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ORGANISATIONAL STUDY
AT
JK TYRES Ltd MADURAI
Presentation by
Niju Sebastian
SB College
Changanacherry
Kerala

INDIAN TYRE INDUSTRY..
• The origin of the Indian Tyre Industry dates
back to 1926 when Dunlop Rubber Limited set
up the first tyre company in West Bengal.
• Indian Tyre Industry now provides direct and
indirect employment to nearly 1 million
persons, including dealers, retreaders, growers
of Natural Rubber, employment in raw
material sector etc.
Niju Sebastian Thandapra SB College

 A vast majority of dealers handle multi-brands
of tyres. Tyre companies also have exclusive
retail distribution outlets.
• Indian tyres are meant, and expected to perform,
under different and extreme road conditions,
from village roads to newly constructed national
highways, from extreme cold to hot and wet
conditions prevailing in different geographical
parts of the country.

• Indian Tyre companies also follow a unique
warranty system whereby pro-rata adjustment
is given for manufacturing defects through the
dealers
• Indian tyres have good acceptance in global
markets. Compounded Average Growth Rate
(CAGR) of tyre exports in the last one decade
has been 8%.

• Exports to over 65 countries worldwide. 17%
export to highly quality conscious US market.
Other major export markets are - (countries
in) Latin America; UAE, Bangladesh, Iran,
Philippines, Vietnam, etc.

COMPANY PROFILE..
• Radial Pioneer- First Indian company to
manufacture radial tyre.
• Strong dealer network served by 6 plants in
India.
• Overall 21% market share in passenger car
segment

• Workforce : 40,000
• Business Interest of across 90 countries.
• The company is the undisputed market leader
in Truck/Bus Radials in India, with 138 selling
locations

COMPANY MISSION & VISION
VISION
• To be amongst the most admired companies in India,
committed to excellence
MISSION
• Be a Customer Obsessed Company - Customer First 24x7
• No.1 Tyre Brand in India
• Most profitable Tyre Company in India

Cont…
• Motivated and Committed team for
excellence in performance
• Be a Green Company
• Deliver Enhanced Value to all stakeholders
• Enhance global presence through Strategic
Partnerships

MAJOR COMPETITORS

Objectives
• The main objective of a production department
is to make quality oriented tyres suiting the given
standards and measurement.
• To maintain the number of tyres to be produced
according to the number given as per
requirement.
• Batch wise quality assessment.

• The objectives of the marketing department
are:
• Creating demand
• Customer satisfaction
• Increasing the goodwill of the company
• Increasing the market share ·
• Raising the standard of living of the customer
community

• The company is the undisputed market leader
in Truck/Bus Radials in India, with 138 selling
locations, 4,000 strong dealer network served
by six plants in India and three plants in JK
Tornel, Mexico. With state-of-the-art modern
production facilities in all 9 plants, total
production capacity is over 20 million tyres
p.a.

• The parameters required for the customers
(OEM customers) are collected and all efforts
are taken to ensure that the requirements are
met.
• Identify the defective products and hold
them.
• Take corrective actions to prevent recurrence.
• Monitor the performance of the products and
record on a daily basis.

• Preparation of Failure Mode Effective Analysis
and control plan.
• Check the relevant parameters and certify.
• Industrialization of new machinery in
collaboration with technical department.

• The Human Resource Development
encompasses several initiatives such as:
• Well designed managements development
programmes.
• A robust performance management & reward
system.

• Training & development throughout the year.
• Employee engagement surveys are conducted
periodically and follow-up action is taken so as
to maximize the employee engagement.
• To ensure that Training effectiveness is
measured.

• To ensure that systems to motivate and
empower employees are identified and
implemented and the implementation must
be done systematically.
• To initiate corrective actions when training
planned are not achieved within the targets.
• Better performance appraisal

• Ensuring salaries & wages.
• Ensuring leaves.
• Recruitment & Selection

FINANCIAL ACCOUNTS
• The branch deals with all types of cash payments
and receipts.
• This will include
• payment for engineering and raw material
purchases,
• petty cash payments.
• Operation and reconciliation of bank accounts,
payment to the government in the form of taxes
and levies, payment of PF, deduction form salary
and payment of loan outstanding find insurance
premium of employees etc

COST ACCOUNTS
• This branch deals with forecasting, budgeting,
analyzing and reporting the income and
expenditure of the company. The budget for
expenditure is prepared using standard
costing principles and it is compared with the
actual expenditure.

WAGES AND SALARY
• Computation of wages and salaries is done by
the section of accounts department. Wages of
workmen are fixed in the long term
agreement and is calculated on a daily basis
depending on various factors like grade,
number of hours worked, the output achieved
etc.

FINANCIAL DATA
• J.K Tyres share price : 80.10
• Company Turnover : 8,279 Crore
• Company Profit : 890 Cr
• Rise of profit from
previous year : 42%

STRENGTH
• The company have a strong dealership network
• They have successfully received accreditations of
ISO 9000 QS 9001 and ISO 14001
• They are one of the leading tyre exporters of
India
• Race & Rally like Tata Prima Race Hornbill etc
gives a great mileage
• Best in CSR activities
• Apex brand image

WEAKNESS
• Absence of product presence in two wheeler
and three wheeler segments
• Changing price in rubber.
• Advertisements are not so frequent in visual
media. It reduce the “PERSUADE” factor in
marketing

OPPORTUNITY
• More tie-ups with Automobile companies as its
mainly into B2B market.
• India is emerging as a country with lots of
vehicles especially cars.
• Manufacturing units outside India will boost its
brand name internationally.
• Improved infrastructure makes an ease in
transportation.
• Emerging markets and improved life styles

THREAT
• Stiff competition from national and
international brands
• Changes in governmental policies on export
duties import duties and tax levied in the
automobile and tyre industry.
• Rapid changes in technology

FINDINGS
• The company JK Tyres has a better financial structure.
• JK Tyres has a good administration pattern.
• Leading the market especially in truck and bus radial
segments.
• The company offers a tremendous job opportunity
from their locality.

Cont…
• Employees are not interested in trade unions.
• Performance appraisal of the employees are
done periodically.
• Security checking is applicable to all workmen for
entering, leaving and remaining inside the
factory.
• Each department one on another acts perfectly.

SUGGESTIONS
• More advertisements should be done.
• Complaints should be treated more seriously.
• More negotiable steps should be taken between
the company and the OEMs.
• Office timing should be made strict in zonal and
regional offices.
• Biometric punching system can be provided

• JK Tyre industries Ltd is the pioneers of radial technology in India. They are
the market leaders in Bus/ Truck radials. They also manufacture aircraft
tyres and other heavy vehicles segment.
• All the departments viz: HR Marketing Production Finance and other
subsidiaries are working successfully.
• Company also renders a wide marketing network in and around the
country. JK Tyres Madurai comes under the southern zone and is one of
the biggest unit in its sale turnover and customer service.
• The HR Department of the company takes excellent care of its employees
with various schemes, medical care assistances, financial aid and
provisions for assistance in developing basic amenities.
• Research and Development part of the industry is doing its best in terms
of improving the product quality and making the company to stand out of
the box.
• The organisational study was a real time experience for the reason that it
helped to see ourselves through the angle of the employees there in the
organization.

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