APOLLO TYRES LIMITED
Apollo Tyres Limited (Apollo Tyres) is a tyre manufacturing company, incorporated in 1975. In 1977, the first plant was commissioned at Cochin, Kerala. In 2006, it acquired Dunlop Tyres International, South Africa and Zimbabwe. It manufactures tyres, tubes and flaps for commercial and passenger vehicles. Apollo Tyres Ltd. was founded in 1975 and is headquartered in Gurgaon, India. It operates through its subsidiaries namely, Apollo Mauritius Holdings Pvt Ltd, Apollo Tyres AG, Apollo South Africa Holding Pty Ltd, Apollo Tyres Pte Ltd, Apollo Tyres Nigeria Ltd, Apollo Tyres South Africa Pty Ltd, Dunlop Africa Marketing United Kingdom Ltd, Apollo Tyres GmbH and Apollo Tyres Zrt. The Groups plants located in Kerala and Gujarat. The Group operates in India, South Africa and Internationally. GENESIS
Brand Apollo Tyres’ genesis dates back to the mid 1970s, when its first corporate identity was unveiled. Popularly known as the unending road, the logo was depicted as a stylized alphabet “A” in red with an endless road running through it and was conceptualized by Head start Advertising. It stood for passion, aggression and tireless striving to achieve excellence in all spheres. And mirrored in many ways, the long journey the company would make to its evolution as a dynamic, multi-cultural and multi-location entity. This initial identity served Apollo’s dreams and ambitions well for over 30 years. This identity established Apollo Tyres in its primary market – India, and witnessed Apollo’s first foray outside its home market.
In recent times, in its journey towards a global organization, a need was felt to innovate, think afresh and re-depict the manner in which the organization operated and related to its customers and the world. It was a need to externally project the internal reality of Apollo and its people – young, dynamic, multi-hued and always different from others.
As the global economic crisis continues to intensify Apollo has had to, like many others, shift gear. But the current environment is throwing up opportunities for non-organic growth and here Apollo is “taking a long hard look” at firms which are becoming more realistically valued. Dunlop acquisition in South Africa in 2006 is a good example of this. “This was a perfect gateway to Africa, a huge growth market of the future. In considering opportunities for non-organic growth – which could be an entire business, manufacturing facility or distribution network – Apollo is using same criteria it applied when acquiring Dunlop. Acquisition of Dunlop has given Apollo an edge over other players for which they are able to cater to the western market and South African market with those products and Apollo brand products have conventionally catered to the Asian market. PRESENT STATUS
The current scenario in the tyre market for both passenger and commercial vehicles considering the economic slowdown that has affected the automobile industry in a big manner. The passenger car segment has been badly impacted. As car sales have plummeted, tyre sales have also gone down proportionally. Apollo Tyres however has managed to maintain a growth of 22 per cent despite the overall scenario as exports have helped in tiding over this period so far. In terms of the commercial vehicle tyre segment, Apollo witnessed a growth between 22- 23 per cent in the first two quarters of 2008-09 however the last quarter saw a serious drop. Looking at the last quarter, Apollo have witnessed a rise in raw material cost by 35 per cent as compared to the same period last year. OEM demand has fallen by 43 per cent in terms of value. All this has impacted tyre costs and though they have absorbed some of it, there is still an amount passed on to the buyer. Exports however have registered a growth of 37 percent as compared to Quarter 3 of last fiscal year. About exports
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