Apollo Tyres Ltd

India s 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

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
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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 : Level of industrial activity, Availability & cost of credit, Transportation volumes & network of roads, Execution of vehicle loading rules, Radialization, Retreading and exports, Raw material price.

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Porter s 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 5,490.74 Net profit Total assets

APOLLO TYRES MRF JK TYRES CEAT

3,981.80

198.25

2,859.55

2,956.52
411.83 366.23

7,463.74
4,831.22 3,516.33

353.98 61.32 22.28

2,643.17
1,553.60 1,058.11

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
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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.

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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.

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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.

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Strategies in Action
Maintains a good review system Internal auditing Information system maintenance Human resource management Quality management

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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.

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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

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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.

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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 1,895.56 1,907.97 3,803.53 2,383.58 3,803.53

2012 2062.25 3205.38 5058.7 3527.7 5058.7

2013 2247.89 5385.04 6728.07 5220.9 6728.07

2014 2450.2 9046.88 8948.33 7726.9 8948.33

Growth % 9.8% 68.4% 33.0% 48.0% 33.0%

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Profit & Loss Ac

2010

2011

2012

2013

2014

Growth %

Net Sales Raw Materials Power & Fuel Cost Other Manufactu ring Expenses

5,045.99

5,480.92

5946.09

6457.45

7012.79

8.6%

3,243.95

4,291.28

5664.49

7477.13

9869.81

32.0%

163.47

179.02

196.03

214.65

235.04

9.5%

78.42

89.37

101.8

115.95

132.07

13.9%

Interest Depreciati on

113.54

198.66

347.5

607.7

1062.9

75.0%

122.78

147.35

176.82

212.18

254.6

20.0%
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Thank You