Dear Members,
Since the inception of Apollo Tyres, it has been my resolve to deliver value to all our stakeholders including employees, shareholders, customers, partners and other relevant communities. In this journey, your Company has had to think and act differently as compared to others. We invested in the Chennai plant when conventional wisdom dictated to avoid any investments during recessionary times or made international acquisitions when we were told to cover our flanks in India...
Dear Members,
On a New Road. Always – this is not just the theme for the year’s Annual Report but raison d'etre of your Company’s profitable and sustainable growth journey and behind each of its milestones and achievements.
FY2018 was a year marked with frantic activity at Apollo Tyres. Commercial production of the new plant in Hungary, announcement of a new Greenfield facility in India, high-decibel football sponsorship in India…
Not in picture:
Anjali Bansal Former Global Partner and MD, TPG Private Equity
Dr. M. Beena Nominee Director, Government of Kerala
Not in picture:
Anjali Bansal Former Global Partner and MD, TPG Private Equity
Dr. M. Beena Nominee Director, Government of Kerala
The Company remains the preferred partner for global and Indian original equipment auto players, catering to more than 100 countries worldwide. With its corporate headquarter in Gurgaon, Apollo Tyres has multiple manufacturing units in India, the Netherlands and Hungary.
The extensive operations, backed by a global workforce of over 16,500 employees, deliver a turnover of ~US$2.28 bn. The Company markets its products under two international brands – Apollo and Vredestein – that are available across the world through a vast network of branded, exclusive and multi-product outlets.
FY2018 | FY2017 | FY2016 | FY2015 | FY2014 | ||
---|---|---|---|---|---|---|
Key Financial Highlights | ||||||
Gross Sales | Bn | 149.3 | 140.5 | 127.4 | 137.3 | 142.9 |
EBIDTA | Bn | 17.7 | 20.0 | 20.7 | 19.8 | 19.7 |
EBIT | Bn | 11.8 | 15.4 | 16.4 | 16.0 | 15.6 |
Net Profit | Bn | 7.2 | 11.0 | 11.2 | 9.8 | 10.1 |
Equity Capital | Bn | 0.57 | 0.51 | 0.51 | 0.51 | 0.50 |
Basic Earnings Per Share | 13.4 | 21.6 | 22.1 | 19.3 | 19.9 | |
Margins | ||||||
EBIDTA Margin | % | 11.8 | 14.2 | 16.2 | 14.5 | 13.8 |
Net Profit Margin | % | 4.8 | 7.8 | 8.8 | 7.1 | 7.0 |
Gross Sales | 140.53 bn 140.53 bn |
EBIDTA | 20.01 bn 20.01 bn |
Net Profit | 10.99 bn 10.99 bn |
Gross Sales | 127.43 bn 127.43 bn |
EBIDTA | 20.65 bn 20.65 bn |
Net Profit | 11.23 bn 11.23 bn |
Please Note: The FY2016 Highlights numbers above are as per IND AS. The downloadable Annual Report for FY2016 is as per iGAAP and hence the numbers will not match.
Gross Sales | 137.25 bn 137.25 bn |
EBIDTA | 19.84 bn 19.84 bn |
Net Profit | 9.78 bn 9.78 bn |
Gross Sales | 142.9 bn 142.9 bn |
EBITDA | 19.73 bn 19.73 bn |
Net Profit | 10.05 bn 10.05 bn |
Dear Members,
Since the inception of Apollo Tyres, it has been my resolve to deliver value to all our stakeholders including employees, shareholders, customers, partners and other relevant communities. In this journey, your Company has had to think and act differently as compared to others. We invested in the Chennai plant when conventional wisdom dictated to avoid any investments during recessionary times or made international acquisitions when we were told to cover our flanks in India. Of course, going against the tide would not have been possible without the faith of our team and you, our shareholders, along with the dedication and hard work put in by each member of the Apollo Family.
Led by our long-term vision to become a global leader in the industry and guided by our values, we continue to have an agile and dynamic approach to adapt to changing market realities. Yet at the core, we continue to pursue our profitable growth strategy focussed on a three-pronged approach – consolidate market position in existing markets and seek new markets/ segments; continue investment in both the brands – Apollo and Vredestein – and capacity expansion via Greenfield facilities; and seek other growth opportunities.
Looking back at FY2018, I see it as a year of continuous efforts around our strategy, with a focus on capacity expansion and building the brands. We inaugurated our sixth manufacturing plant in Hungary, added capacities in our plants in India and announced another Greenfield in India. The latter part of FY2018 saw the Company announcing a deeper connect with football in India, the UK and Hungary. From an industry perspective, the big heartening news was that the Government of India acted upon the industry’s plea to impose custom duties on the low-cost Chinese imports. I thank the Government for enforcing the duties and helping provide a level playing field in the country. The implementation of the Goods and Services Tax further aided all tyre manufacturers in India to provide safe and tested products for the customers, as against unsafe low-cost imports.
Over the years, one of my key endeavours has been to build the Company as a strong institution. We have worked hard to create efficient processes and robust policies. Recognising the culture created in the Company, the Great Place to Work institute named Apollo Tyres as one of India’s Best Workplaces in Manufacturing. The institute rated us highly for our transparency in the performance management process, especially the variable pay, and the employee development programmes. Another feather in our cap was the recognitions we received from various vendors including Hyundai and Maruti Suzuki.
In pursuit of its strategies, your Company never loses sight of its commitment to social responsibility and sustainability. We have ensured that these efforts are embedded into our commercial activity or business strategy and hence are an intrinsic part of our business as usual. Even as we continue to win laurels for our Corporate Social Responsibility activities, I feel that the real joy for me and the team is to see the positive impact we are able to bring in the lives of our stakeholders. During FY2018, we reached out to our rubber tapper community and co-created income-generation opportunities for the rubber tappers’ wives. The rubber sheet unit will be run by a group of women, who have been trained by us and the Rubber Board on tapping, sheet making, sheet smoking and general entrepreneurial skills. Another initiative in this area was the launch of our Mobile Medical Unit for checking the health of truckers. This step has helped us expand the reach of our healthcare initiative to truckers who do not enter the transhipment hubs where we provide healthcare facilities.
Looking at FY2019, I continue to be bullish on our key markets – India, Europe and ASEAN. The economies have displayed strong growth and with fundamentals in place, I see them moving northward. While I am aware that we will face challenges in each market, I am confident that your Company is on a firm growth trajectory. This confidence is due to the trust continuously reposed by each one of you, our valuable shareholders. I would also like to thank our bankers, various financial institutions and the various State and National Governments where we operate, network partners and business partners who have allowed us to surpass the goals we had set for ourselves.
Of course, the journey would not happen but for our employees. It is with pride that I talk about the strong culture in the Company where our individual accomplishments are directed towards achieving the Company milestones and marching together to fulfil our Vision 2020. On behalf of the Board of Directors, I would like to acknowledge every single employee for having stood by Apollo and actively contributed to its success.
Yours sincerely,
Chairman and Managing Director
Dear Members,
On a New Road. Always – this is not just the theme for the year’s Annual Report but raison d'etre of your Company’s profitable and sustainable growth journey and behind each of its milestones and achievements.
FY2018 was a year marked with frantic activity at Apollo Tyres. Commercial production of the new plant in Hungary, announcement of a new Greenfield facility in India, high-decibel football sponsorship in India… I am sure that as you read through the pages, you will see the efforts taken by your Company to achieve its 2020 vision - ‘To be a leading and premier tyre company with a diversified and multinational presence’. We continued to push the envelope and always go the distance on New Roads with enthusiasm and exhilaration.
The year started with a major leap to our globalisation journey with the inauguration of the Company’s first Greenfield plant in Hungary by the Prime Minister of Hungary, Viktor Orbán. From being a replacement market focussed Company in Europe, the year saw us aggressively pursuing a strategy of building relationships with original equipment manufacturers in Europe and we have seen a few initial wins. It is heartening to note that the Company’s premium brand, Vredestein, has been selected as a fitment on the Volkswagen Polo, SEAT Ibiza and Ford EcoSport and the supplies have already begun to these auto makers. I am confident that this facility, along with the superior product range, will help us further increase our presence and market share in Europe.
For Apollo Tyres, FY2018 was a year of big achievements as our APMEA business achieved a significant financial milestone of ₹ 10,000 crores and Europe achieved its own record growth target. It was a synergistic flow across the regions to achieve these goals. The Chennai plant ramped up its capacity by 50% and the Bias business saw a huge resurgence on the back of a massive quality improvement program. To fulfil the regional objectives, we launched multiple new products across various countries, segments and applications. Further, given the confidence about our strategy and the belief in the future of the industry and Apollo Tyres, we laid the foundation stone for our next Greenfield plant in Andhra Pradesh, to expand our capacity for both passenger car and truck/bus radial tyres.
One of the key focus areas in achieving our long-term vision is to become a brand of choice. The year saw significant activities in this journey as we continued our focus on football in our key markets. Your Company saw a deeper engagement with the game in India, where the sports is growing rapidly in popularity and engagement. We associated with the I-league team, Minerva Punjab FC, as the title sponsor and with the Indian Super League (ISL) team, Chennaiyin FC, as the principal sponsor. Both teams emerged as winners in their respective leagues and helped connect Apollo with football fans across the country. We also partnered with ISL and brought in the world’s best freestyle football artists to popularise the sport and engage with the enthusiastic fans. Beyond India, the Company joined hands with the English Premier League club Crystal Palace Football Club as its official tyre partner. Further, it deepened its connect with Hungarian football and partnered with DVTK, the leading sports club in Hungary.
In retrospect, the year went by at an exhilarating pace. I don’t see the excitement and the pressure ebbing in the current year. The year has already begun on a positive note as the prestigious JD Power 2018 India Original Equipment Tyre Customer Satisfaction Index Study ranked your Company highest in the small car segment and #2 in the midsize cars or sedan segment. The Company also received a 5-star Power Circle Ratings from JD Power for both small and midsize cars. The year has also seen the global launch of the motorcycle steel radial tyre, a first by any Indian company and a technology available only with a handful of global tyre majors.
I sincerely thank the support of every single member of the Apollo One Family, including our employees, our network and business partners and our shareholders. I will continue to update you on an annual basis and I do look forward to be in touch with you.
With best regards,
Vice Chairman and Managing Director
The Company remains the preferred partner for global and Indian original equipment auto players, catering to more than 100 countries worldwide. With its corporate headquarter in Gurgaon, Apollo Tyres has multiple manufacturing units in India, the Netherlands and Hungary. The extensive operations, backed by a global workforce of over 16,500 employees, deliver a turnover of ~US$2.28 bn. The Company markets its products under two international brands – Apollo and Vredestein – that are available across the world through a vast network of branded, exclusive and multi-product outlets.
Over the years, Apollo has come to be known for its ability to understand the market’s emerging trends and futuristic needs and build world-class products to meet the same. Innovative DNA, cutting-edge technology and R&D, deep and wide-spread market outreach and pragmatic strategies have become its cornerstones of sustainable growth.
To be a premium tyre company with a diversified and multinational presence.
1977 | First plant in Perambra, Kerala |
1991 | Second plant in Limda, Gujarat |
1995 | Acquired plant in Kalamassery, Kerala |
2009 | Acquired Vredestein Banden BV, Netherlands |
2005 | Acquired Dunlop Tyres, South Africa |
2010 | Truck Radial Plant in Oragadam, Tamil Nadu |
2011 | Sales & Marketing Office, Dubai |
2013 |
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2014 | Global R&D Centre Asia, India |
2016 |
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2015 |
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2017 |
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2018 | Laid foundation stone for the Apollo Tyres seventh manufacturing facility globally in Andhra Pradesh |