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1 Origin Of The Industry Rubber basically is milk like fluid obtained from certain tropical shrubs, which is then subjected to various process of manufacturing chemically in India, Kerala accounts for Major Chunk in production of rubber. Rubber is the life of nation because of its various uses, especially in times of war and peace. In 19th Century from various experiments of Scottish chemist Charles Macintosh and English counter part Thomash Hancock first attempted to dissolve rubber with turpentine that then turned into production of elastic thread , both the method of binding rubber was still a dream than. With the advent of a discovery by scientist Charles good year, the process called vulcanization came into being. Good year tried many ways with mixture of heat crude rubber and sculpture which was called by him vulcanization. After vulcanization lot of heat by his mixture he discovered to make rubber the could be hard, strong and elastic. This process was patented in 1844 till date is being used to make rubber.

2.2 Growth of Tyre industries in India The Indian tyre industry is expected to clock a tonnage growth of 9-10 per cent over the next five years, according to a study by Credit Analysis and Research Limited (CARE), a noted rating firm that offers a wide range of rating and grading services across sectors. While the truck and buses tyres are set to register a CAGR (compounded annual growth rate) of 8 per cent, the LCV (light Commercial vehicles) tyres are poised for a CAGR of 14 per cent. According to the CARE study, the growth in the Indian tyre industry will be fuelled by the expansion plans of the automobile companies, government's focus on development of road infrastructure and sourcing of auto parts by the global Original Equipment Manufacturers (OEMs).
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However, the tyre industry has to grapple with raw material price volatility, rupee appreciation and cheap Chinese imports. The tyre industry in India recorded a CAGR of 9.69 per cent during 2002-07. The size of the industry was estimated at Rs 19,000 crore in 2006-07 with a total production of 736 lakh units of tyres. In 2006-07, the replacement tyres accounted for 53 per cent of the total tyre tonnage offtake, followed by 31 per cent share of OEM and 15 per cent by exports. Out of the 736 lakh ton of tyres, 54, 49,560 units worth Rs 2,600 crore were exported. The exports from India posted a CAGR of 13 per cent in unit terms and 18 per cent in value terms between 2002-07. The study points out that on the export front, the Indian tyre companies need to explore newer markets as the existing market for bias truck tyre which accounts for about 45 per cent of the total export volume is nearing saturation. This apart, with rationalization catching up in the foreign markets, the Indian tyre companies need to graduate to radial tyres so as to protect their share in the export market. At present, radicalization of tyres is low in India except for the car tyre market where 95 per cent of the tyres is radicalized while cross ply tyres is preferred in all other categories. Cross ply tyres are preferred owing to poor road conditions, overloading in trucks, higher cost of radial tyres and poor awareness among the tyre users in the country. The CARE report observes that though the tyre technology in India has witnessed several developments with continuous innovation, the domestic tyre manufacturers still lag behind their global counterparts in terms of product differentiation. Global tyre makers offer a wide change of products like tyres with pressure warning systems, run flat tyres, eco-friendly tyres and energy efficient tyres.
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2.3 Major Players Of Indian Tyre Industry

The Indian Tyre Industry is an integral part of the Auto Sector and its fortunes are interdependent on those of the Automobile players. For the year 2010-11 the industry has clocked a turnover of almost Rs. 30,000 Cr. of which 90-95% has come from the domestic market. While there are around 40 tyre manufacturers in India, the top 10 tyre players account for around 90-95% of the total tyre production in India. The tyre industry can be divided into 6 categories based on the different auto segments that they are manufactured for. The table given below gives the category wise production for 2010-11. On a volume basis, the 3 major segments for the tyre industry are Two-wheelers, Passenger Cars and Truck and Bus (T&B).

The table given below gives the list of the top 3 players (considering their market share as per volumes) in these 3 major segments.

As seen in the above table, the T&B (Truck & Bus) segment is highly competitive with the top 3 players having market share very close to each other. JK Tyre is slightly ahead with a 22% market shares. Apollo Tyres is the market leader in Passenger Car segment with 24%. MRF which has a good presence in all the segments is the leader in Motor Cycle with 28% share.

2.4 Challenges Of The Indian Tyre Industry The Rs.20, 000 crore Indian Tyre Industry, is highly raw material intensive and predominantly a Cross Ply (or Bias) tyre manufacturing industry. It produces all categories of tyres, except Snow Tyres and Aero Tyre for which there is no demand domestically. Indian tyre industry is highly concentrated wherein 10 large manufacturers account for over 95% of the total tonnage production of 11.35 lakh M.T. On an average, 55% of the production is for replacement market, followed by 29.8% sold to OEMs directly and the remaining is exported. Over the years, tyre manufacturers have developed a vast marketing network using dealers and depots and as such all types of tyres are now easily available even in the remotest corner of the country. No doubt, internationalauto majors in India now roll out their vehicles using Indianmanufactured tyres. Slowdown in automotive industry and global economic in general negatively impacted the Indian tyre industry in 2009. The industry tonnage growth was only 2.19% during first nine months of FY09, compared to 7.38% growth experienced during the same period last year. Demand side

was also severely affected as almost all auto manufacturers were forced to adjust their production last year. A major relief for tyre manufacturers was provided by the government by reducing the excise duty on tyres from 14% to 10% in December 2008, and further to 8% in February 2009. Increasing Cost of Raw Materials: Ram materials primarily comprise of natural rubber, crude and steel based materials which have historically experienced volatility in prices, especially during the last few months when price of domestic natural rubber increased almost 40%. Given the fact that raw materials constitute around 70% of the cost of production, combined with the manufacturers inability to pass on the increased cost to their customers due to intense competition, rise in prices of these materials have a huge impact on profitability. Increasing Radialization: Unlike in the developed countries, radialization has not yet reached its dominance in India. Particularly the truck, bus and LCV segments continue to be largely a cross ply based. Despite offering higher mileage, lower fuel consumption and improved safety, radial tyres have not yet caught on primarily because of poor road conditions and high initial cost which is approximately 25% higher than bias tyres. Moreover, the two important raw materials required for producing radial tyres (Steel Tyre Cord and Polyester Tyre Cord) are not manufactured domestically. Moving towards radialization will be vital if tyre producers want to protect their share in international markets. As of 2008, radialization as a percent of total production in passenger car tyres, LCV and heavy vehicles was 95%, 12% and 3% respectively. Off the Road Tyres: Last year saw the top manufacturers, including CEAT and JK Tyres increasing their capacity of OTR (Off the Road) tyre production. OTR tyres are customized tyres and provide relatively higher margin. Increasing the proportion of OTR in the product mix is seen as a measure to improve profitability. Increased Dumping: Besides material price fluctuations and lack of radialization, the industry is also suffering intense competition from low priced tyres from China and other South East Asian countries. Despite being of a better quality, Indian manufactured tyres loose ground when it comes to pricing. Moreover, slowing automotive demand from developed countries has made India a lucrative market for cheap tyres, thus resulting in increased dumping of cheap tyres from China.

Retreading: Another area of concern for the tyre manufacturers is the increasing retreading, where the worn out tread of the old tyre is replaced with a new tread. Retreading costs approximately 20% of a new tyre and is therefore gaining popularity, especially in Southern part of the country. Elgi Tyres and Tread Ltd are the two major retreaders in India. Significance of such retreaders can be gauged by the fact that around 85% of the tyre demand is for replacement. Unresolved Tax Issue: The issue of inverted tax structure, wherein the import duty on natural rubber is 20% but import duty on finished tyres is as low as 10% still remains unaddressed. Operational inefficiency and taxation issues have being denting the competitiveness of Indian tyres. Global Expansion: Several manufacturers are now moving global and are setting up manufacturing bases overseas. After acquiring Dunlop three years ago, Apollo Tyres recently acquired Vredetein Banden in Europe. JK Tyres acquired Tornel, a Mexican company last year to penetrate into American tyre market. Despite these challenges, according to CARE Research, while the industry may register a tonnage growth of only 4.27% in FY09, the long term prospective seems to be bright. They expect the industry to experience a CAGR of approximately 8.21% between FY08 to FY13. Automotive companies have started experiencing increasing sales and raw material prices are stabilizing which will boost tyre sales over the coming months. However, experts suggest there will be some time lag before profitability picks up as tyre manufacturers are still carrying high cost inventories.

3.1 History of the Company JK Tyre was incorporated as a private limited company in West Bengal in February 14, 1951. 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. JK Tyre & Industries is the flagship company under the umbrella of JK Organisation. JK Tyre and Industries is a mega corporate entity that is emblematic of excellence, diversification and pioneering new technologies. A part of JK Organization which ranks among the top private groups private groups in India, Jk Tyre and Industries is committed to self reliance and follows an ethic that views customer satisfaction as an index of achievement. JK Tyre is the pioneer for Steel Radial technology in India. Over the years, the company has expanded and diversified its business portfolio. It has developed into a multi product, multi-location corporate entity. The company produces and sells tyres and tubes under the brand name 'JK Tyre' for Truck, Buses, Passenger Cars, Jeeps, Light Commercial Vehicles, Multi Utility Vehicles and Tractors The companys three plants are located in Rajasthan, Madhya Pradesh and Karnataka, JK Tyre is the largest manufacturer of truck and bus tyres in India. The truck and bus tyres produced account for nearly 74% of the total tyre business in India, thus giving JK Tyre an undisputed position. Additionally, JK Tyre is the only manufacturer of truck/ bus steel radial tyres, and the second largest manufacturer of 4-wheeler tyres in the country. J.K. Industries acquired Vikrant Tyres, Mysore in 1997. J.K. Industries and Vikrant Tyres are the only tyre companies in India to have received all three ISO 9001, QS 9000 and ISO 14001 certificates. The company has a technical collaboration with Continental AG, Germany, which is among the top five tyre manufacturers in the world to keep pace with latest technological developments. To stay at the forefront of technological advancements a state of art Research & Development Centre, HASETRI, was set up, which remains the nerve centre for providing cutting edge
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technology. In a short span of time it has emerged as the 17th largest tyre manufacturer in the world an achievement in itself. The company design tyres for the vehicles using the latest tools & techniques which enable us to judge and eliminate chances of failure at the drawing board stage only. The Radials are manufactured in an air conditioned plant equipped with the finest machines so that you get consistently good quality.

3.2 VISION & MISSION 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 Motivated and Committed team for excellence in performance Be a Green Company Deliver Enhanced Value to all stakeholders Enhance global presence through Acquisition / JV / Strategic Partnerships

3.3 JK GROUP COMPANIES

JK ORGANISATION J.K. Organisation, founded over 100 years ago, is an eminent industrial group in India. The Group has multi-business, multiproduct and multi-location operations JK PAPER LTD. JK Paper Limited is one of the leading manufacturers of reading and writing paper JK LAKSHMI CEMENT LTD. JK Lakshmi Cement Limited is a well respected name in the cement industry in India FENNER (I) LTD. Fenner (I) Limited is a leading manufacturer of Industrial and Automotive Belts, Oil Seals, Power Transmission Accessories and Textile Yarn UMANG DAIRIES LTD. The Creme de la creme of dairy foods JK AGRI-GENETICS LTD. At JK Agri-genetics limited, concenetrates on Research and Development, production, processing and marketing of hybrid seeds.
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JK SUGAR LTD. The company's principle activity is to manufacture Sugar. However, the company currently operates in two segments. Power and Sugar JK RISK MANAGERS AND INSURANCE BROKERS LTD. Services rendered to various clients for all facets of Insurance both life & non-life. CLINIRX RESEARCH PRIVATE LTD. Full Service Contract Research Organisation (CRO) 3.4 Product Profile VIKRANT TYRES LIMITED (VTL) is engaged in design, development. Manufacturing and marketing automotive pneumatic tyres, tubes. following. Product Profile: Automobile tyre (Nylon tube, radial tube tyre and tubeless) tubes and flaps. Product range: JK12-VTU is engaged in design development manufacturing and marketing automotive and marketing automotive pneumatic tyres, tubes, the product range includes the following. Cross ply & radial tyres& buses. Cross ply & radial tyres for light commercial vehicles. Cross ply tyres off the road vehicles. Automotive inner tubes for trucks, buses light commercial vehicle. Flaps of trucks, buses and light commercial vehicles. The product range includes the

Product certificate and export awards:

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ISI for cross ply nylon truck & non truck tyres. IN METRO for cross ply nylon tyres& all steel truck tyres. E marking for all steel truck radial tyres.

3.5 MAJOR COMPETITORS

Company Name MRF Apollo Tyres Ceat Balkrishna Ind Goodyear TVS Srichakra Falcon Tyres Govind Rubber Dunlop India PTL Enterprises Krypton Modi Rubber

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3.6 ORGANISATIONAL STRUCTURE

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