History of the organization & Objective Introduction of JK TYRE

HISTORY & ORGANISATION INTRODUCTION OF JK TYRE JK Tyre is a leading exporter of tyres from India and roughly accounts for about 26% of the total tyre exports from India (along with its associate Vikrant Tyres Limited) maruti zen steel radials, bias tires for passenger vehicles, ultima XP steel radials

It is the first and only tyre manufacture in the world to receive the QS 9000 for multilocation operations : World's first tyre manufacture to receive the ISO 9000 for all its operations in one go. Also J.K Tyres is the first tyre company in India to receive ISO 14001 in recognisition of its environmental management systems.

Today, JK Tyre's products compete with the best international players in the premium international bias market in more than 55 countries in 6 continents . The exports operate through a strong and dedicated distribution network, and our distributors are fully supported by the company's technical team in terms of continued product development to meet specific market needs. JK Tyre had obtained international accreditation for its products in the US , Europe , South America and the Middle East.

J.K Tyre has been the recepient of various awards for exports for the last many years for its commitment to offer superior performance standards & path -breaking innovations. Recently , it was honored with ' The Special Export Award 2000-2001' from Capexil, making it its fourth consecutive award from India's premier industrial association . JK Tyre has also been recently recognised by Indian Trade Promotion Organisation (ITPO) for being the largest tyre exporter to Latin America markets and is the proud recepient of first-ever FOCUS LAC Award for the year 1999-2000. J.K Tyres constant endeavor to deliver superior value to its customers and a sound marketing strategy forms the foundation of this spectacularly consistent performance on the international front.

While JK Tyre has maintained its consistency in its marketing and distribution strategies for the export markets, it has also actively pursued development of new superior products

to adapt to specific requirements of the different markets . The credit goes to the India's biggest in-house R&D centre, HASETRI (Hari Shankar Singhania Elastomer and Tyre Research Institute) . This Centre for Rubber and Allied Technology was eatablished at Jaykaygram, ISO/IEC Guide 25 & EN 45001. Equipped with advanced testing facilities, it pursues excellence by evolving technologies for superior product performance to reduce waste and pre-empt consumer needs.

HISTORY OF J.K. TYRE Excellence comes not from mere words or procedures. It comes from an urge to strive and deliver the best. A mindset that says, When it is good enough, improve it. It is a way of thinking that comes only from a power within." - H.S.Singhania JK Tyre & Industries Ltd. is the flagship company under the umbrella of JK Organisation

The advent of JK Organization on the industrial landscape of India almost synchronizes with the beginning of an era of industrial awareness - an endeavor for self reliance and the setting up of a dynamic Indian industry. This was way back in the middle of the 19th century. And the rest that followed is history JK Organization has been a forerunner in the economic and social advancement of India. It always aimed at creating job opportunities for a multitude of countrymen and to provide high quality products. It has striven to make India self reliant by pioneering the production of a number of industrial and consumer products, by adopting the latest technology as well as developing its own know-how. It has also undertaken industrial ventures in several other countries. JK Organisation is an association of industrial and commercial companies and charitable trusts. Its member companies, employing nearly 50,000 persons are engaged in the manufacture of a variety of products and in diverse fields of commerce.

Trusts are devoted to promoting industrial, technical and medical research, education, religious values and providing better living and recreational facilities. With the spirit of social

consciousness uppermost in mind, J.K. Organisation is committed to the cause of human advancement 1940 First in India to manufacture steel Bailing Hoops for jute and cotton and to make the country self sufficient by meeting the entire demand-J.K. Iron & Steel Co. Ltd., Kanpur 1941 First in India to produce Aluminium virgin Metal from Indian Bauxite Aluminium Corporation of India Ltd., Jaykaynagar 5

1942 First in India to manufacture Engineering files- J.K. Engineers'Files, Bombay in India to set up a continuous process Rayon Plant 1949 First to manufacture a Hydraulically Operated Cane Crushing Mill for Khandsari Sugar Plant and completed 100 ton plant-J.K. Iron & Steel Co. Ltd., Kanpur 1950 First in world to set up a plant for production of Hydrosulphite of soda by Sodium Amalgam Process- J.K. Chemicals Ltd., Bombay 1959 First in India to produce Nylon-6 with its own polymerised raw materialSynthetics Ltd., Kota 1960 First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of Formosul) in India - J.K. Chemicals Ltd., Bombay 1968 First to manufacture TV Sets in India- J.K. Electronics, Kanpur. First to manufacture Metallic Cops for Synthetic Filament yarn industries in India- Syntex tube works, Kanpur 1970 First to manufacture Acrylic Fibres- J.K. Synthetics Ltd. Kota 1971 First to develop differentially Dyeable Nylon- J.K. Synthetics Ltd., Kota 1974 First in India to license Synthetic Fibre Technology to third party as well as the first to manufacture Synthetic Fibre Machinery Fibretech Engineers & Manufacturers, Dadri 1978 First in India to produce steel belted Radial Tyres for passenger cars, trucks and J.K

buses- J.K. Tyre Plant, Kankroli 1980 First in world to make Steel Belted Radial Tyres for three wheelers- J.K. Tyre Plant, Kankroli 1981 First in India to produce white cement through dry process- J.K. White cement Gotan 1985 First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd.,Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology- J.K. Synthetics Ltd., Kota 1987 First in India to produce magnetic tapes with cobalt technology J.K. magnetics, Surajpur 1989 more Tyre Plant (BTP) set-up with a capacity of 5.7 lacs tyres p.a.R & D cente set-up at HASTERI 1994 India's first T-Rated tyre launched banmore Tyre Plant (BTP) crossed 100 TPD

1995 Mercedes Benz Launched on JK steel radials first tyre manufacturer in the world to get ISO 9001 1996 India's first dual contact high traction steel radial- aquasonic launched. Introduced steel wheels 1998 First tyre manufacturer in the world to get QS 9000 awarded CAPEXIL's highest export award for 1997-98 1999 Synergy with VTL in procurement, marketing and production flexibility 2000 Completion of state of the art modernisation of truck radials.JK Tyres ranked 16th largest Tyre Company in the world.ISA - 14000 accredition for environment & safety 2001 JK introduced National Go-Karting Championships 2002 JK. Industries recieved FOCUS LAC export award for the year 1999-2000

Today JK Organization, an association of Industrial and commercial companies and charitable trusts, continues to grow to greater heights under the stewardship of its President, Hari Shankar Singhania The Principal business of the JK Organization includes Tyre, Paper, Cement, Drugs & Pharmaceuticals, Agri Genetics, Dairy and Food Products, Audio Magnetic Tapes, Sugar, Cosmetics, Woolen Textiles, Steel, Engineering Files, International Trading, Hybrid Seeds, Industrial Rubber Products, Material Handling System etc The group besides having a consistent record of growth and diversification has created a reputation for quality for all its products and most of its products enjoy a leadership status in their respective market segments To cope up with the demand in the market most of the companies in JK Organization are certified for International Quality Systems like ISO 9001, ISO 14001 and QS 9001 Identifying with social issues and contributing to the society has been a philosophy, which has been carried on from the founding fathers. Various institutions set up by th group throughout India in diverse fields of social welfare stand testimony to this philosophy

COMPANY PROFILE

JK Tyre & Industries Ltd is one of the leading automotive tyre manufacturers in India. The company is engaged in manufacturing of automobile tyres, tubes and flaps. They manufactures Radial and Bias 4-wheeler tyres for trucks, buses passenger cars, LCVs, tractors etc. They sell their products under the brand name 'JK Tyre'. They have four plants located in Rajasthan, Madhya Pradesh and Karnataka. The company has 134 sales, service and stock points located throughout the country. They have over 3,500 dealerships across India. The company's customer base covers virtually the entire Original Equipment Manufacturers in India together with Replacement Market for four wheeler vehicles, Defence and State Transport Units. Besides India, they have a worldwide customer base in over 45 countries across all six continents. JK Tyre & Industries Ltd was incorporated in the year 1951 as a private limited under the name JK Industries Pvt Ltd. Until March 31, 1970, the company was engaged in the managing agency business. Thereafter the company decided to undertake manufacturing activities and obtained a letter of intent in February 1972 for the manufacture of automobile tyres and tubes. The company name was changed into JK Industries LTD with effect from May 24, 1974 consequent upon conversion of the company into a public limited company. In the year 1974, the company entered into a technical collaboration with General Tire International Co, USA, a subsidiary of General Tire & Rubber Co, USA for technical services and sales agreement for the supply of technical know how engineering and documentation for operational facilities. In the year 1989, the company introduced several new patterns and sizes of tyres including a semi-lug Nylon Truck tyre. In the year 1991, the company set up Banmore Tyre Plant with a capacity of 5.7 lakh tyres per annum. They launched radial tyres for tractors. In the year 1992, the company's international division expanded their activities by opening their office in Moscow. In addition, they set up a Research and Development center at HASETRI. In the year 1993, they introduced new radial tyres namely, Brute and Ultima and in the next year, they launched 'Jet Track-39' to meet the need of the heavy load market. In June 1997, the company acquired 51% stake in Vikrant Tyres Ltd from Karnataka Government. They launched India's first H-Rated tyre. During the year 1998-99, as per the Scheme of 8

Arrangement between the company and JK Drugs & Pharmaceuticals Ltd, the pharmaceutical undertaking of the company was transferred to and vested in JK Drugs & Pharmaceuticals Ltd with effect from appointed date July 1, 1996. During the year 200203, as per the Scheme of Arrangement and Amalgamation between the company, JK Agri, JK Sugar and Vikrant Tyres Ltd, the agri-genetics undertaking of the company was transferred to JK Agri, the sugar undertaking was transferred to JK Sugar and Vikrant Tyre Ltd was amalgamated with the company. During the year 2004-05, the expansion of capacity of Truck/ Bus Radials by 50% was completed. In addition, the expansion of the passenger radial capacity was completed. In December 2006, as per the Scheme of Arrangement and De-merger between the company and Netflier Technologies Ltd (name since changed to Netflier Finco Ltd), the business of holding and dealing in investments and some other assets and properties of the company and liabilities and obligations thereof stood transferred to and vested in Netflier Finco Ltd. In addition, Hansdeep Investment Ltd, Hidrive Finance Ltd, Panchanan Investment Ltd and Radial Finance Ltd ceased to be the subsidiaries of the company. During the year 2006-07, the company introduced a new tyre, offering high mileage 'Jet One' and launched new Semi-Lug and Rib pattern Truck Radial tyres. They also diversified into Special Application Tyres and commenced their exports. In order to capture the brand 'JK Tyre' and their value in the name of the company, they changed their name to JK Tyre & Industries Ltd with effect from April 2, 2007. The company entered into an arrangement with BEML for supply of OTR tyres on a long-term basis. In June 2008, the company acquired the controlling interest in Empresas Tornel, S A de C V (Tornel), a company incorporated under the laws of Mexico, by acquiring 100% of their equity capital for a consideration of USD 28.75 million. Tornel has three tyre manufacturing plants in Mexico with a combined capacity of 6.6 million tyres per annum During the year 2008-09, the company doubled the capacity of Truck/Bus Radial plant to 8.00 lakh tyres from 3.67 lakh tyres per annum at an estimated project cost of Rs 315 crore. This has further strengthened JK Tyre's commanding position in the fast growing Truck/Bus segment. The company has undertaken a project for substantial expansion of their OTR tyre capacity at a capital outlay of Rs 120 crore, which is expected to be completed by 2010.

Organisation Structure of - JK Tyre & Ind

Name

Designation Chairman / Chair Person Managing Director

Hari Shankar Singhania Bharat Hari Singhania

Swaroop Chand Sethi Whole Time Director Arvind Singh Mewar Director Govind Ballabh Pandey Director

T K Mukhopadhyay Director

Name

Designation

Raghupati Singhania Vice Chairman & Mng.Director Vikrampati Singhania Arun K Bajoria Bakul Jain Deputy Managing Director President & Director Director

Om Prakash Khaitan Director

10

MATERIAL COST CONTRL MATERIAL COST CONTROL

Material cost control is the management of cost of material it consists of the following . 1. Capital costs 2. Storage costs 3. Risk of price decline 4. Risk of obsolescence

MATERIAL

Material is very important factor for production . it includes physical commodities used to manufacture the final end product. It is the starting point from which the first

operation start. Material refer to all of commodities in the process of manufactures . Proper control of material is necessary from the time order of purchase material are palced with supplies . until the have been consumed.

COST

It is the amount of resources given up in exchange for some goods or services. The cost is that which is given or a sacrifice to obtain something cost is also different from value as cost is measured in terms of money whereas values is measured in terms of

usefulness or utility of an article. We can define as : the amount of expenditure ( actual or notional ) incurred on or attributable to a given thing or to ascertain the cost of a given thing.

11

Methods of controlling the size of material: There arc two method of controlling as follows: 1) Standardization. 2) Simplification. Standardization and simplification are the tools of material control to optimize on the number of items and reduce the size of material, carried in the stores. Standard institutions: Standardization and simplification are the continuous process for controlling the size of materials ,so there are many institution regarding the help of this, these arc as follows . Indian Standard Institute. . International Organization for Standardization. . Other Specialilised Institutions. Types of stores department: I) centralized stores 2) Decentralized stores 3) Central stores with sub- stores. 1) Centralized stores :In case of such a store, material are received by and issued from one stores department materials kept at one central store. 2) Decentralized stores: Under this type of stores, independent stores are situated in various departments. Such types or stores setup to meet the requirements of materials of each production department are not very popular because of the heavy expenditure involved.

3) Central stores with sub-stores: Such stores should be situated near production departments. For each item of material, a quantity is determined and this should be kept in stock in sub-store at the beginning of any period .In the end of a period the storekeeper of each sub-store will requisition from the central stores.

12

Fixation of KO.Q. and various level: a)E.O.Q.: The decision about how much order has great significance in inventory management .the quantity should be order neither small nor big because cost of buying and carrying material are very high. Economic order quantity is the size of the lot to be purchased which is economically ) viable .this is the quantity of material which can be purchased at minimum costs .economic order quantity is the point at which inventory carrying cost is equal to order costs E.O.Q. is made. 01' two parts.

Ordering cost. Carrying cost. EOQ = 2All I Where: A Annual. B Cost of placing an order/. ordering cost or buying cost PCI' unit 1 Inventory carrying cost of one unit C*S(cost per unit*storage cost) a) Minimum Level or safety stock level: It represent the minimum qty. of an item ,which must be keep in store at all time .the main (II' determination of minimum level is that ,due to this, production should not be stoped.Calcu1all' formula of min. stock level is as follows

Minimum level = Re-ordering level-(Normal consumption*Normal Reorder period . b) Maximum Level: It represents the maximum quantity of an item of material which can be held in stock at any time .stock should not exceed this quantity .the quantity is fixed so that there may bb no overstocking .the formula of maximum stock level given by WHELDON is as follows 13

Maximum stock level= Reordering level + Re-ordering Quantity-(Minimum Consumption*Minimum Reordering period) '-c) Average stock level : The average stock level is calculated by the following formula: Average stock level = Minimum stock level + of re-order quantity

d) Reordering level :The order is sent before the materials reach minimum stock level. Re-order level = Safety stock + (Average usage *Average re=-order period ) OR Maximum consumption * Maximum Re-order period OR Maximum usage * Maximum lead time

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PRODUCTION & OPERATION Product A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry. Typical examples of a mass produced tangible object are the tyre. A less obvious but ubiquitous mass produced service is a computer operating system.

Product range:

BIAS SIZE RIB 9.00-2014PR JET RIB 9.00-2016PR 10.00-2016PR JET RIB JET RIB JET MILES 9.00-2014PR TRACK TUF SEMI 9.00-2016PR TRACK TUF TYPE

15

LUG

10.00-2016PR TRACK TUF NORMAL LOAD 8.25-2014PR 9.00-2014PR 9.00-2016PR 10.00-2016PR 11.00-2016PR 12.00-2016PR

JET TRACK JET TRACK JET TRACK JET KING JET KING JET KING

LUG

MODERATE 8.25-2014PR 9.00-2014PR 9.00-2016PR 10.00-2016PR HEAVY SUPER HEAVY JET TRACK JET TRACK JET TRACK JET CLASSIC

10.00-2016PR 10.00-2016PR RADIAL SIZE 9.00-2016PR

TRACK 39 & DX TRACK 39 DX

TYPE JET STEEL-JDH JET STEEL-JDC JET STEEL-JDC JET WAY JUC JET WAY JUC JET WAY JUC JET WAY JUC 16

LUG

10.00-2016PR 11.00-2016PR 09.00-2016PR

SEMI LUG

10.00R2016PR 11.00R2016PR 9.00R2014/16PR

RIB

10.00R2016PR 11.00R2016PR 12.00R2018PR

JET WAY JBR JET WAY JUH JET WAY JUH

Price The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Place Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Promotion Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. Saes staff, word of mouth, Public relations etc are other such means of promotion.

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MARKETING JK Tyre's No 1 market position In what is being considered as a landmark decision in the highly competitive Indian tyre industry, the Advertising Standards Council of India (ASCI) has upheld JK Industries Ltd's claim of being India's No 1 tyre manufacturer in the four-wheeler tyre segment, reaffirming JK's leadership position in the market. The case was started when few competitors filed a complaint with ASCI against JK Tyre's print advertisement, in which JK Tyre announced its numero uno position in the four-wheeler tyre segment, quoting production figures compiled by Automotive Tyre Manufacturer Association and other authentic industry sources. But the competitors contradicted the claim, stating the fact that market figures from a company's annual report should be used as authentic data to claim one's leadership, not the production figures. But ASCI considered the case at the Consumer Complaints Council on 23 May 2002 and upheld JK Tyre's contention that production figures, as compiled by authentic industry sources and used by JK Tyre to claim its leadership, is a valid and applicable comparison platform. Hence, JK Tyre's claim as No 1 tyre manufacturer in India is a perfectly valid and correct statement. This also reflects ASCI's agreement to JK Tyre's viewpoint that figures, as stated in the one's annual report, could actually be misleading and could include revenues from non-tyre-related businesses also. JK Tyre, pioneers of radial technology in India, is today India's largest manufacturer of tyres in the four-wheel segment, including tyres for trucks and buses, LCVs, passenger cars, jeeps, tractors, ADVs and OTRs. After 25 years of pioneering world-class technologies in India, JK Tyre has recently launched the country's first eco-friendly coloured tyres as well as steel-belted tractor rear radials.

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b. Mission & Vision

Vision: To be amongst the most admire companies in India committed to be excellence.

Mission: a. Be a customer obsessed company b. No.1 Tyre brand in India c. Deliver enhanced value at all stakeholders d. Most profitable Tyre Company in India e. Enhance global presence through acquisition f. Motivated and committed team development for high performance organization c. Marketing Strategy Strategic thinking is key to the evolution of successful marketing strategies of JK tyre. This involves the following analyses:

i. Understanding markets: Strategic perspective of the market requires skilful analysis of the trend and how they affect the market size and demand for the firms product. ii. Finding market niches: Price, service, convenience and technology are some of the niches in Indian market. iii. Product and service planning: Analysis of the customers promotion of the brand, both of the firm and competitors, besides an analysis of the situation in which the customer uses the product. iv. Distribution: Structural changes in inventory management, mobile distribution are some of the key factors that are going to affect the distribution process in the Indian market. v. Managing for result: With pressure on costs, prices, and margins, marketers will have to make effective utilization of every rupee spent in marketing.

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Market opportunity of JK: Identification of market opportunity is critical before the management of affirm takes a decision to launch or diversify in any product area. This involves analysis of the following: Size of the market Marketing strategies and the extent and quality of services rendered by other firm in the industry. Market programmed required to satisfy market wants Identification of key success factors in an industry and linking them to a firms strengths and weakness Market opportunity a. Size of the market b. How well the market is served c. Prospective inches d. Marketing mix required to succeed e. Core competencies required

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Market segment analysis

Industry analysis

Competition analysis

Demand Conditions

Trade analysis

a. b. c. d. e.

Market opportunity Size of the market How well the market is served Prospective inches Marketing mix required to succeed Core competencies required

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STRENGTH AND WEAKNESS OF THE ORGANISATION STRENGTH

Heavy range of products Brand awareness Best promotion by display. Advertisement. Effective margin for delaers. Brand image of radial tyres

WEAKNESS Lack of co-ordination of the demand put forth by dealers and the supply of appropriate tyres from the plant. The offerings given by the company are not enough for the business partners to make the market operating rates competitive The supply of truck radial tyres is not in proportion to the demand Mode of councelling is not co-operative. Monetory rewards are not given. Food quality for the employees are not good.

SPECIAL POINT . 1933 First in India to manufacture Calico Prints- Juggilal Kamlapat Cotton

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Spinning and Weaving Mills Co. Ltd., Kanpur.

1940

First in India to manufacture steel Bailing Hoops for jute and cotton and to make the country self sufficient by meeting the entire demand-J.K. Iron & Steel Co. Ltd., Kanpur.

1944

First in India to produce Aluminium virgin Metal from Indian BauxiteAluminium Corporation of India Ltd., Jaykaynagar. First in India to manufacture Engineering files- J.K. Engineers Files, Bombay. First in India to set up a continuous process Rayon Plant.

1949

1959

1960

First to manufacture a Hydraulically Operated Cane Crushing Mill for Khandsari Sugar Plant and completed 100 ton plant-J.K. Iron & Steel Co. Ltd., Kanpur.

1961

First in world to set up a plant for production of Hydrosulphite of soda by Sodium Amalgam Process- J.K. Chemicals Ltd., Bombay.

1965

First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of Formosul) in India - J.K. Chemicals Ltd., Bombay First to manufacture TV Sets in India- J.K. Electronics, Kanpur. First to manufacture Metallic Cops for Synthetic Filament yarn industries in IndiaSyntex tube works, Kanpur. First to manufacture Acrylic Fibres- J.K. Synthetics Ltd. Kota First to develop differentially Dyeable Nylon- J.K. Synthetics Ltd., Kota

1968

1969

1973

First in India to license Synthetic Fibre Technology to third party as well as the first to manufacture Synthetic Fibre Machinery Fibretech Engineers & Manufacturers, Dadri.

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1976

First in India to produce steel belted Radial Tyres for passenger cars, trucks and buses- J.K. Tyre Plant, Kankroli.

1980

First in world to make Steel Belted Radial Tyres for three wheelers- J.K. Tyre Plant, Kankroli.

1984

First in India to produce white cement through dry process- J.K. White cement. Gotan.

1985

First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd., Kota. First in India to produce Nylon Tyre Cord based on Spin Draw TechnologyJ.K. Synthetics Ltd., Kota.

1989

First in India to produce magnetic tapes with cobalt technology J.K. magnetics, Surajpur.

1991

Banmore Tyre Plant (BTP) set-up with a capacity of 5.7 lacs tyres p.a.

1992

R & D center set-up at HASTERI.

1994

India's first T-Rated tyre launched Banmore Tyre Plant (BTP) crossed 100 TPD.

1995

Mercedes Benz Launched on JK steel radials First tyre manufacturer in the world to get ISO 9001

1996

India's first dual contact high traction steel radial- aquasonic launched. Introduced steel wheels.

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1997

Awarded the National Export Award for 96-97. Vikrant Tyres (VTL) acquired. India's first H rated tyre launched. Only Tyre manufacturer to get 'E' Mark certification. HASETRI became the first research institute in Asia to get ISO 9002.

1998

First tyre manufacturer in the world to get QS 9000. Awarded CAPEXIL's highest export award for 1997-98.

1999

Synergy with VTL in procurement, marketing and production flexibility. Completion of state of the art modernisation of truck radials. JK Tyres ranked 16th largest Tyre Company in the world. ISA - 14000 accredition for environment & safety.

2000

JK introduced National Go-Karting Championships.

2001

Recieved CAPEXIL award. J.K. Industries recieved FOCUS LAC export award for the year 1999-2000. Commendation Certificate of CII Exim. IInd National Go-Karting Championships held.

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INTRODUCTION a. Introduction In todays world of intense competition and rapid dynamism, all the companies worldwide are tuning their focuses on the customer. Suddenly, the customer had succeeded in capturing all the attention of the companies towards him, so much so, that the once famous maxim, customer is the god has become so true and relevant today. There has been a paradigm shift in the thinking of these companies and none other then the customer has brought this about.

Earlier there was a sellers market, since goods and services were in short supply and the sellers use to call the shots. But, ever since the advent of the era of globalization, there has been total transformation in the way the customers being perceived. Their focus has shifted towards integrating the three elements people, service and marketing. A customers can make or break a company. It is the responsibility of every company to see that all its customers are equally satisfied with them, for one single dissatisfied customer will tell at least nine others about the dissatisfaction and will spark off a chain reaction and spell doom for that company. Research has thrown light on some important aspects of customers retention it has been proved empirically that acquiring new customers can cost five times more than the cost involved in satisfying and retaining current customers.

In the past, the customers was taken for a ride, as there were not many players in the fields, not much importance was attached to product safety, quality, service and product appeal. The attitude of the manufacture was that of caveat emptor. Thanks to the government policies on liberalization, globalization and privatization (LPG), the market scenario has changed today. Today, the customer has a host of defense mechanism like the customers protection laws, regulation of the government, the powerful hands of the organization, customers courts, switching to substitute or competitors that offer at 26

competitive prices, etc. The maxim, caveat emptor has been replaced by caveat venditor. b. About Tyre industries in India Background The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber Limited set up the first tyre company in West Bengal. MRF followed suit in 1946. Since then, the Indian tyre industry has grown rapidly.

Transportation industry and tyre industry go hand in hand as the two are interdependent. Transportation industry has experienced 10% growth rate year after year with an absolute level of 870 billion ton freight. With an extensive road network of 3.2 million km, road accounts for over 85% of all freight movement in India. Key Issues of tyre industries High tax usage The high tax content on tyres can be gauged from the fact that the percentage of total tax to the tax excluded price for various categories of tyres is - 44% for Truck Tyre; 41% for Passenger Car Radial Tyre, 35% for Tractor Rear Tyre and 76% for Truck Tyre Tube.

Increase in raw material costs Apart from being capital intensive, the tyre industry is highly raw material intensive. Any change in the prices of raw materials affects the profitability of tyre companies. The raw materials used in the manufacture of tyres are rubber and petroleum derivatives like nylon tyre cord, carbon black, styrene butadiene rubber and poly butadiene rubber. The most important raw material is rubber-natural and synthetic. Natural rubber (NR), with 29% weightage in the cost of raw materials used by tyre industry, is the highest cost item. Annual consumption of NR by tyre industry is 3.50 lakh tonnes, valued at Rs. 14 billion. Over 85% of NR consumed' by the industry is procured domestically. 15% is imported.

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Objectives of the study

To find out finance share of JK Tyres. To understand the financial strategy of JK Tyres. To focus on the financial mix of JK tyre To evaluate the limitations of JK tyre. To analyze the customers needs regarding the product and policies formulated by the company. To find out the brand image of JK tyre

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Need for the study

Management is like a coin having two sides. One is the theoretical part and second is the practical part. In the theoretical part of management we learn in our classroom from the lectures, seminars, group discussions that are arranged from time to time.

To know the practical aspect of management a practical training is provided to the students. The main idea behind practical training is to bring the management students face to face with the actual environment of practical management so that he/ she will be able to apply theory to practical situation before finally moving into the professional world to show the efficiency and capability. The project study focused on JK tyre as a product and the subject is to understand the mind set of different customers about the product. Being a student of financial management, the inquisitiveness to peep on practical side of consumer perception promoted in study.

In this study efforts have been made to prepare the report as realistic as possible.

29

RESULTS & DISCUSSION Table1: Taking Selection and recruitment program Awareness Yes No Have some knowledge Total No. of Respondents 40 10 50 100 Percentage 40% 10% 50% 100%

Sources: Primary data collected through questionnaire

60 50 40 30 20 10 0 No Have Some Knowledge

No.of Respondants

Inference: This graph shows that only 40% of people are aware of the Selection & recruitment program and 50% of people have some knowledge about it. But 10% of people are not aware of the selection & recruitment program available to them. Table2: Satisfy from selection & recruitment program. 30

Yes

Response

No. Of Respondents

Percentage

Yes

53

53%

No Total

47 100

47% 100%

Source: primary data collected through questionnaire Fig-2

54 53 52 51 50 49 48 47 46 45 44 Yes No

No.of Respondant

The above graph show that 53% people are agree with this statement and 47%people are not agree with this statement.

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Table3:Aware of the all policies of finance

Working Sector Govt. IT Education Finance Business Other Total

No. of Respondent 32 16 6 13 29 4 100

Percentage 32% 16% 6% 13% 29% 4% 100%

Sources: primary data collected through Questionnaire

35 30 25 20 15
No. of Respondents

10
5 0 Govt. IT Edu. Fin. Buss. Other

Inference: The above figure reveals that most of the people 32% are working in govt. sector and 29% are Business sector.

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DISCUSSION The project surfers from the following limitations due to the inherent and restrictive nature of the study undertaken:

Due to constraints of time, money and other resources applicable to this study. This study is confined to only a few specified areas of and is not comprehensive study of the customers of JK tyre all over GWALIOR This study is restricted only to sample space chosen for the study. The areas covered under the surveys are: Transport Nagar, Purani Chhavni, Hanuman Parking, Kansanas Premises.

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SUGGESTIONS

1) Belonging towards the organization must be generated in the habitual absentees, through individual counseling .The mode of counseling should be co-operative in which both counselor & counselee, arrives at solution through mutual cooperation. 2) Training Programme for workers. 3) Better leave encashment programme should be implemented. 4) Reward for employees having less absenteeism. 5) Employees having leave under a particular limit should be awarded monitory rewards. 6) In order to create competition amongst the employee, employee having less leave should be awarded Best employee of the month, Best Employee of the Year. 7) Strong action should be taken against the habitual absentees.

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CONCLUSION Every organization needs to look after Financial process in the initial period and thereafter as and when additional manpower is required due to expansion and development of business activity.

Right for the right job is the basic principle in Financial process. Ever person organization should give attention to the selection of its manpower, especially its managers. The operative manpower is equally important and and essential for the orderly working fan enterprise. Every business organization/unit need manpower for carrying different business activities smoothly and efficiential. Financial process in a organization will not be possible if unsuitable persons are selected and employment in a business unit.

Financial process, information is collected from interested. For this different source such as newspaper advertisement, employment exchanges, internal promotion, etc.are used. In the Financial process, a pool of eligible and interested candidates is created for selection of most suitable candidates. Financial process represents the first contact that company makes with potential employees Selection is basically picking an applicant from (a pool of applicants) who has the appropriate qualification and competency to do the job. The difference between Financial System : Financial process is identifying n encouraging prospective employees to apply for a job.

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BIBLIOGRAPHY

REFERENCES:

List of website:

www.irda.com www.jktyre.com

List of Books & Magazines: Financial Management- Philip kotler Financial Management- C.B.Gupta Financial Structure -T.N.Chhabra Business Line

List Of News Paper: Business Line Economics Time

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QUESTIONNAIRE Please ( ) the answer (1) What is your name? (2) Which age group do you belong to? [] less than 25 years [] 25 to 35 years [] 35 to 45 years [] above 45 years (3) Which sector are you working in? [] Finance [] Marketing [] Govt. [] Others (4) Are you aware of the all policies of Financial System [] HR [] Finance [] IT [] Others (5) Do you have any Financial planning schemes? [] Yes [] No (6) Why do you want to Financial Schemes? [] Growth [] High Skilled [] Modification [] Others (7) What type of prefer Financial process? [] Traditional [] Modern Process [] Both of Them (8) Are you satisfied withJK TYRE Financial program? [] Yes [] No (9) Do you know the approaches of Finance ? [] Yes [] No (10) Do you know importance of Financial program of JK TYRE? [] Yes [] No

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