Apollo Tyres LtdGEENA MARY GEORGE JINO J PGDM 11-13

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

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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

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Vision And ValuesVision 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 Practices4

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

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OPPORTUNITIES

THREATS Slowdown in Indian Early mover advantage, economy(rising interest large capacity. rates) Retreading segment Capitalization of European Competition from global players(Michelin and distribution network. Bridgestone) Off highway tyre De-growth in truck cross segment of India and ply segment Europe. Volatility in raw material New markets in Africa, prices tapping the potential of Country and currency Dunlop brand. risks in Africa. Potential markets in south Economic downturn in America , Australia, Europe Eastern 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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WEAKNESSESAbsence 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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