Apollo Tyres

Apollo Tyres Limited

Type Public

Traded as  NSE: APOLLOTYRE

 BSE: 500877

ISIN INE438A01022

(International Security

Identification Number)

Industry Tyres

Founded 1972; 51 years ago[1]

Headquarters Gurgaon, Haryana, India[2]

Key people Onkar Kanwar (Chairman and MD)

Neeraj Kanwar (Vice Chairman &
MD)
₹24,609.22
Revenue
crore (US$3.1 billion) [3] (2023)

Operating income ₹1,404.61

crore (US$180 million) [3] (2023)

Net income ₹1,104.63

crore (US$140 million) [3] (2023)

₹27,359.21
Total assets
crore (US$3.4 billion) [4] (2023)
₹12,877.78
Total equity
crore (US$1.6 billion) [4] (2023)

Number of employees 18,734 (2021)

Website apollotyres.com
Apollo Tyres Limited is an Indian multinational tyre manufacturing company headquartered
in Gurgaon, Haryana. It was incorporated in 1972, and its first plant was commissioned
in Perambra in Chalakudy, Kerala. The company now has five manufacturing units in India,
one in the Netherlands and one in Hungary. It has a network of nearly 5,000 dealerships in
India, of which over 2,500 are exclusive outlets.
The company generates 69% of its revenues from India, 26% from Europe and 5% from
other countries.
Apollo announced its entry into the two-wheeler tyre segment with contract manufacturing in
March 2016.

HISTORY
Apollo Tyres Ltd. was incorporated on 28 September 1972 in India as a Public Limited
Company and obtained certificate of Commencement of Business on 24 October 1972. In
1975, the company made its Initial public offer of equity shares and its first manufacturing
facility was commissioned in Perambra Plant, Thrissur, Kerala, India in 1977, followed by its
2nd plant at Limda, Gujrat, India in 1991. The company acquired Premier Tyres Limited- PTL
in 1995, which became its 3rd plant at Kochi, Kerala, India. In 2008, it started a new plant at
Chennai, Tamil Nadu, India. A year later in 2009, the company acquired the Netherlands-
based tyre maker Vredestein Banden B.V (VBBV) for an undisclosed sum.
The company focused on the production of truck tyres in India and introduced its first truck
tyre, Rajdhani in India. The company expanded its operation across India and in 1996, it
expanded operations outside India by acquiring Dunlop's Africa operations. In 2013, it
disposed of the Dunlop brand in Africa along with most of the South African operation in a
sale to Sumitomo Rubber Industries of Japan. The very same year, it started its Global R&D
Centre, Europe in Enschede, the Netherlands.
In 2015, Apollo Tyres bought Germany's Reifencom tyre distributor for €45.6 million. It
shifted its corporate office for Europe region to Amsterdam from Enschede, the
Netherlands and opened a Global R&D Centre, Asia in Chennai, India a few months later.
In 2016, the company signed an MoU with the Government of Andhra Pradesh to set
up a new factory in the state. On 9 January 2018, the Chief inister of Andhra
Pradesh, N Chandrababu Naidu laid the foundation stone for Apollo Tyre’s ₹1,800-
crore tyre factory in Andhra Pradesh. The plant will come up over a 200-Acre site in
Chinnapanduru village near Sri CIty in Tirupati District and produce passenger car
radial (PCR) tyres with an initial capacity of 55 lakh (5.5 million) tyres per year and
also truck bus radial (TBR) tyres and will serve both domestic and export markets.
The company's second plant in Europe, was inaugurated by the Hungarian Prime Minister,
Viktor Orban, in April 2017.

European operations
Apollo Tyres currently sells Apollo and Vredestein (or Maloya) branded tyres in Europe. The
company currently operates two tyre factories in Europe; in the Netherlands and
in Hungary. The Enschede plant was acquired from Vredestein, the newly buit facility
southeasterly from Gyongyoshalasz was inaugurated for production on 7 April 2017.

Current Market Position

Tyre manufacturer Apollo Tyres Ltd on Tuesday (November 7) reported a 165% year-on-year
(YoY) jump in net profit at ₹473.3 crore for the second quarter that ended September 30, 2023.

In the corresponding quarter last year, Apollo Tyres posted a net profit of ₹179.4 crore, the
company said in a regulatory filing. The company's revenue from operations increased 5.4% to
₹6,279.6 crore against ₹5,956 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA jumped 62.9% to ₹1,159.8 crore in the second quarter of this
fiscal over ₹711.9 crore in the corresponding period in the previous fiscal.

The EBITDA margin stood at 18.5% in the reporting quarter compared to 12% in the
corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation,
and amortisation.

The company said the cost of materials consumed was lower at ₹2,634.92 crore in the second
quarter of the ongoing fiscal against ₹3,101.56 crore in the year-ago period. Total expenses were
also lower at ₹6,612.81 crore versus ₹5,724.66 crore a year ago, it added.

"Our operations have experienced positive revenue growth, and, indicating further demand
improvement in the future. We are witnessing encouraging signs, particularly from India," Apollo
Tyres Chairman Onkar Kanwar said. "We remain steadfast in our commitment to achieving
profitable growth, aligned with our long-term vision," he added.

CURRENT MARKET SHARE OF APOLLO TYRES

Our Vision
“Apollo Tyres shall work towards minimizing the environmental,
economic, and social impacts to Our business, in a compliant and
responsible manner, by adopting sustainable procurement policies and
practices.”

Our Policy
Apollo Tyres considers its vendors as long-term business partners and is
committed to conducting our business affairs in a fair and ethical
manner that promotes open and fair competition in our best interests and
those of our business partners.

We shall strive to continuously enhance customer satisfaction by

providing cost effective and quality materials on a timely basis,
while working together with our supply chain
partners on environmental, economic, and social aspects to
enable sustainable business practices.
Our Gui ding Principles

 Driving through governance, transparency, and accountability.

 Enhanced usage of recycled, reclaimed, and renewable raw materials in its products
including encouraging our Partners in increasing the content of the recycled, reclaimed and
renewable raw materials in their manufacturing processes.
 Striving towards highest environment, health and safety standard in the Partner’s
manufacturing processes and operations and to work towards applicable certifications in
their respective industries.
 Integrating international and domestic standards on Human Rights as applicable within the
Partner’s operations.
 Ensuring compliance of national and international norms on decent work agenda and protect
the rights of workers, local vendors, and other relevant stakeholders.
 Encouraging our ‘One Family’ culture in the raw material supply chain.
 Work on Natural Rubber Sustainability in line with the GPSNR (Global Platform for
Sustainable Natural Rubber) guidelines to drive improvements in the social, economic, and
environmental performance of the Natural Rubber supply chain.
 Driving continual improvement, in collaboration with the Partners, in the sustainable
procurement agenda throughout the raw material supply chain.

C om m i t ments for a Sustainable Future

We want to encourage our suppliers to adopt sustainability into their day-

to-day operations by achieving higher operational efficiencies while
minimising adverse impacts of operations and conserving the involved
resources.

In this direction, we seek commitments from our supply chain by being

proactive and innovative in adopting the industry best practices in the
following areas:
  Promote usage of non-fossil based fuels in operations
 Use of renewable energy in operations to reduce overall carbon footprint
 Adopt innovative solutions towards sustainable consumption of goods or services by adopting
approaches such as Life Cycle Costing (LCC), goods as services systems (use instead of
ownership), and circular economy
 Be prudent in usage of water in operations to ensure efficiency and conservation
 Minimise pollution through optimisation of operations and maintenance
 Set and drive goals towards lowering of carbon emissions and achieving energy efficiency
 Minimise generation of waste in manufacturing processes
 Third-party assurance towards adoption of sustainable practices towards responsible business
operations
 Involve supply chains in environment conservation

Our goal
Our goal is to support the circular economy by using sustainable
materials in all our tyres, without any loss of functional performance /
process issues

6R Developmental Model
Apollo Tyres follows the 6R development model in its raw material
sustainability journey

1. Re-Place: Sustainable alternatives are used in place of unsustainable raw materials.

2. Reduce: Minimise the waste and optimize the consumption of materials
3. Re-design: Rebuilding product with extended usage and recyclability
4. Recycle/Recovery: Recover material after end of life and recycle
5. Reuse: Use of material for the same or different purposes thereby reducing waste
6. Reliability: Improve production consistency and performance by optimizing the design

Developmental Methodology
Products of the company

 Passenger Car Tyres

 Alloy Wheels

 Sports Utility Tyres

 Van Tyres

 Passenger Winter Tyres

 Heavy Commercial Tyres

 Light Commercial Tyres

 Small Commercial Tyres

 Agriculture Radial Tyres

 Agriculture Cross ply Tyres

 Off–The–Road Tyres

 Speciality Vehicles Tyres

Awards / Recognition

 Awarded as the Best Brand 2009 by Auto India

 Awarded as a Best Brand 2008 by Auto India

 Automotive Product of the year Award for Acelere Sportz at NDTV Car & Bike Awards

 Apollo Safe Drive campaign won the IRTE Road Safety Award

 National Award for Excellence in Water

 Management 2006 – Awarded by CII to Limda, Gujarat

 Kerala State Energy Conservation Award 2006 to Apollo Tyres, Perambra Plant

 First manufacturer in South Africa to be awarded the ISO 14001

Subsidiaries of the company

 Apollo Radial Tyres

 Apollo Automotive Tyres

 Apollo (Mauritius) Holdings

 Dunlop Tyres International Pty, South Africa.

SWOT ANALYSIS OF APOLLO TYRES

STRENGTHS:

1.Emphasis on Research & Development : Apollo invests heavily on Research and Development
(R&D) activities. Improvement in key performance parameters such as durability, grip and mileage
are the primary focus of Apollo. This enables the company to invest in new and innovative products.
Research and innovation centres are located in Asia and Europe. There are significant investments in
R&D to find innovative solutions related to manufacturing processes, products and by-products.
Advanced R&D facilities will support growth through cutting-edge technology and innovation.

Research partnerships: Collaboration with Center for Tire Research, USA, Dresden University, Twente
University, SRM University and BITS Pilani.

Research collaboration: R&D centre is an approved research centre of Anna University, enabling
employees to enrol for PhD and conduct their research work atR&D Centre

2. Market Share: As of Fiscal 2020, Apollo Tyres is the second largest player by revenue with 20-25%
market share in the Indian tyre industry (in value terms). It is the 2nd highest market share holder in
LCV’s and the highest market share holder in Medium and heavy commercial vehicles. The company
is a leading player in the truck and bus tyre segment. Replacement demand leads to three fourth of
the total company revenue. At segment level, revenue from Truck & Buses (TB) and Passenger Cars
(PCR) contributed 43% and 39% respectively to tota lrevenue. Apollo Tyres’ leadership position in the
commercial vehicle segment will enable the company to leverage new and related business
opportunities.

3. Excellent Geographical coverage across Asian & European markets: With a diversified market base
across geographies, Apollo Tyres is not dependent on domestic market alone and is strategically
working towards growth opportunities in other large markets. With a view to increase its export
operations, the company has set up a commercial vehicle R&D facility in Chennai, India, as well as a
passenger vehicle R&D centre in the Netherlands.

https://www.scribd.com/document/487714708/APOLLO-TYRES-SWOT-internal-analysis-docx