Apollo Tyres Ltd

BSE: 500877 | NSE: APOLLOTYRE | ISIN: INE438A01022 
Market Cap: [Rs.Cr.] 8,719 | Face Value: [Rs.] 1
Industry: Tyres

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Apollo Tyres, as an organisation, has always believed in going the distance to ensurethat its customers derive maximum benefits from its products and services, and have acomfortable and a safe driving experience. To this end, the organisation intensified itsfocus on quality, technology, new markets, widened its reach in the domestic markets anddeveloped a holistic product portfolio in FY13.

However, against the backdrop of a global auto slowdown and a deluge of imports fromChina and South Korea, the growth in sales, across geographies, was conservative, even asthe company upped its efficiencies across operations - India, Europe and Africa - tocreate greater value for its stakeholders. A moderate drop in raw material prices was theonly relief factor.

The company closed FY13 with a 5.28% addition to its revenues, with a 29.39% growth inoperating profit. From a revenue segmentation position, Indian Operations accounted for65% of net sales, with Europe and Africa contributing 23% and 12% respectively. Thereplacement segment, including exports from respective manufacturing locations, brought inthe bulk of revenues. In terms of products, truck-bus and passenger vehicle tyres accountfor the largest share.

In February 2013, Apollo Tyres was honoured with the Tire Manufacturer of the YearAward, at the Tire Technology International Awards for Innovation and Excellence 2013. Theceremony took place in Cologne, Germany, at the Tire Technology Expo and the jurycomprised an expert panel of tyre industry professionals and thought leaders. Apollo Tyresalso won the AIMA R K Swamy High Performance Brand Award 2012. This Award was inappreciation of brand Apollo's performance on the ground, in addition to its recognition,publicity, loyalty and brand equity.


The past fiscal saw the Indian economy growing a shade over 5%, the lowest in a decade.At the same time, the industrial output (IIP) was at about 1 % as compared to 3.4% theprevious year. Mining and agriculture were the two sectors that were under the weather inFY13.

The automotive industry, often considered to be a barometer of the usually buoyantIndian economy, was not immune to the global slowdown. In FY13, the Indian automotiveindustry was beset with weak customer sentiment and high interest rates. Passenger carsales crashed for the first time in 10 years, with the market shrinking by 1%. Thesharpest drop was seen in sales of commercial vehicles - multi and heavy - by almost 26%.Off road vehicle market too remained lackadaisical with tractor sales declining by around4%. The light commercial vehicle market managed a weak growth of 1 %.

The Indian tyre industry, in particular, was affected by decreased demand from theOEMs, moderate consumption in the replacement market and muted exports. Price correctionsto the tune of about 2% were rolled out, while profitability got a boost with depreciatingraw material cost.

In FY13, the European economy continued to be plagued with a difficult domesticsituation. The limited success of the austerity programmes translated to higher levels ofsovereign debt. Moreover, rising unemployment and lower disposable Income added up to poorconsumer sentiments, finally resulting in a decline in demand - posing an even greaterchallenge to an economic recovery. The governments of two of the biggest economies inEurope, France and Italy, were unable to survive the mandate of the people and lost onpopulist promises. More recently, the Cyprus situation has again fuelled the fear of adebt crisis.

The overall GDP growth in Euro zone countries in CY12 was less than 1%. Germanycontinued to provide economic leadership in the region. Euro was volatile against allmajor currencies with the exchange rate versus USD averaging to 1.29 with a low of 1.21and a high of 1.36 in FY13. New car registrations in Europe dropped by 8% in CY12,compared to the previous year.

The financial year began with a low demand for summer tyres. With winter tyreinventories piling up, customers were not willing to order big numbers. Sales slowed downeven further in the second half of CY12, due to the European economic situation. A latewinter added to the woes, hugely impacting the sale of winter tyres. The replacementmarket was about 13% of the consumer tyre market in FY13, with conservative sales inalmost all categories. The demand contracted even more sharply in southern countries ascompared to the western and eastern European countries.

Raw material prices remained at a high in the first half of the fiscal, declining inthe latter part of the year. However, gains on natural rubber prices were moderated by oilbased raw material.

At the South African Operations, the low growth in the economy, in FY13, could beattributed to the crisis that hit Europe, pressures on the mining industry and thecountry's relatively high unemployment rate. The country's GDP is expected to be at 2.8%in FY13. The Consumer Price Index was at 5.9%, driven by food prices amongst others.

In August 2012, the South African government launched the National Development Plan2030 with a view to eliminate poverty and reduce inequality by expanding economicopportunity for all. According to the World Economic Forum's Global Competiveness Surveypublished in September 2012, South Africa was rated first for regulation of securitiesexchanges, second for soundness of banks, second for availability of financial servicesand third for financing through the local equity market.

The local car market grew a bit more than the anticipated 9%. This is likely to bodewell for the replacement market in the years to come. The light commercial vehiclecategory showed a growth of 6.7% in the past fiscal, while the heavy commercial vehiclemarket grew by 3.1%. Although the vehicle market registered growth, it was not enough tohave a significant impact on the replacement market

The excessive imports have woken up the South African tyre industry to the need ofbeing competitive and maintaining an edge. The South African Operations too bore the bruntof the imports as it lost some market share in the commercial vehicle category. To addressthe situation, the local tyre manufacturing industry implemented a system of assisting theSouth African Revenue Services (SARS) in highlighting potential cases of under invoicingof imported tyres, leading to a reduction in the number of cheaper tyres being dumped intothe market. The weakening of the Rand against the US dollar during the last quarter of thefinancial year also hindered the extent of cheap imports flooding the market

The Integrated Waste Tyre Management Plan by the Recycling and Development Initiativeof South Africa (REDISA) obligates local tyre manufacturers and importers of tyres tosubscribe to the plan and pay a levy of R2.30 + VAT on every kilogram of new rubber tyre.The introduction of this plan has led to majority of the tyre manufacturers and importersincreasing their prices in order to fund the fee.

On the raw material front, in FY13, crude stabilised and the demand for inputs declinedduring the latter part of the year. Natural rubber, the largest contributor to tyre costs,declined over this period against market forecasts of a spike, as tyre producers wereforecast to increase demand.


The Indian tyre industry grew by around 8% in FY13. The pressure on the marginscontinued mostly because of a shrinking market. Indian tyre makers manufactured about12S.4 million tyres, with the 7 leading players accounting for 80% of all the production.

While the replacement market continued to remain crucial for the truck-bus category,the OEM sales played a key role in the passenger vehicle segment. Overall, the Indianreplacement market is estimated to have grown by about 4% in the year under consideration.The ban on mining in certain states impaired replacement demand for commercial vehicletyres. Growth in truck-bus radials category continues, leading to longer replacementcycles. Radials now have an almost 60% share in the OEM basket and 22% in replacement.

Export-import traffic, construction activities, lower interest rates, proliferation ofhub and spoke model, growth of organised retailing, improved road infrastructure, enhancedagriculture income, timely monsoon and reasonable customer sentiments emerged as the keyinfluencers for the industry. In the future, an increase in outlay for buses underJawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme, by the government, isexpected to aid the automotive and auto ancillary industry.

Entry of new players like Sumitomo and Continental intensified the competition in anIndustry that continues to attract global majors. Large manufacturers, including Apollo,Bridgestone, MRF and JK Tyres ramped up radial capacities for the passenger and commercialvehicle tyre categories. Mlchelin's mega project in Chennai, Tamil Nadu, India will alsocommence production later in the current financial year.

A cautious economic revival, better demand in the OEMs and replacement categories and afavourable play of the influencers is likely to result in moderate growth in the comingfiscal.

In Europe, passenger vehicle tyre sales in the replacement market contracted as perdata from the industry association. Winter tyre sales declined further due to a latewinter season and excess opening inventory with dealers. The agriculture tyre sales alsoshowed lower sales numbers as compared to the previous year.

In FY13, the legislation on labelling on tyres was also implemented in Europe. This isseen to be gradually impacting the market dynamics as consumers can now make a directchoice based upon label values. The company's European Operations, Apollo Vredestein BV,are in compliance with this regulation.

However, the tyre labelling system informs customers of about only 3 importantcharacteristics out of over 15 parameters which are normally tested by different Europeantyre test magazines. Additionally, proper safeguards need to be put in place by regulatorsto screen fake label values on cheap imports with lower technological content

In South Africa, the 4 local manufacturers compete for market share, with Bridgestone,Continental and Goodyear being able to rely on the pull effect created by the OEMs.

However, the market share of the major players by volume and net sales, includingimports, is not possible to ascertain due to the Competition Act No.89 of 1998 that is ineffect.

For FY13, passenger car tyre sales have remained quite flat with minimal growth. Marketstatistics indicate that SUV and van tyre segments have again shown stable growth ofaround 3.8%. Truck-bus tyres have shown growth of around 11%, though a decline In demandfor cross ply tyres, particularly in the truck-bus and light truck categories, have beennoted. Apollo Tyres South Africa grew In line with the market growth at 3%.

Most tyre makers seem keen to undertake sales and production related improvements.Continental has announced a few major investments in their plant, especially in the mixingcapabilities. This is in addition to two new retail chains - Fit N Go which is targeted atthe budget end of the market and Best Drive, which will Involve some company owned stores.Bridgestone, which has traditionally sold its products through the Supa Quick franchiseand Max T, is looking to sell through other channels as well.

In South Africa, key influencers included currency volatility towards the later part ofthe year impacting imports, government clamping down on Asian tyre exporters, understatingproduct value to evade customs duty and the weak global economy that also Impacted marketslike Brazil and Egypt.

The road ahead, for South Africa depends on various opportunities. For instance, theweak Rand may push customers to purchase locally made tyres as opposed to imported ones.New product launches may help to address varying driving needs. The Government's effortsto check cheap and low quality imports may be realised in the coming fiscal.



1. Apollo Tyres has the advantage of a diversified market base across multiplegeographies and is therefore, not dependent on a single domestic market. Furthermore, thecompany is working to establish operations in large international markets as well.

2. The company is powered by strong product brands in its markets - Apollo in India andVredestein in Europe.

3. Apollo Tyres enjoys an extensive distribution network for its key brands across itsdomestic markets.

4. In Europe, the company has an established presence and enjoys premium positioning inultra high performance (UHP) and winter passenger car tyre segments.

5. The company is a leading player in the commercial vehicle segment - which accountsfor the bulk of the industry's revenue - in India. Simultaneously, since the companyassumed lead early on, Apollo is best positioned to capture significant market share andmaintain its pole position in the truck-bus radial segment

6. The company's leadership is recognised for its dynamism and progressive outlook.


1. India has a large and growing 2-3 wheeler tyre segment. However, Apollo does notmanufacture tyres for this category and continues to focus on passenger and commercialvehicle tyres. 2. On some occasions, the company is unable to pass on cost escalations toconsumers In a timely fashion, due to intense competition and various market dynamicsresulting in pressure on margins.


1. In India, Apollo Tyres enjoys first mover advantage in the truck-bus radial segmentand has a healthy lead over its competition in terms of capacity and market share. Thecompany's entry in the said segment has meant that it can now provide its customers withcomplete solutions for their requirements in the commercial vehicle category - whereApollo Tyres has been an acknowledged leader for a long time.

2. The company's Apollo branded passenger vehicle tyres are being sold in Europe andthis could develop into a sizeable market for the same, leveraging Its already existingnetwork in Europe.

3. The company Is making forays to grow its presence in new geographies like Americas,Australia and South East Asia. These could be growth avenues for the future.

4. The company is setting up capacity for industrial tyres that could open a newproduct segment.


1. Economic downturn or slowdown in the key markets - Europe and India - leading todecreased volumes and capacity utilisation.

2. Increased competition from global players like Michelin and Bridgestone in India,particularly In the truck-bus radial tyre category.

3. A quicker than expected decline in volumes within the truck-bus cross ply segment,resulting in redundant capacities needing investment to convert into other productsegments.

4. Continued threat of raw material price volatility translating into pressure onmargins during a quick rise in raw material prices.


For the company's Indian Operations, FY13 was a year of change. The commercial vehiclesegment - which traditionally has contributed to the bulk of the revenue - saw a shift.The average sales volumes for the truck-bus cross ply category shrank by about 4%.Similarly, the light truck-bus cross ply tyre category's average sales volume dipped byabout 5% as compared to the previous fiscal.

The radial categories did well, with sales picking up marginally in the passengervehicle category and by about 141 % in light-truck (small commercial vehicle) radial tyrecategory. There is a clear indication of radialisation taking place quicker than expected,Largely due to OEM acceptance and partially due to growing consumer awareness.

On the other hand, while off road tyre sales dipped, the industrial tyres category sawa massive sales volume growth of about 103% in FY13.

The company, as always, brought forth a slew of sales and marketing initiatives, inFY13, aimed at creating customer delight. To begin with, the company launched conceptretail outlet in Dubai, UAE, the first ever Apollo Super Zone outside India, an importantstep in the regional growth strategy.

On the new product development front, the company introduced products across differentcategories. In December 2012, Apollo launched XTRAX 40.00-57, the largest tyre produced inIndia, at the 11th International Mining and Machinery Exhibition (IMME) 2012 in Kolkata,India. Each of these tyres weigh 3500 kg and has a total height of 11.7 feet To boostconsumer sentiment in the truck-bus cross ply segment, the company introduced a new SteerAxle tyre 'XMR', in March 2013. The tyre is designed for superior mileage and structuraldurability to deliver best cost of ownership in terms of total mileage. In the same month,Mahindra & Mahindra launched its 1st electric car e2o, with Apollo Amazer 3G asthe standard fitment tyre. This specially developed tyre resulted from in-depth researchby the Apollo R&D team to meet the specifications of low rolling resistance, whichtranslated into better mileage with lesser power being drawn from the battery.

In Europe, despite significant contraction in the market, Apollo Vredestein BV managedto achieve a stable top line. In terms of volume, passenger vehicle tyre sales declined by5%. However, the company's market share went up amidst a shrinking market. Furthermore, amore customer-centric sales mix resulted in a higher average sales price. The companylargely continued to be a replacement market player and in FY13, 79% of the revenue camefrom the said segment, while original equipment manufacturers accounted for the remaining21 %. Passenger vehicle segment constituted 82% of the total revenue and agriculture tyrescontributed another 14%.

The past fiscal also saw a host of new product launches under both Apollo andVredestein, as well as new marketing and research initiatives by the company.

In April 2012, the company presented its Ultimate High Performance tyre to visitors atTop Marques Monaco, fitted on the Concept One electric supercar developed by RimacAutomobili. In August 2012, the company Introduced its best winter soft tyre-the Nord-Trac2 specifically designed for extreme Nordic winter weather, being safe and reliablethroughout the winter season - in Stockholm.

In March 2013, the company launched two new high performing passenger vehicle tyres atthe Geneva Motor Show -the Apollo Alnac 4G and Vredestein Ultrac Vorti R. Apollo Alnac 4Gis specially designed for compact and mid-size car segments, which will be available in Vand H speed ratings. Vredestein Ultrac Vorti R is an ultra high performance tyre fromApollo Vredestein with an increased focus on grip and spottiness, all within a distinctivesize range, developed in close cooperation with the Italian design house, Giugiaro. Goodtest results for both Aspire 4G and Alnac 4G gave a boost to brand Apollo in the lastquarter of FY13.

Moreover, the Vredestein summer tyres also earned good results in the year underconsideration. In the agricultural tyres category, a complete new range of grass and lawntyres was introduced at the SIMA show in Paris. The Apollo industrial tyres were alsosuccessfully unveiled here.

In FY13, Apollo Tyres established a global Research & Development structure with aview to synergise resources across operations for critical product segments.

Following this, the company opened its global R&D Centre in the Netherlands for thedevelopment and testing of passenger vehicle tyres, since Europe is considered to be thetoughest market with regards to regulations and customer expectations.

In May 2012, Apollo Vredestein also began researching alternatives to natural rubber.The continuous search for sustainable materials resulted in the development of twoprototype tyres made out of rubber of the Dandelion, This was the result of the EU Pearlsproject In which the company participated as the sole tyre manufacturer,

For South Africa, bulk of the revenues came in from the replacement market, whileexports also contributed significantly

With the Introduction of brand Apollo products, the South African Operations were ableto venture into segments where it had Inadequate coverage previously and this has paiddividends. Similarly, introduction of brand Vredestein tyres has afforded Apollo TyresSouth Africa an opportunity to bring a premium Ultra High Performance (UHP) tyre into theAfrican market


With the Indian economy showing a moderate growth trend, slow or no growth Is expectedin the automotive industry. As per the Society of Indian Automobile Manufacturers, theIndian automotive Industry is expected to grow about 8% In FY14. Similarly the Indian tyreindustry is estimated to show moderate growth. Raw material prices are expected to bestable and could move up a little during the year.

As expected, the slowdown In the Indian economy has resulted in lower capacityutilisation for all the tyre players and some have even begun reconsidering their growthprojects. The situation is likely to continue with slower ramp up of capacities across theindustry.

In terms of raw materials, the global tyre Industry's focus Is likely to be onefficient inventory management, vendor relationship management, procurement from low costsources and raw material substitution. In FY14, raw material prices are expected toexhibit a slow upward trend.

In Europe, most economists are forecasting zero to low growth, within the EuropeanUnion, in the near future. Individual governments are expected to strike a delicatebalance between spending cuts to manage the deficit and economic growth initiativesleading to job creation. Austerity programmes together with continued liquidity Injectionby European Central Bank could help In regaining Investor confidence and assist economicstability.

Outlook for Apollo Vredestein B V Is largely positive, even though it Is expected thatmarket growth In Europe may not take place. For brand Vredestein, key to growth will benew product development and entry in new markets. Premium products under brand Vredesteinare slated to be introduced in growth markets like India. Brand Apollo, which is now wellpositioned in Europe, will continue to work towards establishing a larger footprint.

In South Africa, domestic economic growth is constrained and local challenges remain.There was improvement in performance in FY13 and the company will continue to make effortsto expand the Apollo and Vredestein brands in the region. New markets are being exploredto Increase capacity utilisation even as efforts to cut costs are being rolled out.

Apollo Tyres Ltd, during the course of its sustainability journey In the coming year,will also work towards improving not only its financial performance, but also itsperformance across various social and environment driven parameters. The global trend ofdisclosure, be It South Africa's King 3 guidelines or Europe's social-environmental norms,is being driven by legislative compliance and investor interest

The World Economic Forum's Global Risk Report 2012 has identified 5 major riskcategories -economic, environment, social, geopolitical and technological. It goes on tofurther define these risks in terms of livelihood and impact The company has takencognizance of these risks and is working towards mitigation of the identified risks acrossall its operations.

Within the domain of sustainability, there are certain issues that are garnering theattention of corporates across the globe and are becoming business imperatives. Theseinclude, but are not limited to, corporate, social and environmental governance, climatechange, workplace diversity, emissions, sustainable supply chain, consumption style andhuman rights. Apollo Tyres has been studying these developments and has created a charterto manage these issues. The company has also undertaken several initiatives to address thesaid issues, discussed throughout this annual report.


The impact of the key risks and opportunities listed below has been identified througha formal process driven by Apollo's Risk Management Steering Committee. The company'sapproach has allowed for a systematic appraisal of the business environment it operates inand a response aimed at capitalising and maximising benefits for all its operations.


1. Raw material price volatility

a. Natural rubber is an agricultural commodity and subject to price volatility andproduction concerns.

b. Most other raw material is crude linked and are affected by the movement in crudeprices.

c. Both natural rubber and crude prices are controlled by external environment andlittle can be done to control the raw material price movement internally.

2. Ability to pass on increasing cost

a. Demand supply situation must remain in favour of the industry to enable it toundertake price increases.

b. In India however, this is impacted by competitive activities and a generalreluctance to take quick and significant price hikes.

c. In South Africa, imports have a significant market share across categories, which toan extent make it difficult to roll out price hikes.

3. Continued economic growth

a. Demand in the tyre industry is dependent on economic growth and/or infrastructuredevelopment Any slowdown in economic growth may impact the industry.

b. In Europe, the company's winter tyre sales are subject to seasonal requirements,which can be impacted in case of a mild winter season.

4. Radialisation levels in India

a. Slower increase in radialisation level in truck tyre segment, than expected, mayimpact Indian operations. Excess capacity may result in competitive pressures and declinein profit

b. At the same time an unexpected quicker increase in the level of radialisation canresult in redundancy of cross ply capacities and create a need for fresh investments.

5. Future growth

a. Lower profitability due to some of the above factors impacts the ability to investin future growth.


1. Manpower retention

a. Retaining skilled personnel may become increasingly difficult in India, due to theentry of global majors like Michelin and Bridgestone in the tyre industry.

2. A safe work environment

a. Zero tolerance for unsafe behaviours and conditions.

b. Ensuring occupational health and safety, especially in India Operations.

3. Succession planning

a. Nurturing talent and creating a global management cadre comprising individuals fromdifferent walks of life and diverse experiences, with the right skill sets and knowledge.


1. Raw material availability

a. Researching and developing alternatives for natural rubber.

2. Lowering energy consumption

a. Implementing power, fuel and water conservation initiatives across operations.


Apollo Tyres has a robust Internal Control framework, which is instituted consideringthe nature and size of business. The framework comprises inter alia of a well-definedorganisational structure, roles and responsibilities, documented policies and procedures,etc. This is complemented by a management Information and monitoring system, which ensurescompliance to internal processes, as well as with applicable laws and regulations. Theoperating management is not only responsible for revenue and profitability, but also formaintaining financial disciple and hygiene.

In order to ensure efficient Internal Control systems, the company also has a wellestablished in-house Internal Audit function that is responsible for providing assuranceon compliance with operating systems, internal policies and Legal requirements, as well assuggesting improvements in systems and processes. The Internal Audit prepares a rollingannual audit plan, comprising of operational, financial, compliance and Informationsystems audits, covering all the locations of the company. The audit plan for the year isreviewed and approved by the Audit Committee at the beginning of each financial year.

The Internal Audit reports on quarterly basis to the Audit Committee, the key internalaudit observations and action plan agreed/ taken by the management, the status of auditsvis-a-vis the approved annual audit plan and status of open audit Issues.

The year under consideration also saw a large number of initiatives being undertaken bythe Information Services function.

Key deliverables for the year Included the following:

1. Deployment of the Plant Detailed Scheduling System at the Gujarat manufacturing unitin India. This programme ensures higher utilisation of equipment by keeping control andtraceability of the work-in-progress components.

2. Deployment of SAP and Lotus Notes for the new R&D centre in Enschede,Netherlands.

3. Deployment of mobility solutions for the sales team in India. The entire SAPInformation is now available to the sales team while they are on the move and interactingwith customers.

4. Sophisticated solutions have been deployed to enhance the security posture of the ITsystems and prevent data leakage from within the organisation.


The financial statements have been prepared in accordance with the requirements of theCompanies Act 1956 and applicable accounting standards Issued by the Institute ofChartered Accountants of India. The management of Apollo Tyres Ltd accepts the integrityand objectivity of these financial statements as well as the various estimates andjudgements used therein. The estimates and judgements relating to the financial statementshave been made on a prudent and reasonable basis, in order that the financial statementsare reflected in a true and fair manner and also reasonably present the company's state ofaffairs and profit for the year.

Rs. Million

Year Ended

Year Ended

SI. Particulars 31.03.2013 31.03.2012 31.03.2013 31.03.2012



1. Revenue from Operations:
Gross Sales 94,529 89,065 1,37,400 1,29,019
Less: Excise Duty 9,454 7,486 9,454 7,486
Net Sales 85,075 81,579 1,27,946 1,21,533
2. Other Income 574 182 945 326
Total 85,649 81,761 1,28,891 1,21,859
3. Total Expenditure
a) Decrease/(Increase) in Finished Goods & Work in Process (74) 234 (441) (2,557)
b) Consumption of Raw Materials/Purchase of Stock in Trade 61,213 62,118 80,410 82,927
c) Employee Benefits Expense 4,269 3,687 14,714 13,350
d) Other Expenses 10,686 8,877 18,697 16,152
Total 76,094 74,916 1,13,380 1,09,872
4. Operating Profit 9,555 6,845 15,511 11,987
5. Finance Costs 2,610 2,413 3,128 2,873
6. Depreciation & Amortisation Expenses 2,200 1,857 3,966 3,256
7. Profit before Exceptional Items & Tax 4,745 2,575 8,417 5,858
8. Exceptional Items 0.00 0.00 169 (294)
9. Profit After Exceptional Items & Before Tax 4,745 2,575 8,586 5,564
10. Provision for Tax
- Current 1,060 515 1,666 928
- Deferred 560 548 782 816
- MAT Credit 0.00 (301) 0.00 (301)
Total 1,620 762 2,448 1,443
11. Profit after Tax 3,125 1,813 6,138 4,121
12. Share of Loss in Associates/Minority Interest 0.00 0.00 (12) (22)
13. Net Profit 3,125 1,813 6,126 4,099


People sustainabillty at Apollo Tyres is a key business pillar that drives the HumanResource function to act as an omnipresent strategic business partner. Like last year, inFY13 too, the focus was on strengthening functional training. Technology LeadershipDevelopment Programme, launched last year for R&D and Manufacturing, successfullycompleted two modules of Tyre Design and Engineering, a module each on Raw Material andEngineering, Process Design and Technology.

Apollo Tyres is a global, multicultural company and therefore, cultural and valueintegration becomes key, if customers - internal and external - are to perceive andexperience the company in the same manner. Keeping this in mind, the company revisited itsValues and came out with a common set of Values, relevant across all geographies.

Long Service awards were given to employees who completed more than 25 years of servicewith the company. Like every year, several rewards and recognitions were announced toboost employee morale and promote a proactive value and performance driven environment

In the Indian Operations, a key milestone was the launch of the Step-Up programme onproducts and processes for front line Sales Executives. In-house workshops on taxation andexport-import policies were conducted to impart knowledge to employees in functions likeaccounts, finance, commercials, purchase, project commercials and supply chain. Similarly,the manufacturing units conducted functional training programmes as per their own needs.

The company also rolled out a Road Safety Policy for employees working in the field,while January 2013 was celebrated as the Safety Month to promote safe driving behaviour.

Apollo Vredestein BV established a Human Resources Roadmap in FY13. This Roadmap isexpected to give direction to the personnel policy within Apollo Vredestein BV in thecoming years. It was developed based on five main themes - employer branding, talentmanagement, vitality and employabllity, lifelong learning and responsible costdevelopment. The company also actively promoted job rotation and horizontal movement forits workforce. In FY13, the company organised a wide variety of courses for employeespertaining to management, personal effectiveness, technology and tyre expertise. Theoperator training too, continued to be very successful in delivering qualified operatorsat a higher level.

For the European Operations, safety, health, welfare and environment were key issues inFY13. Successful pilots were held for Mixing B Components department aimed at improvingthe safety culture, combined with awareness and safe working practices. In the future,these pilots will be extended to other departments as well.

Six Sigma, which is already well entrenched in the Indian Operations, was introduced atApollo Tyres South Africa, with 18 Green Belts and 2 Black Belts working on differentquality-centric projects.

With regards to its corporate social responsibility initiatives, Apollo Tyres continuedits efforts in areas of HIV-AIDS awareness and prevention, community empowerment anddevelopment, and environment awareness and conservation.

The company has been working towards awareness and prevention of HIV-AIDS amongstemployees, business partners and communities since 2001. Today, apart from having anHIV-AIDS Policy at the workplace, Apollo runs as many as 21 Health Care Centres acrossIndia in the major transport hubs for the trucking community. In addition, the companyalso conducts sensitisation sessions for its Business Partners with the help of in-houseMaster Trainers. In recognition of these efforts, Apollo Tyres was conferred with AsiaResponsible Entrepreneurship Awards (AREA) 2012 South Asia, in the Health Promotioncategory for its HIV-AIDS initiative.

In India, the company extended its youth empowerment and road safety programmes, andlaunched the 1st holistic training centre for commercial vehicle drivers. In Europe,Apollo Vredestein BV supported jobs for people with limited experience to improve theiremployability and contributed towards a Social Fund that takes care of employees with highmedical expenses and other emergencies. In South Africa, the company supported variouscauses - including rehabilitation, cancer and primary education for underprivilegedchildren -through charitable donations.


This report contains forward-looking statements that describe our objectives, plans andgoals. All statements that express expectations and projections about the future,including but not limited to, statements about the Company's strategy for growth, productdevelopment, market position, expenditure and financial results, are forward-lookingstatements. These are subject to, certain risks and uncertainties, including, but notlimited to, governmental action, local economic or political development, technologicalrisks, risks inherent in the company's growth strategy, dependence on certain customers,technical personnel and other factors that could cause actual results to differ materiallyfrom those contemplated by the relevant forward-looking statements. Investors should bearthis in mind when considering the above statements.

Don't judge each day by the harvest you reap but by the seeds that you plant

- Robert Louis Stevenson

Management Approach for Sustainability

At Apollo, responsible governance powers our sustainability journey.

Corporate governance provides direction and control to the affairs of the company. Itensures optimal value creation for stakeholders by defining a broad framework for thecompany's operations and the manner in which it interacts with its environment, whileascertaining compliance to laws and regulations across geographies.

For Apollo, sustainable governance implies integrating sustainability with the variousaspects and ambits of the company's management. In line with established best practices,we seek to strengthen our governance by maintaining strong business fundamentals and bydelivering high performance through unwavering focus on key parameters of sustainability.

In the three years, since the commencement of our sustainability journey, we at Apollohave further enhanced our management systems and improved upon our environment and socialperformance. Furthermore, our organisation is working dedicatedly to integrate the impactaspect of our business across our operations in Africa, Asia and Europe.

A sustainability management framework has been introduced to aid planning andimplementation of sustainability led initiatives across all our operations. For example,carbon footprint mapping has been completed across all manufacturing locations in India,with areas of improvement being identified to mitigate emission impact. In the Netherlandsand South Africa, energy management has been marked as the area of work.

We, at Apollo, have also been disclosing our environment and social performance for thepast two years as per Global Reporting Initiatives guidelines. The R&D function isproactively looking at greener products in terms of both design and development.

These responsibility driven approaches also encompass the company's supply chain. TheCode of Conduct signed by our business partners ensure compliance on hygiene factorspertaining to environment, social and human rights issues. The company has also introducedan audit practice in the supply chain to facilitate the Code. The effort is towardsgreening the supply chain.

The company also introduced an internal drive to sensitise employees and improvebehaviours at work with a view to encourage responsible consumption and boostconservation. In India, we have also rolled out a programme to address issues with regardsto energy, water, waste and biodiversity.


Peer Comparison

Company Market Cap
(Rs. in Cr.)
MRF 10,069.53 12.56 2.76 3.86 24.7 23.9 0.51
Apollo Tyres 8,719.20 19.77 3.75 6.40 14.3 17.1 0.97
Balkrishna Inds 4,888.56 11.67 3.45 6.64 28.5 17.6 1.50
CEAT 1,421.68 5.55 1.88 2.99 17.2 19.8 1.63
Goodyear India 1,003.43 10.67 2.39 3.17 24.4 35.4 0.00
JK Tyre & Indust 843.58 4.53 1.17 5.70 17.9 12.5 3.06
TVS Srichakra 259.52 8.31 1.52 2.51 9.1 14.5 1.83
PTL Enterprises 173.44 10.19 2.43 5.62 25.3 20.7 1.13
Falcon Tyres 130.17 42.00 0.62 64.62 0.0 0.0 3.26
Dunlop India 83.80 0.00 0.29 0.00 -2.8 -0.6 1.19
Modi Rubber 48.58 0.00 1.67 1.88 2.1 -1.2 0.05
Govind Rubber 33.63 0.00 1.05 6.88 2.1 10.1 3.62
Krypton Inds. 16.91 143.75 0.59 8.63 1.6 6.6 0.49
Surya Indl. Corp 4.27 0.00 -4.10 6.14 1.3 3.7 0.00
Modistone 3.74 0.00 -0.07 0.00 0.0 0.0 0.00

Futures & Options Quote

Expiry Date
173.65 12.15  (7.5%)
Instrument: FUTSTK
Expiry Date: 24 Apr 2014
Open Price: 161.95
Average Price: 170.81
No. of Contracts Traded: 36,788,000
Open Interest: 11,360,000
Underlying: APOLLOTYRE
Market Lot: 4000
Previous Close: 173.65
Day’s High | Low: 175.80 | 160.70
Turnover (Cr.): 628.38
Open Int. Change: 148,000.00 (1.3% )
View detailed F& O quotes >>

Key Information

Key Executives:

S Narayan , Director  

Onkar S Kanwar , Chairman & Managing Director  

Robert Steinmetz , Director  

Neeraj Kanwar , Vice Chairman & M.D.  

Company Head Office / Quarters:
6th Floor Cherupushpam Bldg,
Shanmugham Road,
Phone : 91-484-2381808-2372676
Fax : 91-484-2370351
E-mail : info@apollotyres.com
Web : http://www.apollotyres.com
Apollo Tyres Ltd
Apollo House
7 Institutional Area
Gurgaon - 122 001


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