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Apollo Tyres Case Study Summary

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Apollo Tyres: From a Bumpy Ride to a Roller Coaster About the Company Apollo Tyres Ltd, India’s largest tyre manufacturing company, has its corporate headquarters in Gurgaon, India. It has been in the business of sale of tyres and manufacturing since it came into existence in 1972. Building on its tagline – “Go the Distance”, Apollo has expanded its operations to almost the entire world. It has an employee base of 16,000 worldwide currently. Under the leadership of Onkar S Kanwar, Chairman and CEO, the company has grown exponentially and had a turnover of US $2.08 billion in last financial cycle. Vision: The company has the vision to become “a significant player in the global tyre industry and a brand of choice, …show more content…

To tackle this challenge head on, Apollo invited 50 top managers from Vredestien, brought them to the factories and gave them an opportunity to interact with Apollo employees. As they didn’t know much about India or Apollo, it was important to acquaint them with the culture in India  During 2008, Vredestien had revenues of 306 million Euros, which had grown to 459 million Euros for FY14. The timing and pricing of the acquisition was impeccable as could be seen from the revenues. This acquisition was also in alignment with the company’s vision to make a global presence  Continuing with a focus to establish global footprint, Apollo Tyres was the first made-in-India brand in automotive sector to start selling in Europe independently. The European operations gave a better margin of 18% compared to 12% in India  The market where the company was still struggling was South Africa. Thus, it was quick to sell off a part of it and also, a business rescue plan was taken into action  There were couple of macro-economic factors too that helped Apollo Tyres reach its current position. Firstly, the crude prices fell from $102 to $80 as compared to the previous year, thus helping the company in improving profitability. Secondly, it was the improving business sentiment and growth in India, with sales in cars and trucks seeing a …show more content…

 Long term investments reduced, but overall asset remains unchanged as deferred tax has increased  The company has reduced its liabilities drastically and improved on liquidity Other Non-Current assets 360.18 214.14  We also see a sharp increase in Non-Current assets. Profit & Loss Statement 2015 2014 2013 2012 Revenues from operations Gross sales 106.37 110.75 106.49 100 excise duty 133.43 130.79 126.28 100 Net sales 104.70 109.52 105.27 100 Other operating expenses 100 Other income 164.83 299.78 289.37

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