Apollo Tyres Project.docx

NAME: TABISH RAFIQUE KHOPATKAR CLASS: FY MMS/B ROLLNO-89 SUB-COST ACCOUNTING

APOLLO TYRES Company Details: -

Apollo Tyres Ltd is the world's 11th biggest tyre manufacturer, with annual consolidated revenues of ₹146.74 billion (US$2.28 billion) in March 2018. It was incorporated in 1972. Its first plant was commissioned in Perambra, Thrissur, Kerala, India. The company now has four manufacturing units in India, 1 in Netherlands[4] and 1 in Hungary.[5] It has a network of nearly 5,000 dealerships in India, of which over 2,500 are exclusive outlets. It gets 69% of its revenues from India, 26% from Europe and 5% from other geographies.[6]

Apollo announced its entry into the two-wheeler tyre segment with contract manufacturing in March 2016.[7] In November 2016, the company signed a MoU with the Government of Andhra Pradesh to set up a new factory in Andhra Pradesh to manufacture tyres for two-wheelers and pick-up trucks.[8] The company's second plant in Europe, was inaugurated by the Hungarian Prime Minister, Viktor Orban, on April 2017.[9][10][11]

History Apollo Tyres Ltd. was incorporated on 28 September 1972 as a Public Limited Company and obtained certificate of Commencement of Business on 24 October, 1972. The Company was promoted by Bharat Steel Tubes, Ltd. Raunaq International Pvt. Ltd., Raunaq & Co. Pvt. Ltd., Raunaq Singh, Mathew T. Marattukalam and Jacob Thomas [1]. In 1975, the company made its Initial public offer of equity shares and its first manufacturing facility was commissioned in Perambra Plant, Thissur, Kerala, India in 1977,[1] followed by its 2nd plant at Limda, Gujarat, India[1] in 1991. The company acquired Premier Tyres Limited- PTL in 1995, which became its 3rd plant at Kalamassery, Kerala, India.[12] In 2008, it started a new plant at Chennai Tamil Nadu, India.[1] A year later in 2009, the company acquired the Netherlands-based tyre maker Vredestein Banden B.V. (VBBV) for an undisclosed sum[13] The company focused on the production of truck tyres in India and introduced its first truck tyre, Rajdhani in India.[2] [2] The company expanded its operation across Indian and, in 1996, it expanded operations outside India by acquiring Dunlop's Africa operations.[14] In 2013, it disposed off the Dunlop brand in Africa along with most of the South African operation in a sale to Sumitomo Rubber Industries of Japan.[15] The very same year, it started its Global R&D Centre, Europe in Enschede, the Netharlands.[16] In 2015, Apollo Tyres bought Germany's Reifencom for €45.6 million.[17] It shifted its corporate office for Europe region to Amsterdam from Enschede, the Netherlands[18] and opened a Global R&D Centre, Asia in Chennai, India a few months later.[19] In 2016, the company signed an MoU with the government of Andhra Pradesh to set up a new factory in the state.[20] In 2017, it inaugurated its

plant in Hungary.[5] On 9 January 2018, the Chief Minister of Andhra Pradesh, N Chandrababu Naidu laid the foundation stone for Apollo Tyres' ₹1,800-crore tyre factory in Andhra Pradesh. The plant will come up over a 200-acre site in Chinnapanduru village near Sri City in Chittoor district and produce passenger car radial (PCR) tyres with an initial capacity of 5.5 million tyres per year and will serve both domestic and export markets.

Corporate Structure and Leadership Apollo Tyres is structured in the following units: 

Asia Pacific, Middle East and Africa (APMEA) 



Satish Sharma, President[21][22]

Europe 

Benoit Rivallant, President [23][22]

Board of Directors 

Onkar Kanwar,

Chairman & Managing Director



Neeraj Kanwar,

Vice Chairman and Managing Director



Akshay Chudasama



Dr. S Narayan



Francesco Gori [24]



General Bikram Singh (Retd.)



Nimesh N Kampani



Pallavi Shroff



Robert Steinmetz



Sunam Sarkar



Vikram S Mehta



Vinod Rai



Anjali Bansal



Dr M Beena

 Vision and values To be a premium tyre company with a diversified and multinational presence. It’s about our instincts. It’s about the way we think. It’s the way we interact with the world. It’s our common culture. It’s a system of values that, like our six senses, defines who we are and how we work. Apollo Tyres is committed towards ensuring overall environmental sustainability. Its aim is to make eco-friendly behaviour, green thinking and resource conservation a matter of habit across its key stakeholders. The umbrella environment initiative is called HabitAt Apollo.

 Board of structure Company Overview Apollo Tyres Limited manufactures and sells automotive tires, tubes, and flaps in India and internationally. Its product portfolio includes passenger car, sports utility vehicle, multi utility vehicle, light truck, truck-bus, agriculture, industrial, two wheeler, specialty, bicycle, and off highway tires; retreading materials and tires; and alloy wheels. The company offers its products under the Apollo, Kaizen, Regal, and Vredestein brands. Apollo Tyres Limited was founded in 1972 and is headquartered in Gurgaon, India. Apollo House 7 Institutional Area Sector 32 Gurgaon, 122001 India Founded in 1972 16,766 Employees

 FINANCIAL STATEMENT

 Share market percentage

 Cost sheet

 Crisis

Apollo Tyres net profit declines 20.27% in Q4 India's second-largest tyre maker posted a net profit of `245.16 crore during the quarter, down from `310 crore a year ago. Chennai: Apollo Tyres Ltd on Wednesday said net profit for the JanuaryMarch quarter fell 20.27% due to a slowdown in the truck and bus radial segment and competition from cheaper Chinese imports. India’s second-largest tyre maker posted a net profit of ₹ 245.16 crore during the quarter, down from ₹ 310 crore a year ago, falling short of ₹ 284.5 crore forecast in a Bloomberg poll of 15 analysts. Net sales were down to ₹ 2,966 crore, against Bloomberg estimates of ₹ 3,057.9 crore. The company posted sales of ₹3,130 crore a year ago. “Our European operations have been impacted due to the SAP (Systems, Applications & Products) implementation. Having said that, we are confident that the team would be able to resolve the challenges very soon. With the addition of Reifen.com, we are looking at maximising on the new business vertical. We believe that there is a huge potential in further developing this business model across geographies." said Onkar S. Kanwar, chairman, Apollo Tyres. In November, the company acquired Reifencom GmbH, a Germanybased tyre distributor. Operating profitability or Ebitda (earnings before interest, taxes, depreciation and amortization) was down 7.5% to ₹ 478 crore. Apollo tyres, which is hoping the government will take action on tyre dumping by China, is also “looking forward to good monsoon which will boost the commercial tyre segment." The company’s board has recommended the final dividend at the rate of ₹ 2 per equity share of ₹ 1 each for the year. On Wednesday, Apollo Tyres closed at ₹ 153.40, up 0.69% on the BSE, while the benchmark index Sensex fell 0.68% to close at 25,597.02 points.