apollo tyres- ppt ( final )
TRANSCRIPT
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”
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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 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 :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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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
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Competitors AnalysisMarket cap Sales
turnoverNet profit Total assets
APOLLO TYRES
3,981.80 5,490.74 198.25 2,859.55
MRF 2,956.52 7,463.74 353.98
2,643.17
JK TYRES 411.83
4,831.22
61.32
1,553.60
CEAT 366.23
3,516.33 22.28
1,058.11
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• 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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OPPORTUNITIES
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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-
the-art 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 XT-
100K, 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 full-fledged 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
Particulars 2010 2011 2012 2013 2014
Growth %
Net Worth 1,726.60 1,895.56 2062.25 2247.89 2450.2 9.8%Total Debt 1,132.97 1,907.97 3205.38 5385.04 9046.88 68.4%Total
Liabilities 2,859.57 3,803.53 5058.7 6728.07 8948.33 33.0%
Net Block 1,610.22 2,383.58 3527.7 5220.9 7726.9 48.0%Total
Assets 2,859.55 3,803.53 5058.7 6728.07 8948.33 33.0% 19
Profit & Loss Ac 2010 2011 2012 2013 2014 Growth %
Net Sales 5,045.99 5,480.92 5946.09 6457.45 7012.79 8.6%
Raw Materials 3,243.95 4,291.28 5664.49 7477.13 9869.81 32.0%
Power & Fuel Cost 163.47 179.02 196.03 214.65 235.04 9.5%
Other Manufactu
ring Expenses 78.42 89.37 101.8 115.95 132.07 13.9%
Interest 113.54 198.66 347.5 607.7 1062.9 75.0%
Depreciation 122.78 147.35 176.82 212.18 254.6 20.0%
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Thank You