A REPORT ON

“ANALYTICAL STUDY OF ENTREPRENEURIAL

ENTERPRISE”

(With Special reference to “Tolins Tyres Pvt. Ltd.”)

A report submitted in partial fulfillment of

“Management Students Convention 2013”.

Done by: 1s t semester MBA, BMIM. (Carelynda, Rosemary, Balu, Binu, Harsha)

BHARATA MATA INSTITUTE OF MANAGEMENT

Submitted to: Kerala Management Association.

DECLARATION

We hereby declare that the project entitled “Analytical Study of Entrepreneurial

Enerprise”(With Special reference to “Tolins Tyres pvt.ltd”) Submitted in partial

fulfillment required for the competition of “Management Students Convention 2013”

hosted by the Kerala Management Association by ourselves and is based entirely on

our original field works and observations.

It has not been previously submitted for the award of any other degree, diploma,

fellowship or any other similar title. The facts presented here are true to the best of

our knowledge and belief.

By: Date: Carelynda Lyngdoh, Rosemary Johnson, Place: Binu Kuriachan,

Balu Jagdeesh, Harsha J Nair

ACKNOWLEDGEMENT

We are happy to record our sincere thanks to the organization and persons

who have helped us directly and indirectly in our study. At the very outset, we would

like to thank Dr. K.V Tollin, Managing Director of Tolins Tyres and Mr. George

Varghese, General Manager(Operations and HR) who gave us full support and

guidance in the course of our organizational study. It was indeed a fruitful experience

at Tolins Tyres.

We must remain grateful to Bharata Mata Institute of Management and we

also extend our sincere gratitude to the Kerala Management Association, Kerala

for hosting the Management Students Convention 2013.

In the end, we would like to thank all the organizational and institutional staff

and friends who provided us constant inspiration for our study. We also like to thank

our teachers for without whose support, we would not have been able to reach this

level today .We shall always be inspired by all that we have learnt and will strive to

put it in practical use.

Last but not the least, we are thankful to God, for his guidance and strength

he bestowed upon us.

By: Carelynda Lyngdoh, Rosemary Johnson, Binu Kuriachan, Balu Jagdeesh, Harsha.

TABLE OF CONTENTS

Chapter No

Titles

Page No

1

EXECUTIVE SUMMARY

1

2

INTRODUCTION

3

3

RESEARCH METHODOLOGY

5

4

COMPANY PROFILE

7

5 INTRODUCTION TO THE ENTREPRENEUR

K.P.VARKEY

8

6 THE MANAGEMENT STRUCTURE 9

7 ABOUT THE COMPANY

10

8 CRITICAL EVENT / SETBACKS 14

9 RESPONSE OF ENTREPRENEUR TO CRITICAL

EVENTS

16

10 STRATEGIC DEVELOPMENTS 17

11 MARKET SHARE 19

12 SWOT ANALYSIS 20

13 5 FORCES 21

14 BALANCE SHEET 23

15 PROFIT AND LOSS ACCOUNT 24

16 NPAT PRESENTATION 25

17 OUR STRATEGY FOR THE ENTERPRISE FOR

THE NEXT FIVE YEARS

26

18 CONCLUSION 28

19 REFERENCE 29

EXECUTIVE SUMMARY

Technology generation in the Indian tyre industry has witnessed a fair amount of

expertise and versatility to absorb, adapt and modify international technology to suit

Indian conditions , but Globalization has lead to the linking of the economies of all

nations and therefore major Indian players in the tyre industry are pursuing global

strategies to enhance their competitiveness in world markets.

At present there are 40 listed companies in the tyre sector in India. The sector is

raw-material incentive with raw materials accounting for 70% of total costs of

production. Total value of tyre exports from india is approximately rs. 3000

crore(2007-08)

Major factors affecting demand for tyres includes the level of industrial activity,

availability and cost of credit , transportation volumes and network of roads,

execution of vehicle loading rules, radicalization ,retreading, and exports.

MRF, JK TYRES,APPOLO TYRES , CEAT form 63% OF ORGANISED TYRE

MARKET; whereas MODI RUBBER, KESORAM INDUSTRIES, GOODYEAR INDIA

form 11%, 7%, and 6% respectively.

The main objectives of the report was to find out what were the basic operations at

Tolins, the critical events they have faced all throughout its existence, and strategic

development taken place at the company.The analysis have been carried out by all

five members of the group, where two members visited Tolins Tyres and met the

General Manager(Operations and HR) Mr. George Varghese. This report is based

only on the data collected from the personal interview, company’s website, journals

and magazines in which Tolins Tyres was featured.

At the interview with the GM, it has been found that there were more than 5 events

which had a critical impact on the business, and changed Tolin’s outlook of

Production.It has different people in charge of the different departments, who

altogether work simultaneously to achieve targets. Its global expansion towards

countries like the UAE, Sri Lanka, Ukraine, North America and a prospective

expansion in Australia will not only widen their share in the global market, but will

interestingly have an influence over the domestic market through its popular and

internationally recognized brand name.

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.The main products produced by Tolins are Precured Tread rubber,

Nylon Truck Tyres, Mould cure tread rubber, Bonding gum, Vulcanising Solution, and

Strip rubber.

We suggest that the company should strengthen their distribution and networking

system by expanding their operations to the northern regions of the country, to

speed up their operations with the Ukranian joint venture and participatively indulge

themselves in Expos which gives them more exposure and huge returns. The

company is planning to re-enter the domestic market with its new range of

LCV(Light Commercial Carriage Vehicles) with 30% of it to be exported.

INTRODUCTION

TolinsTyres, which started as a small family business outsourcing Retreading

Unit, now has a turnover of 5000 million(500 cr) in the last financial year and

expected to reach 10000 million(1000 cr) on achievement of full capacity of tyre's

production. It produces 2000 tonnes per month including tractor tyres and plans to

scale up to 4000 tonnes per month very shortly. Presently, its mixing capacity is

3000 tonnes per month, but the company is planning to install additional banburys to

take the monthly mixing capacity to 5000 tonnes. Tolins is however, the first Indian

Company to come out with the innovative “contoured tread” which is a hot favourite

of Retreaders.

TolinsTyres is a company which has a large clientele comprising mostly of dealers.

Major strengths of the company is that they have a very strong dealer network, and

also provides good after sales servicing (to dealers only). The quality and finish of

TolinsTyres reflects the stringent standards it adopts while procuring raw materials

and priority on choosing high-tech production machinery.

Standardization of operations at all levels, right from procurement to the last mile is

Tolins mission and they want to achieve this by procuring the right quality raw

materials from the source, sophisticated R&D, quality control implementation at all

production plants, ultra-modern machinery and a chain of retail outlets.

The sector is raw-material incentive with raw materials

accounting for 70% of total costs of production, the fluctuating price of Natural

Rubber has always been an a cause of concern . Therefore the company has its own

plantations which can cater to a part of their requirements only, yet still the company

wants to focus on the expansion of production infrastructure.

Latest technology upgradation have given way to radial tyre segment, but

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 up 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 Indian consumer to pay higher prices for radial

tyres.. etc. passenger car tyre segment radialisation has crossed 95%, low in

medium and heavy commercial vehicle-4%, 5% in lcv. Therefore, Tolins too are

presently staying away from entering into the Radial Tyresegment.however, the

company is manufacturing Bias Ply tyres in its Kalady plant, at Kerala. They are in

the midst of venturing into the manufacturing of new sizes as these sizes are

becoming scarce in the market due to increased radialization in India. They are

taking this as a great interim opportunity.

The company has highly sophisticated and rare equipment in the Research and

Development lab to develop and monitor innovations, stages of production and

create critical computing parameters for present and future requirement. The

company has never had any Technical collaboration at any point of time, instead

their observations and improvements have elevated the company to sell its

technology and brand to a Ukraine Joint venture.

RESEARCH METHODOLOGY

The research methodology insists of the study entitled “ENTREPRENEURIAL

ANALYSIS OF TOLIN TYRES PVT.LTD” is discussed under the following headings.

STUDY SITE :

To achieve the objectives of the analysis, ‘ TOLINS TYRES’ was selected to

get the handful information. Presently it manufactures Precured Tread Rubber

,Nycon Truck Tyres, Mould Cure Tread Rubber, Bonding Gum, Vulcanising Solution

and Strip Rubber. The company has many competitors in the Tyre Industry. It has a

production function of about 2000 tonnes a month to 4000 tonnes also within a span

of two years at its plant at Kalady.

of two years at its plant at Kalady.

METHODS FOLLOWED FOR THE STUDY

(A)Research design: First of all the decision was made as from whom and how the

information was to be collected. Accordingly visits were made to the industry and

collect the relevant information from the company officials.

( B)Data collection: Data collection consists of both primary and secondary data.

The method followed for the primary data was interview with the General Manager

and secondary data consists information collected from the related magazines like

Rubber Asia, Dhanam and the company website.

(D) Analysis of Data : The data has been analyzed with the industry standards and

with the strategies of the competitors like Midas, JK Retreading etc. We made an

attempt to identify the Strength,Weakness,Opportunities and Threats of the company

with a view to develop the future strategies by which facilitates the company to

expand its business empire.

COMPANY PROFILE

TOLINS TYRES PVT. Ltd was started in 1982 with its corporate office in Kalady.

The goal of the industry is to be the market leader in Tyre Retreading. TOLINS

TYRES PVT. Ltd has a presence worldwide and have a strong dealer following .

Their products range from Pre-cured Tread rubber, Nylon Truck Tyres, Mould cure

Tread Rubber, Bonding gum, Vulcanizing solution, and Strip rubber.

Company Name: TolinTyresPvt Ltd

Certifications: ISO 9001:2000 and ISO 14001:2004

Headquarter: M.C. Road. Mattoor,Kalady 683574-Ernakulam,

Kerala, India

Marketing office : Kalady, Aluva, Kerala.

E- mail I D : info@tolins.com

Website : www.tolins.com Tel no : 91-484-6581122

Fax:2463179

INTRODUCTION TO THE ENTREPRENEUR K.P.VARKEY

The Late visionary and founder of TolinsTyresKalaparambilVarkey got inspired from

the Family manned paddy cultivation and conventional methods of Processing rice in

1960’s. Varkey was the pioneer in starting a rice mill in Kalady, which has now

emerged as the biggest Rice producing cluster in Kerala. Taking into account the

Market requirement and Technological advancements, he established a number of

processing Units which later helped the present Tolins Group to scale to greater

heights.

Dr. K. V. Tolin, the only son of (late) Varkey, has ever been an integral part of

the Tolins Group. With the great Entrepreneurial legacy and hands on experience

which he inherited working side by side with his Visionary father and with his own

intrinsic talents and Marketing acumen. Dr. Tolin is presently leading the group

which is adding even more feathers to its cap and taking the business to greater

heights by conceiving and implementing latest Marketing techniques and revamping

the Production lines.

THE MANAGEMENT STRUCTURE

Dr. K.V. Tolin,

MD Tolin Group

Mr. Abraham Kuruvilla,

General Managaer

(Admin)

Mr. Unni Nair P, General

Manager (Tyres)

Mr. George Varghese,

GM(Operations)

ABOUT THE COMPANY

WHY RETREAD?

This is a Re-manufacturing process for tyres that replace the tread on worn tyres

called ‘casings’. Retreading is applied into casing of spent tyres that have been

inspected and repaired. It preserves about 90% of the material in spent tyres and the

material cost is about 20% compared to manufacturing a new one. It would cost less

as compared to producing new tyres (upto 30-50% lower). The aircraft

industry(military and commercial) saves 80 mln a year by Retreading.

Retread tyres are proven to be as safe and durable as compared to new

tyres. It conserves oil. The synthetic rubber components in a new passenger tyre

contain 7 to 8 gallons of oil. Retreading the same tyre uses only 2 to 3 gallons of oil.

MAIN STRATEGY

Aiming at becoming a market leader in treading by producing more quality

goods

Challenge with other domestic competitors like Dunlop, Falcon, Tyre

Corporation of India(TCIL),TVS- SriChakra, Metro Tyres, and Balkrishna

Tyres.

Focusing on quality and Retreading

Waste produce is very less(optimum utilization of resources with 0.1% waste)

as they believe that waste does not add value but adds on to cost.

Drastically Cutting down Defective products (2 defectives in 1000 units),

whereas the defective rate of Appollo is 12 in 1000 units.

The company was started as a family business and still continues to do so, but

with professional approach to the different department of the company specifically for

the middle and top level management. The company believes that strong deals can

be made only through cordial relation with dealers. Tolins Tyres are technologically

upgraded with 60% imported machinery from the U.S, Japan, and 40% of the

machinery developed in the home country. The company has all round camera

surveillance, which makes it easier and simpler to govern all stages of production,

and enterprise premises.The company is self dependant in power supply, water,

suitable premises, road access, security, telephone and internet access. Mr. George

Varghese, a revolutionary manager is planning to come up with an updated and

innovative company’s website , where dealers will be able to have more access to

the products, which in turn could yield more profits. The company has its oversees

operations in the US in Castro Valley, California, Al Jazeera in the UAE, and

planning to open up business avenues in the adjoining markets of Bahrain, Saudi

Arabia, Qatar, Kuwait, etc.

The company initially paid wages to the labourers on a monthly basis, but it has

been more han three years now, that the company has adopted the hourly wage

system with 10% increment yearly. This allows the employees to be dedicated to

theitr work, give better performance and work to reach target faster.

The company houses all the different departments like the Production

department, Quality improvement department, HR department, Operations, Finance,

R&D department. These departments are headed by professional personnels

having varied experience in the respective fields.

The company is also planning to enter into a Joint Venture with a Kenyan Gum

company by 2014.

CORPORATE SOCIAL RESPONSIBILITY

The company has recently hosted a Marriage for Economically backward

women, offering them 1 lakh in cash andRs.50,000 worth of gold. This has boosted

the public image of the company.

A Pre-school called “Little Stars” has been opened and being run by Dr. Tolins

wife, Ms. Jerin who has mentioned that their idea is to set up a chain of "Little Stars"

across the state in the long run.

An Old Age home named “Sneham Old Age Home” was established on the

banks of the river Periyar where they provide care, concern, treatment, and living for

the old and destitute.

They care for the community and upholds the values of Social responsibility

by participating in various programmes aimed at helping the needy.

UKRAINIAN JOINT VENTURE

Tolins went a step further and set up a joint venture in Ukraine to manufacture

Tread as well as transfer the Tread making technology to the local player,

“Dontechresina and company” based in the Eastern Ukrainian city of Doetsk. The

50:50 JV will manufacture procured Tread under the “Tolins” brand name with Tolins

technology.

DEALERS

The compaany’s main individual dealers are :

C P Singh from New Delhi, and Mr. George from Perumbavoor. These dealers

alone contribute to 5% of the Total turnover in the previous fiscal year.

RAW MATERIALS

The company have its Raw materials delivered from Rubber suppliers like

Njavallil Latex,etc.

EMPLOYEES

Indian plants- 150 labors(contractual)

Administration- 30

Plants abroad-200 employees

CRITICAL EVENT / SETBACKS

Issues with Excise authorities.

Catastrophe of product in local market.

Labour Strikes.

Issues with Excise authorities

M/s Tolin Rubbers (P) Ltd., is a private limited company incorporated in the

year 1995 and it is stated that the factory was set up with financial assistance

obtained from M/s Kerala State Industrial Corporation and the State Bank of India.

The Central Excise authorities carried out search and seizure operations on

21.8.2001 in the hands of the Tolin group concerns. During the course of

investigation by the Excise officials, it was revealed that this group was maintaining

bank accounts in the name of three persons with State Bank of India, Angamali

Branch. The said three persons were considered as "Benami" of the Tolin Group by

the Excise authorities. The said accounts were found to have been opened in the

name of Shri P.T.Sunny, Shri P.T.Jose and M/s Babu Stores. The Tolin group was

alleged to have routed the unaccounted sale proceeds through these three bank

accounts. This event forced the company to be shut down for 3 long months which in

the words of the general manager was a “Dead Period”.

Catastrophe of product in local market

Lost in trade in local market because of competency from other domestic and

international competitors like MRF, JK Tyres, Apollo tyres, CEAT, etc because of

helplessness of Tolins to Strive with other major brands. Production of low

weight tyres(1 to 2 kg) was a disadvantage for the company as customers preferred

the tyres having heavier weight (4-5 kgs) which were produced only by leading

domestic tyre companies and international brands. Preference for such tyres were

durability, quality and price. Demand for Tolinstyres was also not on the rise in the

local market because its quality was not good enough for Kerala’s road conditions

Labour Strikes

Labour strike issues in the company due to demand in wage hikes and

incentives which was too much for the company to afford, gave way to production

shut down for almost 3 times in a year where the company suffered colossalloss

during the year due to these strikes.

RESPONSE OF ENTREPRENEUR TO CRITICAL EVENTS

COMPANY SHUT DOWN

The company appealed to the Income Tax Appellate Tribunal that the

Evidence collected by the Excise Department was incomplete and fractured. On this

ground, the company could resume its production after 3 months, but the case with

the Excise Department is still pending with the Tribunal.

Our suggestion: The Company should maintain true and fair records of all

transactions taking place and ethically carry out its function. If they had a proficient

person/ department to handle Book keeping this could have been avoided. And it is

good to appoint an advocate for dealing companies legal matters.

PRODUCT FIASCO INLOCAL MARKET

The company totally withdrew its products from the local market due to its

unrecognized brand name and concentrated more on exporting its quality goods

because of its recognized brand name in the other countries.

Our suggestion: the company should have only launched their product in the local

market only after undergoing a through and proper market study, never

underestimate any market.The company should re-launch the product (passenger

car tyres) improving on its product quality and standard like it did for its tractor tyres.

The company should mainly focus on its core dealer’s demand, and gain confidence

of the dealers.

STRATEGIC DEVELOPMENTS (TURNING POINT)

PRE-CURED

INCOPPORATION

EXPORTING

INTRODUCTION OF PRE-CURED METHOD

There are two main processes used for retreading tires, called Mold Cure and

Pre Cure. Both processes start with the inspection of the tire, followed by non-

destructive inspection method such as shearograph to locate non-visible damage

and embedded debris and nails. Some casings are repaired and some are

discarded. Tires can be retreaded multiple times if the casing is in usable condition.

Tires used for short delivery vehicles are retreaded more than long haul tires over

the life of the tire body. Casings fit for retreading have the old tread buffed away to

prepare for retreading.

In case of Pre-Cured Technique Previously prepared tread strip is applied to

tire casing with adhesives. This method allows more flexibility in tire sizes and it is

the most commonly used method, but results in a seam where the ends of the strip

meet.Tolins was the premier to introduce this method.

INCORPORATION

The company’s turning point was its Incorporation in the year 1995, it then

chose to accept tender from several state’s transport corporations for “Retreading”

the tyres. This boosted the company’s profitability and operation span which then

made the company to start focusing only on Retreading tyres. The company is now

retreading tyres for the transportation corporations of the states of Tamil Nadu,

Kerala, and Karnataka.

EXPORTING

Company’s first oversees manufacturing foray was started in 2006, the plant

at Ras- al-Khaima, in the UAE, thus turning itself into a Multi-NationalCompany

(MNC). Companies Tread business is growing steadily in UAE market. They are the

leading suppliers of Tread and selling around 80-100 tonnes per month.Other Than

UAE they have broaden their business to USA, Europe, African Countriesetc.In a

month 30 percentage of their total production is exported.

Tolins hold a 30% market share in the domestic market, compared to its main

competitor Midas who holds 47%. The rest is held by other small scale units

MARKET SHARE

TOLINS

MIDAS

OTHERSMidas 47%

Tolins 30%

Others 23%

SWOT ANALYSIS

STRENGTH

It has an Export market in many countries.

Company can grow by focusing on Retreading

Operations

WEAKNESS

Less popular in Domestic Market

Labour Strike

Operations with Ukrainian JV delayed

THREATS

Case pending with the Income Tax Tribunal

Competition from Domestic players

OPPORTUNITIES

Take up better collaboration

Expand to Australia and other continents

5- FORCES

Introduction of Radial Tyres: The Introduction of Radial Tyres acts as a

threat to the Treading industry because of their Long Running life. Radial

Tyres do not require Retreading either through Mould cure or Pre-cure.

competition from

Midas(47% maarket share)

Limited suppliers

Few large buyers

Potential for new players

Introduction of Radial Tyres.

Few Large Buyers: The company has a very small base of Large buyers,

which make them suffer a loss when these buyers bargain for a marginal

price. The company can increase its client base in the home market to enable

them to trade at optimum prices.

Limited Suppliers: The company has its own rubber plantation which hardly

provides raw material for a half- day’s work. As Natural rubber accounts to

70% of the total product, the need for Natural Rubber increases with every

increase in production. Soaring prices of Rubber makes it easy for suppliers

to bargain a good price from the manufacturers.

Potential for New Entry: Presence of possibility of entry for new players in

to the market. There is also a threat that existing industry leaders, may

introduce new products and enrich the Retreading process in their own

outlets.

Rivalry from competitors: The company is facing immense competition from

Midas, a local competitor in the market who has 47% market share, whereas

Tolins has only 30% market share. Company should strengthen themselves to

overcome threats of competitors.

TOLINS TYRES (P) ]LTD

Mattoor,Kalady,Ernakulam Dist.,Kerala

BALANCE SHEET AS AT 31st MARCH.2013

Particulars As at 31

March,2013

As at 3l

March,2012

EAUITY

AND LIABTLITIES

Share holders

funds

4,92,47,228.90 4,11,42,287.78

Share

application money

pending allotment

0.00 2,20,000.00

Non-current liabilities 22,72,27,398.43 25,43,62,062.66

Current liabilities 23,82,47,303.32 18,14,49,476.02

TOTAL 51,47,21,930.65 47,71,73,826.46

ASSETS

Non-current assets 10,69,90,158.69 10,27,69,687.59

Current assets 40,77,31,771.96 37,44,04,138.87

TOTAL 57,47,21,930.65 47,71,73,826.46

TOLINS TYRES (P) LTD

Mattoor,Kalady,Ernakulam Dist.,Kerala STATEMENT OF PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED ON 31st

MARCH,2013

Particulars For the year ended

31 March 2013

For the year ended

3l March,2012

.

CONTINUING OPERATTONS

Total Revenue 86,91,70,224.90 92,94,27,269.79

Total expenses 85,75,92,773.90 91,95,07,574.79

Profit / (Loss) before tax 1,1577,451.00 99,19,695.00

Tax expense

(a) Current tax expense for

current year 36,65,647.00 29,94,520.00

(b) Deferred tax 1,93,137.12 (1,70,516.00)

Profit / (Loss) for the

year

81,04,941.12 67,54,659.00

NET PROFIT AFTER TAX

NET PROFIT AFTER TAX

2012 (Rs.) 2013 (Rs.)

6754659.00 8104941.12

The Above graph indicates that the Net Profit after Tax of the company is showing

an increasing Trend.

As the Turnover of the company in the last financial year was Rs.500 crores and the

company is targeting to reach Rs.1000 crores within the next 2 years

6000000

6500000

7000000

7500000

8000000

8500000

profit

2012

2013

OUR STRATEGY FOR THE ENTERPRISE FOR THE NEXT FIVE YEARS

START A RETREADING SCHOOL

Now a days we can see that supply of skilled labour is low but demand is

high.

We suggest that the company should develop a formal training programme to

help the company effectively deal with labour scarcity at both Indian plants and

oversea plants. Provide hands-on experience at the school and special trainer on

site where they can directly engage them and enroll them as full-fledged member of

the Tolins culture. In addition to job skills, students are expected to participate in

additional activities ,such as improving communication skill, development of

leadership abilities, planning, developing new methods and procedures , designing

new products and correcting problems in the work area.

It helps increase in production performance and bring about Intrapreneurship

in the business.

Maintenance of machinery parts- gear

In every plants we can see that machineries are upgraded and imported.

Maintenance of these machineries take almost one week at that time we need to

slow down the line. In order to avoid this kind of inconvenience, the company should

take up regular machinery servicing to save costs. Keeping substitute gears in

hand can save time, if the present gears used fail to function.

OTHER RECOMMENNDATIONS

Company should setup production units at different locations in India to ease

logistics costs with low capital, company can also put up warehouses or rent

them so as to store forecasted demand of tyres.

Company can follow a vertical integration method by leasing land with rubber

plantation or go for a contract for supply of raw materials to production plants

at different location around India. This will not only benefit the company but

will make people employable.

Price discrimination should be there for each product. This can help the

company understand what dealers would prefer to sell in which locations.

Company should improve their distribution network if they want to compete

with the best domestic players and international players.

Instead of producing too many varieties of tyres, company can focus on

producing quality retreaded tyres

As the dependence for production on natural rubber is more than 70%. Since it can

be recommended that it works on producing tyres by using only 30% natural rubber

and 70% of synthetic rubber. Hence providing more quality and durability.

CONCLUSION

After the company analysis it can be concluded that they have number number of

dealers although there are less from the northern states of india, yet in the other

hand, the company is doing well and improving for better in the global context, and

we have high hopes that the company can come up with production of radial tyres

which can either be marketed to bigger metropolitan cities in India or even exported

to other loyal dealer nations. So far the dealers are content with retreaded tyres

marketed by the company in India and abroad. It can be concluded that the company

has a high prospect to penetrate into other states of the country through their

retreaded tyres and beat competition from domestic rivals, through strong marketing

channels and good distribution network.

REFERENCE

Magazines

1. RUBBER WORD

2. RUBBER ASIA

3. HARVARD BUSINESS JOURNAL

4. DHANAM MAGAZINE

Websites

1. www.tolins.com

2. www.meritnation.com

3. www.scholar.org

4. www.wikipedia.org