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(Chairman)

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

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 material- J.K

Synthetics 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

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 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.

VISION OF JK TYRE AND INDUSTRIES

“To be amongst the most admired companies in India committed to excellence”

MISSION

To be the largest of most profitable tyre company in India.

To retain No. 1 positions in truck & bus segment and to be amongst top two in all other 4

– wheeler tyre.

To make Truck/Bus redial operations profitable & retain leadership in the passenger

redial segment.

To be the largest Indian Tyre Exporter, continue to be a sign fact player in the world in

truck & bus market.

To be customer obsessed company.

To enhance value to shareholder & service to all stake holders.

To develop a highly motivated team with a sense of ananda.

To excel as a value drive organization.

To be the most preferred tyre brand in India.

ORGANISATION STRUCTURE

NAME DESIGNATIONHari Shankar Singhania Chairman / Chair PersonBharat Hari Singhania Managing DirectorSwaroop Chand Sethi Whole Time DirectorArvind Singh Mewar DirectorGovind Ballabh Pandey DirectorT K Mukhopadhyay DirectorRaghupati Singhania Vice Chairman & Mng.DirectorVikrampati Singhania Deputy Managing DirectorArun K Bajoria President & DirectorBakul Jain DirectorOm Prakash Khaitan Director

PRODUCT PROFILE

Tyre is a circular cushion of rubber that fits round fits round the rim of a wheel of a vehicle. It

provides tractor and cushions the vehicle from shocks caused by the movement over hard

surfaces.

The most common tyre is pneumatic rubber tyre.

I. Cross ply or bias tyres.

II. Radial tyres.

In the cross ply or bias tyres, nylon or rayon tyre cords are arranged diagonally across.

In radial tyres polyesters, nylon, fiberglass or steel cords are arranged perpendicular to the

circumference.

Radial technology is an improvement over cross ply and radial tyres are priced at (of 25-30%)

Premium. These are long lasting and having lower incidence of flats.

Products(Truck/ Bus)

JET-TRAK 39

SIZE APPLICATION

10.00-20 18PR LUG TRUCK REAR-HEAVY LOADS

JET-TRAK

SIZE APPLICATION

8.25-20 14 PR, 9.00-20 16 PR, 10.00-20 16 PR LUG

TRUCK REAR-NORMAL-MODERATE LOADS

HIGRIP

SIZE APPLICATION

8.25-20 10 PR/8.25-20 12 PR/9.00-20 12 PR CROSS COUNTRY TYPE

TRUCK ALL WHEEL DEFENCE SEGMENT

SAND CUM HIGHWAY

SIZE APPLICATION

12.00-20 18/20 PR DEFENCE

SAND CUM HIGHWAY

JETKING

SIZE APPLICATION

9.00-20 16 PR, 10.00-20 PRLUG 5

TRUCK & BUS REAR-NORMAL LOAD

JET RIB

SIZE APPLICATION

9.00-20 14/16 PR,10.00-20 16 PR RIB

TRUCK (FRONT WHEEL)/BUSES(ALL WHEEL)

NULIFE

SIZE APPLICATION

9.00-20 10/14 PR,RIB

ALL WHEEL POSITION IN BUSES

NULIFE

SIZE APPLICATION

9.00-20 10/14 PR,RIB

ALL WHEEL POSITION IN BUSES

JK Tyre’s premium brand identity can be attributed to factors such as superior technology, performance and the durability of its products. Over these years, apart from ushering in the era of radial technology in India, JK Tyre has pioneered the manufacture of T-rated radials (capable of running at speeds of 190 km/hr) and H-rated radials (capable of running at speeds of 210 km/hr). In line with global trends and anticipating high levels of ‘radialization’ in the truck and bus segment, JK Tyre established India’s first and only all-steel truck/bus radial production facility. Its two brands, JK Tyre and Vikrant, together offer a wide range of products catering to almost all the sectors of the automotive industry – trucks, buses, light commercial vehicles, cars and tractors.

2.8 MANUFACTURING LOCATIONS

1) Redial Tyre Plant - Mysore, Karnataka

2) Vikrant Tyre Plant - Mysore, Karnataka

3) Kankoli Tyre Plant - Rajasthan

4) Banmore Tyre Plant - Madhya Pradesh

COMPETITORS

THE INDIAN TYRE COMPANIES

A brief introduction of some important Indian tyre companies is given to get acquired with them.

1. Apollo Tyres: Setup in 1972 by the industrial Mr. Raunaq Singh; technology from

general Tyres International, USA (Part of continental Germany); was earlier troubled by

industrial relation problems but has now come out of it With flying colors; increased

production by 30% in 1988; has been registering rapid growth in demotic and export

markets since them.

2. Bombay Tyre International Limited: Set up in 1930 in Calcutta (now Kolkata and

shifted to Bombay (now Mumbai) in 1939; started manufacturing in 1940; products

marketed under the brand named "Midistone"; technological collaborations with

Continental Gumi Werke, Germany, has been a series of lockouts and strikes in the past

decades.

3. Ceat Limited:- Set up In 1958; management under Mr. R.P. Soenka has achieved 100%

capacity utilization & claims a considerable chunk of market share, technical

collaborations with Yokohama Rubber Co; Japan very strong in research & development

and distribution; significant presence in radial tyre segment.

4. Dunlop India Limited:- Set up in 1936; manufactured a wide range of tyres-ranging

from bullock-cart to airplanes had technical collaborations with sumitomo Rubber

industries, Japan & Dunlop Limited, UK; the company has closed down its operations in

India.

5. Goodyear:- Set up in 1922; was initially involved in trading of imported tyres; tyres later

started manufacturing; currently one of the few multinational subsidiary companies left

in India.

6. JK Industries:- Set up in 1951; went public in 1974; under the management of JK

Group of Mr. H.K. Singhania; manufacturing tyres 1972; USA & Continental Gummi

Werke, W. Germany; good market performance despite break out of fire at the plant and

labor problem in the continuing decade; has a very good reputation and consumer

support. One of the first Indian tyre companies to be awarded ISO 9001.

7. MRF Limited:-Set up in 1960, Madras Rubber Factory Limited is one of the key players

of the market; Chairman Mr. KKM Mammen; technical collaborations with Mansfield

Tyre & Rubber Company, USA; good performance despite closure of plant in Goa;

Pioneer in marketing tyres for new cars in technical collaborations with Uniroyal

Goodrich tyres, USA and Pirelli.

8. Modi Tyres: - Set up 1971 at Ghaziabad; Chairman K.N. Modi has technical

collaborations with continental Gummi Werke, W. Germany had a very good presence in

bus & Truck tyre segment; had export figure too; was into making radial tyres for truck,

cars & LCV; Unfortunately had to close down in very recent past due to unavoidable

circumstances.

A part from these companies, there are many other type companies in India like

Birla Tyres, Bridgestone, Kaizen etc. However they could not be discussed here because

of the unavailability of relevant data about them.

COLLABORATORS OF SOME INDIAN TYRE COMPANIES

Companies Collaborators

1) Ceat Limited

2) Apollo Tyres Ltd.

3) JK Industries Ltd.

4) MRF Ltd.

5) Goodyear India Ltd.

6) Vikrant Tyres Ltd.

7) Birla Tyres

8) Modi Rubber Ltd.

9) Dunlip India Ltd.

10) Bombay Tyres

Yokohama Rubber Co., Japan

Good, USA

General Tyres Int’ 1 Co., USA;

Continental AG (Germany)

General Tyres Int’ 1 Co USA;

Continental AG (Germany)

Uniroyal Goodrich, USA (part

Of Michelin, Germany)

Goodyear tyre & Rubber Co., USA

Avon Technical Services Ltd., UK.

Seoieta Pneumatic Pirelli SPA,

Italy

Continental, Germany

Sumitomo Rubber Industries,

Japan; Dunlop Limited, UK;

Pirelli, Italy

Continental, Germany

FINANCIALS

MARKETING STRATEGIES

Marketing mix:

A Marketing mix is the division of groups to make a particular product, by pricing, product,

branding, place and quality. Although some marketers have added other P's, such as personnel and

packaging, the fundamentals of marketing typically identifies the four P's of the marketing mix as

referring to:

1. Product

2. Price

3. Promotion

4. Place

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.

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.

SWOT ANALYSIS

SWOT analysis is important technique which any organization can reap its positive feature and

can overcome its negative aspects. Therefore, SWOT analysis plays an important role to

formulate the business strategies for any company, which is obvious base on its strength,

weaknesses, opportunity and threats.

THE SWOT analysis of JK can be done as follows:-

1. STRENGTGHS :-

The total assets of JK TYRE organization is over US$3 billion

JK Tyre has latest technology, innovation and its own research and development

department.

The organization is also Focusing on cost efficiency measure and making itself a people

driven organization through talent development and empowerment.

JK Tyre manufactures 57 lack tyres per annum and having over 800,000 shareholders in

JK organization.

2. WEAKNESSES: -

The organization fluctuates the price without knowing the needs of customers.

Unavailability of required number of engineers.

JK Tyre is spending more for promotional campaign, which results in increase of cost.

3. OPPORTUNITIES: -

Merger of JK and Vikrant tyre provide good chance to increase the market share.

JK organization has wide range of product diversification policy like industrial products,

engineering products, consumer goods, agrochemicals etc to increase the market share.

4. THREATS: -

The random promotional campaign done by Apollo may hamper the market of JK

Tyre.

Emergence of potential competitors in the market may reduce the market share.

The increase in tax by government can hamper sale.