Apollo Tyres Share Price

Apollo Tyres Ltd.

Apollo Tyres Ltd., established on September 28, 1972, has grown into one of India's leading tyre manufacturing companies. The company specializes in the production and sale of automobile tyres and tubes, with a robust operational base in India and an expanding presence globally. Apollo Tyres operates five manufacturing plants in India located in Cochin, Vadodara, Chennai, and Andhra Pradesh. The company has also established manufacturing facilities in the Netherlands and Hungary, along with sales and marketing offices in the Middle East, Africa, and ASEAN regions, underscoring its global ambitions and reach.

Expansion in India: The Foundation of Success

Apollo Tyres began its journey with a manufacturing plant in Perambra, Kerala. This marked the start of a legacy that would reshape the Indian tyre industry. In 1991, the company expanded its operations by commissioning a second plant at Limda, Gujarat. The acquisition of Premier Tyres in Kalamassery, Kerala, in 1995 further bolstered its manufacturing capabilities. By 1996, Apollo had commissioned an exclusive tubes plant in Ranjangaon, Maharashtra, and introduced radial capacity at Limda in 2000, keeping pace with evolving market demands.

The company took a significant step in 2003 by entering into a strategic alliance with Michelin of France. This partnership aimed to produce dual-branded truck and bus radial tyres in India. Although the partnership was realigned later, it marked Apollo's commitment to innovation. In 2004, the company introduced India’s first high-speed rated tubeless passenger car radial tyres, setting new benchmarks in the industry.

Global Footprint: Establishing a Presence Beyond India

Apollo Tyres' expansion outside India began with the acquisition of Dunlop Tyres International (Pty) Ltd. in South Africa in 2006. This acquisition enabled Apollo to establish a manufacturing presence in the African market. The company also incorporated Apollo Tyres AG in Switzerland in 2007, further enhancing its global footprint.

In Europe, Apollo opened a state-of-the-art global research and development (R&D) center in Enschede, the Netherlands, in 2013. This facility became a hub for the development and testing of car and van tyres across its brands, including Apollo, Vredestein, and Dunlop (for 32 countries in Africa). In 2017, the company inaugurated its first greenfield manufacturing facility outside India in Hungary. This facility was part of a €475 million investment aimed at bolstering Apollo’s presence in the European market.

Collaboration with Global OEMs

The company also made significant inroads with Original Equipment Manufacturers (OEMs). In September 2017, Apollo Tyres' premium brand, Vredestein, was selected as a fitment for high-demand models such as the Volkswagen Polo, SEAT Ibiza, and Ford EcoSport. This marked a key milestone in Apollo’s journey with leading European car manufacturers. Collaborations like these bolstered its position in global markets, elevating its brand

Innovation and Diversification

Apollo Tyres has consistently focused on innovation to meet the diverse needs of its customers. The company launched Apollo Trust, a full-service branded commercial vehicle tyre outlet, in Salem, Tamil Nadu, in 2008. It also introduced products like the XT100K, a cross-ply tyre designed for superior performance. In 2017, Apollo introduced the Apterra HT2 tyre for the growing SUV segment and the actiZip F2 and actiZip R3 tubeless tyres for motorcycles, showcasing its commitment to catering to niche markets.

In the two-wheeler segment, Apollo launched the Acti series in 2016, designed to cater to 85% of the Indian replacement market for bike and scooter tyres. These initiatives underscore Apollo’s ability to diversify its product portfolio while maintaining a focus on quality and performance.

Expanding Brand Presence

Apollo Tyres also focused on strengthening its brand presence through innovative marketing initiatives. In the CV space, it expanded its Apollo CV Zones, while in the agriculture segment, the company introduced branded retail concepts such as Apollo Farm Zones. These efforts were complemented by digital campaigns like the Bad Road Buddies initiative, which engaged motorcycling enthusiasts across India.

Collaboration with Global OEMs

The company also made significant inroads with Original Equipment Manufacturers (OEMs). In September 2017, Apollo Tyres' premium brand, Vredestein, was selected as a fitment for high-demand models such as the Volkswagen Polo, SEAT Ibiza, and Ford EcoSport. This marked a key milestone in Apollo’s journey with leading European car manufacturers. Collaborations like these bolstered its position in global markets, elevating its brand equity and showcasing its capability to meet stringent OEM requirements.

Strategic Acquisitions and Partnerships

Apollo Tyres has leveraged strategic acquisitions and partnerships to strengthen its position in global markets. In 2013, the company announced the acquisition of Cooper Tire & Rubber Company in a transaction valued at approximately ₹14,500 crore. This merger would have made Apollo the seventh-largest tyre company in the world, with a robust presence across high-growth markets. Although the deal did not materialize, it demonstrated Apollo's ambitions on the global stage.

The company successfully acquired Reifencom GmbH in Germany in 2015, gaining access to an extensive online and retail network across Europe. This acquisition has significantly enhanced Apollo's distribution capabilities in the region.

Greenfield Projects and Product Innovations

The foundation stone for the Andhra Pradesh plant was laid in January 2018, with the company investing ₹1,800 crore in the first phase. This ultra-modern facility began producing passenger vehicle tyres to meet growing demand and later diversified into other product categories. Concurrently, Apollo Tyres introduced the Apollo Aspire XP, a premium summer tyre that replaced the Aspire 4G and Apterra HP range. Featuring advanced materials and construction technologies, the Aspire XP set new standards in comfort and safety.

Focus on Sustainability and Research

Apollo Tyres has also emphasized sustainability and technological advancement. The establishment of the Global R&D Centre, Asia, near Chennai in 2016, was a milestone in this regard. This facility complements its European R&D center and focuses on developing innovative products for the Asian market.

Apollo’s greenfield project in Hungary, inaugurated in 2017, aligns with its commitment to environmental sustainability. The facility incorporates energy-efficient technologies and is designed to minimize environmental impact. With a planned capacity of 5.5 million passenger car and light truck tyres, and 675,000 commercial vehicle tyres, the plant is a testament to Apollo's focus on sustainable growth.

Challenges and Triumphs

Apollo Tyres has navigated several challenges, including fluctuating raw material prices and intense competition in global markets. Despite these hurdles, the company has consistently demonstrated resilience. For instance, during the global financial crisis in 2008, Apollo maintained its growth trajectory by focusing on operational efficiency and market expansion.

The closure of its South African operations in 2013, following the sale of Apollo Tyres South Africa to Sumitomo Rubber Industries, was a strategic decision to streamline its portfolio. Apollo retained its Durban facility, which specializes in truck and bus radial tyres, and continues to focus on expanding its presence in Africa.

In October 2017, Apollo Tyres raised ₹15,000 million through a Qualified Institutional Placement (QIP), issuing 63,025,210 equity shares at ₹238 per share. This strategic move increased the company’s paid-up equity share capital significantly and provided the financial resources necessary to fuel its growth initiatives. These funds were instrumental in supporting large-scale projects such as the establishment of a global-scale manufacturing facility in Chinnapanduru village, Chittoor district, Andhra Pradesh.

Apollo Tyres Share Price as an Indicator of Market Confidence

The sustained growth, product innovation, and strategic initiatives have positively impacted Apollo Tyres Share Price, reflecting market confidence in the company's ability to deliver consistent value. The share price has become a key barometer of the company’s performance, driven by its strong operational and financial results.

Quick overview

Apollo Tyres has emerged as a global leader in the tyre industry through its innovative products, strategic investments, and unwavering focus on customer satisfaction. By addressing diverse market needs and adapting to changing industry dynamics, the company continues to chart a path of sustainable growth. With a robust portfolio and a strong global presence, Apollo Tyres is well-positioned to capitalize on future opportunities in the automotive sector.