2. INTRODUCTION
Apollo Tyres Ltd is the world's 17th biggest tyre manufacturer, with annual consolidated revenues of Rs
121.5 billion (US$ 2.5 billion) in 2011. It was founded in 1976. Its first plant was commissioned in
Perambra, Kerala. The company now has four manufacturing units in India, one in South Africa, two in
Zimbabwe and 1 in Netherlands.[14] It has a network of over 4,000 dealerships in India, of which over
2,500 are exclusive outlets.
It gets 59% of its revenues from India, 28% from Europe and 13% from Africa.[4] Apollo tyres was
awarded the FICCI award among large industries category for the best Quality systems.
It is planning to become the 10th biggest tyre manufacturer in the world with annual revenues of $6
billion by 2016.[5]
On 12 June 2013, it is reported that Apollo Tyres Ltd would buy US-based Cooper Tire & Rubber
Company for about $2.5 billion in a deal that would make it the world's seventh-largest tyre maker.
Apollo's cash offer of $35 per share represents a premium of about 43 percent to Cooper's share price
on the New York Stock Exchange.
Apollo Tyres, which does not currently operate in the United States, gets two-thirds of its revenue from
India.
The acquisition of Cooper, the world's 11th biggest tyre company by sales, will give Apollo access to the
US market for replacement tyres for cars and light and medium trucks.
The two companies had combined sales of $6.6 billion in 2012.
COMPANY PROFILE
Apollo Tyres Ltd is the leading tyre manufacturing company in India. They are engaged in manufacturing
automobile tyres and tubes. They are having their manufacturing facilities at Trichur in Kerala and
Vadodara in Gujarat. They are the first Indian tyre company to launch exclusive branded outlets for truck
tyres and also the first Indian company to introduce radial tyres for the farm category. The company was
incorporated on September 28, 1972. They started their production in the year 1977 at Perambra in
Kerala. In the year 1991, the company commissioned their second plant at Limda in Gujarat. In the year
1995, they acquired Premier Tyres at Kalamassery in Kerala. In the year 1996, exclusive tubes plant
commissioned in Ranjangoan in Maharashtra and in the year 2000, they established exclusive radial
capacity in Limda. On Novermber 17, 2003, the company entered into an strategic alliance Michelin,
France for setting up a joint venture company namely Michelin Apollo Tyres Pvt Ltd for producing dual
branded truck & bus radial tyres in India. In the year 2004, they produced India's first H-speed rated
tubeless passenger car radial tyres. Also they increased the production capacity of Automobile Tyres and
Automobiles Tubes by 1283560 Nos and 414000 Nos respectively and in the next year, they further

3. increased the production capacity by 1466432 Nos and 1567200 Nos respectively. During the year 2005-
06, the company incorporated a wholly owned subsidiary company, Apollo (Mauritius) Holdings Pvt Ltd
in Mauritius and they also formed Apollo Automotive Tyres Ltd and Apollo Radial Tyres Ltd as wholly
owned subsidiaries of the company. In the same year, PTL Enterprises Ltd ceased to be a subsidiary
company. Also, the company realigned their relationaship with Michelin and exited from the joint
venture company Michelin Apollo Tyres (P) Ltd. The company increased the production capacity of
Automobiles Tyres and Automobile Tubes by 1045632 Nos and 1379360 Nos respectively during the
year 2005-06 and they further increased the production capaity by 888340 Nos and 218440 Nos during
the next year. During the year 2007-08, they increased the production capacity of Automobile Tyres by
836620 Nos. Thus the total capacity for Automobile Tyres and Automobile Tubes increased to 9659232
Nos and 6741000 Nos. On April 21, 2006, the company acquired Dunlop Tyres International (Pty) Ltd,
South Africa. During the year 2006-07, they increased the manyfacturing capacity of Camel Back/Pre
Cured Tread Rubber by 217000 Nos to 220000 Nos and in the next year they further inceased to 248040
Nos. The company incorporated Apollo Tyres AG, Switzerland as a wholly owned subsidiary with effect
for July 4, 2007. Also, two subsidiaries namely Apollo Automotive Tyres Ltd and Apollo Radical Tyres Ltd
have been desubsidiarized with effect from December 21 2007. The company is in the process of setting
up of a greenfield plant for the manufacture of radial tyres in Hungary with the estimated cost of Rs
12000 million. They are also in the process of setting up a manufacturinig facility for production of bias
OTR tyres at Limda plant with the production capacity of 10 MT/day. The company has commenced the
project activities of setting up a manufacturing base for production of 3.5 million passenger car tyres per
year at Oragadam in Tamilnadu. In May 2008, the company opened their first full-services branded
commercial vehicle tyre outlet called Apollo Trust in Salem, Tamilnadu. In Spetember 2008, Apollo Tyres
launches XT-100K which is a cross-ply tyres designed for unmatched performances.
COMPANY HISTORY
1976 Apollo Tyres was registered.
1977 1st plant established at Perambra, Kerala, India.
1991 2nd plant at Limda, Gujarat, India.
1994 Started selling tyres for 2-wheelers.
1995 3rd plant at Kalamassery, Kerala, India.
2006 Expanded operations outside India by acquiring Dunlop's Africa operations.[11]
2008 new plant at Chennai, Tamil Nadu, India.
In 2009, Apollo Tyres acquired the Netherlands-based tyre maker Vredestein Banden B.V. (VBBV) for an
undisclosed sum from Russia's bankrupt largest tyre manufacturer Amtel-Vredestein NV.
2013 Disposed of the Dunlop brand in Africa along with most of the South African operation in a sale to

4. Sumitomo Rubber Industries of Japan.
2013, Apollo is set to acquire the US based Cooper Tire & Rubber Co. which is expected to be completed
at the end of the year.
VISION
To become a significant player in the global tyre indusrty.
Become a brand of choice, providing customer delight and continuously enhancing stakeholder value.
To be amongst the most admired companies in India, committed to excellence
MISSION
Be a Customer Obsessed Company - Customer First 24x7
No.1 Tyre Brand in India
Most profitable Tyre Company in India
Motivated and Committed team for excellence in performance
Be a Green Company
Deliver Enhanced Value to all stakeholders
Enhance global presence through Acquisition / JV / Strategic Partnerships acquisition of Cooper, the
world's 11th biggest tyre company by sales, will give Apollo access to the US market for replacement
tyres for cars and light and medium trucks. The two companies had combined sale.

5. Apollo Tyres Ltd, with its corporate headquarters in Gurgaon, India, is in the business of manufacture
and sale of tyres since its inception in 1972. Over the years, the company has grown manifold,
establishing its footprint across the globe.
The company has manufacturing presence in Asia, Europe and Africa, with 9 modern tyre
facilities and exports to over 118 countries. Powered by its key brands — Apollo, Dunlop (brand
rights for 32 African countries) and Vredestein, the company offers a comprehensive product
portfolio spread across passenger car, light truck, truck-bus, off highway and bicycle tyres,
retreading material and retreaded tyres.
At the end of its financial year on March 31, 2012, Apollo Tyres had clocked a turnover of US$
2.5 billion, backed by a global workforce of approximately 16000 employees.
Apollo Tyres Ltd is traded in India on the Bombay, National and Kochi Stock Exchanges, with
53.06% of shares held by the public, government entities, banks and financial institutions as on
June 30, 2012
Apollo Tyres Ltd is the world's 17th biggest tyre manufacturer, with annual consolidated
revenues of Rs 121.5 billion (US$ 2.5 billion) in 2011. It was founded in 1976. Its first plant was
commissioned in Perambra, Kerala. The company now has four manufacturing units in India,
one in South Africa, two in Zimbabwe and 1 in Netherlands. It has a network of over 4,000
dealerships in India, of which over 2,500 are exclusive outlets.
It gets 59% of its revenues from India, 28% from Europe and 13% from Africa.[4]
Apollo tyres was
awarded the FICCI award among large industries category for the best Quality systems.
It is planning to become the 10th biggest tyre manufacturer in the world with annual revenues
of $6 billion by 2016.[5]
On 12 June 2013, it is reported that Apollo Tyres Ltd would buy US-based Cooper Tire & Rubber
Company for about $2.5 billion in a deal that would make it the world's seventh-largest tyre
maker.
Apollo's cash offer of $35 per share represents a premium of about 43 percent to Cooper's
share price on the New York Stock Exchange.
Apollo Tyres, which does not currently operate in the United States, gets two-thirds of its
revenue from India. The a s of $6.6 billion in 2012.
Location
Location Details - Apollo Tyres

6. Location Type Address
Registered Office 6th Floor, Cherupushpam Building, Shanmugham Road
Kochi - 682031
Kerala - India
Phone : 2381902, 2381903, 2381808, 2372767
Fax : 2370351
Email : investors@apollotyres.com
Internet : N.A.
Factory/plant Perambra, P.O. Chalakudy
Thrisoor - 680689
Kerala - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Limda, Taluka Waghodia
Vadodra District - 391760
Gujarat - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Corporate Office Apollo House, 7, Institutional Area, Sector - 32
Gurgaon - 122001
Haryana - India
Phone : 2383002-10
Fax : 2383351
Email : investors@apollotyres.com
Internet : N.A.
Factory/plant SIPCOT Industrial Growth Centre
Oragadam -
Tamil Nadu - India
Phone :
Fax :

7. Email : N.A.
Internet : N.A.
Product Portfolio
Apollo Tyres Ltd. is engaged in manufacture of automobile tires, tubes and tire re-treading
compound. The product portfolio of the Company consists of passenger car, sport utility vehicle
(SUV), multi utility vehicle (MUV), light truck, truck-bus, agriculture, industrial, bicycle and off
highway tires, retreading material and tires, and alloy wheels. Its brands in its domestic markets
include Apollo in India, Dunlop in 32 African countries and Vredestein in Europe. The Company
has four tire manufacturing plants, which include two in Cochin, one in Vadodara and one in
Chennai. It has two main overseas subsidiaries: Apollo Tyres South Africa (Pty) Ltd., which has
two tire manufacturing plants in South Africa and its products are sold in Africa and Europe, and
Apollo Vredestein B.V., which has one manufacturing plant in Netherlands. During the fiscal
year ended March 31, 2012, the Company launched Apollo Aspire 4G, Vredestein Ultrac Vorti &
Sportrac 5 and XT-7 Gold+ tires
Available for our customers is a range of tyres, which combines performance, safety and design.
Tested and fine-tuned to meet varying vehicle and customer requirements, for different
seasons.
The Apollo experience is not just about buying quality tyres – it is best-in-class service, learning
more about how to maximise your product’s performance and always finding a ready ear to
hear your feedback.
Brand Umbrella
In 2009, Apollo acquired Dutch tyre maker Vredestein BV, which makes tyres for high-end cars
at its facility in the Netherlands. While the buyout is officially complete, you may have to wait a
few months before you can fit Dutch rubber on your car in India.
Apollo has also set up an R&D facility in the Netherlands, to work on new tread patterns and
rubber compounds to improve tyre performance and longevity. The centre will cater to all three
brands under the umbrella – Apollo, Vredestein and Dunlop (Apollo acquired distribution rights
for Dunlop in Africa in 2006

8. Apollo manufactures 70,000 car tyres and 15,000 truck tyres every day in its plants in India.
Now, with three new additional brands, that number will only go north. Add the Vredestein
name to the mix and it creates a company that will have tyres for everything from the Maruti
Alto to the Audi R8. Going Dutch has probably never been this fruitful. Apollo, traditionally a
truck tyre supplier, had recently entered the small car tyre market and is now expanding into
tyres for luxury cars like the Audi A4, BMW 5 series and VW Passat, among others
Apollo’s fourth generation of car tyres is repres-ented by three new brands – Aspire 4G, Alnac
4G and Amazer 4G, which should fit pretty much every size requirement you have.
The Amazer 4G will fit small hatchbacks like the Maruti Alto, Tata Indica and VW Polo as well as
compact sedans like the Maruti DZire, and will be available in sizes from 12 to 14 inches. It is T
speed rated, meaning it should be safe up to 190kph.
Apollo Tyres (NSE:APOLLOTYRE), one of India’s largest tire companies, sealed a deal on
Wednesday to purchase North American Cooper Tire and Rubber Company (NYSE:CTB), The
deal is for $2.5 billion in cash.
The company currently produces the entire range of automotive tyres for ultra and high speed
passenger cars, truck and bus, farm, Off-The-Road, industrial and specialty applications like
mining, retreaded tyres and retreading material. These are produced across Apollo’s eight
manufacturing locations in India, Netherlands and Southern Africa. A ninth facility is currently
under construction in southern India, and is expected to commence production towards the
end of 2009. The major brands produced across these locations are: Apollo, Dunlop, Kaizen,
Maloya, Regal and Vredestein.
Business markets
In the three domestic markets of India, Southern Africa and Europe, Apollo operates through a
network of branded, exclusive or multi-product outlets. In South Africa the branded outlets are
called Dunlop Zones, while in India they are variously named Apollo Tyre World (for commercial
vehicles) and Apollo Radial World (for passenger cars). Exports out of these three key
manufacturing locations reach over 70 destinations across the world.
APLO.NS on National Stock Exchange of India

9. APLO.NS
Apollo Tyres Ltd. is engaged in manufacture of automobile tires, tubes and tire re-treading
compound. The product portfolio of the Company consists of passenger car, sport utility vehicle
(SUV), multi utility vehicle (MUV), light truck, truck-bus, agriculture, industrial, bicycle and off
highway tires, retreading material .
OVERALL
Beta: 1.36

10. Market Cap (Mil.): Rs32,333.19
Shares Outstanding (Mil.): 504.02
Dividend: 0.50
Yield (%): 0.78
FINANCIALS
APLO.NS Industry Sector
P/E (TTM): 5.05 8.41 15.32
EPS (TTM): 12.71 -- --
ROI: -- 10.60 15.27
ROE: -- 19.86 18.68
ROHIT PATHAK
12609004

11. Environmental Analysis
STEEP Analysis
This STEEP analysis provides concentrated information about Social, Technological, Economical,
Ecological and Political aspects that effect Apollo tires directly or indirectly.
Social
Explosion in the number of nuclear families: As the joint-family system crumbles and the
number of nuclear families explode, more small families seem to be demanding a two/four
wheeler for themselves. This directly resulted in higher sales of tires in the past decade.
Higher car density per family: The number of upper-class and upper-middle class families is
more than one car per family, seems to be increasing exponentially. This is especially true in
cities where Brand Strategy Analysis working couple find it difficult to survive without more
than one car for transportation. With higher disposable incomes, these families are finally
able to afford this need.
Shifting Savings to EMI culture: Another notable trend that seems to be fuelling car sales (and
therefore tire sales) is the shift in the middle-class consumer saving habits. The Indian
middle-class family has long been known for its saving frenzy. But with a younger
workforce, higher disposable incomes, lower unemployment and the influence of
globalization, the average Indian middle-class family is slowly warming up the idea of EMI
and buying on credit. This has helped in furthering the sales of passenger cars significantly.
Rubber has helped the farmers to get a steady income, and they are able to get good money
for their produce almost throughout the year. Rubber has certainly helped in giving the
people a sustainable income, the best part about rubber is that it can yield almost throughout
the year, only except for a brief gap in summer and here in winter. So, that gives a steady

12. income to the farmer and prices now are good. If the economic growth improves, then
consumption of rubber will also go up.
Products and services embossed with ISO certification give confidence to consumers, the
manufacturers and exporters to comply fully with the prescribed standards. National
standards play a vital role in the present era of World Trade Organization (WTO). India,
Which is a signatory to the WTO Agreement on Technical Barriers to Trade, should
harmonize Indian standards, wherever feasible, with global standards. The international
standards gives manufacturers, confidence to reach out to the global markets with the
knowledge that their products will compete globally and users can be confident and assured
of the uniformity in the quality. Bureau of Indian Standards (BIS), the national standards
body, has so far formulated over 18,600 Indian standards in accordance with the needs and
priorities of the country.
Technological
The Indian tyre market has attracted global manufacturers on account of encouraging growth
figures. These manufacturers are expected to invest huge amounts into the industry over the
next few years, with a major proportion of this investment directed towards the Truck & Bus
(T&B) radial tire capacity expansion. As per the study, several “Greenfield” plants are in
pipeline to include new capacities. The implementation of brown-field projects is executed to
cater to the growing demand. Greenfield units are expected to go on-stream in the coming
years, just by the time when there will be an urgent need to bridge an increasing demand-
supply gap in T&B radial tyre segment.
India is known to be an appetizer of invention and implements new technologies and
products, and tire industry is no exception to this. The concept of „green tires is becoming a‟
paradigm of the country’s competitive edge. This new category of tires is now being widely

13. accepted in India, and it is expected that in the coming years, the demand for green tyres will
outperform the overall passenger tyre demand in the country.
India’s market for radial tires in commercial vehicles section is still an infant. The passenger
car segment switched to radial tires in a short period of time, with radial tire penetration
level for the category reaching 98%. Besides, the penetration level of radial tire has also
started to increase rapidly in the light commercial vehicles and truck & bus segment. This
segment will be the largest growth area over the next few years.
Economical
The Demand Cycle of the Tire Industry
There is a hike in the tire prices due to the devaluation in rupee. Around 15 % decline in
rupee in the month of May and June has put pressure on the margins of tire companies as the
raw material costs have gone up. Growth in M&HCV replacement demand is affected by a
slower economic growth. Since there is a slowdown in demand the tyre giants are evaluating
how much of the increase in cost can be passed on to the customers.

14. Raw materials comprise almost 85 % of the cost of the tire and with the devaluation of rupee,
the import cost has gone up. The tire makers are still importing rubber, a key raw material, as
It is cheaper. The OE tire market is sluggish while the replacement tire market is stable. The
car sales are expected to pick up in the second half of the year provided the interest rates
come down.
In the current situation exports have become viable for the tire companies. The economic
turmoil in Europe has not affected exports as the region is not a big buyer. Indian exports are
made to South America and Africa for exports in a big way,
The number of steel wheel outlets of JK Tires, which provide total car solutions to the
customer, in the country will be raised from 131 to 200 by next year.
A drop in passenger car sales is forcing tire makers to trim production or step up export to
keep the inventory in check. Automobile companies have reported poor sales in the current
quarter and there is speculation that demand will remain flat in the coming months with a
soaring fuel bill and a rise in interest rates.
There is a strong possibility of a cut in tire production if vehicle sales continue to be
negative. Several car companies have already cut output due to a weak demand. Tire
production went up by 5% in 2011-12 with passenger car tires showing a 4% growth. Sales
in April were okay but have declined in May and June.
While OEMs have scaled down their operations, the replacement tire market hasn't shown
significant buoyancy. To avoid a cut in production, companies will consider raising the
exports as the rupee-dollar rate favors shipments.
Apollo Tires, which is not trimming production, is planning to export more. "Our units will
continue to produce at near 100% capacity and we would utilize the extra capacity to service
the demands of the replacement and export markets where we are unable to meet the

15. requirements due to capacity constraints," said Satish Sharma, chief of India Operations,
Apollo Tires.
The company, having a focused export strategy, clocked a 60% growth in exports in the last
fiscal. Vikram Malhotra, vice president, marketing and sales of JK Tyres, said: "We think
exports will provide us a window of opportunity to deal with excess production due to a
sluggish demand in the domestic market." Rajiv Budhraja says the export strategy may work
as tire companies are not dependent on Europe, which is facing a debt crisis.
The tire industry is on a brink of a major structural change. T&B which is a dominant
segment in terms of tonnage is witnessing a gradual rise in the proportion of radial tires.
Going by the global trend it seems that the radial tire demand in India is at inflection point
and with almost 98 per cent of the passenger car tire production has been radicalized, T&B
tire category is the next major category to witness spurt in the demand for radial tires. And
with improvement in road infrastructure and better cost economics the proportion of radial
tires in T&B category is expected to expand by around seven times from the current levels.
Sighting this opportunity, almost all the expansion plans for T&B category tires are for radial
category tires.
The sovereign debt crisis in Europe and lower off take by China have kept the global rubber
prices depressed. In Indian market, the future contracts are showing a bearish phase. A
weaker rupee may provide some relief as it will help boost tire exports. Total rubber exports
Have risen around 180% to 12,219 tons for the five-month period ended August 2011. With
international price remaining Rs 7 higher at Rs 225 per kg, rupee depreciation is expected to
accelerate the trend.
2.1.4 Ecological
In any type of rubber product manufacturing (including tires), the primary

16. environmental concerns are fugitive air emissions, solid wastes, wastewater, and hazardous2-6
wastes. Fugitive air emissions can be released from the compounding areas, where dry
chemicals are weighed and put into containers prior to mixing. Most facilities have
eliminated this problem, however, by purchasing their chemicals in small, pre-weighed,
sealed polyethylene bags. Emissions are also generated from the rubber compounds
themselves and from solvents that are added for cement, inks, and lubrication.
Several other environmental concerns are also associated with rubber product
manufacturing facilities. Solid waste is generated from the mixing, milling, calendaring, and
extruding processes. Most of this solid waste is recycled or sold to companies who use the
rubber for some other type of product. Waste water is generated from the cooling, heating,
vulcanizing, and cleaning operations.
Political
While the Customs Duty rate on tires and the peak rate of Customs Duty on all non
agricultural products were progressively reduced in the Union Budgets during the last few
years, in the case of Natural Rubber the rate of 20% Customs Duty has remained unchanged
for over a decade. This has resulted in a serious anomaly of Customs Duty on raw-material
(Natural Rubber@20%) being higher than the Customs Duty on finished product (Tires
@10%).
FICCI in its pre-budget memorandum has said that it is imperative that customs duty of
principal raw material of tire industry i.e. Natural Rubber is revisited and reduced from 20%
to a suggested level of 7.5% to make duty paid imports viable. Or else, increase in Customs
Duty on tires - from current 10% to suggested 20% to provide a level playing field to the
domestic tire industry vies-a-vies cheaper tire imports.

17. FICCI has also given the following recommendations for the tire industry
 FICCI would request for waiver of Customs Duty on all raw materials not manufactured
domestically.
 Appropriate clarification be issued to the effect that tubes and flaps are "inputs" being
"accessories" for tires and thereby Rule 3(5) of the CENVAT Rules 2004 and Rule 16 of the
Central Excise Rules 2002 are not applicable being revenue neutral.
 To overcome problem with respect to exports of tubes / flaps, it is suggested to include
 'Tire Manufacturer' as a class of Exporters under Rule 20 of Central Excise Rules to allow
them procure tubes and flaps without payment of duty for exports.
The tire industry has asked for duty free import of one lakh tones of natural rubber to bridge
the gap between domestic production and consumption, in the pre-budget memorandum.
Automotive Tire Manufacturers Association (ATMA) has also asked for waiver of customs
duty on those raw materials that have no domestic production. These include butyle rubber,
SBR (tire grade), EPDM and polyester tire cord.
ATMA chairman Neeraj Kanwar said the tyre industry has passed through an extremely
difficult phase of continuous increase in prices of rubber and other key raw materials. Since
raw materials account for 70 % of industry turnover, the input cost pressure has resulted in
severe erosion of net margins of tire industry.
According to Kanwar, the tyre industry has pumped in an investment of over Rs 12,000 crore.
All large tire companies have made substantial investments for new projects and expansion
primarily in radial truck and passenger car tires.
Tire companies are yet to buy a large chunk of 40,000 tons of rubber, the import of which
has been sanctioned by the government. But imports look difficult now as international price
trends are not favorable. According to Budhraja, it would have been viable if the companies

18. had shipped the material in March.
Porter’s Five Forces Model

19. Issue Priority Matrix

20. Probable impact on cooperation
HIGH MEDIUM LOW
HIGH
High priority
 Price hikes
 Customer
demographics
High priority
 Competitive
attributes
 New entrants
Medium priority
 Product’s
knowledge
 Rubber ratio norms
MEDIUM
High priority
 Copyright
restrictions
 Patent security
Medium priority
 Taxation norms
 Environmental laws
Low priority
 Increase in total
number of vehicles
produced in a
period
LOW
Medium priority
 Authority stableness
 Government issues
Low priority
 Skilled manpower
 Educational levels
Low priority
 Change in
standard of living
 Societal changes

21. Industry matrix
Key
Success
Factors
Weight Apollo
Tires
Rating
Apollo
Tires
Weighted
Score
MRF
Ratin
g
MRF
Weighted
Score
Ceat
Ratin
g
Ceat
Weighted
Score
Product
quality 0.30 3.5 1.05 4.5 1.35 4 1.20
Marketin
g
0.15 4 0.60 5 0.75 3 0.45
Wide
product
portfolio
0.10 3 0.30 4 0.40 2.5 0.25
Technolog
y used 0.10 3.5 0.35 4 0.40 3 0.30
Product
availabili
ty
0.15 5 0.75 4 0.60 5 0.75
Strong
supply
chain
partnersh
ips
0.10 5 0.50 4 0.40 4.5 0.45
High
returns
for the
suppliers
0.10 4 0.40 3 0.30 4 0.40

22. Total 1.0 3.95 4.20 3.80
The key success factors of Apollo Tires in the industry affect industry riva’s ability to expand in
the competition, raw material availability, packaging, cost, marketing, product design,
reputation & credibility, quality and others. These factors are very critical and all players like
have to control over them. They change from time to time and affect the finances and the
competition.
The current industry matrix puts MRF at the top among others. Although the matrix is not
exhaustive and does not include all market leading companies, it still shows where the gaps are
and the critical success factors. MRF takes the lead because of high quality products and
aggressive marketing, also the standards and technology used by MRF is superior than Apollo
Tires or Ceat. Products availability is important factor, since even one miss pushes the customer
to seek a different competitor. Apollo Tires, however is not far behind and can catch up in areas
of technology and marketing.
Factor Analysis

23.  Internal Factor Analysis Summary (IFAS)
Internal Factors Weight Rating Weighted Score Comments
Strengths
1. Wide product
variety
0.15 3.5 0.525 Room to expand
2. Excellent
geographical
coverage
0.10 4.0 0.40
Market
exploitation
3. Good financial
position
0.10 4.0 0.40 Backing through
funds
4. Good brand
awareness
0.10 5.0 0.50 Effective brand
building
5. Plenty number
of dealerships 0.15 4.5 0.675 Strong network
Weaknesses
1. Low presence
in latest car
models
0.15 3.0 0.45
Adaptation
required
2. Low presence
in two/three
wheeler
segment
0.10 3.5 0.35
Infrastructural
boost needed;
Integration
3. Brand yet to
establish itself
like the market
leaders
0.15 2.5 0.375
Trust building
should be the
focus
Total 1.00 3.675

24. External Factor Analysis Summary (EFAS)
External Factors Weight Rating Weighted
score
Comments
Opportunities
1. More tie-ups
with
Automobile
cos.
0.15 4.5 0.675
Network
building
2. Improved
Infrastructure
can enhance
transportation
0.15 4.0 0.60 Greater and
faster reach
3. Emergence of
India as a hub
for small car
production
0.10 4.0 0.40 Market
Potential
4. Emerging
markets and
improved
lifestyle
0.05 3.5 0.175 Consumer
tastes
Threats
1. Price wars 0.20 3.0 0.60 Costs driven or
benefit driven
strategies
2. Stiff
competition
from national
and
international
brands
0.15 2.5 0.375
Local
producers
should be
competent
3. Cheaper
technologies
0.10 3.5 0.35 Adaptation
4. Volatility in
prices and Inventory

25. availability of
raw material
as India’s
rubber
production is
less than its
demand
0.05 3.0 0.15 issues shall be
considered
seriously
5. Government
Policies w.r.t.
export duties,
import duties,
tax levied
0.05 2.0 0.1
Lobbying and
agency keeping
costs and
responsibilities
Total 1.00 3.425
 Strategic Factor Analysis Summary (SFAS)
Strategic
Factors
Weights Ratings Weighted
Score
Short Interme--
diate
o
n
g
Comment
S5. Plenty
number of
dealerships
0.15 5.0 0.75 
Market reach
is good
S1. Wide
product
variety
0.10 4.0 0.40 
More choices
W1. Low
presence in
Technological
enhancement

26. latest car
models
0.10 3.0 0.30 
W3. Brand
yet to
establish
itself like the
market
leaders
0.10 3.5 0.35 
Economies of
scale not
achieved
O1. More tie-
ups with
Automobile
cos.
0.15 4.5 0.675

Joint Ventures
O2. Improved
Infrastructur
e can
enhance
transportatio
n
0.10 4.0 0.40

Opportunity
for growth
T1. Price
wars
0.20 3.5 0.70  Competition
T2. Stiff
competition
from national
and
international
brands
0.10 3.0 0.30

Domestic
producers
protection
Total 1.00 3.875
Short Term
The strategic factors that the company needs to satisfy in the short run are ‘Low presence in
latest car models’ and ‘Price wars’ as it can change by manufacturing technologically

27. competent tires which suit the new models of cars at their new projects. This will also benefit in
global expansion of the company. As short term defines a period of a year or so, the solution
should be found within a year for a proper success.
Intermediate Term
The strategic factors that the company needs to consider during this term are ‘Brand yet to
establish itself like the market leaders’ and ‘Improved Infrastructure’. These are classified into
intermediate duration because the company must be able to overcome its weaknesses, make
use of the opportunities and defeat the threats. All this must be done at the right time to
ensure efficient results. In this case the factors are such that the earliest (short term) might not
be the best decision to make, as the duration might not be sufficient to overcome all the issues
with a clear outlay.
Long Term
The strategic factors that the company needs to satisfy during this period are the strength of
having a ‘Wide range of products’, ‘Plenty number of dealerships’, ‘More tie-ups with
Automobile cos.’, ‘Stiff competition from national and international brands’. They must be
able to continue to maintain many products varieties and build on them efficiently. Using R & D
(Research and Development) to overcome the problem of pasteurization as well as satisfying
growing global demand is not an easy task and hence requires time and efficiency to meet the
needs globally. Last but not least is overcoming the threat of competitors in the long run.
SWOT ANALYSIS :-
1. Strength :-
 Wide product variety .
 Excellent Geographical coverage across Asian, European and African markets.
 Good financial position.
 Good Brand awareness about the product.
 Has manufacturing plants at India, SA, Zimbabwe and Netherlands.
 Over 4000 dealerships in India, and over 900 in South Africa.

28. 2. Weakness:-
 Low presence in latest car models.
 Low presence in two/three wheeler segment.
 Brand yet to establish itself like the market leaders.
3. Opportunities:-
 More tie-ups with Automobile companies as it’s mainly into B2B market.
 Improved Infrastructure has fuelled more and more transportation.
 Emergence of India as a hub for small car production.
 Emerging markets and improved lifestyle.
4. Threats:-
 Price wars.
 Stiff competition from national and international brands.
 Cheaper technologies.
 Volatility in prices and availability of raw material as india’s rubber production is
less than its demand.

29.  Government Policies w.r.t export duties, import duties, tax levied on automobile
industries and economic condition of nation as it determines the sale of
automobiles.
CORPORATE STRATEGY :-
 The strategic factor that the company satisfies is the strength of having a wide range of
products. They must be able to continue to maintain many products varieties and build
on them efficiently. Using R & D to overcome the problem of pasteurization as well as
satisfying growing global demand is not an easy task and hence requires time and
efficiency to meet the needs globally. Last but not least is overcoming the threat of
competitors in the long run.
 Apollo Tyres Ltd, with its corporate headquarters in Gurgaon, India, is in the business of
manufacture and sale of tyres since its inception in 1972. Over the years, the company
has grown manifold, establishing its footprint across the globe.
 The company has manufacturing presence in Asia, Europe and Africa, with 9 modern
tyre facilities and exports to over 118 countries. Powered by its key brands — Apollo,
Dunlop (brand rights for 32 African countries) and Vredestein, the company offers a
comprehensive product portfolio spread across passenger car, light truck, truck-bus, off
highway and bicycle tyres, retreading material and retreaded tyres.
 At the end of its financial year on March 31, 2012, Apollo Tyres had clocked a turnover
of US$ 2.5 billion, backed by a global workforce of approximately 16000
employees.Apollo Tyres Ltd is traded in India on the Bombay, National and Kochi Stock
Exchanges, with 53.06% of shares held by the public, government entities, banks and
financial institutions as on June 30, 2012.
 Neeraj clarified that the acquisition was a de-risking strategy by which Apollo would get
access to the world's biggest auto market today, the US, as well as what was likely to be
the biggest in the future - China. Explaining the contours of the all cash deal, Neeraj
said Apollo India, the parent company, would take on a debt burden of only $450
million. The rest, $2.1 billion, will be taken by the new holding company.
OPERATIONAL STRATEGY :-

30. Marketing strategy-
 Apollo Tyres has plans on increasing their market share significantly in the passenger
vehicle segment in India with the launch of the 4G range of tyres. The company also has
ambitious plans to be a strong contender in the global markets as well. Reiterating their
focus on the passenger vehicle tyre segment, Apollo has introduced the 4G range of
tyres for the market. The range includes the Aspire 4G, Alnac 4G and Amazer 4G, and
according to Apollo these tyres boast of being derived from the highest technology and
designed for the new age Indian motorist.
 Apollo Tyres is the largest producer of passenger vehicle tyres in India with a capacity of
35000 tyres per day. In the last one year, the company has managed to increase their
market share in the replacement tyre market from 13.5 per cent to 16 per cent. With
the addition of these three new tyres aimed at a wider market ranging all the way from
the Maruti Suzuki Alto to the Audi A4, Apollo is definitely looking at a larger share of the
passenger tyre pie.
FINANCE STRATEGY:-
The company recorded revenues of INR88,677.2- million ($1,933.2 million) in the financial year
ended March 2011 (FY2011), an increase of 9.2% over FY2010. The operating profit of the
company was INR2,323.4- - million ($50.6 million) in FY2011, a decrease of 74.8% compared to
FY2010. The net profit was INR4,401.6 million ($96 million) in FY2011, a decrease of 32.6%
compared to FY2010. - Revenues excludes other non operating incomes. - - Operating income is
calculated by subtracting only the operating expenses including manufacturing and other
expenses and depreciation.
Reasons to Purchase:
 Gain understanding of Apollo Tyres, Ltd. and the factors that influence its strategies.
 Track strategic initiatives of the company and latest corporate news and actions.
 Assess Apollo Tyres, Ltd. as a prospective partner, vendor or supplier.
 Support sales activities by understanding your customers' businesses better.
 Stay up to date on Apollo Tyres, Ltd.’s business structure, strategy and prospects.

31. HUMAN RESOURCE STRATEGY :-
 Human Resources ,the responsibility of developing robust ,human resource
management systems and on Tapan Mitra's able shoulders. He has been instrumental
in establishing a best‐in‐class performance management system, leadership
Development programmes, market‐driven compensation structures
and a host of employee welfare and engagement activities at Apollo.
People integration, especially in cases of mergers &acquisitions, is
his area of excellence.
 A member of the Company’s Management
Board, his guidance has empowered Apollo to move to the next
level of performance. Tapan joined Apollo in 2005 and is credited with introducing
initiatives which led to Apollo Tyres being ranked among the Top 20
Employers in India in a recent survey.
A Gold Medalist from the University of Delhi, India, and a National
Scholarship holder, Mitra has a post graduate degree in Sociology
From Delhi School of Economics. He is actively associated with various
Human Resources platforms at the National and International levels.

32. TOWS ANALYSIS
Internal factors
External Factors
Strengths
Wide product variety.
Excellent Geographical
coverage across Asian,
European and African
markets.
Good financial position.
Good Brand awareness about
the product.
weaknesses
Low presence in latest car
models.
Low presence in two/three
wheeler segment.
Brand yet to establish itself
like the market leaders.

33. Opportunities
More tie‐ups with
automobile companies as it’s
mainly into B2B market.
Improved Infrastructure has
fuelled more and more
transportation.
Emergence of India as a hub
for small car production.
Emerging markets and
improved lifestyle.
SO strategy
Because of having wide range
of product line they have
more market share.
Growing financial position
helps in improving networks
and transportation.
WO strategies
Many automobile company’s
introduced latest models as
they lack in this part they can
enhance their technologies by
networks channels.
Still this brand has to compete
with market leaders of
automobiles, so that they will
be able to capture new
markets.
Threats
Price wars.
Stiff competition from
national and international
brands.
Cheaper technologies.
Volatility in prices and
availability of raw material as
india’s rubber production is
less than its demand.
Government Policies w.r.t
export duties, import duties,
tax levied on automobile
ST strategies
Good financial position but
they have to compete with
national and international
brands.
They have big product variety
but there is heavy
competition of price and per
capita income.
WT strategies
Government policies plays
crucial role as it more
depends on their policies
what would be the sales in
future.

34. industries and economic
condition of nation as it
determines the sale of
automobiles.