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 its 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 1920s when three MNCs Firestone, Goodyear and Dunlop commenced their operations in India. Till the sixties, the dominance of the three MNCs 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

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. 2. 3. 4. 5. 6. 7. 8. 9.

Apollo Tyres Birla Tyres Modistone Ltd. Ceat Ltd. APOLLO TYRES. Tyres Ltd. Modi Rubber Ltd. Dunlop India Ltd. M.R.F. Ltd. Falcon Tyres Ltd.

10. Goodyear India Ltd.

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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.

FACTS OF TYRE INDUSTRY: Industry turn over Installed capacity Production Capacity utilisation Taxes and duties paid Excise duty contribution Rs. 1,00,000 million Rs. 5,730 million no. Rs. 4,140 million no. 72% Rs. 28,500 million Rs. 12,530 million

Market Segmentation

The tyre industry is divided into three segments.

i. ii. iii.

Original Equipment Manufacturers (OEMS). Replacement market. 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 its number uno position in the vehicular population during
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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 LCVs 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.

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.
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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.

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, tenniss 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.

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. Its 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.

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 worlds 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 Bhupathis 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 Indias 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 Indias 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

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INDIAN AUTOMOBILE HISTORY During the 1920s, cars exhibited design refinements such as balloon tires, pressedsteel 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.

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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 8cylinder engine and an aluminum body.

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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.

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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.

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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 1975 1977 1991 1995 1996 2000 2000 2003 2004 2004 2005 2006 2006 2006

Inception Registered as a company First plant commissioned in Perambra (Cochin, Kerala) Second plant commissioned in Limda (Baroda, Gujarat ) Acquired Premier Tyres in Kalamassery (Cochin, Kerala) Exclusive tubes plant commissioned in Ranjangaon (Pune, Maharashtra) Exclusive radial capacity established in Limda Established Apollo Tyres Health Care Clinic for HIV-AIDS awareness and prevention in Sanjay Gandhi Transport Nagar, Delhi Expansion of passenger car radial capacity to 6,600 tyres/day Production of India 's first H-speed rated tubeless passenger car radial tyres Support in setting up India 's first Emergency Medical Service in Baroda , Gujarat Apollo Tyres Health Care Clinics in Udaipur in Rajasthan and Kanpur in Uttar Pradesh Expansion of passenger car radial capacity to 10,000 tyres/day Expansion of passenger car range to include 4x4 and all-terrain tyres Acquired Dunlop Tyres International in South Africa and Zimbabwe 18

2006 2006 2006 2007 2007 2007

Opening of Apollo Tyres Health Care Clinic in Ukkadam, Tamil Nadu Launch of DuraTread, treading material and solutions Launch of India's first range of ultra-high performance V and W-speed rated tyres Launch of Regal truck and bus radial tyres Launch of DuraTyre, retreaded tyres from Apollo Launch of the Apollo Tennis Initiative and Mission 2018

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Key Advantages

Categories

High Quality Reasonable Pricing Fast Deliveries Exclusivity Market Protection Mass Advertising Flexible Payment Options After Sales Support

Passenger Car Tyres Light Truck and Mini Bus Tyres Truck & Bus Radial Tyres Industrial Tyres Off The Road Tyres Agriculture Tyres

Brands
Brands Origin Courier Corsa Strada Kaizen Miller Yanta Triangle Chengshan 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

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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

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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 Indias 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 aftersales partner for the Rs 1 lakh car of the Tatas, and is evaluating partnerships with Skoda and Hyundai.

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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 offthe-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.

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The company has also set-up a re-treading facility at Haryana, which could be a costeffective 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.

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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 (Indias 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 dExpertise 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 twoweek 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.

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MILESTONES OF APOLLO TYRES

1972 The company's license was obtained by Mr Mathew T Marattukalam, Jacob Thomas and his associates. 1974 1975 1976 1977 1982 1991 1995 2000 2003 The company was taken over by Dr. Raunaq Singh and his associates. April 13, Perambra Plant Foundation stone was laid down. Apollo Tyres Ltd. was registered. Plant commissioned in Kerala with 49 TPD capacity. Manufacturing of Passenger Car Radial Tyres in Kerala. The second plant commissioned in Baroda. Acquired Premier Tyres Ltd. in Kerala. Exclusive Radial capacity established at Baroda. Radial Capacity expanded to 6600 tyres per day. November 17, JointVenture with Michelin. 2004 2005 2006 Launch of Apollo Acelere- 'H' Speed Rated Car Radials. April 13, Perambra Plant completes 30 Years. January 30, Dunlop South Africa is acquired.

ACHIEVEMENTS

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SEGMENT AND BRANDS

Products Apollo

Brands Loadstar Super Hercules Loadstar Super Loadstar Super Gold XT 7 XT 7 Haulug XT7 Gold XT-9 XT-9 Gold 50 L 36 L Commando XDT Loadstar Super Amar Deluxe Amar Gold XT-9

Champion Champion DXL Champion Gold Amar Amar Deluxe Amar Gold Amar AT-Rib

Truck

Kaizen

27 L 77 R 99 R Plus XT-9 Gold Duramile Milestar Champion Tubeless Radials Amazer XL

Light Truck

Car Radials Tube Type (Amazer XL Quantum) 4x4 Radials Hawkz Storm Alloy Wheels Haste Torque Nirvana Frost
Quest Tubeless Radials Acelere

Passenger Car

Inspire Slay Multispoke Sphere Cinco Hawkz

Amazer XL 32

Conventional Tyres (Bias Tyres) Car Armour

Jeep Gripper Maha Trooper

Panther

Farm

Pure Cultivation Segment Sarpanch Krishak Super Pure Haulage Segment Powerhaul Mixed Application Bias Segment Krishak Premium Mixed Application Radial Segment Farmking

Jeep

Gripper

Maha Trooper

AMAR AT- RIB

AMARZEN XL

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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

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BOARD OF DIRECTORS

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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.

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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

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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

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Key Advantages High Quality

Categories

Reasonable Pricing Fast Deliveries Exclusivity Market Protection Mass Advertising Flexible Payment Options After Sales Support

Passenger Car Tyres Light Truck and Mini Bus Tyres Truck & Bus Radial Tyres Industrial Tyres Off The Road Tyres Agriculture Tyres

Brands Brands Origin Technology Courier Corsa Strada Kaizen European Indonesia Indonesia India Radial by Radial by Radial by Bias by Pirelli Conti Conti Apollo Miller China Radial Yanta China Bias LTB,TBB, Range PCR & HP PCR PCR & LTR Truck & Bus TBR OTR, Industrial & Agri All All Triangle Chengshan China China Bias & Bias & Radial by Radial Goodyear

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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.

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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.

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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
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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. ii. iii. iv. v. vi. vii. Define research problem. Review concepts and theories. Formulate hypothesis. Design research. Collect data. Analysis of data. Interpret and reports.

SAMPLE DESIGN

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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.

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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.

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NEED OF THE PROJECT

The dealers are the media through which any company sells its product and its 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 its 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 its 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.

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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 Dealers Tax Fleet Owners : : : 2 50 10

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DATA ANALYSIS & DATA INTERPRETATION

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PERCENTAGE OF DIFFERENT CAR TYRES USED BY CONSUMERS

Bridgstone Mechiline Ceat 2% 8% 14%

Kumho 4% Goodyear 11%

J.K. Tyres 19% M.R.F. 13% Apollo 29%

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PERCENTAGE OF DIFFERENT CAR TYRE USED AFTER CHANGING THE ORIGINAL ONES

Bridgstone 16%

Ceat 7%

Kumho 3%

Goodyear 10%

J.K. Tyres 9% M.R.F. 6%

Apollo 49%

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CAR CONSUMERS AWARE OF APOLLO TYRES ECOFRIENDLY TYRE

Aware 21%

Not Aware 79%

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CAR CONSUMERS USING ECO-FRIENDLY TYRES

Using 18%

Not Using 82%

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CAR CONSUMERS AWARE OF TUBLESS TYRES

Aware 40%

Not Aware 60%

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CAR CONSUMERS USING TUBLESS TYRES

Using tubless tyres 6%

Not using tubless tyre 94%

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TYRES AS PER THEIR POPULARITY

Bridgstone 13%

Mechiline 2%

Ceat 10%

Kumho 5% Goodyear 11%

J.K. Tyres 21%

M.R.F. 14%

Apollo 24%

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CAR CONSUMERS AWARE OF UPSIZE TYRES

Car consumers unaware of upsize tyres 39%

Car consumers aware of upsize tyres 61%

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PERCENTAGE OF CAR CONSUMERS USING UPSIZE TYRES

Car consumers using upsize tyres 44%

Car consumers not using upsize tyres 56%

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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.

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Monthly family income of the respondents

Monthly family income of the respondents

Below 10000 Rs 10000-15000 Rs
13% 32% 27% 4% 8% 16%

15000-20000 Rs 20000-25000 Rs 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.

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Reasons for the purchase of the radial tyres

Reasons for purchasing radial tyres

Milage Puncture Resistance

5% 33%

14% 16% 32%

Driving Comfort Road Grip 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.

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Motivating factors in purchase of particular car tyres.

80% 70% 60% 50% 40% 30% 20% 10% 0%

Motivating factots for purchasing car tyres

Price

Quality

Com pany's nam e

Advertisem ent

Recom endations m

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 Price Advertisement Companys name Quality Responses 12% 52% 70% 63%
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Recommendation Others

14% 17%

From above table it is analyzed that most of the customers are motivated by the companys name. Next motivating factor is price followed by quality.

The reason given by the customers for giving maximum response to companys name is that they think if company is good they will give good quality as they have advance technology.

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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. 2. There is a very large market for two wheelers which the company can capitalize on. The international market accepts Indian made poly tyres.

THREATS 1. Competition is increasing day by day. 2. Entry of MNCs is a direct threat to most Indian companies.

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CONCLUSION

Now a days the market is buyers 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 its dealers are satisfied with the companys 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 its 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.

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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.

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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.

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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.

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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 its 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: .......................................................................................................

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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

........................................... Why do you prefer upsize tyre?

Yes

No

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 Indica .................. .................. Sumo 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. .......................................... 3. .......................................... 5. .......................................... Have you ever used Apollo Tyres? Yes No 2. .......................................... 4. .......................................... 6. ..........................................

If no, will you use it in future? Yes No

What is your opinion about Apollo Tyres? Performance Mileage Price 1 1 1 2 2 2 3 3 3 3 4 4 4 4

Customers service 1 2 Is your customer concerned about tyre in your vehicle? Yes No

Suggestions and remarks if any?

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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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