Bid to double turnover to Rs. 10,000 crores in two years
The entire automotive and associate industries had a bumpy ride in 2008-09 on account mainly of the fast spreading recession and the attendant industrial slowdown. But, for the Delhi-based Apollo Tyres it was an year of milestones and achievements, with the company attaining the leadership position in the Indian tyre industry. In fact, the company emerged a clear market leader by virtue of its outstanding performance and recording the cumulative annual revenue of Rs. 4,984 crores during the year, taking into account Indian and South African operations. Among the various contributory factors for the company emergence as the market leader is its extra focus on product quality. In fact, Apollo’s net sales continues to grow in double digits despite the demand slowdown.
According to sources in the engineering division, the company is aiming to double the turnover within the next two years to touch the Rs. 10,000-crore mark. The company is also increasing its investment in the new plant coming up at Oragadam in Chennai for production of truck radial tyres, which is expected to commence operation by November next. This is Apollo’s fifth unit in India, the other four being the two units located in Kerala and one each at Baroda and Pune.
Apollo is now reckoned the 11th largest tyre company in the world and has become truly global with the acquistion of three plants in South Africa and one in the Netherlands.
Despite the trying times, the company recorded a net profit after tax of Rs. 1.3 billion (Rs. 139.1 crores), making it the only top Indian tyre manufacturer to have remained profitable throughout each quarter of 2008-09.
While the first six months of the year witnessed skyrocketing raw material prices, the next six months faced a severe demand slowdown across the board, in both domestic and export markets, along with currency volatility.
Many firsts
Apollo Tyres has the distinction of having a number of firsts to its credit. It was the first Indian tyre company to launch exclusive branded outlets -- Apollo Tyre World -- for truck tyres, segment the market on the basis of load and mileage requirements, introduce packaging for car and two-wheeler tyres and tubes, run a customer loyalty programme, introduce radial tyres for the farm category, obtain ISO Certification for all its operations, produce H, V and W-speed rated tubeless tyres, run HIV-AIDS awareness and prevention clinics for the trucking community, support the creation of an Emergency Medical Service in an Indian city, execute an overseas acquisition, and, finally, the first tyre company to reach a revenue of over $1 billion.
Rapid growth and expansion
An analysis of the origin and growth of the company makes an interesting reading. Apollo was registered as a company in 1976 and its first plant commissioned in Perambra in Cochin in 1977. While the second plant was commissioned at Limda in Baroda in 1991, the company acquired Premier Tyres at Kalamassery in Cochin in 1995. The year 2000 witnessed establishment of the exclusive radial capacity at the Limda plant. In 2003, expansion of passenger car radial capacity was to 6,600 tyres/day was completed.
India’s first H-speed rated tubeless passenger car radial tyres was started in 2004, while expansion of the passenger car range to include 4x4 and all-terrain tyres was effected. In 2006, the company acquired Dunlop Tyres International in South Africa and Zimbabwe, and launched DuraTread. This was immediately followed by the launch of India’s first range of ultra-high performance V and W-speed rated tyres.
The entire automotive and associate industries had a bumpy ride in 2008-09 on account mainly of the fast spreading recession and the attendant industrial slowdown. But, for the Delhi-based Apollo Tyres it was an year of milestones and achievements, with the company attaining the leadership position in the Indian tyre industry. In fact, the company emerged a clear market leader by virtue of its outstanding performance and recording the cumulative annual revenue of Rs. 4,984 crores during the year, taking into account Indian and South African operations. Among the various contributory factors for the company emergence as the market leader is its extra focus on product quality. In fact, Apollo’s net sales continues to grow in double digits despite the demand slowdown.According to sources in the engineering division, the company is aiming to double the turnover within the next two years to touch the Rs. 10,000-crore mark. The company is also increasing its investment in the new plant coming up at Oragadam in Chennai for production of truck radial tyres, which is expected to commence operation by November next. This is Apollo’s fifth unit in India, the other four being the two units located in Kerala and one each at Baroda and Pune.
Apollo is now reckoned the 11th largest tyre company in the world and has become truly global with the acquistion of three plants in South Africa and one in the Netherlands.
Despite the trying times, the company recorded a net profit after tax of Rs. 1.3 billion (Rs. 139.1 crores), making it the only top Indian tyre manufacturer to have remained profitable throughout each quarter of 2008-09.
While the first six months of the year witnessed skyrocketing raw material prices, the next six months faced a severe demand slowdown across the board, in both domestic and export markets, along with currency volatility.
Many firsts
Apollo Tyres has the distinction of having a number of firsts to its credit. It was the first Indian tyre company to launch exclusive branded outlets -- Apollo Tyre World -- for truck tyres, segment the market on the basis of load and mileage requirements, introduce packaging for car and two-wheeler tyres and tubes, run a customer loyalty programme, introduce radial tyres for the farm category, obtain ISO Certification for all its operations, produce H, V and W-speed rated tubeless tyres, run HIV-AIDS awareness and prevention clinics for the trucking community, support the creation of an Emergency Medical Service in an Indian city, execute an overseas acquisition, and, finally, the first tyre company to reach a revenue of over $1 billion.
Rapid growth and expansion
An analysis of the origin and growth of the company makes an interesting reading. Apollo was registered as a company in 1976 and its first plant commissioned in Perambra in Cochin in 1977. While the second plant was commissioned at Limda in Baroda in 1991, the company acquired Premier Tyres at Kalamassery in Cochin in 1995. The year 2000 witnessed establishment of the exclusive radial capacity at the Limda plant. In 2003, expansion of passenger car radial capacity was to 6,600 tyres/day was completed.
India’s first H-speed rated tubeless passenger car radial tyres was started in 2004, while expansion of the passenger car range to include 4x4 and all-terrain tyres was effected. In 2006, the company acquired Dunlop Tyres International in South Africa and Zimbabwe, and launched DuraTread. This was immediately followed by the launch of India’s first range of ultra-high performance V and W-speed rated tyres.
The year 2007 was most significant for Apollo Tyres, for it was then that the company launched the Regal truck and bus radial tyres, as also the Apollo Tennis Initiative and Mission 2018.
