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Apollo Tyres 2012 - Coggle Diagram
Apollo Tyres 2012
Financials
$2.5b revenue
$1b expansion over 5 years
internal cash accruals
$150m qualified institutional buyer
India 67% of revenue
Europe 23% of revenue
South Africa 10% of revenue
making foreign aquisions using debt
debt ratio - 0.6 to 1.0 from 2008 - 2012
consolidated profit - 2011-12 Rs4.1bn on Rs121bn revenue
consolidated profit 2010-11 Rs4.4bn on RS89.2bn
gained 30% share too Rs84.60
on the nifty fifty index
The company
Top 16 aspiring top 10 by 2017
Established 1972
118 counties supplies
manufacture India, South Africa & Netherlands
1595 Tonnes per day
not premium tyres
sells to 100 countries
Global Scale
2006 bought Dunlop Tyres South Africa
market Dunlop brand across 32 African Nations
2011-12 net loss RS584m on sales of Rs13bn
due to recession
imports china 8-10 increased to 50-55%
Escalating manufacturing costs labor negotiations in mining sector
reduce costs by serving Brazil too so plant utilisation 90%
2009 - bought $300m Dutch Vredestein Branden BV
Network across europe
Expansion SE Asia
Greenfield Ops Indonesia or Thailand
phase 1 3 yrs
$300m plant
16000 pass car radials
1500 truck radials
Phase 2 $200m plant
grow to 24,000 radials
3000 truck radials
Phase 3 3 years Poland or Hungary
Depends on eurocrisis
Phase 3 $350m - 7m units a year
Europe
50m euros to upgrade netherlands plant
7.5m tyres up from 6.5m
India
Main focus
HQ 1972
Malaysia 2019
Apollo Truck Tyre Zone
modern technology
training centre
Issues
not premium
suffer from raw material volality
Rubber prices increased since 2007 but went down in 2012
seen as indian not international
Recessions