A PROJECT REPORT ON MARKET SHARE OF JK TYRE COMPANY IN TRUCK SEGMENT

Under kind Supervision of Mrs Nandini Sharma By Alka Pareek _______________________________________ Biyani Group of Colleges R-4, Sector No 3, Vidyadhar Nagar, Jaipur -302023, Rajasthan, INDIA

A project report submitted in partial fulfillment of the requirements for Bachelors in Business Administration (BBS)

Student declaration

I hereby declare that the project report entitled

MARKET SHARE OF JK TYRE COMPANY IN TRUCK SEGMENT Submitted in partial fulfillment of the requirements for the degree of Business of Business Administration To Biyani Group of Colleges, India, is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes

Guidance By: Mrs. Nandini Sharma

Submitted By: Alka Pareek

Place: Jaipur Date: May

ACKNOWLEDGEMENT

As a partial fulfillment for the award of the degree of BBA under Biyani Group of Colleges, a project was to be carried out by all the students during their 3 rd semester. On the course of report preparation, we had to select a particular business organization.

I would like to express my gratitude to all those who gave me the possibility to complete this project report. I want to thank Biyani Group of Colleges for providing me the opportunity to conduct this small scale study as a partial fulfillment of the Bachelor degree in business administration. I have furthermore to thank Mrs. Nandini Sharma for her guidance, valuable suggestion,

encouragement, support, co-operation and supervision throughout my studies. I am thankful as well for the continual support of my family and friends, who have provided me with important feedback on this thesis and with the encouragement that I have needed to complete my work. To my parents and brother thank you for your positivity and for helping me to bring stress back into perspective.

Regards, Alka Pareek

PREFACE
It is a great opportunity for me to have the BACHELOR OF BUSINESS ADMINITRATION (BBA) in BIYANI GROUP OF COLLEGES, JAIPUR. In the accomplishment of this degree I am submitting a project report on MARKET SHARE OF JK TYRE COMPANY IN TRUCK SEGMENT. Subject to the limitation of time efforts and resources every possible attempt has been made to study the problem deeply. The whole project is measured through the questionnaire, the data further analyzed and interpreted and the result was obtained.

The whole project has been divided into 5 chapters. Introduction Company profile Research methodology Data analysis & interpretation Conclusion

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

Earlier there was a sellers market, since goods and services were in short supply and the sellers use to call the shots. But, ever since the advent of the era of globalization, there has been total transformation in the way the customers being perceived. Today, marketers are directing their efforts in retaining the customers and customers base. Their focus has shifted towards integrating the three elements people, service and marketing. The customers importance has assumed imponderable proportions in todays world, because of the inherent value that the customers command. A customers can make or break a company. It is the responsibility of every company to see that all its customers are equally satisfied with them, for one single dissatisfied customer will tell at least nine others about the dissatisfaction and will spark off a chain reaction and spell doom for that company. In such scenario, retention of the existing customers assumes diabolical proportion. Research has thrown light on some important aspects of customers retention it has been pr oved empirically that

acquiring new customers can cost five times more than the cost involved in satisfying and retaining current customers.

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

In the past, after sales service was consider as a cost center, Companies were lethargic in attending to customers complaints. Availability of trainee service personal and quality genuine spare parts posed serious problems. However, with the rising competition, there could not be much product differentiation, as price and quality were comparable and latest technology was to each and every company in the field. Since, there could not be much differential a tangible assets, the companies concentrated on the intangible assets, namely the service factor, which served as a major differentiator. Today after sales service is an important aspect of every company, and it is no more considered as a cost center, but considered as a profit center. Every organization strives hard to retain its existing customers at any cost since it is five times costly to get a new customers, then to retain an existing customers. Most of the industries today use of information technology to best services to their customers.

b. About Tyre industries in India

Background
The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber Limited set up the first tyre company in West Bengal. MRF followed suit in 1946. Since then, the Indian tyre industry has grown rapidly.

The Indian tyre industry has been reporting good growth figures, over the past few years, spurred on by the rise in the automobile industry led by passenger vehicles and two-wheelers. The Indian tyre industry has emerged as one of the most competitive markets in the world and with the emergence of new technology, ultra modern production facilities and availability of raw materials, the sector is poised to grow further. A recent study states that the Indian tyre production is expected to reach almost 20 crores units by 2016-17. In the previous financial year, the Indian tyre industry witnessed a turnover of Rs. 30,000 crores, producing 11.92 crores tyres, a total tonnage of 14.88 lakh metric tons. Currently India has 40 listed tyre manufacturing companies, out of which the top 10 account for over 96 percent of the countrys total tyre production. The tyre export market in India is valued at Rs. 3600 crores. While the tyre industry is largely dominated by the organized sector, the unorganized sector is predominant with respect to bicycle tyres.

Increase/Decrease in raw material costs

Apart from being capital intensive, the tyre industry is highly raw material intensive. Any change in the prices of raw materials affects the profitability of tyre companies. The raw materials used in the manufacture of tyres are rubber

and petroleum derivatives like nylon tyre cord, carbon black, styrene butadiene rubber and poly butadiene rubber. The most important raw material is rubbernatural and synthetic. Rubber prices have softened in the last four months but tyre makers are not considering a cut in tyre prices because they are yet to recover from a surge in prices of raw materials last year. Natural rubber prices have crashed by almost 20% from October last year.

Prices have fallen below Rs 160 this month and moving in the narrow range of Rs 156-157 per kg. This could perhaps be the worst crash in the recent times. The last time prices dropped below Rs 160 was in May 2010. The plunge in prices benefitted tyre manufacturers the most with major tyre companies reporting good results for the quarter ending December 2012. But they are not ready to pass it on to customers basically for two reasons. First, they are still to recover the rise in input costs early last year. Second, demand for tyres continues to be subdued forcing companies to cut production.

Import of tyres
Daily rubber supplies to key spot markets are lower than normal as farmers are holding back produce."Farmers think speculators in futures market are depressing prices. They think in coming months prices will recover above 200 rupees (per kg)," Valy said. This year, despite importing 23.5 percent more rubber in the first half, tyre makers are signing new import deals as buying locally is still expensive after

farmers held back supplies hoping prices would rise in the future, industry officials said. "Tyre makers were actively signing import deals in September. Then the difference between local and overseas prices widened to over 45 rupees per kg," said George Valy, president of the Indian Rubber Dealers' Federation. The country's total imports could rise to over 225,000 tonnes in 2012/13, up 5.2 percent on the year, Valy said. In June 2012, Sheela Thomas, chairman of the state-run Rubber Board, said India's imports were likely to drop by 27 percent to 150,000 tonnes in 2012/13 on the back of a rise in local output and lower incentives to import rubber. But since June the price difference between local and overseas prices has widened, peaking in September 2012.

Export of Tyres
Five percent of the nearly $100 billion global tyre industry is accounted for by India. The industry turnover is about Rs.13,500 per annum. The top four companies include MRF, Apollo, JK and Ceat. Despite the economic slow down and high input costs last year, the Indian tyre industry saw a growth of 5.3% (volumes) in 20112012. According to rating agency ICRA, industry growth was in terms of volumes. The revenue growth was definitely aided by the depreciating rupee and stable rubber prices by the end of the financial year. At the beginning of 2011, the rubber prices were about Rs.240/ kg which came to Rs.185-200/ kg by the year end.

The trend has been upward with regard to the cost of crude derivatives. There was a 40% increase in the prices of synthetic rubber. The hike in tyre prices was not sufficient enough to neutralise the effects of the rising costs. As per reports, the compound annual growth (CAGR) of the tyre Industry has been about 8%, keeping pace with the economic growth India has seen in the last five years. Even with faltering growth, the tyre industry is expected to pick up momentum in the future. The Indian tyre industry exports to around 65 countries. In terms of value and tonnage, the truck and bus tyres account for more than 60% of the turnover. The tyres are predominantly cross ply and bias in India. Radialization has grown due to its distinct advantages, in the passenger car segment. Review of the Indian Tyre Industry

Source: http://stockshastra.moneyworks4me.com/indian-tyre-industry-analysisand-review/ The tyre industry segments are divided into personal and commercial usage based on vehicle category and into OEMs (original equipment manufacturers), replacement demand and exports based on industry. About 65% of the total Indian tyre industry is constituted by the replacement segment. As per reports, the

domestic market is set to grow at a CAGR of 11-12%, and OEM demand to grow at a CAGR of 10-11%. Replacement demand is expected to grow at a CAGR of 12%. According to the ICRA, exports rose by 46% and the revenues saw a 28% growth because of the strong depreciation in the Indian rupee vs. US dollar, and hike of over 20% in realizations. ICRA said, "We expect the demand for tyres from the OEM segment to be relatively muted at 8-9% during 2012-13, despite anticipated revival in replacement volume, driven by vehicles, particularly truck and bus tyres, sold post the recessionary dip of 2009. Revenue growth for tyre companies is also expected to be supported by price revisions of around 5-8% and continued export thrust to SE Asian countries". Mr. Subrata Ray, Sr. Group Vice President & Head-Corporate Sector Ratings, ICRA, says, In line with the sombre outlook for the automotive industry, we expect OEM tyre demand to be muted, however we expect replacement demand and exports to support industry volumes. The softer input costs would however pay dividends during the current year, with operating margins set to expand during H1, 2012-13. Historical and Projected Growth Rate

Source:http://www.docstoc.com/docs/16139151/tyre-industry-in-India So far, going by the current trends, the Indian tyre industry is poised for good growth in the coming years.

TABLE OF CONTENTS
Chapter I INTRODUCTION Chapter II HISTORY OF THE ORGANIZATION Chapter III RESERCH METHODOLOGY 3.1 Research Design 3.2 Site Selection 3.3 Nature and Sources of Data 3.4 Universe and Sampling 3.5 Techniques of Data Collection 3.6 Reliability and Validity of Data 3.7 Data Processing and Analysis 22 23 23 23 24 25 25

Chapter IV PRESENTATION AND ANALYSIS OF DATA 4.1 Introduction of Study Area 4.1.1 Location and Area 4.1.2 Population and Household 4.1.3 The Language 4.1.4 Major Caste and Ethnicity 4.1.5 The Economy 4.16 Other Facilities 4.2 Background of the respondents 4.2.1 Caste and Ethnic Composition 4.2.2 Family Structure 4.2.3 Education 4.2.4 Marital Status 4.2.5 Land Holding 26 26 27 27 27 27 28 28 28 29 29 31 31

4.2.6 Land ownership 4.2.7 Occupation 4.3 Operating and Functional System of WCS 4.3.1 Group Formation and Operating procedure 4.3.2 Provision of Compulsory Training to Receive Loan 4.3.3 Mobilization for Regular Group Saving 4.3.4 Credit Delivery Model without Collateral Securities 4.3.5 Objectives of WCS 4.4 Findings 4.4.1 Information about the Programme 4.4.2 Loan taking Pattern 4.4.3 Loan Received by the respondents 4.4.4 Change in Economic status of Respondents 4.4.5 Change in the Status of Women 4.4.6 Trend Analysis of WCS 4.4.7 Training report of WCS 4.4.8 Trend Analysis of RMDC

32 32 33 33 34 34 34 35 35 35 36 37 38 41 48 49 49

Chapter V SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1 Summary 5.2 Conclusion 5.3 Recommendations and Suggestions 51 52 54

BIBLIOGRAPHY

CHAPTER 1 INTRODUCTION

JKs Brief Profile

The J. K. Organisation is a group of companies with headquarters in Delhi and run by the Singhania family which rose to prominence in Kanpur, India, under Lala Kamlapatji, a fighter for Indian independence who burnt up his stock of English cloth on the call of Mahatma Gandhi during hisstayagrah call against British rule. Kamlapatji also set up the Uttar Pradesh Chamber of Commerce. The name JK is derived from the initials of Kamlapatji (18841937) and his father Seth Juggilal (18571922). The group was founded in 1918. The group rose in importance in the 1960s and 1970s when it occupied the third position as an industrial conglomerate after the Birla and Tataconglomerates. The family is currently divided into three main groups headed by 3 patriarchs namely Dr Gaur Hari Singhania based out of Kanpur, Shri Hari Shankar Singhania based out of Delhi and Shri Vijaypat Singhania, based out of Mumbai. These three patriarchs are first cousins who now run independent businesses. The Kanpur family runs JK Cements, JK Technosoft, the Delhi family runs, JK Tyres, JK Papers, JK Lakshmi Cement, Fenner India, JK Risk Managers & Insurance Brokers and the Mumbai family runs the Raymonds group of companies. To maintain the family history and legacy, the various family run companies though completely independent and many publicly owned and listed subscribe to the JK Group Logo and the oldest male member of the generation in power by tradition becomes the President of the JK Group (The Association of Trade unions) and allots the logo to companies run by various family members as and when they apply for membership and pay an annual fee for the same. It is pertinent to note that these three different units are technically and legally separate entities and have no cross holdings and have no common directors and employees except for the shared family history.

CORE VALUES:
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 Organization is an association of industrial and commercial companies and charitable trusts. Its member companies, employing more than 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. Organization is committed to the cause of human advancement.

1933

First in India to manufacture Calico Prints- Juggilal Kamlapat Cotton Spinning and Weaving Mills Co. Ltd., Kanpur.

1940 First in India to manufacture steel Bailing Hoops for jute and cotton and to make the country self sufficient by meeting the entire demandJ.K. Iron & Steel Co. Ltd., Kanpur.

1944 First in India to produce Aluminium virgin Metal from Indian BauxiteAluminium Corporation of India Ltd., Jaykaynagar.

1949 First in India to manufacture Engineering files- J.K. Engineers Files, Bombay.

1959 First in India to set up a continuous process Rayon Plant.

1960 First to manufacture a Hydraulically Operated Cane Crushing Mill for Khandsari Sugar Plant and completed 100 ton plant-J.K. Iron & Steel Co. Ltd., Kanpur.

1961

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

1965 First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of Formosul) in India - J.K. Chemicals Ltd., Bombay

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.

1969 First to manufacture Acrylic Fibres- J.K. Synthetics Ltd. Kota First to develop differentially Dyeable Nylon- J.K. Synthetics Ltd., Kota

1973 First in India to license Synthetic Fibre Technology to third party as well as the first to manufacture Synthetic Fibre Machinery Fibretech

Engineers & Manufacturers, Dadri.

1976 First in India to produce steel belted Radial Tyres for passenger cars, trucks and buses- J.K. Tyre Plant, Kankroli.

1980 First in world to make Steel Belted Radial Tyres for three wheelersJ.K. Tyre Plant, Kankroli.

1984 First in India to produce white cement through dry process- J.K. White cement. Gotan.

1985 First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd., Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology- J.K. Synthetics Ltd., Kota.

1989 First in India to produce magnetic tapes with cobalt technology J.K. magnetics, Surajpur.

1991

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

1992 R & D center set-up at HASTERI.

1994 India's first T-Rated tyre launched Banmore Tyre Plant (BTP) crossed 100 TPD.

1995 Mercedes Benz Launched on JK steel radials

First tyre manufacturer in the world to get ISO 9001

1996 India's first dual contact high traction steel radial- aquasonic launched. Introduced steel wheels.

1997 Awarded the National Export Award for 96-97. Vikrant Tyres (VTL) acquired. India's first H rated tyre launched. Only Tyre manufacturer to get 'E' Mark certification. HASETRI became the first research institute in Asia to get ISO 9002.

1998 First tyre manufacturer in the world to get QS 9000. Awarded CAPEXIL's highest export award for 1997-98.

1999 Synergy with VTL in procurement, marketing and production flexibility. Completion of state of the art modernisation of truck radials. JK Tyres ranked 16th largest Tyre Company in the world. ISA - 14000 accredition for environment & safety.

2000 JK introduced National Go-Karting Championships.

2001 Recieved CAPEXIL award. J.K. Industries recieved FOCUS LAC export award for the year 19992000. Commendation Certificate of CII Exim. IInd National Go-Karting Championships held.

2002

J.K.Industries Ltd has informed BSE that CRISIL has assigned a P1+ rating to the Commercial Paper programme of the company.

2003 - J.K. Industries Ltd (JKI) has a new Marketing Director in Mr Ajay Kapila. Before joining JKI, Mr Kapila was Senior Vice-President (Sales and Marketing) at Kinetic Engineering Ltd. He was also Director on board and operational head of Kinetic's direct selling arm - Kinetic Marketing Services Ltd. -Completes its comprehensive restructuring exercise of businesses that leads to its emergence as a pure automotive tyre company. Along with the de-merger of its non-tyre business, Sugar and Agri Seeds, into separate companies namely JK Sugar Ltd and JK Agri-Genetics Ltd, JKI also completes the merger of Vikrant Tyres Ltd with itself -J.K.Industries delists from Jaipur Stock Exchange -divested its wholly-owned subsidiay called J.K. Drugs and Pharmaceuticals Ltd to TEVA Pharmaceuticals of Israel.

2004 -JK Industries Ltd has informed that its securities are delisted from Delhi Stock Exchange Association Ltd (DSE) w.e.f. January 29, 2004.

2007

- JK Industries Ltd has informed that the name of the Company has been changed from "J K Industries Ltd" to "JK Tyre & Industries Ltd" w.e.f. April 02, 2007. - Company name has been changed from JK Industries Ltd to JK Tyre & Industries Ltd.

2001 Recieved CAPEXIL award. J.K. Industries recieved FOCUS LAC export award for the year 19992000. Commendation Certificate of CII Exim. IInd National Go-Karting Championships held.

2008

-The company has issued rights in the ratio of 1:3 at a premium of Rs.75 Per Share.

2009 - JSL Ltd announced huge expansion plans under which it would set up 1.6 MT greenfield plant in Orissa due to which its stainless steel manufacturing capacity will rise to about 2.5 MT by March 2014, thus making it the largest producer in India. - Jsl Limited has informed that consequent upon vacancy caused by the sad demise of Sh. A.K. Jain, Company Secretary of the company on January 1, 2009, Mr. Sunil Yadav has been appointed as Company Secretary of the company w.e.f. January 13, 2009. Mr. Sunil Yadav has also been designated as Compliance Officer of the company in pursuance of clause 47(a) of the listing agreement.

2010 - JSL Ltd has informed BSE that the name of the Company have been changed from "JSL Limited" to "JSL Stainless Limited". The Registrar of Companies, NCT of Delhi & Haryana has issued the fresh certificate of incorporation dated August 06, 2010 consequent upon change of name. - JSL Ltd has informed BSE that the Board of Directors of the Company has appointed Mr. Jurgen Hermann Fechter and Mr. James Alistair Kirkland Cochrane as Additional Directors w.e.f. March 09, 2010 by passing the resolution through circulation. - JSL Limited led by Ratan Jindal is going to setup a 1320 Mw power project in the state of Orissa. The company signed a MoU with the Orissa government for setting up a super critical thermal power plan in the state on Thursday. The plant will be setup with a total investment of Rs 7,375 crore.

2011

- JSL Stainless signs power purchase agreement with GRIDCO. - JSL Stainless Ltd has informed BSE that the name of the Company have been changed from "JSL Stainless Limited" to "Jindal Stainless Limited" with effect from December 07, 2011. The Registrar of Companies, NCT of Delhi & Haryana has granted its approval on December 07, 2011.

2012

- The Company has allotted 3,64,972 equity shares of Rs. 2/- each to "The Royal Bank of Scotland NV London Branch".