Apollo Tyres records surge in demand after ease in Covid-19 lockdowns
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Apollo Tyres records surge in demand after ease in Covid-19 lockdowns

Tyre manufacturing major Apollo Tyres has recorded a surge in demand across product categories after state governments eased Covid-19 lockdowns.

Despite the outbreak of the second wave of the pandemic, Apollo Tyres has not changed its business plans due to the traction. They had previously announced a capex of Rs 1800 crore for FY22, which they are proceeding with. They will keep an eye on the situation to see if there's a demand slowdown that might necessitate some minor capex deferment. But there will almost certainly be little deviation from this Capex figure in FY22, Kanwar said. Capacity utilisation across the company's manufacturing units is currently at over 80%.

The company has been expanding its overseas markets to de-risk operations. In North America, the company has launched a comprehensive brand offering, which includes a complete line of Apollo and Vredestein tyres for commercial and passenger vehicles. Apollo Tyres intends to grow its business in the United States organically.

According to Apollo Tyres, its international business has performed better than India in recent quarters. In the truck, bus, and farm tyre segments, the company has increased its market share in Europe.

Apollo Tyres has set a mid-term revenue target of $ 5 billion approximately Rs 36,600 crore per year, up from Rs 17,397 crore in FY21. With the global pandemic hastening the pace of digitalisation, as well as several changes in the autonomous industry, such as electrification and autonomous driving, Kanwar stated that these will be key focus areas for the company in its growth journey.

In terms of rising input costs, Kanwar said that they have been on the rise for several months, putting pressure on margins. Raw material prices are expected to increase by 5% in the current quarter compared to the previous quarter.

Image Source


Also read: Ceat to invest Rs 1,200 cr to expand into truck, bus radial capacity

Also read: Govt issues draft notification for fuel-efficient, safer tyres in India

Tyre manufacturing major Apollo Tyres has recorded a surge in demand across product categories after state governments eased Covid-19 lockdowns. Despite the outbreak of the second wave of the pandemic, Apollo Tyres has not changed its business plans due to the traction. They had previously announced a capex of Rs 1800 crore for FY22, which they are proceeding with. They will keep an eye on the situation to see if there's a demand slowdown that might necessitate some minor capex deferment. But there will almost certainly be little deviation from this Capex figure in FY22, Kanwar said. Capacity utilisation across the company's manufacturing units is currently at over 80%. The company has been expanding its overseas markets to de-risk operations. In North America, the company has launched a comprehensive brand offering, which includes a complete line of Apollo and Vredestein tyres for commercial and passenger vehicles. Apollo Tyres intends to grow its business in the United States organically. According to Apollo Tyres, its international business has performed better than India in recent quarters. In the truck, bus, and farm tyre segments, the company has increased its market share in Europe. Apollo Tyres has set a mid-term revenue target of $ 5 billion approximately Rs 36,600 crore per year, up from Rs 17,397 crore in FY21. With the global pandemic hastening the pace of digitalisation, as well as several changes in the autonomous industry, such as electrification and autonomous driving, Kanwar stated that these will be key focus areas for the company in its growth journey. In terms of rising input costs, Kanwar said that they have been on the rise for several months, putting pressure on margins. Raw material prices are expected to increase by 5% in the current quarter compared to the previous quarter. Image Source Also read: Ceat to invest Rs 1,200 cr to expand into truck, bus radial capacity Also read: Govt issues draft notification for fuel-efficient, safer tyres in India

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