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MOTORINDIA
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September 2012
61
ion. This would be balanced with a
focus on profitable segments of the
tyre market. For example, in India
where the company is already the
No.1 tyre manufacturer and a leader
in both passenger car and truck-bus
radial tyres; the focus would be on
widening the gap between the com-
pany and its competitors with a larg-
er and more meaningful portfolio
for customers. This would include
the entry of the Vredestein brand to
take on a leadership position in the
ultra-high performance tyre and car
segment. This would also include
a higher penetration of mining and
specialty tyres in South Africa.
In Europe, the focus for the next
two years will continue to be on
strengthening the passenger car tyre
brands of both Apollo and Vredes-
tein. Currently in Europe, demand
outstrips supply. Therefore, the
company is actively looking at ways
in which it can meet this increasing
European demand for passenger car
tyres.
To lend greater focus to these
markets, the company’s commer-
cial vehicle Research Centre is be-
ing recreated in Chennai, while the
entire passenger tyre Research and
Development Centre has been relo-
cated to Netherlands. This reorgani-
sation will enable the company to
address evolving car and customer
requirements more effectively. As
hubs, they will work with country-
level research centres to further cus-
tomise product ranges to address lo-
cal needs actively.
Expanding into new markets
In each of the home markets,
Apollo is growing at a rate higher
than the local industry rate, espe-
cially India. Currently Apollo tyres
are sold in over 118 countries. The
company has been seeding many
of these markets through exports
for some years now. But over the
course of the past year, it has iden-
tified the specific geographies of
the Middle East, South-East Asia,
Australia and Brazil as potential
future home markets, some with
manufacturing bases.
This presupposes a firm commit-
ment to further expand the product
range, sales and service network and
also to a substantial capital expendi-
ture to create fresh infrastructure of
new manufacturing bases and peo-
ple. Over the short term, the capital
outlay might put further pressure on
margins. However, this is a much-
needed expenditure to enable the
company to build a future of growth.
The company investments in com-
munity development, education and
skill building of young people have
increased 150 per cent during the
year. The company has also started
setting up driver training schools for
commercial vehicles in India to cre-
ate a strong pool of safety and health
conscious drivers.
The company core duty is to ag-
gressively pursue business growth,
tempered with a keen eye on the
society’s well-being. This involves
appropriate investments in people,
processes and plants for future busi-
ness needs. And, of course, Apollo
Tyres is ready to move to the next
level in its journey around the world.
w
tyres
In each of the home markets,
Apollo is growing at a rate
higher than the local industry
rate, especially India. Current-
ly Apollo tyres are sold in over
118 countries.