SWOT ANALYSIS

Strengths:

1. Strong Domestic Market: APL Apollo Tubes LTD is the only steel tube
manufacturing company, spread across diverse portion of India.
2. Long List of Portfolios: The Company offers different set of products such as MS
black pipe, Pre – Galvanised – Tube, Galvanised Iron tubes & Pipes, Hollow sections
and many other products
3. Technology Advancement: The company uses advance technology like high speed
mills, DFT Technology at all plants which gives an edge over competitors.
4. Global Presence: The Company is spread across the International market, cover
mostly SAARC countries.
5. Strengthening India’s Infrastructure: With state-of-art manufacturing facilities. APL
Apollo serves as a ‘one-stop shop’ for a wide spectrum of steel products.
6. Strength in Size: APL Apollo has 21,00,000 MPTA capacity and became one of the
largest producer in the world.
7. Strength in Brand: Sustainable branding and awareness efforts have positioned APL
Apollo as India’s leading branded steel tubes manufacturer. It had become the
principle sponsor Delhi team in IPL 2019.
8. Growth in financial Term: In FY19 company shows a tremendous growth rate total,
revenue grew by 31% to 7,152 crore rupees. Sales growth of 19% to 13.4 Lakh
MPTA.
9. Exceptional Customer Service: Provide customer service at its best and satisfy all the
needs.
10. Market Share: Apollo has a high market share. It is 2nd largest market holder in LCV’s
and highest market share in heavy commercial vehicles.
11. Emphasis on Research and Development: Improvement in key performance parameter
such as durability, grip and mileage due to strong R&D.
Weaknesses:

1. Products are commoditized to only some extent; high customization is not possible
with the product as the products are mainly standardized
2. The company has an insignificant presence in the export market, as they don’t have a
significant international presence at some extent.
 3. Some conflict of interest has been seen between the dealer network and own
distribution network which creates disparity.
4. In the recent past, the company faced various labor lockouts in its plants in Durban,
Vadodara etc. This effects capability and financials of the company.
5. There is a heavy dependence on Indian Market. The company needs to increase its
revenue in other market to reduce dependency on one market only.
Opportunities:

1. The increased focus on infrastructure by the government provides an opportunity for

the company to grow nationally as well as internationally.
2. Pipeline transportation of gases and liquids are more economical than rail and road
transportation therefore it seems a good opportunity to expand.
3. The High replacement demand for pipes/tubes creates an immense opportunity for an
organization to grow.
4. The government support, easy availability of skilled and unskilled labor,
technological up gradation gives cost-efficient manufacturing base for the company in
India
5. Expansion in two wheeler segment, as Apollo aims to cover 85% market considering
its current product range, In two wheeler market also Apollo can enhance its potential.
6. From past 3 years, the company is in an expansion mode in countries like Lebanon,
Qatar and Jordan. The company should continue the same to expand in global market
also.

Threats:

1. Rising interest rates leads to expensive loans, as the company needs external funds for
expansions, higher interest rates cost the company more
2. Competitors such as Tata Steel, SAIL, MRF Tyres, Jindal Steel and Power Ltd. Etc.
Gives a tough competition to the company and are the threat as well.
3. Imported Chinese tire products are cheaper and hence presents a stiff competition in
the market and can effect he Apollo’s profitability.