Case study APOLLO TYRES

GROUP MENBERS..
Prateek Batra Supriya ahuja Mayank chawla Sanchita puri Bhavjot singh dhaliwal parneet bhinder Davneet kaur batra

Purpose of the case

How to track or identify opprtunities and threat in macro-environment How to assess the importance of demographic,economic,political and technological factors How to sustain,survive and grow in the changing business milieu or environment

History of Apollo Tyres

Apollo Tyres Ltd is a high-performance company and the leading Indian tyre manufacturer. Head quartered in Gurgaon, Registered as a company in 1976, Its first plant was commissioned in Perambra in Kerala state. It commenced its production in 1977 under the leadership of Raunaq Singh.Apollo Tyres Ltd is the fastest growing tyre manufacturer, with annual revenues of over US$ 1.8 billion (200910).. In 2006, the company acquired Dunlop Tyres International of South Africa. The company now has four manufacturing units in India, two in South Africa and two inZimbabwe.

What made the strategy head of Apollo tyres worried?

The changing environment of Indian economy which includes macro factors like: GDP Inflation Infrastructure Population Agricultural Production IIP Savings Monsoon Transport Interest rate

Contents of BCG Report

Methodology The Indian tyre industry The Indian Economy Relationship b/w transport and economy Demand for tyres

The Indian Tyre Industry

The 13000 crore industry Depends on Agricultural production, Industrial performance,Transportation needs and production of vehicles. Mainly dominated by Organized Sector 2.61 lakh villages,6.23 lakh kms metalled and 9.81 lakh kms unmetalled roads Major players are MRF,Apollo tyres,Ceat and JK industries which accounts for 63% of market share Free import of new tyres but import of retreaded tyres is resticted

The Indian Economy

Economic reforms in 1991, in reaction to severe foreign exchange crisis Reforms include liberalized foreign investment and exchange regimes Significant reduction in tarrifs and other trade barriers Adjustments in govt. monetary and fiscal policies Effect : Higher growth rate,lower inflation,increase in foreign investment, increase in GDP from 5% in 1997-98 to 6.8% in 1998-99.

Relationship b/w transport and economy

Strong relationship b/w economic development and transport demand Economic growth implies increase in goods and passenger transport Transport is a major contributor to economy Economic growth increases transport requirement which impacts demand for tyres

Demand for Tyres

As Indian Economy is one of the fastest growing economy in the world which means that there is increasing flow of money creating more and more jobs increasing the purchasing power of people and good infrastructure resulting to economic growth hence leads to increase in demand of transportation needs which means demand for more tyres.Demand for tyres is mainly from segments like original equipment makers and replacement and exports.

Example: Maruti Suzuki to set up a plant in manesar

to meet its rising demand which could also result in demand for tyres.