Apollo Tyres

Ltd

Indias Largest Tyre Maker is

constantly seeking change,
knowing full well that what is
good for TODAY is not going to
hold sway TOMORROW

Apollo Tyres Limited

Founded in 1976
Headquartered at Gurgaun, Haryana
First plant in Perambra, Kerala in 1977
Has 4 plants in India,2 in South Africa,2 in
Zimbabwe,1in Netherlands
Acquired Dunlop Tyres International of South
Africa in 2006.
Today, is 15th largest tyre manufacturer in the
world.
Annual revenue of Rs 8.89billion; 59% revenue
from India, 28% from Europe,13% from Africa
3

Vision And Values

Vision
To be a significant player in the global tyre industry
and a brand of choice, providing customer delight
and continuously enhancing stakeholder value.
Core Values
Care for Customer
Respect for Associates
Excellence through Teamwork
Always Learning
Trust Mutually
Ethical Practices
4

Industry Analysis
At present there are 40 listed companies in the tyre
sector in India.
Fragmented industry.(350 billion)
Major players are MRF, JK Tyres, Apollo Tyres & CEAT,
which account for 85 % of the organized tyre market.
The tyre industry is affected by :
o Level of industrial activity,
o Availability & cost of credit,
o Transportation volumes & network of roads,
o Execution of vehicle loading rules,
o Radialization,
o Retreading and exports,
o Raw material price.
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Porters Five Forces

Entry Barriers: High

Bargaining Power of the Suppliers: High
Inter Firm Rivalry: Low
Bargaining Power of the Buyers: High
Threat of Substitutes: High

Competitors Analysis
Market
cap

Sales
turnover

Net profit

Total
assets

APOLLO
TYRES

3,981.80

5,490.74

198.25

2,859.55

MRF

2,956.52

7,463.74

353.98

2,643.17

JK TYRES

411.83

4,831.22

61.32

1,553.60

CEAT

366.23

22.28

1,058.11

3,516.33

OPPORTUNITIES
Early mover advantage,
large capacity.
Retreading segment
Capitalization of European
distribution network.
Off highway tyre
segment of India and
Europe.
New markets in Africa,
tapping the potential of
Dunlop brand.
Potential markets in south
America , Australia,
Eastern Europe.

THREATS
Slowdown in Indian
economy(rising interest
rates)
Competition from global
players(Michelin and
Bridgestone)
De-growth in truck cross
ply segment
Volatility in raw material
prices
Country and currency
risks in Africa.
Economic downturn in
Europe
8

Competitive Advantage
They manufacture best priced, best-produced and
best-designed quality tyres.
Raised the benchmark in design, production &
research.
Has a superlative stamp of customer satisfaction and
confidence because of its reliability and safety.
R&D is very efficient and good who have state-of-theart laboratory & design centre
It has come up with truck and passenger tyres that
consistently exceed customer expectations.
Eg:One such recent example is the development of XT100K, a revolutionary cross ply tyre. It is designed to
run beyond the 100,000 km mark giving it a 20% extra
mileage.
10

STRENGHTS
Apollo Tyres' diversified market base across 3
continents which has enabled it to reduce its
dependence.
The presence of strong and established brands
in the Company's portfolio.
An extensive distribution network supporting
Apollo Tyres' brands and products in all its 3 key
operations.
Continued Leadership position in the
commercial vehicle tyre segment in India,
including price Leadership in the cross ply
segment.
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 A leading position in the fast-growing passenger

car tyre segment in India, reaching the #1
position in production and #2 in market share.
Strong player in the ultra high performance
(UHP) passenger car tyre segment in Europe,
particularly in high margin winter tyres.

12

WEAKNESSES
Absence in the two-wheeler and three-wheeler
tyre segment in India, which is large and
continues to show good growth.
Sub-optimal production facilities in terms of
economic size in South Africa.
Market dynamics and intense competition in
some key markets do not allow passing on cost
pressures as and when reasonably required.

13

14

Strategies in Action

Maintains a good review system

Internal auditing
Information system maintenance
Human resource management
Quality management

15

FUTURE DIRECTION OF THE

Co

Radial Tyre Penentration

Their European Operations are performing very
well giving a boost of 40% which has opened up
sales avenue.
Since they are absent in the Two wheeler and
three wheeler segment in India they can focus
more on this segment as it has high growth.
They can also go in for Backward Integration as
the raw materials cost is increasing overtime.

16

 Investments in Research & Development which

will help the company to be more sustainable in
future and also help the company in the use of
green materials and increased fuel efficiency
from their tyres.
Apollo Tyres Ltd is now planning to set up a fullfledged sales and service outfit in Jakarta,
tentatively in the first quarter of the next fiscal

17

 Early indications suggest that the company may

roll out its Indonesian subsidiary to boost Indian
exports in the archipelago. The Indian tyre major
is also planning export of truck-bus radials to
Australia.
Apollo is primarily targeting the truck-bus and
cross-ply OTR (off-the-road) tyres market in the
South-East Asian nation. Indonesia with large
mining operations, cheap fuel and sustained
economic growth at 6-7 per cent offers wide
opportunities for tyre makers.

18

BALANCE SHEET

Particular
s
2010
Net
Worth
1,726.60
Total
Debt
1,132.97
Total
Liabilities 2,859.57
Net Block 1,610.22
Total
Assets 2,859.55

2011

2012

2013

2014

Growth
%

1,895.56

2062.25

2247.89

2450.2

9.8%

1,907.97

3205.38

5385.04

9046.88

68.4%

3,803.53

5058.7

6728.07

8948.33

33.0%

2,383.58

3527.7

5220.9

7726.9

48.0%

3,803.53

5058.7

6728.07

8948.33

33.0%

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Profit &
Loss Ac

2010

2011

2012

2013

2014

Growth %

Net Sales

5,045.99

5,480.92

5946.09

6457.45

7012.79

8.6%

Raw
Materials

3,243.95

4,291.28

5664.49

7477.13

9869.81

32.0%

Power &
Fuel Cost

163.47

179.02

196.03

214.65

235.04

9.5%

Other
Manufactu
ring
Expenses

78.42

89.37

101.8

115.95

132.07

13.9%

Interest

113.54

198.66

347.5

607.7

1062.9

75.0%

Depreciati
on

122.78

147.35

176.82

212.18

254.6

20.0%

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Thank You