Apollo Tyres has reported a profit of Rs 315 crore for the quarter ended June 30, 2016 on net sales of Rs 3,285 crore.
09 Aug 2016 | 3915 Views | By Autocar Professional Bureau
Apollo Tyres has reported a profit of Rs 315 crore for the quarter ended June 30, 2016 on net sales of Rs 3,285 crore.
While its Indian operations clocked revenue growth of 6%, its European operations’ revenue grew 10%. The company says some of the new products introduced in ...
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Apollo Tyres has reported a profit of Rs 315 crore for the quarter ended June 30, 2016 on net sales of Rs 3,285 crore.
While its Indian operations clocked revenue growth of 6%, its European operations’ revenue grew 10%. The company says some of the new products introduced in the Indian market, including the newly launched two-wheeler tyres, have seen good demand, especially in the replacement market. Similarly, the European operations reported increased sales of passenger vehicle tyres.
Commenting on the results, Onkar S Kanwar, chairman, Apollo Tyres, said, “Despite the challenges posed by Chinese imports, we have seen increased demand for our products from both OEs and the replacement market across product categories in India. Our newly-launched two-wheeler tyres have also been very well accepted by the customers. With the increased truck-bus radial capacity kicking-in the next 2-3 months, we are well poised to achieve higher volume growth in the fiscal. With the SAP issues resolved successfully in the past quarter, the European Operations has also grown in the past quarter.”
2015-16 a watershed year, says chairman Onkar S Kanwar
Meanwhile, earlier today, in his speech at Apollo Tyres’ 43rd annual general meeting, Kanwar said, “2015-16 will be remembered as a watershed year for the company.” The highlights of the last fiscal, he said, were the announcement of the construction of the greenfield facility in Hungary, which will go on stream in early 2017 and help offer a larger product portfolio in the highly profitable European markets.
A strong retail network is key to success, he said, adding that, “We have to expand our reach in the key European markets. The acquisition of Germany-based reifencom GmbH will give our brands increased visibility and its strong online presence in many countries including Austria, Switzerland and France will further support the growth of the retail network in Europe and also help in our journey to sell tyres online in other key markets outside Europe.”
Another highlight of 2015-16 was Apollo’s entry into the Indian two-wheeler market, enabling it to come a full range tyre player.
“With a clear strategy laid out for the next two years including the necessary marketing, advertising and R&D push, I am confident that we will soon be amongst the top 3 players in this segment. However, if a company only focuses on profits and growth, it is unlikely to create a long lasting institution and leave a legacy for our future. For us the belief comes from within, that without giving back to society no business can be truly successful and sustainable in the long run. It is for this reason that sustainability is at the core of Apollo Tyres,” said Kanwar.
The next phase of Apollo’s journey has begun – Vision 2020. We envision it to be a premier tyre company with a diversified and multinational presence. All the work that we are doing aims to achieve this vision as we target being the preferred partners for customers in India and Europe and the best workplace with top-notch talent.
We will continue to invest in our brands, have a sharp focus on technologies and expand into new markets and consolidate and increase existing market shares.
The economic revival that is underway in India is an opportunity for us to benefit from all our past investments. The global economic scenario, while not as exciting as India's, still affords a smart and agile player like us many windows to further grow our business profitably,” concluded Kanwar.