swot of apollo tyres

Topics: Automotive industry, Automobile, Automobile industry in India Pages: 11 (2159 words) Published: November 17, 2013
COMPANY PROFILE

Apollo Tyres Ltd

REFERENCE CODE: E16AA60E-380B-49C8-9C23-BFC7C2AB3058
PUBLICATION DATE: 28 Jun 2013
www.marketline.com
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Apollo Tyres Ltd
TABLE OF CONTENTS

TABLE OF CONTENTS
Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4

Apollo Tyres Ltd
© MarketLine

Page 2

Apollo Tyres Ltd
Company Overview

COMPANY OVERVIEW
Apollo Tyres Ltd (Apollo or “the company”) manufactures and markets tyres, tubes and flaps. The company provides tyres for trucks and buses, light trucks, passenger cars, jeeps, and farm vehicles. The company primarily operates in India, South Africa, the Netherlands and Zimbabwe. It is headquartered in Gurgaon, India, and employed around 16,000 people as of March 2012. The company recorded revenues of INR121,532.9 million ($2,515.7 million) during the financial year ended March 2012 (FY2012), an increase of 37.1% over FY2011.The operating profit of the company was INR8,405 million ($174 million) during FY2012, an increase of 21.3% over FY2011. The net profit was INR4,099 million ($84.8 million) in FY2012, a decrease of 6.9% as compared to FY2011. Note: Operating profit excludes other income and finance cost.

KEY FACTS
Head Office

Apollo Tyres Ltd
Apollo House
7 Institutional Area
Sector 32
Gurgaon 122001
Haryana
IND

Phone

91 124 272 1000

Fax
Web Address

http://www.apollotyres.com

Revenue / turnover 121,532.9
(INR Mn)
Financial Year End

March

Employees

16,000

Bombay Stock
Exchange Ticker

500877

National Stock
Exchange of India
Ticker

APOLLOTYRE

Apollo Tyres Ltd
© MarketLine

Page 3

Apollo Tyres Ltd
SWOT Analysis

SWOT ANALYSIS
Apollo Tyres (Apollo) manufactures and markets tyres, tubes and flaps. The company provides tyres for trucks and buses, light trucks, passenger cars, jeeps, and farm vehicles. Apollo has a strong brand recall. A strong brand recall allows the company to enter new markets with ease and also enables it to launch new products. However, intense competition could force the company to reduce prices, which could impact the bargaining power of the company and strain its margins. Strengths

Weaknesses

Strong brand recall
Robust inorganic growth

Involvement in price fixing allegations
impacts the company's reputation
Lack of presence in two and three wheeler
tyre segments
Labor unrest and lockouts hits financials
and production

Opportunities

Threats

Poised to benefit from growing automotive
manufacturing industry in India
Expansion into Sri Lankan automobile
market through tie-up

Fierce competition
Threat from cheap Chinese imports

Strengths

Strong brand recall
Apollo has a strong brand recall. Brand diversity is one of the company's strengths. The company sells a range of tyres under various brand names in India, Africa and Europe. Manufactured in India, South Africa and the Netherlands, the company's product portfolio covers the entire range of passenger car and 4×4 (summer and winter tyres), light truck, truck and bus, agriculture, industrial, off-the-road and bicycle tyres, and also includes retreading material, retreaded tyres and alloy wheels. Apollo, Vredestein and Dunlop are the company's three flagship brands. Other brands include Regal and Kaizen (truckbus tyres), and Maloya (passenger car). The presence of strong and established brands in the company's portfolio, in each of its country operations, lends credence to its growth plans.

Furthermore, according to the industry experts, Dunlop, which is sold in 32 African countries, emerged as one the...
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