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PRS Tyres
PRS Tyres
ABSTRACT
PRS tyre a prominent player in the tyre industry. As its expansion plan, prs tyres is
planning to enter the two-wheeler market, the study was conducted to understand the existing
marketing practices and learn from the leaders. The report aims at discovering various factors
affecting. Understanding these factors will help develop better strategies to attract & retain
customers. The study also aims at identifying factors influencing dealer’s satisfaction.
Dealers/Retailers are the most prominent channel partners as they directly interact with the
customer and represent company. The study has discovered that customers are highly satisfied
by (price, quality, Brand, durability).
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1.1 INTRODUCTION ABOUT THE INTERNSHIP
Internships are individualized and tailored to the needs and interests of each student in
the program. As part of the internship experience, students are expected to take an active role
in finding an appropriate internship for themselves. Many students pursue their own contacts,
however, information is available on Locating Internship Sites.
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OBJECTIVES OF THE STUDY
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1.3 SCOPE OF THE STUDY
The study mainly focuses on the detailed analysis of the organization structure. In this
study, the overall functioning of the firm was analyzed as well as the financial performance of
the enterprise. A moderate attempt was made to have the SWOT analysis of the company. This
study also involved the practical application of theoretical knowledge. This study will help to
know the organization better and to have new insights on the functioning of the organization.
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LIMITATIONS OF THE STUDY
PRS tyre are consists of six major functional departments. Covering the entire areas of
the department is a very difficult task as there were limitation in time. Some of the data were
treated confidential and hence it was difficult to get the same. In addition most of the data were
collected through interviews and so the information is subjected to the bias of the individuals.
CHAPTER – II
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INDUSTRY PROFILE
The tyre industries in India come into existence with establishment of trading outlets
by U S based Fire Stone Tyre and Company in1922 and followed by Dunlop Rubber
Company in 1926.The Indian Tyre industry has witnessed a Cumulative Annual Growth
Rate (CAGR) 7.7% over the last decade. Economic expansion, investments and road
developments have all contributed to this Increase in demand for vehicles. This has helped the
growth in the tyre industry. The tyre industry is the major consumer of the domestic
rubber production. The tyre industry is mainly dominated by organized sector; the
unorganized sector holds in bicycle tyres. The major players in the organized sector consist
of PRS, Apollo tyres, ceat, and J K Industries, which account of the 63% of the organized tyre
market.
Indian tyre industry has been witnessing tremendous growth for the past few years on
account of growth in automobiles demand, especially in passenger vehicles and two-wheeler
segments. In fact, availability of raw material (natural rubber) and ultramodern production
facilities has led the country to emerge as one of the world’s most competitive tyre markets.
Driven by the strong demand in automobile OEM sector and replacement market, the India tyre
industry has been witnessing stupendous growth from since the last two fiscal years.
Further, according to our research report, “Indian Tyre Industry Forecast to 2015”,
the tyre production in India is anticipated to reach 191 Million Units by the end of FY 2016.
Moreover, manufacturers are expected to invest huge amount into the industry over the next
few years, with a major proportion of this investment directed towards the radial tyre capacity
expansion.
Our study also finds out how tyre manufacturers are coming up with new technologies
to provide customers with better products and services. The concept of ‘green tyres’ is
becoming a paradigm of the country’s competitive edge. Technologies like self inflation by
good year and run flat tyre (RFT) by bridges tone are paving the way in Indian market. This
new category of tyres is now being widely accepted in India. Several green field projects are
also there in pipeline to facilitate an increase in the domestic production capacity to meet the
growing tyre demand in the country.
During the course of our study, it has also been found that India’s market for radial
tyres in commercial vehicles section is still in its infancy. The passenger car segment switched
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to radial tyres in a short period of time, with radial tyre penetration level for the category
reaching 100%. However, penetration level of radial tyre has also started to increase rapidly in
the light commercial vehicles and truck & bus segment. This segment will be the largest growth
area over the next few years.
We have found that companies are also looking for overseas plantation of rubber to
meet their raw materials need which will help the companies to acquire raw material at cheaper
prices. Apart from this, we have done the tyre manufacturing cost analysis in our report and
found that raw material account for the major share in total cost. In addition, we have separately
analyzed various raw materials cost in our report.
Further, tubeless tyres are gaining ground in Indian market as almost all the automobile
manufacturers are launching their vehicles with tubeless tyres. This shows that tubeless tyre
market will exhibit tremendous growth in the coming years.
Our report, “Indian Tyre Industry Forecast to 2015”, evaluates the future growth
potential of India’s tyre industry, and provides statistics and information on market structure,
tyre production by segments, exports and imports trends. Tyre market projections, in value
terms, have been provided for all prominent segments, including passenger cars, utility
vehicles, multi-purpose vehicles and two-wheelers.
Besides that, through the section of key players, we have tried to provide the insight of
current market scenario and existing competition to our customers. Additionally, to provide
clearer picture of competitive landscape, we have also included future plans & strategy of key
players coupled with the comprehensive analysis of their strengths and weaknesses. All the
above information covered in report will provide clients with cutting edge market intelligence
and help them make sound investment decisions.
Market profile
While the tyre industry is mainly dominated by the organised sector, the unorganised
sector holds sway in bicycle tyres. The major players in the organised tyre segment consist of
PRS, Apollo Tyres, Ceat and JK Industries, which account for 63 per cent of the organised tyre
market. The other key players include Modi Rubber.
Sector specifics
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The tyre industry is a major consumer of the domestic rubber production. Natural
rubber constitutes 80 per cent of the material content in Indian tyres. Synthetic rubber
constitutes only 20 per cent of the rubber content of a tyre in India. Worldwide, the ratio of
natural rubber to synthetic rubber is 30:70. Apart from natural and synthetic rubber, rubber
chemicals are also widely used in tyres.
Most of the RSS-4 grade natural rubber required by the Indian tyre industry is
domestically sourced, with only a marginal amount being imported. This is an advantage for
the industry, since natural rubber constitutes 25 per cent of the total raw material cost of the
tyres.
The two types of synthetic rubber used in tyres are Poly Butadiene Rubber (PBR) and
Styrene Butadiene Rubber (SBR). The former is used in most of the tyres, while the latter is
mainly used in the radials for passenger cars. Synthetic rubber accounts for 14 per cent of the
raw material cost. Unlike in the case of natural rubber, India imports 60 per cent of its synthetic
rubber requirements.
Apart from rubber, major raw materials are nylon tyre cord and carbon black. The
former is used to make the tyres strong and impart tenacity to it. The latter is responsible for
the colour of the tyre and also enhances the life span of the tyre. Nylon tyre cord comprises 34
per cent, while carbon black accounts for another 13 per cent of the raw material cost. In India,
the carbon black used is of the N660, N220 and N330 variety.
To sum up, the tyre industry is highly raw-material intensive, with raw material costs
accounting for 70 per cent of the cost of production. Fortunately for the industry, the rubber
and carbon black prices have taken a beating recently, which means lower costs for the tyre
industry. The export-import policy allows free import of all types of new tyres and tubes.
However, import of retreaded tyres, either for use or for reclamation of rubber is restricted.
This has led to used tyres being smuggled into the country under the label of new tyres. Though
tyre import and all raw materials for tyres except natural rubber are under open general license
(OGL), only import of natural rubber from Sri Lanka is eligible under OGL
Sector trends
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Crossply tyres have been used in India for several decades. In these tyres, the ply cords
run across each other or diagonally to the outer surface of the tyre. Rayon and nylon tyre cords
are used as the reinforcing medium. These tyres can be retreaded twice during their lifetime
and are hence preferred by Indian transport operators who normally overload their trucks. A
vehicle with the normal carrying capacity of around 12 tonnes is usually loaded with double
the capacity. Moreover, one also has to contend with the bad suspensions and bad road
conditions. No wonder, 95 per cent of the tyres used in India are crossplies.
Radial tyres have their cords running radially from bead at 90 degrees angle to the rim
or along the outer surface of the tyre. The reinforcing mediums used in these tyres are polyester,
nylon, fibreglass and steel. Hence, these tyres are 20 per cent more expensive than the
crossplies. But they have a longer life and provide lower fuel consumption. The unhealthy
condition of the Indian roads has resulted in radial tyres accounting for only 5 per cent of the
tyre industry as against a global trend of 60 per cent. With two-thirds of the capacity of all
major tyre manufacturers being reserved for radials, this is a real cause for concern.
Outlook
Globally, the OEM segment constitutes only 30 per cent of the tyre market, exports 10
per cent and the balance from the replacement market. In India, the scenario is quite different.
Nearly 85 per cent of the total tyre demand in the country is for replacement. This anomaly has
placed the retreaders in a better position than the tyre manufacturers. Retreading is looming
over the tyre industry as a colossal threat. The Coimbatore based Elgi Tyres and Tread Ltd.,
the largest retreader in India, is giving the tyre barons sleepless nights.
Simply put, rethreading is replacing the worn-out tread of the old tyre with a new one.
The popularity of rethreading stems from the fact that it costs only 20 per cent of a new tyre
but increases its life by 70 per cent to 80 per cent. Most of the transporters in India retread their
tyres twice during its lifetime, while a few fleet owners even retread thrice. In their zealousness
to economise costs, they overlook the reality that retreading reduces the quality of the tyre. It
is highly popular in the South unlike in the North where the transporters overload their trucks
and have to ply their vehicles in a rough terrain an environment in which buying a new tyre is
the best option.
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Key Features Major players are PRS, JK Tyres, and Apollo Tyres sector in India.
& CEAT, which account for63 per cent of the organized tyre market. The other key players
include Modi Rubber, Kesoram Industries and Goodyear India, with 11 per cent, 7 per cent and
6 per cent share respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-
Srichakra, Metro Tyres and Balkrishna Tyres are some of the other while the tyre industry is
largely significant players in the industry. Dominated by the organized sector, the unorganized
sector is predominant the industry is a major consumer of the with respect to bicycle tyres.
Domestic rubber market.
Natural rubber constitutes 80% while synthetic rubber constitutes only 20% of the
material content in Indian tyres. Interestingly, world-wide, the proportion of natural to synthetic
rubber The sector is raw-material intensive, with raw in tyres is 30:70 Total material accounting
for 70% of the total costs of production production figures in tonnage: 11.35 lakh MT & total
production of Current level of tyres in all categories: 811 lakh (2007-08) radialization includes
95% for all passenger car tyres, 12%for light commercial vehicles and 3% for heavy vehicles
(truck and bus)
Restrictions were placed on import of used /retreaded tyres since April Import of new
tyres2006 & tubes is freely allowed, except for radial tyres in the truck/bus segment which has
been placed in the Total value of tyre exports form restricted list since November 2008
The major factors India is approximately Rs 3000 crore (2007-08) affecting the demand
for tyres include the level of industrial activity, availability and cost of credit, transportation
volumes and network of roads, execution of vehicle loading rules, radialization, retreading and
exports.
Key Features
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At present there are 40 listed companies in the tyre sector in India.
1. Major players are PRS, JK Tyres, and Apollo Tyres & CEAT, which account for 63 per
cent of the organized tyre market. The other key players include Modi Rubber, Kesoram
Industries and Goodyear India, with 11 per cent, 7 per cent and 6 per cent share
respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-
Srichakra, Metro Tyres and Balkrishna Tyres are some of the other significant players
in the industry.
2. While the tyre industry is largely dominated by the organized sector, the unorganized
sector is predominant with respect to bicycle tyres.
3. The industry is a major consumer of the domestic rubber market. Natural rubber
constitutes 80% while synthetic rubber constitutes only 20% of the material content in
Indian tyres. Interestingly, world-wide, the proportion of natural to synthetic rubber in
tyres is 30:70
4. The sector is raw-material intensive, with raw material accounting for 70% of the total
costs of production
5. Total production figures in tonnage: 11.35 lakh MT & total production of tyres in all
categories: 811 lakh (2007-08)
6. Current level of radialization includes 95% for all passenger car tyres, 12% for light
commercial vehicles and 3% for heavy vehicles (truck and bus)
7. Restrictions were placed on import of used /retreaded tyres since April 2006
8. Import of new tyres & tubes is freely allowed, except for radial tyres in the truck/bus
segment which has been placed in the restricted list since November 2008
9. Total value of tyre exports from India is approximately Rs 3000 crore (2007-08)
10. The major factors affecting the demand for tyres include the level of industrial activity,
availability and cost of credit, transportation volumes and network of roads, execution
of vehicle loading rules, radialization, retreading and exports
Tyre supplies are targeted and marketed primarily to the following categories: Replacement
market, Original Equipment Manufacturers’, Export, Government Supplies and State Transport
Undertakings. The replacement market is significant for manufacturers of tyres in the category
of motor cycles, scooters/mopeds and tractors, while the OEM segment is significant for the
category of passenger cars and jeeps.
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Radialisation has been a significant dimension in the acquisition of technological
capability in the Indian tyre industry. The degree of radialisation is a clear indicator of the
status of road development, vehicle engineering and the economy in general. Inspite of some
constraints and limitations, the tyre companies in India have kept pace with the technological
improvements that radialisation signifies and offered state-of-the-art products, comparable to
the best in the world. Radialisation is linked to factors such as road development, overload
control and retreading infrastructure. Some of the advantages of radialisation are additional
mileage, fuel saving and improved driving. However, attempts towards radialisation have not
taken off at the expected pace due to factors like lack of suitability of Indian roads for plying
of radial tyres, older vehicles not possessing suitable geometry in terms of fitment,
unwillingness of the Indian consumer to pay higher prices for radial tyres etc. Nevertheless,
the scenario is radically different for the passenger car tyre segment, where radialisation has
crossed 95%. In the medium and heavy commercial vehicle segment, the level of radialisation
is comparatively poor, i.e. merely 4% and in the LCV segment; it is 15%.
Technology generation
The emphasis given by Indian tyre companies to applied research and the setting up of
well-equipped in-house R&D centers by the companies, which are manned by experts and
experienced professionals, have also helped in technology up gradation. Indian tyre technology
has exhibited versatility in maintaining inflow of technology through foreign collaborations
and tailoring the same to Indian needs. R&D is essentially business or market driven. However,
raw material suppliers could also help in conceiving new projects. Compound development
and in-process problems have been the main thrust of in-house R&D in the Indian tyre industry.
(Iyer & Upadhyay, 2008)
A significant proportion of R&D effort in the tyre sector is carried out by four or five
top companies. The proportion of raw material expenditure in relation to sales has witnessed a
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sharp spurt in 2007. The proportion of exports to total sales continues to be negligible in the
tyre sector and a major portion of the sales revenue is garnered through the domestic market.
Automation
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The tyre industry in India has had to grapple with raw material price volatility, rupee
appreciation and cheap Chinese imports. In this connection, some of the recent initiatives by
the government to facilitate the growth of the sector include:
No restrictions on the import of all raw materials required for tyre manufacture except
carbon black, which has been placed in the restricted list
The Indian Tyre industry is expected to show a healthy growth rate of 9-10% over the
next five years, according to a study by Credit Analysis and Research limited While the truck
and bus tyres are set to register a compounded annual growth rate (CAGR) of 8%, the light
commercial vehicles (LCV) segment is expected to show a CAGR of about 14 %. However,
we have to also take account of the effect of the global recession on the sector in making these
assessments. The growth of the sector is closely linked to the expansion plans of the automobile
companies; the government’s thrust on development of road infrastructure and the sourcing of
auto parts by the global Original Equipment Manufacturers (OEMs). Some significant hurdles
towards attaining these projected growth rates could be raw material related price volatility,
rupee appreciation and the looming threat of cheap Chinese imports. The Indian tyre companies
need to make active efforts to explore newer markets as the existing markets for bus-truck
tyres, which account for about 45 % of the total export volume, is nearing saturation. There is
also an urgent need to increase the degree of radialization in order to safeguard their share in
the export market. Global tyre manufacturers have been making constant efforts to innovate
and offer a diverse range of products such as tyres with pressure warning systems, run flat
tyres, eco-friendly tyres and energy efficient tyres. In this context, the Indian domestic
companies have to pursue a growth strategy of continuous innovation and increasing emphasis
on product differentiation.
COMPANY PROFILE
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INTRODUCTION
The company's marketing network is through its own depots all over India. The
products are being exported to around 30 countries worldwide covering Europe, USA, Middle
East, Africa and Asia with the only motive in offering the real product customers need, in their
required volumes meeting international standards.
ABOUT US
The company’s marketing network is through its own depots all over India. The
products are being exported to a number of countries worldwide covering USA, Middle East,
Africa and most of Asia, with the only motive in offering the real product our customers need,
in their required volumes meeting international standards.
Management
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Name: P.Palanisamy
91 4286 224202
Name: P.Prasanth
Email edprstyres@gmail.com
prasanth@prstyres.in
CERTIFICATION
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Export Awards
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Certification
PRODUCT PROFILE
MOTORCYCLE
Stylish tread pattern with siped block designs and centre groove for excellent road grip
and water channeling.
Rigid tread designs in special rubber compound for extra mileage and uniform wear.
TWO WHEELER
Stylish tread pattern with siped block designs and centre groove for excellent road grip
and water channeling.
Rigid tread designs in special rubber compound for extra mileage and uniform wear.
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3 WHEELER
ARJUN & AR 27
Special tread compound with unique blend of virgin natural rubber and high quality
synthetic rubber for extra mileage and cooler running.
TRIDEV
Unique semilug tread with stronger and tougher tread compound for extra mileage and
bruise resistance.
Extra strong carcass with superior nylon for better puncture resistance and longer life.
Turbo
Computerised tread design with better construction and strong bead configuration.
Supreme tread compound to optimise tread wear for excellent mileage and very good
traction on wet and dry road surfaces at high speed.
1. A Sturdy five rib pattern tyre with wide grooves and deep sipes ensure a very good
mileage.
2. Broad tread arc width and unique tread compound ensure very good wet and dry
traction.
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3. Strong carcass for maximum retreads.
5. Designed for excellent steering control even at high speed with improved road grip.
6. Futuristic tyre tread pattern for better styling and water channeling.
7. Supreme tread compound to optimise tread wear for excellent mileage and very good
traction on wet and dry road surfaces at high speed.
LIGHT TRUCKS
1. A unique and attractive five rib tyre with wider foot print, very good directional stability
and breaking efficiency.
2. Tread is specially compounded for very high wear resistance and groove crack
resistance.
3. Side wall is designed for very high flex resistance and all weather resistance.
4. High breaking strength nylon tyre cords for greater safety, high retreadability, very high
endurance / overall life.
Power Star
1. Deep and wide lugs for excellent road grip and load carrying capacity.
3. Decorative windows at shoulder for better heat dissipation and cooler running.
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4. Super strength nylon tyre cords for very high safety factor, better retreadability and
overall reliability.
5. Designed for reduced power loss by controlling shear stresses and deflation.
7. Unique blend of tread compound offers better wear resistance along with high chipping
and tearing resistance.
ACER
1. Computerised tread design with better construction and strong bead configuration.
2. Supreme tread compound to optimise tread wear for excellent mileage and very good
traction on wet and dry road surfaces at high speed.
IMPLEMENT
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3. Maximum load carrying capacity.
TRACTION IMPLEMENT
SKID STEER
FORK LIFT
1. Premium tread compound for maximum tire lift and wear resistance.
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6. Excellent ride quality
ADV
TUBES
PRS is one of the largest manufacturer of high quality automobile butyl inner tubes
with a manufacturing capacity of 5000 metric tons per annum for all applications in bias and
radial sizes. Our tubes are rated best among its category for its features and benefits like their
high air imp ermeability, high tensile, high heat resistance, high puncture resistance and
longer life.
It is undebatable that only successful marketing will decide the progress of the
industry whatever be the quality of the products. The company's marketing network in india is
through its own depots. The company has 8 depots covering 8 states in india/ The products are
transferred by way of stock transfer from the factory to all the above depots from time to time.
The products are sold from depots to dealers and the company's executive will be incharge of
each depot and monitoring the product movement.
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The products are being exported to a number of countries woldwide like USA,
MIDDLE EAST, AFRICA and most of ASIAN countries, with the only motive in offering the
quality product our customers need at competitive price in their required volumes also meeting
the international standards.
ADDRESS
Ganeshpuram, Namakkal,
INDIA
ORGANIZATIONAL CHART
Managing Director
Joint Director
HR
G.Shanthi
Purchase Production Sales Transport Finance
department department department departmen
t
CHAPTER – III
FUNCTIONS OF DEPARTMENT
PRODUCTION PROCESS
Background
A tire is a strong, flexible rubber casing attached to the rim of a wheel. Tires provide a
gripping surface for traction and serve as a cushion for the wheels of a moving vehicle. Tires
are found on automobile s, trucks, buses, aircraft landing gear, tractors and other farm
equipment, industrial vehicles such as forklifts, and common conveyances such as baby
carriages, shopping carts, wheel chairs, bicycles, and motorcycles.
Tires for most vehicles are pneumatic; air is held under pressure inside the tire. Until
recently, pneumatic tires had an inner tube to hold the air pressure, but now pneumatic tires are
designed to form a pressure seal with the rim of the wheel.
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Scottish inventor Robert Thomson developed the pneumatic tire with inner tube in
1845, but his design was ahead of its time and attracted little interest. The pneumatic tire was
reinvented in the 1880s by another Scotsman, John Boyd Dunlop, and became immediately
popular with bicyclists.
Natural rubber is the main raw material used in manufacturing tires, although synthetic
rubber is also used. In order to develop the proper characteristics of strength, resiliency, and
wear-resistance, however, the rubber must be treated with a variety of chemicals and then
heated. American inventor Charles Goodyear discovered the process of strengthening rubber,
known as vulcanization or curing, by accident in 1839. He had been experimenting with rubber
since 1830 but had been unable to develop a suitable curing process. During an experiment
with a mixture of india rubber and sulfur, Goodyear dropped the mixture on a hot stove. A
chemical reaction took place and, instead of melting, the rubber-sulfur mixture formed a hard
lump. He continued his experiments until he could treat continuous sheets of rubber.
Today, large, efficient factories staffed with skilled workers produce more than 250
million new tires a year. Although automation guides many of the steps in the manufacturing
process, skilled workers are still required to assemble the components of a tire.
Raw Materials
Rubber is the main raw material used in manufacturing tires, and both natural and
synthetic rubber are used. Natural rubber is found as a milky liquid in the bark of the rubber
tree, Hevea Brasiliensis. To produce the raw rubber used in tire manufacturing, the liquid latex
is mixed with acids that cause the rubber to solidify. Presses squeeze out excess water and form
the rubber into sheets, and then the sheets are dried in tall smokehouses, pressed into enormous
bales, and shipped to tire factories around the world. Synthetic rubber is produced from the
polymers found in crude oil.
The other primary ingredient in tire rubber is carbon black. Carbon black is a fine, soft
powder created when crude oil or natural gas is burned with a limited amount of oxygen,
causing incomplete combustion and creating a large amount of fine soot. So much carbon black
is required for manufacturing tires that rail cars transport it and huge silos store the carbon
black at the tire factory until it is needed.
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Sulfur and other chemicals are also used in tires. Specific chemicals, when mixed with
rubber and then heated, produce specific tire characteristics such as high friction (but low
mileage) for a racing tire or high mileage (but lower friction) for a passenger car tire. Some
chemicals keep the rubber flexible while it is being shaped into a tire while other chemicals
protect the rubber from the ultraviolet radiation in sunshine.
Design
The main features of a passenger car tire are the tread, the body with sidewalls, and the
beads. The tread is the raised pattern in contact with the road. The body supports the tread and
gives the tire its specific shape. The beads are rubber-covered, metal-wire bundles that hold the
tire on the wheel.
Computer systems now play a major role in tire design. Complex analysis software
acting on years of test data allows tire engineers to simulate the performance of tread design
and other design parameters.
The software creates a three-dimensional color image of a possible tire design and
calculates the effects of different stresses on the proposed tire design. Computer simulations
save money for tire manufacturers because many design limitations can be discovered before
a proto-type tire is actually assembled and tested.
In addition to tests of tread design and tire body construction, computers can simulate
the effects of different types of rubber compounds. In a modern passenger car tire, as many as
twenty different types of rubber may be used in different parts of the tire. One rubber compound
may be used in the tread for good traction in cold weather; another compound is used to give
increased rigidity in the tire sidewalls.
After tire engineers are satisfied with computer studies of a new tire, manufacturing
engineers and skilled tire assemblers work with the designers to produce tire prototypes for
testing. When design and manufacturing engineers are satisfied with a new tire design, tire
factories begin mass production of the new tire.
The history of tires provides an excellent example of how innovations in one industry
can cause massive changes in another. Simply put, the "take-off" of the automobile industry
transformed the rubber industry in the United States during the early years of the twentieth
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century. The late-nineteenth century rubber industry concentrated on producing footwear and
bicycle and carriage tires. By World War I, rubber and automobile tires were virtually
synonymous in the public mind. Seven thousand new car sales in 1901 were accompanied by
sales of 28,000 tires as original equipment (OE) and an additional 68,000 replacement tires. By
1918, with tires forming about fifty percent of rubber sales, OE tire sales exceeded four million
for the one million new cars produced and total tire production reached 24.5 million.
This vast increase in production was accompanied by the emergence of now well-
known firms like Goodyear, Goodrich, and Firestone, and the formation of the industry's center
in Akron, Ohio. And while employment soared, production increases were possible only with
the aid of technology. The fundamental innovation was the mechanization of core building.
Before 1910, tires were built up by workers stretching, cementing, and stitching each ply and
the beads around an iron core. In 1909, W. C. State of the Goodyear company patented a
machine that carried the plys, beads, and tread on rollers carried on a central turret.
The worker pulled the appropriate material over the core while the machine's electric
motor held the proper tension so the worker could finish cementing and stitching. Skill and
dexterity remained important, but the core-building machine simplified and sped-up production
from six to eight tires per day per worker to twenty to forty a day, depending upon the type.
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The first step in the tire manufacturing process is the mixing of raw materials—rubber,
carbon black, sulfur, and other materials—to form the rubber compound. After the rubber is
prepared, it is sent to a tire-building machine, where a worker builds up the rubber layers to
form the tire. At this point, the tire is called a "green tire."
Tire, called a "green tire" at this point. When a green tire is finished, the metal drum
collapses, allowing the tire assembler to remove the tire. The green tire is then taken to a mold
for curing.
1. The first step in the tire manufacturing process is the mixing of raw materials to form
the rubber compound. Railcars deliver large quantities of natural and synthetic rubber,
carbon black, sulfur, and other chemicals and oils, all of which are stored until needed.
Computer control systems contain various recipes and can automatically measure out
specific batches of rubber and chemicals for mixing. Gigantic mixers, hanging like
vertical cement mixers, stir the rubber and chemicals together in batches weighing up
to 1,100 pounds.
2. Each mix is then remilled with additional heating to soften the batch and mix the
chemicals. In a third step, the batch goes through a mixer again, where additional
chemicals are added to form what is known as the final mix. During all three steps of
mixing, heat and friction are applied to the batch to soften the rubber and evenly
distribute the chemicals. The chemical composition of each batch depends on the tire
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part—certain rubber formulations are used for the body, other formulas for the beads,
and others for the tread.
1. Once a batch of rubber has been mixed, it goes through powerful rolling mills that
squeeze the batch into thick sheets. These sheets are then used to make the specific
parts of the tire. The tire body, for instance, consists of strips of cloth-like fabric that
are covered with rubber. Each strip of rubberized fabric is used to form a layer called a
ply in the tire body. A passenger car tire may have as many as four plies in the body.
2. For the beads of a tire, wire bundles are formed on a wire wrapping machine. The
bundles are then formed into rings, and the rings are covered with rubber.
3. The rubber for the tire tread and sidewalls travels from the batch mixer to another type
of processing machine called an extruder. In the extruder, the batch is further mixed
and heated and is then forced out through a die—a shaped orifice—to form a layer of
rubber. Sidewall rubber is covered with a protective plastic sheet and rolled. Tread
rubber is sliced into strips and loaded into large, flat metal cases called books.
Tire-building machine
The rolls of sidewall rubber, the books containing tread rubber, and the racks of
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After the green tire is made, it is put in a mold for curing. Shaped like a clam,
the mold contains a large, flexible balloon. The tire is placed over the balloon (bladder),
and the mold closes. Next, steam is pumped into the balloon, expanding it to shape the
tire against the sides of the mold. After cooling, the tire is inflated and tested.
Curing
7 A green tire is placed inside a large mold for the curing process. A tire mold is shaped
like a monstrous metal clam which opens to reveal a large, flexible balloon called a
bladder.
The green tire is placed over the bladder and, as the clamshell mold closes, the bladder
fills with steam and expands to shape the tire and force the blank tread rubber against
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the raised interior of the mold. During this curing process, the steam heats the green tire
up to 280 degrees. Time in the mold depends on the characteristics desired in the tire.
After curing is complete, the tire is removed from the mold for cooling and then testing.
Each tire is thoroughly inspected for flaws such as bubbles or voids in the rubber of the
tread, sidewall, and interior of the tire. Then, the tire is placed on a test wheel, inflated,
and spun. Sensors in the test wheel measure the balance of the tire and determine if the
tire runs in a straight line. Because of the design and assembly of a modern tire, rarely
is one rejected. Once the tire has been inspected and run on the test wheel, it is moved
to a warehouse for distribution.
RAW MATERIAL
Raw material stores will receive a copy of the raw material requirement for the month
prepared and sent by plant planning. This is also sent to central planning and central purchase
by plant planning. Based on the requirement, central purchase arranges for procurement of
materials and issues a delivery schedule to the plant. Delivery schedule is the schedule by
which the supplier will release the specified dates to the plant. Raw materials, consumables,
fuel etc are received at the factory gate in line with the delivery schedule and purchase orders.
The documents are verified to ensure that the materials are from approved sources and
the correct quantity as is delivered Weighment of the load is done. Goods arrival entry
is made and the load is re-directed to the unloading point through the security
department.
The unloading point is usually the raw material godown, but sometimes the materials
are unloaded at the plants where it is consumed. In case of fuel, oil etc it is unloaded at the
storage area.
At the unloading point, visual inspection is carried out and then the materials are stored
with proper identification tags showing the primary status of the material (hold/ pending for
test).Each material has a specified storage place and it is placed in that storage area. Sample
transfer / visual inspection report is prepared and samples are collected for testing as per the
documented sampling plan. The sampled bag is identified and the sample is sent to technical
department for testing .
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GRN (Goods Received Note) is prepared at this point. After testing the samples,
technical department informs the test result through material release /rejection / hold note
printed at the bottom portion of the transfer /visual inspection report.
Based on the test result ,green color sicker captioned “OK” is affixed if the
material is OK, Red color sticker captioned “REJECTED” is affixed if the material is
not fit for use and ORANGE color sticker captioned “HOLD” is affixed if it needs further tests
to arrive at a concrete decision.
Materials are issued to production as per the indent raised by production in each plant
.Stock inventory and stock back to the supplier and the cost recovered .Transferring of
materials to other plants is also monitored
All raw materials are tested and released if they confirms to the specifications. When
the material is received, raw material stores personnel arrange for collection of samples from
the received material as per sampling plan.
The sample is given to raw material testing lab along with sample transfer note/ visual
inspection report.Raw materials are tested as per BSP (Basic Standard Practices), standard test
procedure and are compared with the specification issued by corporate technical.
If the material does not confirm to specification, more samples are tested and released
if it is OK. If any of the re-tested samples are not OK, then the samples are sent to corporate
lab and the material is accepted or rejected based on corporate advice. If the material is rejected,
then raw material rejection note is prepared and the material is returned to the supplier by raw
material stores
In process materials are tested by technical as per the plan to check whether any
deviation from the specification has happened either in the material used or in the process.
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Finished product testing is done both in the plant and at corporate technical
departments. This is done to ensure that the product produced confirms to the required
standards. In case of tyres, ply adhesion, mounted tyre dimension, and cut tyre analysis are
done in the plant. For PCTR and flap, cured dimensions and weight are checked.
Process Control
Process control is effected by checks or tests conducted regularly. The data generated
during tests and audits are used to control the process. Changes are made if required in the
specifications to achieve process ability targets, the changes are documented through plant
changes letters.
If there is any problem, the process / product will be analyzed for variations in raw
materials, or process conditions. Any deviation found will be corrected or alternative source
of raw material will be tried. Process will be repeated to check whether it is ok
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Safety
External competitive environment and organizational culture
Factory discipline
Basic process flow in the plant in which they are place.
The following are the various activities being undertaken in taken in HR Department
OFFICE TIME
The office time is also come under the HR Department. The office time carries out the
following function.
Attendance detail
Leave details
Wage calculation
Daily reports.
Working hours
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Second shift : 3pm-11pm
Quality control begins with the suppliers of the raw materials. Today, a tire
manufacturer seeks suppliers who test the raw materials before they are delivered to the tire
plant. A manufacturer will often enter into special purchasing agreements with a few suppliers
who provide detailed certification of the properties and composition of the raw materials. To
insure the certification of suppliers, tire company chemists make random tests of the raw
materials as they are delivered.
Throughout the batch mixing process, samples of the rubber are drawn and tested to
confirm different properties such as tensile strength and density. Each tire assembler is
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responsible for the tire components used. Code numbers and a comprehensive computer record-
keeping system allow plant managers to trace batches of rubber and specific tire components.
When a new tire design is being manufactured for the first time, hundreds of tires are
taken from the end of the assembly line for destructive testing. Some of the tires, for example,
are sliced open to check for air pockets between body plies, while others are pressed down on
metal studs to determine puncture resistance. Still other tires are spun rapidly and forced down
onto metal drums to test mileage and other performance characteristics.
A variety of non destructive evaluation techniques are also used in tire quality control.
X-ray video graphy provides a quick and revealing view through a tire. In an X-ray tire test, a
tire is selected at random and taken to a radiation booth where it is bombarded with X-rays. A
test technician views the X-ray image on a video screen, where tire defects are easily spotted.
If a defect shows up, manufacturing engineers review the specific steps of tire component
assembly to determine how the flaw was formed. In addition to internal testing, feedback from
consumers and tire dealers is also correlated with the manufacturing process to identify process
improvements.
The Future
Constant improvements in rubber chemistry and tire design are creating exciting new
tires that offer greater mileage and improved performance in extreme weather conditions.
Manufacturers now offer tires estimated to last up to 80,000 miles.
Treads, designed and tested by computer, now feature unique asymmetrical bands for
improved traction and safety on wet or snowy roads.
Tire design engineers are also experimenting with non-pneumatic tires that can never
go flat because they don't contain air under pressure. One such non-pneumatic tire is simply
one slab of thick plastic attached to the wheel rim. The plastic curves out from the rim to a
point where a rubber tread is secured to the plastic for contact with the road. Such a tire offers
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lower rolling resistance for greater fuel economy and superior handling because of a greater
area of contact between tread and road.
Quality assurance department’s primary aim is customer satisfaction. Hence its prime
duty is to ensure that all customer complaint should be taken seriously and is to be
communicated to all concerned. Problem solving tools are employed to ensure that the problem
is solved and error proofing methods are adopted to ensure that such problems don’t occur
again.
Improve the profitability of the company by reducing defects and waste generation.
This is done by initiating projects for waste reduction and forming task forces for close follow
up. Specific targets are fixed in each area for waste reduction and forming task forces for close
follow up. Specific targets are fixed in each area for waste reduction and quality improvement
and it is done in co-ordination with all other connected departments
The main function of quality assurance department is process audit and final product
inspection. This will include monitoring the inspection status of incoming materials, in-process
materials, process parameters and finished product inspection. Ensuring identification and
traceability of all materials is also the function of QA.
The quality policy of PRS is to maintain market leadership through continuous quality
improvement. To achieve this goal, all the PRS plants and the corporate office shall pay
particular attention to the following:
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Up gradation of machinery to meet the increasing needs of the customer.
Continuous training of all employees in order to acquire necessary skills and knowledge
TECHNICAL DEPARTMENT
Technical department at the corporate level carries out R&D activities and the results
of those activities are transferred to the plants. Some of the activities carried out at corporate
technical are new moulds, selection and evaluation of new and alternative sources, selection
and evaluation of alternative materials, finished product testing and analysis, heat engineering
and assisting plants in problem solving. The results of research and developments are translated
into practical applications at the plant level. At the same time, other routine functions like
testing of incoming materials, process monitoring and product testing at each stage is also
carried out.
Activities
1. New product development.
2. New compound development.
3. Designing and inspection of new moulds.
4. Selection & Evaluation of new alternative source.
5. Selection and evaluation of alternative.
6. Finishes product listing and analysing.
7. Arresting plants in problem solving.
MARKETING DEPARTMENT
The prospectus of tyre exports from India appears healthy; following efforts by Indian
companies to increasing entering into out sourcing agreement with tyre producers in South-
east Asia, Eastern Europe and Latin America. Overall, tyre manufacturers are likely to tap the
export market in an effort to boost sales. The increasing exports of bus and truck tyre from
India to developing countries is because of the fact that developing countries is because of the
fact that developing countries are unable to source them from developed countries as these are
no more produced there. Tyre imports are unlikely to pose a threat to the domestic industry,
given that domestic prices are lower than international tyre prices. In the domestic market, tyre
manufacturers are expected to increasingly focus on expanding their dealership networks and
explore possibilities of tie-ups among themselves to penetrate the growing customer base. They
are also likely to pursue innovative measure to improve customer awareness. The consolidation
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of the Indian tyre industry is likely to continue in the coming years through mergers among
existing players. The industry is likely to expand through a combination of organic and
inorganic growth. While organic growth would come from raising efficiency levels, inorganic
growth would be achieved through alliances and mergers & acquisitions
1. Rubber
2. Carbon black
3. Nylon cord
4. Chemicals.
GLOBAL SCENARIO
Thailand, Indonesia, China, Malaysia, Vietnam are the major producers of rubber in the
world.
The global production fluctuates between 6-8 million tons, with the production
of Million tons in 2003, of which Asian countries have produced 6.76 million tons.
On the consumption front, global natural rubber consumption is 7.89 million tons of
which 1.9million ton was consumed in India and China alone. The total synthetic rubber
consumption was1.13 million ton.
Around 60% of the global rubber production is used by the transportation sector. In this
sector, natural or synthetic rubber cannot be used individually and has to be blended
Tyre Industry Delicensed since in 1987All categories of new tyre can be exported freely. All
categories of new tyre can be imported freely. Now to bound rates for tyres and tubes. All raw
materials required for the manufacture of tyres can be imported freely.
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FINANCE DEPARTMENT
The Functions of accounts department at the plant level have been divided into
Financial account
Cost account
Wages and Salaries
Sales tax
Internal source
1. Share capital
2. Reserves and surplus
External source
1. Banks.
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Application of funds
1. Fixed asset
2. Investment
3. Current asset.
4. Loans & Advance.
Financial Accounts
This branch deals with all types of cash payments and receipts. This will include
payment for engineering and raw materials purchase, petty cash payments, operation and
reconciliation of bank accounts ,payment to the government in the form of taxes and levies
,payment of PF ,deduction from salary and payment of loan outstanding and insurance premium
of employees ,fright payments, payment in lieu of travel allowance ,medical re imbursement
etc. Cash receipts in the case of scrap sales and any other cash receipt will also come under this
branch of accounts.
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 .Any variation from the budget is
analyzed to find the exact reason and it is reported to the top management
Sales Tax
All matters related to sales tax are handled by this section. Monthly returns for sales tax
are filed on behalf of sales depots. VAT (Value Added Tax) system has been introduced and
all matters related to this are also looked after by this branch of accounts. “C” forms for
purchases from outside the stare and “F” forms are issued for receipt of goods from depots.
SECURITY DEPARTMENT
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Industrial safety in the public and private sector can be defined as protection of men,
materials, machines, buildings, classified information, and the company operations and to
provide protective services against fire, theft, damage to the company assets and the
installation. Protect the valuables of the company as well of the employees. The main functions
of security department are:-
CHAPTER - IV
SWOT ANALYSIS
The SWOT Analysis have revealed the strength, weakness, opportunities, and threats
of the company. It has been detailed below:
STRENGTH
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9. Aggressive marketing Policies.
10. Latest technology and concepts.
11. Experienced work force.
12. Wide spread recognition.
13. Quality control.
14. Harmonious relations between workers.
15. Largest tyre manufacturers in India.
16. Strong financial support.
17. Good and efficient distribution network.
WEAKNESS
OPPORTUNITIES
THREATS
1. Competitions.
2. Market Risks.
3. Cheap import from China.
4. rupee depreciation resulting in lower export realization
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5. Changing technology.
6. Entrance of new players.
7. Cost of raw materials.
8. Increasing transportation cost.
CONCLUSION
PRS Tyres mobilized itself as the market leader. The strong performance of PRS is
because of combined efforts of management and employees. PRS provides high quality and
technologically superior products to its customers. The company has the provision to find out
which tyre is manufactured by which worker.
The effective management along with successful workers is very dedicated and is aware
of new developments taking place in the industry. There is “no compromise on the
quality policy” makes them King of Kings in tyre industry. If they implement the suggestion
put forward, will help them to improve profit and helpful for the workers. So the company can
attain global standard through continuous improvement in the quality products and service in
order to maintain market leadership and can be the king in tyre industry for many years.
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CHAPTER – V
BIBLIOGRAPHY
Books
Periodicals
"Winners: The Best Product Designs of the Year," Business Week. June 8, 1992, pp. 56-57.
"Computer Simulation Saves Money, Enhances Tire Design Before Prototypes Are Built,"
Elastomerics. July 1992, pp. 14-15.
"PZero: Pushing the Performance Envelope with Pirelli's Newest Offering," European Car.
July, 1992, pp. 62-63.
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"Tires: A Century of Progress," Popular Mechanics. June 4, 1985, pp. 60-64.
— Robert C. Miller
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