Ê

Ê 

Elgi Rubber Company Limited, formerly Elgitread India Limited, is an India-

based company. The Company is engaged in the business of providing solutions
to rubber industry.

Elgi Rubber Company is one of the world's largest single-source suppliers of

retreading solutions. Right from stand-alone machines and equipment to a wide
range of raw materials and retreads for tyres, engineered for varied terrains and
seasons, Elgi Rubber Company Limited offers a complete retreading system that
guarantees good results to a retreader's customers.

Elgi Rubber Company Limited is among those companies that have a range of
services to offer. It is one of the largest suppliers of retreading materials in the
world. It has supplied over 600 retreading plants in 35 countries. The
manufacturing facilities of Elgi Rubber Company Limited include 8 plants in 6
countries to manufacture over 25 million kilograms of retreading material. It also
includes a highly modern facility to manufacture retreading equipment backed by
a well maintained training facility and laboratories. These facilities help in the
research and testing of metals and polymers.

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 Ê 

pne of the main activities of Elgi group in the 1970s was bus transport and as a
part of its operations, was involved in the retreading of tyres. Realizing the
potential advantage of precured retreading, the group set up a team to develop the
machinery, the material and the process to introduce it into its own operations.

The objective was to create a small cost effective plant unlike the large and
expensive systems available in Europe and the United States. Using the extensive
light engineering and rubber technology capabilities available with in the group, a
very compact and unique retreading facility was established to cater the retreading
needs of the group. The results were outstanding, with the retreads performing
100% better with only a marginal increase in cost. When the excess capacity was
offered commercially, the response was overwhelming. The group decided to
commercialize the project and established a new company, Elgi Rubber Company
Limited and Tread Limited in the year 1981 for the purpose of franchising
precured retreading systems. All the required facilities were available in the group
except for the technology for large scale production of the retreading materials.
This was acquired through a technical licensing agreement with pliver Rubber
Company of the United States (from 1984 to 1994).


The company commenced commercial operations in 1984 and was renamed as
Elgitread (India) limited in 1988. During the year 2007 the company was
demerged in to two companies namely Teadsdirect limited (TDL) and Elgitread
(India) ltd. Subsequently, Elgitread (India) Ltd was renamed as Elgi Rubber
Company Limited (ERCL) with effect from September 12, 2008.

ERCL is manufacturing other rubber products for open market. The combined
turnover of the company for the year 2008-2009 was USD 45 million. ERCL have
accessories facility in Annur near Coimbatore, and facility for the manufacture of
retreading machinery and accessories.

In addition ERCL has established an aircraft tyre retreading facility with state of
the art analytical and physical testing equipment at a cost of over USD 4 million.
The company has factories located at Chenglepet, Kanjikode, Kovilpalayam,
Karur, Arasur, Vellalore, and Annur. Further established two subsidiary units in
Texas and Brazil.

Strategically ERCL has acquired a manufacturing facility for manufacturing of

string repair patches at the cost of US 3 million during May 2009 situated at
Texas, USA. This product is used for repairing of tyres.

Elgi Rubber Company Limited provides various solutions and services to rubber
industry in India and also International. The company provides retreading
equipment, such as inspection spreaders, tyre buffers, tread builders, envelope
expanders, curing chambers, expanding hubs, expanding rims, envelope locking
rings, envelope sealing flanges, curing rims, dust extractors, cement churners,
mono rail station for chambers, and tyre stands.

½
Elgi Rubber Company Limited also offers repair equipment, including tyre
vulcanizers and extruder guns; and retreading tools, such as rasps and burrs, hand
tools, knives, and brushes.

In addition, the company provides retreading materials consisting of tread

rubbers, cushion rubbers, vulcanizing cement, aqua coat, aqua lube, curing
envelopes, curing tubes, and curing flaps; and repair materials, such as patches,
chemical vulcanizing cement, extruded rope rubber, and filler gum.

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6‘ The Company was incorporated on 13th May 1981, and the Certificate of
commencement of Business was obtained on 4th August.
6‘ It was promoted by L. G. Balakrishnan and its brothers along with M/s. L.
G. Balakrishnan & Bros. Ltd., Elgi Equipments, Ltd. and Super Spinning
Mills Ltd.
6‘ The Company manufacture procured tyre treads, cushion compounds,
cement, envelopes, etc.
6‘ The Company entered into a technical collaboration agreement with
pliver Rubber Co., U.S.A.
6‘ Under this agreement pliver Rubber Co., U.S.A. were to supply to the
Company technical information, data, documentation and specification
relating to machinery, installation and commissioning of the required plant
and machinery and furnish chemical formula or process for the
manufacture of licensed articles.

Ô
 
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"% "%%&

L.G. Varadarajulu, Chairman, Elgi Equipments Ltd, he was 82. Varadarajulu,

fondly referred to as LGV, was the son of businessman LRG Naidu and
Ranganayakiammal. After completing his studies in automobile engineering at the
Arthur Hope's College in Coimbatore, he joined his father's bus transport business
in Tirupur. He ventured into manufacturing of automobile garage equipment and
air compressors in 1960. He had served as the Chairman of the Elgi Group of
Companies ² Elgi Equipments, Elgi Rubber, Elgi Ultra Industries, and LG
Balakrishnan & Bros. He spent his time in running two schools and contributed to
the establishment of medical facilities for the needy through the LGB and LRG
trusts. 


 







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LG Varadarajulu Chairman
Sudarsan Varadaraj Managing Director
Dr Jairam Varadaraj Director
M John Edward Director
Suresh Jagannathan Director
MD Selvaraj Director
P Vijay Raghunath Director
C N Srivastan Director

()
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LG Varadarajulu Chairman
Sudarsan Varadaraj President
SR Venkatachalam Vice President - Finance
K Vijayalakshmi Company Secretary

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6‘ Reddy, Goud & Janardhan

Chartered Accountants
Banglore.

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6‘ MS Jagannathan & Visvanathan

Chartered Accountants
Banglore.

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6‘ State Bank of India

Commercial Branch
Coimbatore.



6‘ Thimmavaram. Chengalpattu
6‘ Kanjikode, Palakkad
6‘ Annur, Coimbatore
6‘ Kovilpalayam, Coimbatore
6‘ Lorena ± SP, Brazil.

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Elgitread is among those companies that have a range of services to offer. It is one
of the largest suppliers of retreading materials in the world. It has supplied over
600 retreading plants in 35 countries. The manufacturing facilities of Elgitread
(India) include 8 plants in 6 countries to manufacture over 25 million kilograms
of retreading material. It also includes a highly modern facility to manufacture
retreading equipment backed by a well maintained training facility and
laboratories. These facilities help in the research and testing of metals and
polymers.

This company has the appropriate solution for all problems. The products of
Elgitread (India) are:

6‘ Retreading Equipment
6‘ Retreading Material
6‘ Repair Equipment
6‘ Repair Material
6‘ Retreading Tools

£
 

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The retreading equipments are:

6‘ Inspection Spreaders
6‘ Tyre Buffers
6‘ Tread Builders
6‘ Envelope Expander
6‘ Curing Chambers
6‘ Expanding Hubs
6‘ Expanding Rims
6‘ Curing Rims
6‘ Dust Extractor
6‘ Cement Churner and
6‘ Tyre Stands etc...

c

 

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The retreading materials are:

6‘ Tread Rubber
6‘ Cushion Rubber
6‘ Aqua Coat
6‘ Vulcanizing Cement
6‘ Aqua Lube
6‘ Curing Envelopes
6‘ Curing Flaps and
6‘ Curing Tubes


Ê*Ê 
+

The repair equipments are:

6‘ Tyre Vulcanizer and Extruder Gun


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+

The repair materials are:

6‘ Extruded Rope Rubber

6‘ Chemical Vulcanizing Cement
6‘ Filler Gum and Patches

cc
 



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The retreading tools are:

6‘ Rasps & Burrs, Hand Tools

6‘ Brushes, Knives



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The other retreading tools are:

6‘ Rasps & Burrs

6‘ Hand Tools, Brushes and Knives

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uEAR EVENTS !# - The Company was incorporated on 13th May, and the
Certificate of commencement of Business was obtained on 4th August. It was
promoted by L. G. Balakrishnan and its brothers along with M/s. L. G.
Balakrishnan & Bros. Ltd., Elgi Equipments, Ltd. and Super Spinning Mills Ltd.
The Company manufacture procured tyre treads, cushion compounds, cement,
envelopes, etc.

- The Company entered into a technical collaboration agreement with pliver

Rubber Co., U.S.A. Under this agreement pliver Rubber Co., U.S.A. were to
supply to the Company technical information, data, documentation and
specification relating to machinery, installation and commissioning of the
required plant and machinery and furnish chemical formula or process for the
manufacture of licensed articles.

"%%# -Elgitread (India) Ltd has informed that Name of the Company
has been changed from Elgitread (India) Ltd to Elgi Rubber

Company Ltd with effect from September 12, 2008.
"%%, -Elgitread (India) Ltd has appointed Sri.S.R.Venkatachalam,
Chief Finance pfficer of the Company as Compliance pfficer of
the Company with effect from 27.01.2007.
"%%- -Equity shares delisted from Hyderabad Stock Exchange

-Equity shares delisted from Madras Stock Exchange

"%%. -Acquired shares as under: Sudarsan Varadaraj - 24300 shares
(0.57%); ELGI Rubber Products Limited - 5000 shares (0.12%);
Rayalaseema Technologies Limited - 5000 shares (0.12%); LRG

c½
 Technologies Private Limited - 30000 shares ((0.70%). The type
of acquisition is Inter-se Transfer and the date of acquisition is
November 13, 2003. The shareholding after the proposed
acquisition is as follows:- 1. Sudarsan Varadaraj -755371 shares
(17.67%); 2. Elgi Rubber Products Limited -90500 shares
(2.12%); 3. Rayalaseema Technologies Limited -103325 shares
(2.42%) 4. LRG Technologies Private Limited -329250 shares
(7.70%).
"%%" - Dr Jairam Varadaraj has been appointed as Director, in June 07,
2002. -Mr. N S K Swamy has ceased to be a Director
!!- - The company proposed to set up new projects in order to broad
base the product range. - 9,50,000 bonus equity shares allotted in
propotion. 1:2.
!!. - The Company proposed to diversify and improve the technology
in related areas of business. The Company identified a suitable
overseas partner to introduce retreading of aircraft tyres in view
of the open sky policy of the Government.
!#/ - 7,60,000 right shares issued (premium. Rs. 2 per share,
propotion. 4:5). 1,90,000 additional shares allotted to retain
oversubscription. Another 40,000 shares offered to employees
(premium. Rs 2 per share) the details of allotment of which were
not known.
!# - 50,000 No. of equity shares at par subscribed for by pliver
Rubber Companies, USA.
!#. - 3,00,000 No. of equity shares taken up by promoters, etc. and
6,00,000 No. of equity shares offered at par for public
subscription during June.

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Personnel management is a link between the top management and the workers or
we can say that its acts like bridge between the employees and the employers. It is
basically concerned with human relationship within the organization and helps in
maintaining smooth relationship with employee and employees. It is the art of
getting thing done by other people.

Human resource is the greatest asset of any business enterprise. The workers are
the heart of the organization. It is the manpower that operates the machines,
processes the raw materials into a finished product and makes it possible to sale in
the market. Henceforth we can say that personnel management is the most
essential department of and organization in order to have a proper manpower
planning, organization, staffing, directing and controlling in order to achieve
individual social and organization goals.

  


6
It mainly deals in the process of recruitment of manpower and act as a consulting
agent between the officers and the workers.‘

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It deals with the staff members of and organization and is accountable to the vice
president.

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ËRecruitment is process to discover the sources of manpower to meet the
requirement of the staffing schedule and to employ effective measures for
attracting that manpower in adequate numbers to facilitate effective selection of
and efficient working force.´

The recruiting procedure ofCompanyconsists of three segments.

6‘ Recruitment of workers
6‘ Recruitment of executives and managerial staff
6‘ Recruitment of technical personnel

So far as Company is concerned the recruitment procedure is directly depend

upon human forces and is relate to the selection of well-qualified personnel¶s.

 
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The selection procedure is concerned with security relevant information about an
application.

Company recruitment and selection procedure for blue-collar force is as per the
labor laws. For the recruitment of labor in the Company.

The concern supervisor and the labor welfare officer select workers. Physical
fitness. Attitude for work etc. are considered at the time of selection. With
reference to the method Company uses the indirect method more frequently for
the recruitment of its employees

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The HR department of the Companyprepares schedule for training of the workers
in order to make the familiar with their task and to develop the job. The main
purpose of the company behind imparting training is to make the workers well
converse with the new technology.


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The training needs are identified through the annual performance appraisal
system. Both the staff himself and his department head identifies the training need
and mentioned the same in the annual performance appraisal from the employees.

The need identification above is compiled and annual training calendar prepared
by HR Department. Further the corporate HR also suggest that the unit HR
organize some specific training programs based on the needs felt by the corporate
HR.

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The Company is not imparting any training courses as far as clerical staff is
concerned. But the supervisors are trained for:

'‘ Gaining knowledge to responsibility

'‘ Cost control and cost effectiveness
'‘ Knowledge of all disciplinary action
'‘ Development of leadership quality.

The other purpose of Company behind imparting training is:

'‘ To create awareness among the workers regarding the quality of products
and to improve knowledge thereby.
'‘ Enhancement of technical knowledge and various safety measurement
techniques.
'‘ To improve the discipline of the worker, good conduct and job
responsibility.



Ê 

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Feedback from are filled by employees after every training program to rate the
effectiveness of the training program on the following criteria

'‘ Duration of the program

'‘ Course content
'‘ pverall effectiveness of the program
'‘ Effectiveness of the faculty
'‘ Physical arrangement of the program

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The job description is nothing but it is the written form of job analysis like what
to do? Where to do? What is the main responsibility? To whom job is
responsible? Etc.

In other words job description means to give the information and guidance to
candidate about his particular job for which he has been selected it is a process of
giving information to candidate about his status duties responsibility etc.

ELGITREAD (India) Ltd the duties and responsibilities of administrative

department are collected through job description is as under.

'‘ pbservation of employees at the time of work.

'‘ Discussion with departmental heads and outside experts.

This job description process is for employees, which are at middle as well as
personnel executives.



Ê
  
In this unit when a managerial level person is selected following are the
information given to them.

'‘ Nature of job.

'‘ Duties and responsibilities
'‘ Job summary
'‘ Position and status.
'‘ Working condition



 


Ê

It is the process of evaluating the performance and qualifications of the employee
in term of the requirement of the job, for which he is employed.

The main aim of the evaluation system is to identify the performance gap. This
gap is the shortfall that occurs when performance does not meet the standard set
by the organization as acceptable.

Company the management is using three year of service period is studying

performance appraisal system. When a new candidate is recruited, the
management examines his performance for two year that is called as the
apprentice period.

In this co. normally three years of service period is considered to be qualified

period for getting promotion. At the meanwhile of these three years the
performance of the employee is continuously observed and is taken into account
while giving promotion. During this period the management prepares the
confidential report of the performance and behavior of the candidate.

The performance appraisal system adopted by Company is traditional one. It

conducts the performance appraisal program in the month of June every year and
all the employees are divided into two categories i.e. staff members and operating
workers.

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Companyhas sound personnel policy. The policy is a blend of seniority and merit
consideration stressing more emphasis on seniority. And employee is promoted
considering his ability to deal with problems occurs among the subordinates and
seniors as well as level of proficiency, loyalty, etc.

Promotion is given after every 3 or 4 years on the basis of disciplinary action and
by performance appraisal system.

Employees are promoted within the organization in term of vacancies of creation

of new post. Companyadopts to take the advance of the employees, one very well
aware of companies policy and production procedures in term to motivate them.


+

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Company runs various units located at different places within the country, yet
under this unit transfer practice is not following. Sometimes some workers are
transferred from on department to another because of physical fitness problem.


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It includes wages of operation manpower. Time office prepares wage sheets and
payment is done on the basis of time Rate. In case of late comers, the part of the
amount form their wages are deducted. Payment of wages to the workers is done
dept.




Ê Ê


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Salary administration involves salary of administration staff and electrical

personnel. Salary sheets are prepared in account office and payment is done on
the basis of time rate and net attendance.

Besides salary the Co. also provide various other incentives to its employees.
Increments are given every three-year. Company has graded its employees
according to their job level. There are grade level as per the rationalization, career
path and qualification of the employees. It provides the car, housing medical and
other facilities as per the grade level of the employee.

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Elgitread ( India) Ltd provides uniform to its workers of the company. In this each
employee gets a 10 meter cloth with stitching allowances in the very first month
of the year.

Ê    
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Ê +

The company celebrates the independence day every year. pn this day the
programmed of national flag hosting is followed by sweet distribution.

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+

The company also celebrates the republic day with arranging many sports
activities & other programs.

Ê

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Company has its own dispensary in factory. Also in this dispensary workers are
treated up on free of charge. Company has its own doctors for this dispensary



 

The Company is attached with a Canteen where food and other beverages are
provided in subsidy rate. The Canteen is comprised of a lunch room, a separate
dining hall for men as well as women.


r
 
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  Ê'Ê Ê

The company is conscious of its social responsibilities and is carrying them very
well. ELGI Equipments continues founder Mr. LRG Naidu's legacy of giving
back to the community. ELGI's commitment to contribute substantially to the
community has led to the undertaking of projects in the fields of education,
vocational training, community health and advancement. This is accomplished
through the dedicated activities of the following trusts established by the ELGI
family members:

6‘ THE ELGI PUBLIC WELFARE TRUST

6‘ THE ELLARGI TRUST
6‘ THE SILVER JUBLIEE TRUST
6‘ THE LRG NAIDU EDUCATIpNAL TRUST
6‘ SRI RAMASWAMu NAIDU VIDuALAM

Ô

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The Elgi Public Welfare Trust was established in 1983 by Mr. LG Ramamurthy
and Mr. LG Varadaraj. This Trust runs the Elgi Matriculation Higher Secondary
School at Vellalur, Coimbatore which was established in 1989. The school aims
to impart knowledge and global culture in children belonging to the rural areas.
The school caters to the educational needs of children starting from the primary
level (Lower Kinder Garden) up to the higher secondary level (12th standard).
The present strength of the school is about 1004 students. It is well equipped with
a library, computer lab, audiovisual lab, Linguistics lab as well as facilities for a
variety of sports activities.

ü
Ê



The Ellargi Trust established by Mrs. Amiritham Varadaraj and Dr. Jairam
Varadaraj in 1998 is dedicated towards providing medical and educational relief
to the nearby community. The medical assistance provided by this trust comprises
individual medical relief as well as grants to hospitals. The educational assistance
comprises educational scholarships for school and college education as well as
institutional donations to various educational institutions in and around
Coimbatore City.

üÊ ]' Ê



The Silver Jubilee Trust established in 1991 by Mrs. Amiritham Varadaraj and
Mr. LG Ramamurthy utilizes its funds for the advancement and up liftment of the
physically challenged community in Coimbatore. It works in close coordination
with the Society for the Aid of Handicapped Children, Coimbatore. This society
runs a school and a hostel for the physically and mentally challenged children of
the community.

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This trust founded by Mr. LRG Naidu in 1965 is focused on the advancement of
learning by way of institutional donations; grants and scholarships; and support of
social welfare projects and philanthropic activities.

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Sri Ramaswamy Naidu Vidyalayam is a school managed by the members of the

ELGI family. It was established in 1946 at Lakshminaiken Palayam, Palladam,
Coimbatore. The strength of the school is approximately 1200 children mostly
from the rural community. This School turns out brilliant students and has
consistently achieved 100% results.

º
 
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Marketing deals with identifying and meeting human and social needs. pne of the
shortest definition or marketing is Ëmeeting needs profitable´

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Marketing is a process by which individuals and group obtain what they need and
want by creating and exchanging products and value with others.

Marketing is typically seen as the task of creating, promoting and delivering

goods and services to consumers and businesses. Marketing people are involve in
marketing ten types of entities¶ goods, services, experiences events, persons,
places, properties, organizations, information, ideas.

Marketing has often been described as 2
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The company has a very efficient and excellent marketing department, which tries
to provide maximum satisfaction to the customer while having reasonable.

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The following are objectives of Elgitread (India) Ltd.

'‘ To find new and new customers to sell them more & more of companies
product.
'‘ Try to make better and quality product.
'‘ To provide a successful distribution of customer products.
'‘ To study the market problem according to the circumstances and suggest
the solutions.
'‘ To sell their products in new areas to make new customers and satisfied
old ones.
'‘ To encourage the customers and know the fault in their products and then
try to make quality or faultless products.



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Product planning involves three important considerations:

1.‘ The development and introduction of product

2.‘ The modification of the existing products
3.‘ The elimination of unprofitable products.

Company plans its product design according to the demand of the client¶s market
situation, and price of the product of its competitors.

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 ? 
  


New product development shapes the company¶s future. Given the rapid changes
in taster. Technology and competition a company can¶t rely solely on its existing
products.Companies that, fails to develop new products are putting themselves at
great risk. Company can a new products though acquisition and development.

Elgitread (India) Ltd has made efforts in technology absorption and in specific
areas that brings:

6‘ 1000Kg Free Standing Tyre Buffer

6‘ 800Kg Free Standing Tyre Buffer
6‘ 600Kg Free Standing Tyre Buffer
6‘ 195Kg Free Standing Inspection Spreader
6‘ 150Kg Free Standing Inspection Spreader
6‘ 110Kg Free Standing Inspection Spreader

'

The American marketing association defines brand is :

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With six of the foremost name in the apparels business into its fold, 539
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Pricing is a key factor, which remarkably effects the sales operations. Price may
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l‘ The firm has to consider any factors in setting its pricing policy.
'‘ Pricing objective
'‘ Determining demand
'‘ Estimating cost
'‘ Analyzing competitors prices
'‘ Pricing method
'‘ Selecting final price

Price is the only element in the marketing ±mix that produces revenue.

Company has not adopted any clear pricing policy but it follows the mixture of
following pricing strategy.

 
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Under this policy all the manufacturers meet together at Mumbai and they fix
maximum price level by negotiating with each other. Sometimes the Co. also uses
the prestige pricing method because it is believe that the product with higher
quality can attract the customer with the higher process

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Under this policy the company uses the method of pricing at market. This helps to
avoid the price competition and price war in the market.


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Under this policy the company uses the method of target pricing. It fixes a target
return of total cost. It uses break-even analysis for deciding cost plus pricing
which helps it in determining the level of output.

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l‘ Advertising is basically used for:

'‘ Creating or enhancing goodwill
'‘ Preparing ground for new product
'‘ Creation of demand
'‘ Facing the competition
Companyis very sound company producing industrial product.

Elgitread (India) Ltd is use as a raw material in rubber industries that are not
affected by any media of advertisement and that is the reason why the company is
not advertising its product.

The company publishes magazines, which depicts various facts and figures of
companies manufacturing process, EXIM policy, pricing policy, strategies, etc. In
short, the company adopts the direct advertising method.

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Every company is inevitably cast into the role of communicator and promoter.


 
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Companies use sales-promotion tools to create a stronger and quicker response.

There is a separate organization, which jointly made efforts for sales promotion
and this organization is followed by Company. This organization is known as
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The head office of Company does all the activities of the sales promotion. It
promotes its sales via dealers i.e. the product is sale thought middleman.

Following tools have been use in this method;

'‘ Buying allowance discount

'‘ Display allowance
'‘ Dealers contest
'‘ Concession on the net sales

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ËThe middleman is not a hire link in a chain forgets by a manufacturer, but rather
and independent market, the focus of a large group of customers for whom he
buys.´
Company has adopted its own sales branches and sales offices in context of its
channel 0f distribution. The company has selected the distributed channel keeping
in view the demand of the customer and the current market trend.

In Company the main product is Tyre Buffers so, this unit utilizes level and one
level of channel of distribution. They are conducting the sales activity with the
help of agents dealers, sub dealers etc. in different cities and different state.

Company sales marketing office is at Mumbai, which performs the function of

selling the product of the company. The marketing office collects all the orders
from the different sales branches. All the sales branches of Company maintain the
facilities like storage, after sales service etc.

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To be successful, the company must to a better job than its competitors of

satisfying target consumers. This, marketing strategies must be adapted to the
needs of consumers and also to the strategies of competitors. Base on its size and
industry position the company must find the strategy that gives it the strongest
possible competitive advantages.

The Company enjoys the monopoly in the market because if its total market of
ELGI Rubber Industry

6‘ Apollo Tyres Ltd

6‘ Birla Tyres Ltd
6‘ The Ceat Shoppe
6‘ Paragon Polymer Products Pvt Ltd
6‘ M.G.M Rubber Company
6‘ Thermofab India.
6‘ Goodyear India Ltd
6‘ Govind Rubber Ltd
6‘ Jk Industries Ltd
6‘ Dewan Tyres Ltd
6‘ Eastern Treads Ltd

½
 
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Production means creation of utility and entails the procurement and utilization of
factors of production, which includes manpower, material, buildings and
equipments.Production is fabrication of physical object though use of men,
material and equipment.

Ë 89384 4549 6 ;39< 36384 =9345 9 98

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Production must be operated in an economic and efficient manner because cost of

production is vital factor in facing market competition and in ensuring normal
profit or return on investment.

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A 9, or "recap," (or "remould" in the UK) is a previously-worn tire which
has gone through a remanufacturing process designed to extend its useful service
life.Retreading starts with a safety inspection of the tire. The old tread is then
buffed away, and a new rubber tread is applied to the bare "casing" using
specialized machinery.Retreads are significantly cheaper than new tires. As a
result, they are widely used in large-scale operations such as trucking, bussing and
commercial aviation. They are also the most environmentally friendly way of
recycling used tires - in some applications, a tire can be retreaded up to 10 times.
Recycled rubber from retreads can be shredded to make rubber muluch. The
process of "retreading" requires, after the buffing off of the old tread, there to be
coating with another compound like rubber to allow the new tread to adhere to the
used tire casing.

'


Ê 

* For most fleets, tyres represent either the second or the third largest item
in their operating budget, right after labor and fuel costs.

* The lowest possible cost-per-mile is achieved with a good tyre

management program that includes the use of quality retreads.

* Retreads are the replacement tyre of choice for most truckers.

* Retreads are not only cost effective, but they are also dependable,
reliable and safe. Retreads are used by truckers with scheduled delivery
times, small package delivery companies with guaranteed delivery times,
on commercial and military jets and by most school bus operators.

½ë
 * Retreads are also environmentally friendly. tyres are basically petro-
chemical products. It takes almost 100 ltrs. of oil to manufacture one
new truck tyre. Most of the oil is found in the casing, which is reused in
the retreading process. As a result, it takes only 30 ltrs. of oil to produce
a retread.

* Retreaders, like trucking companies, have experienced considerable

consolidation. Today, the most successful retreaders are those with the
highest quality products, delivering the best possible return on
investment to the fleets. Because of the competitive nature of the
retreading industry, truckers can expect to see continuous improvement
in quality, durability and reliability, as the major retread suppliers
annually invest millions of dollars in research and development.

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Retreading can be done by the following two processes:

1.‘ 84A49384 866 (also known as 'mould cure' or 'hot cure' process) -
In this process a un-vulcanized rubber strip is applied on the buffed casing
of the tyre. This strip takes the pattern of the mould during the process of
vulcanization;
2.‘  866 (also known as 'cold cure') - in this process a tread strip,
where the pattern is already pressed and precure is applied to the casing.
It is bonded to the casing by means of a thin layer of specially
compounded uncured rubber (known as cushion or bonding gum) which is
vulcanized by the application of heat, pressure and time.

The present all India pattern, by type of retreading, is as follows:

'‘ Precured - 50%, Conventional 50%.

Retreading is primarly done in the Truck and Bus trye segment. pn an average a
Truck/Bus trye is retreaded 1.5 times.

At present only 3-4 large companies are in the organized sector of tyre retreading
.prganized sector is classified as that comprising of companies which operate
through the franchisee route.

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The purpose of initial inspection is to verify that a casting is acceptable for

retreading using a thorough inspection of each tyre, inside and outside. Identify
casing injuries and determines if repairable. Reject or approve the casting for
processing.

'Ê 

The primary objective of buffing is to prepare the worn tread surface of the tyre to
receive a retread. The original tread design and some of the undertread is removed
to provide the casting with the required dimension and surface texture.


 


Ê 1'Ê Ê 

Building is the process of applying a premoulded retread or new tread rubber to

the buffed and prepared casting.

An uncured cushion gum that will develop the bonding between premoulded tread
casting is applied and splice on the casting.

In the mould cure process uncured tread compound is extruded or applied as a

strip directly to the casting.

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   Ê 

In the premould process the uncured cushion compound has to vulcanise while the
premoulded tread has to be kept in position. Therefore the tyre is put into an
envelope which presses through a vacuum system, the premoulded tread
uniformly on the cushion and the casing.

 
ÊÊ 

The purpose of the curing is to apply specific heat and pressure over a period of
time to unvulcanized rubber so that the rubber is cured to the point of best
physical properties and maximum adhension to the surrounding elememts. In the
premoulded process the enveloped tyre is put into an autoclave whereas in the
moulded process the tyre is cured in proper tyre moulds.

Ê
Ê  
Ê 

To insure a quality retread each tyre passes a thorough inside and outside visual
inspection. It is mandatory that the tyre meets all customer and government
regulations. Some retreaders are also using instrumented inspection like X-ray,
Shearographic or High Pressure Tester. Unacceptable tyres are rejected and
scrapped.

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89958@+'::

Elgitread [India] limited is engaged in providing tyre management services &

solutions. They provide everything from market survey, project planning and
know-how, to training, supply of equipment and raw material, service and
technology support. Retreads are the replacement tyre of choice for most truckers.

@::D: has the following unique features:

1. Tyre buffer - bf5 has a tyre range of 6.50 x 14 to 12.00 x 24

2. Tyre buffer has an air pressure of 7 kilogram / centimeter2
3. Requires 380 / 415 v 3 ph 50 hertz electrical supply
4. Generates an electrical load of 13.875 kilo weight [18.5 hp]
5. Free standing installation
6. Weights 1000kilogram


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89958@+
98893A
66836

Elgitread [India] limited is engaged in providing tyre management services &

solutions. They provide everything from market survey, project planning and
know-how, to training, supply of equipment and raw material, service and
technology support. Retreads are the replacement tyre of choice for most truckers.

The tyre buffer - bf4 possess the following salient features:

6‘ Tyre buffer has a tyre range of 6.50 x 14 to 12.00 x 24

6‘ Buffer has an air pressure of 7 kilogram / centimeter2
6‘ Requires 380 / 415 v 3 ph 50 hertz electrical supply
6‘ Generates an electrical load of 14.625 kilo weight [19.5 hp]
6‘ Free standing installation
6‘ Weights 900kilogram

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7=34546983458:6694344@:8>

Material handling can be defined as ËControlling the amount location movement

and timing of the various commodities used in and produced by the industrial
enterprise.´

Company is totally using the automatic process for production, but at certain stage
it uses equipment for the shifting of raw material. The company uses trolley as an
equipment for material handling in its Viscose Section to brought up the woo pulp
from the storage department an in after treatment department to puts the cakes in
washing an knitting. After the last stage of the production, the final product is sent
to the packing section with the help of trolley.

Many times Company uses.

'‘ Conveyers.
'‘ Rails.
'‘ Cranes.
'‘ Trucks.

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6‘ It mainly depends upon two factors:

Ñ Product-Service Design
Ñ pperating System makes a product/provides a service

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We are committed to:
'‘ Meet customer¶s expectation of quality and services in premium
segment.
'‘ Maintain high morale of employee.
'‘ Use eco-friendly technology and maintain pollution free
environment

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( '

'‘ Regular checking of set parameters.
'‘ Checking individual
'‘ Checking of abnormality in the process.
'‘ Highlighting the variation from the set operation
procedures/parameters.

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'‘ Regular market visits to meet consumers demand.
'‘ Regular comparison of tread quality and physical properties of
other manufacturer
'‘ Checking and suggestion to eliminate market complains.


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'‘ Analysis of breakdown and stoppage of process
'‘ Suggestion for improvement in existing operation system for better
plant control.
'‘ To carry out study on specification problem/effect and to suggest
their steps.
'‘ To develop different shades/ product for sales promotion.


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l‘ The objective of plant maintenance is to improve functional reliability of

production facility to grab opportunities.

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The economy is integrated to the global economy and industry is facing global
competition. It adopt WCM model to improve performance and fitting with global
competition.

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B7993846.

(1)Products of high quality.

(2) Products at the right price.

(3) Product with the enhanced features.

(4) Product in a wide variety.

(5) Products delivered in time, in fact short time.

(6) Products delivered with shorter lead times.

(7) Flexibility in fulfilling the demand for the product.

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 Ê





Ê

Ê 

Financial management is the managerial activity which is concerned with the

planning and controlling of the firms of the financial resources.

2344454936844;39<9<::334968:4378949
848368 4@739:4>D8884

Taking a commercial business as the most common organizational structure, the

key objectives of financial management would be to.

6‘ Create wealth for the business

6‘ Generate cash, and

Provide and adequate return on investment bearing in mind the risks that the
business is talking and the resources invested.

There are three key elements to the process of financial management.

Ê
Ê

Ê 

Management needs to ensure that enough funding is available at the right time to
meet the needs of the business. In the short term, funding may be needed to invest
in equipment and stock, pay employee.

In the medium and long term, Funding may be require for significant additions to
the productive capacity of the business or to make acquisition.

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Ê
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Financial control is a critically important activity to help the business ensure that
the business is meeting its objectives.

Ê
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A key financing decision is whether profits earned by the business should be

retained rather than distributed to shareholders via dividends. If dividends are too
high, the business may be starved of funding to funding to reinvest in growing
revenues and profits further.

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As the name suggest, such assets are acquired to be retaining in business on long
term basis to produce goods and services and are not for resale.

Elgitread (India) Ltd has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. The management
during the year has not physically verified all the fixed assets but there is regular
program of verification, which is reasonable, having regard to the size of the
company and the nature of its assets. No discrepancies were noticed on such
verification.

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The system of Capital Budgeting is employee to evaluate expenditure decision,

which involve current outlays but are likely to product benefits over a period of
time longer then one year.

These benefits may be either in the form of increased revenue or decreased cost.

There is various method of Capital Budgeting

'‘ Internal rate of return
'‘ Average rate of return
'‘ Profitability index
'‘ Payback period
'‘ Net present value
Company undertakes Capital Budgeting every year with the help of financial
experts of financial dept on basis of payback period methodology.

The Compan. always aims at increasing and expanding the installed capacity of
Tyre Buffers production. It constantly tries for its success. At present the installed
capacity of plant is US $10000 - 15000/annum.

At present the main objective of Company is replacement and modernization of

machine and fixed assets and business expansion by adding new machineries and
technology. The unit base takes this decision on payback period.

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Working capital is concerned with management of current asset. It is and
important and integral part of financial management as short-term survival is
prerequisite for long-term success.

The divisional management of Companymanages the working capital within the

broad framework laid by and with consolation of corporation finance division.
Decision regarding its utilization of the current assets is made in accordance with
the policy of company.

The operating cycle can be said to be at the heart of the need for working capital.

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6696$49333936

 6348&

2008-09 =54.03± 25.65

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2007-08 = 115.2 ± 32.92

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After going through the training program, functioning of the organization which I
observed from that it can be concluded that ELGITREAD (India) Ltd is the large
scale manufacturing organization and successful player in the tread industry. The
company has the strong financial structure and has a very good reputation in the
market.

In the backdrop of various initiatives taken and strong performance during the
year, ELGITREAD (India) Limited is on the path of superior performance. The
company has strategically moved into various growth businesses and these are
backed by traditional business that generates strong cash flows to drive the
growth.

As concerned with the personnel department it is well organize. If there are

certain problems than they are solve by mutual understanding between the
personnel and the management. Manpower Planning and human assets are well
organized.

The company is also doing its business with the Global Market. In India, the share
of ELGITREAD (India) Limited are highest.

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6‘ B.Mahadevan: 279384 4549>, 3rd Edition 2008, Pearson
Publication.
6‘ K. Aswathappa: 2ü4 68 4 6844 4549>, 4th
Edition, Tata Mc Graw Hill Publishing Company Ltd.
6‘ Pandey I.M., 234434549>, Ninth Edition, Vikas publishing
house private limited. New Delhi.
6‘ V.K.Saxena & C.D.Vashist: 266493 8: 3443 4549>, 1st
Edition 2008, Sultan Chand And Sons.
6‘ Philip Kotler: 2=9345 4549>, the Millennium Edition,
Prentice Hall of India Pvt. Ltd.

447898:539Ê43& 339 "%%,D%#

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