Our focus on the Europe region with our ‘premiumisation’ strategy necessitated the specialisation process which entailed focus on profitable products like agricultural tyres and high value - niche segment passenger car tyres.
We closed the year with consolidated revenues of ₹20,948 crores, a strong growth of around 20%. The growth was led by our India operations which grew by a robust 25% for the fiscal.
Onkar Kanwar
Chairman & Managing Director
Vice Chairman’s Message
Apollo Tyres has been built on the philosophy of enhancing its shareholders value by ensuring consistent profitable and sustained growth, since its inception. This has seen the Company taking decisions that might be against the grain of conventional wisdom but thanks to such bold decisions we have never deviated from our path of profitable growth. As you leaf through the pages ahead, you will witness a small glimpse of similar efforts taken during the year in our endeavour to enhance shareholders value...
Neeraj Kanwar
Vice Chairman & Managing Director
Board of Directors
Onkar Kanwar
Chairman & Managing Director
Neeraj Kanwar
Vice Chairman & Managing Director
Akshay Chudasama
Regional Managing Partner, Shardul Amarchand Mangaldas & Co
Francesco Crispino
Co-founder, Greater Pacific Capital
Francesco Gori
Former CEO, Pirelli Tyre
Gen. Bikram Singh (Retd.)
Former Chief of Indian Army
Lakshmi Puri
Former Ambassador and Assistant Secretary General United Nations
Pallavi S Shroff
Regional Managing Partner, Shardul Amarchand Mangaldas & Co
Robert Steinmetz
Former Chief of International Business, Continental AG
Satish Sharma
President (APMEA) and Whole-time Director
Sunam Sarkar
President & Chief Business Officer, Apollo Tyres Holdings (Singapore) Pte Ltd
We have reshaped our values and simplified them to all-encompassing three that sit at the heart of Apollo Tyres Ltd.
Following Our Passion
We champion ideas that inspire us to think big, be brave and challenge the ordinary
One Family
We create an exclusive culture that brings our people, partners and community together
Taking Responsibility
We are committed to building a responsible and sustainable business that benefits society
About Us
Driving Progress, Together.
Apollo Tyres Ltd is an international tyre manufacturer and the leading tyre brand in India. It is built around the core principles of creating stakeholder value through reliability in its products and dependability in its relationships. The company has a total of 7 manufacturing units -- 5 in India and 1 each in the Netherlands and Hungary.
The company markets its products under its two global brands – Apollo and Vredestein, and its products are available in over 100 countries through a vast network of branded, exclusive and multi-product outlets. The product portfolio of the company includes the entire range of passenger car, SUV, MUV, light truck, truck-bus, two-wheeler, agriculture, industrial, specialty, bicycle and off-the-road tyres, and retreading material and tyres.
As I look back of the year gone by, I reminded of the wise words of Khalil Gibran who said “Progress is not in enhancing what is, but in advancing toward what will be.”
FY22 was about focusing on ‘progress’ for Apollo Tyres. After much deliberation and feedback from our diverse stakeholders including employees, community members, partners, etc, we started FY22 with the launch of our Vision 2026 – Driving Progress, Together. It is not only about Apollo Tyres but progress for all our stakeholders. We strongly believe that vision is nothing without local knowledge, so we continued to bring our multi-cultural and diverse stakeholders together to foster an inclusive culture. By doing so, we continued to power innovation that has the potential to transport both our business and society forward.
Further, we articulated our growth pillars, and you will read more about the progress that we made in these areas in the letter from Neeraj Kanwar, your Vice Chairman & Managing Director.
Our Indian operations closed the year on a positive note, across our key categories – commercial and passenger vehicles. Importantly, we saw growth across OEMs and the replacement market segments. In Europe, we saw good traction in both these segments for the commercial vehicles category. However, it was strong demand from the replacement segment in the passenger vehicles category which lifted the overall performance of our European operations.
We closed the year with consolidated revenues of Rs 20,948 crores, a strong growth of around 20%. The growth was led by our India operations which grew by a robust 25% for the fiscal. We saw a healthy growth of 18% in our Europe business – a notable achievement in a developed market like Europe. I know that the focus on progress is neither swift nor easy, but it does pay dividends sooner or later. Our focus on the Europe region with our ‘premiumisation’ strategy necessitated the specialization process which entailed focus on profitable products like agricultural tires and high value - niche segment passenger car tires. It is heartening to note that this strategy has brought in results as the region crossed an important milestone of EUR 100 million mark as EBIDTA during the year. This is the highest ever EBITDA for the European Operations over the last 13 years.
Looking ahead and as we get back to normal mode, I think we will see strong growth coming back to key economies across the globe. We will continue to make steady progress in all our growth pillars and, I remain confident that Apollo Tyres is on a firm growth trajectory. On our part, we will continue to build on our successes around cost control, improving process efficiency and leveraging technology. We will continue to invest in our people and make progress in further improving the brand salience of Apollo and Vredestein.
Importantly, I remain confident that we will continue to move on an upward path due to the trust continuously reposed by each one of you, our valuable shareholders. Further, 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 which have allowed us to make progress and surpass the goals we had set for ourselves.
Of course, the progress in any area cannot happen without our most valuable asset – our people. 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 2026. On behalf of the Board of Directors, I would like to acknowledge every single employee for actively contributed to our success.
Regards
Onkar Kanwar
Chairman & Managing Director
Vice Chairman's Message
Dear Shareholders,
Apollo Tyres has been built on the philosophy of enhancing its shareholders value by ensuring consistent profitable and sustained growth, since its inception. This has seen the Company taking decisions that might be against the grain of conventional wisdom but thanks to such bold decisions we have never deviated from our path of profitable growth. As you leaf through the pages ahead, you will witness a small glimpse of similar efforts taken during the year in our endeavour to enhance shareholders value.
FY22 was a year marked with frantic activity at Apollo Tyres. We began the fiscal with the launch of our new Vision, Purpose and Values. We identified our growth pillars – Digitalisation, Technology and Innovation, People, Brand and Sustainability – and worked around the year to further strengthen these areas by building capacity and capabilities.
Digitalisation
The year saw us making considerable progress in building the strong foundation for accelerated digitalisation. Our focus has been to leverage the extensive data emanating from our production sites to identify and address opportunities to drive productivity increase, waste reduction and improvements in product and process quality. We made serious strides in this journey with the setting up of the data lake and Internet of Things (IoT) capability. During the year, we received the coveted TiSax certification for our European business, which confirms that our information security management system complies with Industry defined security levels. We also set up a Digital Innovation hub in London, partnering with the reputed Glasgow University and working with it on several PhD programs to solve complex problems around productivity maximisation and elimination of waste.
Technology and Innovation
I have time and again mentioned about the importance of technology as a key differentiator in the tyre industry. We continue to make sizeable investments in our two global R&D Centres in India and the Netherlands. It is a testimony to the cutting edge research and innovation that our products find pole positions in testings across Europe and the United States. The fiscal was special as we won the National Intellectual Property Award for the year 2020 in the category of ‘Top Indian Company/ Organisation for Designs & Commercialisation’, organised by the Indian Intellectual Property Office and Confederation of Indian Industry. Our Chairman Onkar Kanwar received the prestigious award from the Hon’ble Minister for Commerce and Industry, Govt of India, Shri Piyush Goyal. It is a testimony to our focus on technology and innovation that we have filed 75 design registrations cumulatively for India and abroad, between the period 2017 – 2019, with the IP office in India for design portfolio.
Brand
We continued to invest in our two brands – Apollo and Vredestein, across our key markets including India, Europe and North America. We leveraged our associations with Manchester United, the cricketing legend – Sachin Tendulkar and others to build brand salience. During the fiscal, we brought in the bringing much-awarded Vredestein brand to India. We did a grand launch of Vredestein’s passenger and two-wheeler tyres in Mumbai, India and followed by a track day event with key stakeholders including auto journalists to help them experience the brand. As expected, the reviews were extremely positively, a testimony to the best-in-class, premium products that we have developed.
People
With a value of ‘One Family’, our people are at the core of everything we do. Through the pandemic we have protected people interests even as we have balanced cost saving and people welfare measures. Further, with a clear objective to promote internal talent, we continued building a robust talent pipeline with our Apollo Laureate programme for building leadership. During the year, we launched multiple initiatives around micro learning and offering best-in-class function specific content.
Sustainability
While we have been at the ahead of the curve in this area, we have articulated sustainability as part of our vision and the growth pillars now. We continue to work on process efficiencies and related areas, and you will get a glimpse in our ESG section of the report. However, I would like to call out two initiatives in our journey to be carbon neutral. We invested in CSE Deccan Solar, a subsidiary of Cleantech Solar, to ensure a guaranteed supply of 40 million units of electricity per annum for our Chennai plant. This will increase the share of renewable energy to more than 30% for this facility. Importantly, we have started using EVs as a last-mile delivery option. This is important as we need to look at reducing our Scope 3 emissions – emissions across our value chain, which represent 65-90 per cent of all emissions at many companies. We are possibly the only company in the automotive industry in India to initiate projects under Scope 3… highlighting our commitment to this pillar.
In the pages that follow, I hope you get a sense of how we have worked to deliver robust growth by upping the brand, continuing our intense focus on R&D and launching best-in-class products, winning new customers and much more. We continue live our vision of ‘Driving Progress, Together’ and I look forward to update you on a periodic basis.
With best regards,
Neeraj Kanwar
Vice Chairman & Managing Director
Performance Highlights FY2022
EBITDA (excluding other income)₹25.74 Bn
Net Debt/ EBITDA (excluding other income) 1.78 (Ratio)
Net Debt/EBIT (including other income) 3.53 (Ratio)
NET DEBT / EQUITY0.39 (Ratio)
Revenue Segmentation By Customer
Replacement80.9 %
OEM19.1 %
Revenue Segmentation By Product
Passenger Vehicles 35.2 %
Truck and Bus 43.1 %
Off Highway 10.4 %
Light Truck 5.7 %
Others 5.6 %
Revenue Segmentation
by Geography
APMEA67.8 %
Europe30.5 %
Others 1.7 %
Natural Rubber Price Movement (₹/KG)
Crude Oil Price Movement ($/Barrel)
Five Year Summary
Apollo Tyres Ltd: Key Figures
FY2022
FY2021
FY2020
FY2019
FY2018
Key Financial Highlights
Revenue from Operations
Bn
209.48
173.97
163.50
175.49
150.98
EBITDA (excluding other income)
Bn
25.74
27.97
19.39
19.85
16.64
EBIT (including other income)
Bn
12.98
16.12
8.24
12.69
11.75
Net Profit
Bn
6.39
3.50
4.76
6.80
7.24
Equity Capital
Bn
0.64
0.64
0.57
0.57
0.57
Basic Earnings per share
10.06
5.68
8.33
11.88
13.43
Margins
EBITDA (excluding other income) Margin
%
12.29
16.08
11.86
11.31
11.02
Net Profit Margin
%
3.05
2.01
2.91
3.87
4.79
About Apollo Tyres
The Company remains the preferred partner for global and Indian original equipment auto players, catering to more than 100 countries worldwide. With its corporate headquarter in Gurgaon, Apollo Tyres has multiple manufacturing units in India, the Netherlands and Hungary.
The extensive operations, backed by a global workforce of approximately 19,000 employees, deliver a turnover of US$ 2.34 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.
Vision
Driving progress, together.
1977
First plant in Perambra, Kerala
1991
Second plant in Limda, Gujarat
1995
Acquired plant in Kalamassery, Kerala
2005
Acquired Dunlop Tyres, South Africa
2009
Acquired Vredestein Banden BV, Netherlands
2010
All Radial Plant in Oragadam, Tamil Nadu
2011
Sales & Marketing Office, Dubai
2013
Sales & Marketing Office, Thailand
Global R&D Centre Europe, Netherlands
Global Marketing Office in London, UK
Partnered with Manchester United
2014
Global R&D Centre Asia, India
2015
Acquired Reifencom- German Tyre Distribution Company
Laid foundation stone for the Hungary Greenfield Plant
Global Procurement Office, Singapore
2016
Launched two-wheeler tyres in India
Sales & Marketing Office, Malaysia
2017
Launch of the Hungary plant
TBR Launch in Europe
2018
Laid foundation stone for the Apollo Tyres seventh manufacturing facility globally in Andhra Pradesh