford Woody research comprises defining and redefining the problems, formulating hypothesis or suggested solutions, collecting, organising and evaluating data, making deductions and reaching conclusions and at last carefully testing the conclusion to determine whether they fit the formulating hypothesis.
Research methodology is a procedure designed to the extent to which it is planned and evaluated before conducting the inquiry and the extent to which the method for making decisions is evaluated. The research methodology if scientifically developed, enables the research to establish with a high degree of confidence, cause and effect relationship between the research activities and observed outcomes.
OBJECTIVES
♦ To know about the acceptance of the product.
♦ To understand why customers buy the product.
♦ To identify marketing opportunities or problems.
♦ To determine the dimensions of the marketing problems.
♦ To facilitate evaluation of the alternative solutions of different problems.
♦ To know the demand of competitive products.
43 METHOD
To achieve the objective we make by use of filed research method. Filed research methods :
♦ Mass observation through questionnaire.
♦ Personal interview.
RESEARCH DESIGN
A research design is the overall plan for the overall plan on programme of research.
It includes an outline of what the investigator will do from writing the hypothesis and their operational implications to the final analysis of data.
Various uses of having a research design an as follows:
♦ It provides answers to various questions.
♦ It acts as a standard guide post.
♦ It helps in carry out research validity, objectively, accurately and economically.
Market research projects are designed as either (exploratory research or conclusive research) depending upon the objective of the study.
The objective of the exploratory research is to seek new ideas and to discover new relationships between different set of factors in a way that will permit statement of
44 specific hypothesis. To find out there hypothesis, study of secondary sources of information, survey of knowledgeable persons on case studies are conducted.
Conclusive research provides information which helps in decision making, such research requires a formal design which helps the research to identify cause and effect relationships. This can be done by case study, statistical study and experimentation. The present marketing research is more on less an exploratory research as its objectives are aimed to find new ideas also the information required was obtained through methods of exploratory research. The information has been gathered from the survey of dealers, car consumes and taxi fleet owners. Overall the research which was used as a prototype for his market research analysis is :- i. Define research problem. ii. Review concepts and theories. iii. Formulate hypothesis. iv. Design research. v. Collect data. vi. Analysis of data. vii. Interpret and reports.
SAMPLE DESIGN
45 It is definite plan for obtaining a sample from a population dealing with any tyre industry. The type of sampling used is random sampling design (RSI). The respondent in the sample include car owners and dealers.
46 DEVELOPING THE RESEARCH DESIGN
The second stage of marketing research calls from developing the most efficient plan for gathering the needed information. Data collection is an integral part of the marketing research. Information which is generated for the first time and experimentation, interviewing and estimation. The primary data can be collected through telephone interviews, group interviews, mail surveys and self – administered questionnaire.
The data for this, research project has been collected through self-administered questionnaire (see Annexes). Due to time limitations and other constraints direct personal interviews method was used. A non-disguised, structured questionnaire was framed, as it was less time consuming, easier to tabulate and interpret.
Moreover respondents preferred to give direct answers.
Analysis was carried out in various steps and based on these steps all the figures, tables, graphs and interpretations of each region and overall review is given.
The final stage was to select the are a to be explored by questionnaire. The area given below was entrusted by the company APOLLO TYRES. Tyres Ltd. it was
West Delhi.
47 NEED OF THE PROJECT
The dealers are the media through which any company sells its product and it’s the duty of the company to see that the dealers are working properly as not. Are the dealers and the consumers of the company are satisfied with the companies policies or not. Today every tyre company in the globalized market has to know day to day changes consuming in the market. There are many competitors in every field and every company wants to capture the market which is a very different task to achieve.
Every company need to survey and analyses the buying behaviours and purchase criteria of tyres which has it’s great importance in tyre industry, as the customers is very conscious and wants to get the return on the money which he has invested in the product. The customers sees and analyses the quality of the product and only then purchases the product. The company modifies it’s products according to the taste of the customers.
Data Collection
DATA COLLECTION INSTRUMENTS:-
The instruments used to collected the data are as follows:-
1. Questionnaire
2. Oral discussion.
48 DATA TYPE
Two type of data has been collected for data analysis.
PRIMARY DATA
It has been collected with the helps of structured non-disguised questionnaire which were personally administered to respondent. Both closed and open ended questions were used to get the designed information. Questionnaire were designed for exclusive and multi brand dealers. Important scales and ranking methods were used for collecting the primary data.
SECONDARY DATA
It has been collected with the help of Internet and oral discussion. It is used for a brief history of tyre industry.
SAMPLE SIZE
Car Consumers : 50
Dealers : 10
Tax Fleet Owners : 2
49 DATA ANALYSIS & DATA INTERPRETATION
50 PERCENTAGE OF DIFFERENT CAR TYRES USED BY CONSUMERS
Kumho Mechiline Ceat Bridgstone 4% 14% 2% 8% Goodyear 11% J.K. Tyres 19% M.R.F. Apollo 13% 29%
51 PERCENTAGE OF DIFFERENT CAR TYRE USED AFTER CHANGING THE ORIGINAL ONES
Ceat Bridgstone Kumho 7% 16% 3% Goodyear 10%
J.K. Tyres 9% M.R.F. 6%
Apollo 49%
52 CAR CONSUMERS AWARE OF APOLLO TYRES ECO- FRIENDLY TYRE
Aware 21%
Not Aware 79%
53 CAR CONSUMERS USING ECO-FRIENDLY TYRES
Using 18%
Not Using 82%
54 CAR CONSUMERS AWARE OF TUBLESS TYRES
Aware 40%
Not Aware 60%
55 CAR CONSUMERS USING TUBLESS TYRES
Using tubless tyres 6%
Not using tubless tyre 94%
56 TYRES AS PER THEIR POPULARITY
Kumho 5% Mechiline Ceat Bridgstone Goodyear 2% 10% 13% 11%
Apollo M.R.F. 24% 14% J.K. Tyres 21%
57 CAR CONSUMERS AWARE OF UPSIZE TYRES
Car consumers unaware of upsize tyres 39%
Car consumers aware of upsize tyres 61%
58 PERCENTAGE OF CAR CONSUMERS USING UPSIZE TYRES
Car consumers using upsize tyres 44%
Car consumers not using upsize tyres 56%
59 Brand loyalty among consumers
Brand loyality among consumers
39% yes No 61%
As the result of the survey conducted 61% of the respondents were brand loyal and remaining 39% switched brands regularly.
60 Monthly family income of the respondents
Monthly family income of the respondents
Below 10000 Rs
10000-15000 Rs
13% 4% 8% 15000-20000 Rs 16% 20000-25000 Rs 32% 27% Above 25000 Rs
N.A
Most of the respondents were evidently having a good economic and social status.
Among them 32% had their monthly salary above 25000 and only less than 4% of the respondents had monthly household income less than Rs 10000, most of them were drivers.
61 Reasons for the purchase of the radial tyres
Reasons for purchasing radial tyres
Milage
Puncture 5% 14% Resistance 33% 16% Driving Comfort
Road Grip 32%
Others
According to the respondents the most important features in purchasing car radial tyres were the road grip and driving comfort, with about 65% of the respondents voting for these two factors. The other factors were also considered like mileage, puncture resistance and others.
62 Motivating factors in purchase of particular car tyres.
Motivating factots for purchasing car tyres 80%
70%
60%
50%
40%
30%
20%
10%
0% Price Quality Company's name Advertisement Recommendations Not particular
The motivating factors among car consumers in purchase of a particular tyres are price, quality, company name, recommendations and advertisement.
According to the survey done it was analyzed and written in following table.
Factors Responses
Price 12%
Advertisement 52%
Company’s name 70%
Quality 63%
63 Recommendation 14%
Others 17%
• From above table it is analyzed that most of the customers are motivated by
the company’s name.
• Next motivating factor is price followed by quality.
The reason given by the customers for giving maximum response to company’s name is that they think if company is good they will give good quality as they have advance technology.
64 SWOT ANALYSIS
STRENGTH
1. Brand awareness is very high.
2. The company is very innovative.
3. Company possesses very efficient distribution system which is important.
4. Company holds a large share of the market.
5. Radial tyre technology is present.
WEAKNESSES
1. Claim policy of the company is poor.
2. Prices fluctuate very often.
3. Equal importance not given to all the dealers.
OPPORTUNITIES
1. There is a very large market for two wheelers which the company can capitalize on.
2. The international market accepts Indian made poly tyres.
THREATS
1. Competition is increasing day by day.
2. Entry of MNC’s is a direct threat to most Indian companies.
65 CONCLUSION
Now a days the market is buyer’s oriented, previously the market was sellers oriented means whatever the manufacturer produces the customers purchases but with the changing era the thinking has also changed. The customers are seeing all the quality of the product before purchase. Their is a stiff competition in the market and every company to lower their prices, increase the quality of the product and also increase the level of services.
A company should see that it’s dealers are satisfied with the company’s policies. This is because dealers are the persons who can build the image of the company and who can also destroy the image of the company.
Company should allow it’s dealers the maximum credit so that dealers can sell the companies product to the customers in a large quantity, as the number of the customers who purchase tyre on credit is more in comparison to those who purchase tyre in cash. To analyse the buying behaviours is not easy job because it is said that even God fails to analyse human behaviour as it changes from time to time. Many books were written and seminars and conference were held to on the topic but no manager can be successful to analyse the buying behaviours, so thus my project can bot be 100% successfully done in two months.
66 LEARNING FROM THE TRAINING
As a part of my curriculum I have to undergo a practical training for 2 months so that I could get an exposure to the real market situations. Academics is important but what one can learn during the work practically he cannot find it in books. This training has imported valuable knowledge and skills which is an addition to the balanced development of our personality. Now we can really appreciate the management skills which I was taught in classroom only by going out in the field.
♦ During the training program, I learnt the practical way of conducting a research and
how they are implemented practically i.e. preparation of questionnaire, testing it,
collecting the data and analysis techniques.
♦ I gained the experience of the set environment of corporate offices and how things
move in corporate offices.
♦ I acquired the knowledge regarding the tyres, brands, prices, specifications etc. of
different tyres and gained a good knowledge about tyre industry.
♦ During the market research I learnt a lot about the interpersonal relationships and skills
i.e. how to approach a respondent, how to talk to the respondents and extract the right
information for him.
♦ During the interaction with the dealer I learnt how the market is and how the dealers
manage to sell more and earn handsome profits.
♦ I came to know about the consumers expectation from a tyre and their grievances.
67 ♦ It was an opportunity for me to grow in the strong organizational structure of
APOLLO TYRES Ltd. where there is a system of shared meaning among the staff
members and prevails a culture of strong values.
I wish to convey my profound thanks to the people of APOLLO TYRES LTD to have given me an opportunity learn and enhance my knowledge in conducting market research for the esteemed organization.
68 LIMITATIONS
1. Survey represent only Apollo market position:- Because this
survey is conducted in DELHI . So we can not imagine through it
nation level market position of Apollo tyre.
2. Non respondent:- In this survey many respondent are included which
give no idea according our survey objective .
3. Sample size is limited:- In this survey I take only 400 unit as sample
size. The conclusion is find out through this sample size. So it not
represent all market.
4. Time is limited:- This survey is done within 6 to 7 week, so it may
be possible that some aspect may be left.
5. Falls information:- In this survey we can not say that every
information correct because many respondent gives falls information
it may more positive or negative.
69 6. Financial problem:- Money play very important role in any work in
this survey there is also effect of finance because I have limited
finance.
70 QUESTIONNAIRE
Annexure
For Dealers
Name of Person :
Address :
Phone No. :
• For how long are you in this business?
• Do you sell only car tyres?
Yes No
• What in average per month for each category?
Car Radial Car Bias Jeep Lcv
Any other ......
• How many companies are you dealing with?
Direct Company ......
Market ......
• Do consumers come to you very often for upsizing their tyres?
Yes No 71 • If yes, then which of the size has more demand?
• Which are the cars for which do you usually sell upsize tyres?
• Do consumers approach you for imported tyres?
Yes No
• Have you heard eco friendly tyres?
• If yes then how is the response from the customers?
• Do you think it’s sale will increase in the near future?
• Do you think consumers are ready to pay more for a better tyre?
Yes No
Suggestions & remarks if any:
......
72 For Car Consumers
Name of Person :
Address :
Phone No. :
• Do you own a four wheeler?
Yes No
• If yes, which car and how many?
• From where are you getting your alignment and balancing done?
Name :
Address :
• Did you ever change your car tyre?
Yes No
• From where?
Name :
Address :
• Which brand tyre do you use?
Before change (tube type / tube less) ......
After change (tube type / tube less) ......
• What are the factors you consider when you buy a tyre?
• Do you have any idea regarding upsize tyres?
Yes No
If yes, what is the size of your car tyre and is it with alloy wheels?
73 ...... Yes No
• Why do you prefer upsize tyre?
• Which are the tyre companies are your aware of?
......
......
• Have you heard of tubeless tyres?
Yes No
• If yes, does you car run on a tubeless tyre?
Yes No
• In your opinion what is the future of tubeless tyres in India?
• Acc. to your what qualities a better tyre should have?
• Will you prefer which is eco friendly?
Yes No
• If yes, then have you heard of the eco friendly tyre launched by J.K. tyres?
Yes No
• If yes, do you want to go for it and why?
• Have you ever used Apollo Tyre
• What is you opinion about Apollo?
Suggestions or remarks if any
...... 74 For Taxi Fleet Owners / Drivers
NAME:
ADDRESS :
• How many vehicles do you have in your agencies and types?
Qualis ...... Sumo ......
Indica ...... Ambassador ......
Any other ......
• What is your average per month demand?
• Which will be the future vehicles for mid size and over size?
......
• Which brand tyre are you using and size?
• How much mileage your current tyres are giving?
• From where did you get your tyres?
Name :
Address :
• Are you aware of upsize tyres?
Yes No
• If yes the what are the benefits of up size tyres?
• Have you heard of eco friendly tyres launched by Apollo Tyres?
75 Yes No
• If yes, then do you want it for your taxi?
Yes No
• Have you heard of tubeless tyres?
Yes No
• If yes then have you eve used tube less tyress?
Yes No
• Name the tyre companies you are aware of ?
1...... 2...... 3...... 4...... 5...... 6...... • Have you ever used Apollo Tyres?
Yes No
• If no, will you use it in future?
Yes No
• What is your opinion about Apollo Tyres?
Performance 1 2 3 4
Mileage 1 2 3 4
Price 1 2 3 4
Customers service 1 2 3 4 • Is your customer concerned about tyre in your vehicle?
Yes No
Suggestions and remarks if any?
76 BIBLIOGRAPHY
MARKETING MANAGEMENT: By Philip Kotler
MARKETING RESEARCH: By S.L Gupta
RESEARCH METHODOLOGY: By C.R. Kothari
WEBSITES: www.apollotyres.com
www.google.com
www.weekipedia.com
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