Apollo Tyres grew from struggling in the 1980s to becoming one of India's largest tire manufacturers through strategic initiatives led by Onkar Kanwar. Kanwar focused on restructuring operations and expanding into new markets globally. Apollo acquired companies in Africa and Europe to gain manufacturing assets, brands, and access to new markets. Going forward, Apollo aims to further expand into regions like the Middle East, Asia, and Latin America through both organic growth and acquisitions. Raw material price fluctuations and geopolitical issues present ongoing challenges.

1. Apollo Tyres India Ltd.’s Growth
Strategy:
Treading Global Markets
By Asams V.K

2.  Original Equipment manufacture and replacement were the two areas where demand is high
OEM demand due to increasing production in Automobile and Construction equipments
Global tire market faced the recession in 2009-2010
Bridgestone, Michelin and Goodyear are the top 3 player in global market
India and china are the fastest growing markets
Global players had already established their presence in India
Raw material used in manufacturing are natural rubber, synthetic rubber,
nylon tire cord fabric, carbon black and rubber chemicals
Price of tires depend on production of rubber and price of crude oil
 Global manufacture used natural and synthetic rubber in 30:70 preposition, but Indian manufacture
used in 80:20

3. Founder Mr. Raunaq Singh in 1976
First tier plant in 1976 at Perembra in Kerala with collaboration of General tires U.S
U.S Technology failed due to the difference in temperature and road conditions in India
By 1980, the company was at the verge of bankruptcy, later taken over by BIFR
Company was in bad shape with failed products, a negative balance sheet, poor management and labour
union problems
 In 1980, Onkar S. Kanwar took up the challenge of turning the company around
Onkar took up many initiatives to restructure the company
New plant at Gujarat
Restructured capital base, middle Management, New recruitments, Instilled confidence in the workers
and linked the wage to productivity

4. Onkar focused on Truck segment, concentrating more on load and mileage requirements
of customers
Later acquired premium tyres in Kochi in 1995
In 1995 entered in to JV with Continental group, set up a tyre factory at Pune for
passenger car radical tyres
Later in 1997, Knawar (son of Onkar) jointed in business, he started a new department called
Strategic Planning and coordination Department ,Objective was to bridge gap between company and
customer requirement
He increased the production capacities of 3 plants (2 in Kerala & 1 in Gujarat)
In 2000 they entered in to car segments
He aimed to spread the roots of company to enter in to global market, with a goal to become 2nd largest
player in India
In 2003 JV with continental and Michelin group for Bus radial tyres

7. Market
Penetration
Product
Development
Market
Development
Diversification
New ProductsExisting Product
Existing Market
New Market
G
R
O
W
T
H
S
R
T
A
T
E
G
Y

8. Market Development
1) Targeted in African continent and South American Market
 Acquired Dunlop Tries International Ltd in South Africa in 2006
Dunlop was facing consumer apathy and an influx of low-cost tyre
They repositioned the brand
Started SBU in Zimbabwe and UK
Good deal in terms of increase in the
1) Size of the company
2) No. of brand
3) Manufacturing facilities
4) Dealer network and
5) Access to 32 countries in the African continent and South America

9.  Acquired Verdestein Banden B V (VBBV) in Netherland
Europe become the third crucial market
Funded through internal accruals and external loan finance
Through acquisition Apollo got
1) Manufacturing facilities
2) Distribution network
3) Access of high technology
4) Profitable brands
5) R&D centre
2) Targeted in European market

10. Market Development: FUTURE AHEAD
Middle East Asia: Dubai
China
ASEAN countries
Latin America

12. Passenger Vehicle
Commercial Vehicle
Farm
Industrial & Construction
Earth Movers
Heavy Commercial vehicles
Light Commercial Vehicles
Small Commercial Vehicles
Car Tyres
SUV Tyres
Van Tyres
Off Highway Tyres Vehicle

13. (Source: http://www.apollotyres.com/india/ApolloPresentation/2013/index.html#/2/)

14.  Lack of Raw Materials
Flood in Thailand, Indonesia, Malaysia & India
lead to increase the price of raw materials
 Political factors: US special tariff on Chinese
passenger/light truck tries
Lack of plantations for acquisitions
Labour problems: Plant in Kerala

15. Focusing on one product,
rather than too many