Apollo Tires: Their Contribution to the Indian and Global Tire Market

Table Of Contents


Introduction

Apollo Tyres Limited is an Indian tire manufacturing company with a significant presence in the global market. Founded in 1972, the company has grown to become one of the largest tire manufacturers in India and has expanded its operations to several other countries.

Apollo Tyres' contributions to both the Indian and global tire markets have been significant. They have played a vital role in transforming the Indian tire industry and have established themselves as a reputable player in the global arena. That’s why we are giving you an insight into the development of this tire company and its positioning in both domestic and international markets.

Brief History

  • 1972: Apollo Tyres Limited was established in 1972 in Kerala, India. It was founded by Mathew T. Marattukalam and his associates.
  • 1977: The company started commercial production at its first manufacturing plant in Perambra, Kerala. Initially, it produced only bias tires for trucks and buses.
  • 1981: Apollo Tyres became a public limited company, and its shares were listed on the Bombay Stock Exchange (BSE).
  • 1991: The company ventured into the production of radial tires, which marked a significant step towards advanced tire technology.
  • 1995: Apollo Tyres established its second manufacturing plant in Limda, Gujarat, to meet the growing demand for its products.
  • 2006: Apollo Tyres commissioned its third manufacturing facility in Chennai, Tamil Nadu. This plant focused on the production of passenger car tires and further expanded the company's product portfolio.
  • 2009: In a major strategic move, Apollo Tyres acquired the Netherlands-based Vredestein Banden B.V., a well-known tire manufacturer in Europe. This acquisition allowed Apollo to enter the European market and gain access to a broader customer base.
  • 2010: The company set up its fourth manufacturing plant in Hungary, expanding its global manufacturing footprint.
  • 2013: Apollo Tyres acquired Cooper Tire & Rubber Company, a prominent American tire manufacturer. However, the deal faced challenges, and eventually, the acquisition was called off due to disagreements and regulatory hurdles.
  • 2015: The company's subsidiary, Apollo Tyres South Africa (Pty) Ltd., opened a manufacturing plant in Durban, South Africa, to cater to the African market.
  • 2018: Apollo Tyres inaugurated its fifth manufacturing facility in Chittoor, Andhra Pradesh, India. This state-of-the-art plant focused on the production of truck and bus radial (TBR) tires.


Apollo Tires Logo


Contribution to the Indian Tire Market

As a domestic market leader in India, Apollo Tyres holds a prominent position within the country's tire industry. This leadership status is achieved through various factors that have contributed to the company's success and market dominance.

The company has established an extensive distribution network across India. It has a strong presence in both urban and rural areas, making its products readily available to a vast customer base.

Over the years, Apollo Tyres has built a strong brand reputation based on quality, reliability, and innovation. Indian consumers recognize Apollo Tyres as a trusted and preferred brand for their tire needs.

It has established strong relationships with original equipment manufacturers (OEMs) in the automotive industry. This means that many vehicles come equipped with Apollo tires as their original fitment, further enhancing the brand's visibility and market presence.

Apollo Tyres continually adapts to changing market trends and consumer demands. It proactively introduces new tire models and technologies to meet emerging requirements.

This company adopts competitive pricing strategies, balancing quality with affordability. This attracts price-conscious consumers without compromising on the product's performance.

Diverse Product Portfolio

Apollo Tyres has a diverse product portfolio in India, catering to various vehicle segments and customer needs. Please note that product offerings and availability may have evolved since then, so it's always best to refer to the latest information on the company's website or official sources for the most up-to-date product range. Here are some of the key categories in their product portfolio:

  • Passenger Car Tires: Apollo Tyres offers a wide range of tires for passenger cars, including hatchbacks, sedans, and SUVs. These tires are designed to provide excellent grip, comfort, and fuel efficiency for different driving conditions.
  • Two-Wheeler Tires: The company manufactures tires for motorcycles and scooters. These tires are designed to offer good handling, stability, and durability, ensuring a smooth and safe ride for two-wheeler users.
  • Commercial Vehicle Tires: This category includes tires for trucks, buses, and other commercial vehicles. Apollo Tyres provides a comprehensive range of radial and bias-ply tires suitable for various load-carrying capacities and road conditions.
  • Farm and Agricultural Tires: Apollo Tyres offers specialized tires for agricultural equipment such as tractors and other farm machinery. These tires are designed to provide high traction and durability on rough terrains.
  • Off-Highway Tires: This category includes tires for industrial and construction equipment, such as loaders, graders, and earthmovers. Off-highway tires are engineered to withstand challenging working conditions.
  • Specialty Tires: Apollo Tyres also provides specialty tires for specific applications, such as mining, forestry, and other off-road vehicles.

Manufacturing Facilities In India

Apollo Tyres has several manufacturing facilities in India, strategically located across different regions. These manufacturing plants play a crucial role in meeting the domestic and international demand for Apollo Tyres' products. Here are the key manufacturing facilities in India:

  • Perambra Plant, Kerala: This was the first manufacturing facility of Apollo Tyres, established in 1977 in Perambra, Kerala. It initially produced only bias tires for trucks and buses.
  • Limda Plant, Gujarat: Apollo Tyres set up its second manufacturing plant in Limda, Gujarat. This plant became operational in 1995 and catered to the growing demand for tires in western India.
  • Kalamassery Plant, Kerala: Located in Kalamassery, Kerala, this plant started production in 1996. It focused on manufacturing radial tires for passenger cars and other vehicles.
  • Chennai Plant, Tamil Nadu: The Chennai manufacturing facility became operational in 2006. It produces radial tires for passenger cars and further expanded Apollo Tyres' product portfolio.
  • Chittoor Plant, Andhra Pradesh: Apollo Tyres commissioned its Chittoor plant in 2018. This state-of-the-art facility primarily focuses on the production of truck and bus radial (TBR) tires.

These manufacturing facilities in India have enabled Apollo Tyres to become a leading player in the domestic tire market. The strategic placement of these plants allows the company to efficiently supply its products to different parts of the country. Additionally, these facilities have undergone continuous modernization and capacity expansion to keep up with the increasing demand and technological advancements in the tire industry.

Contribution to the Global Tire Market

Apollo Tyres had a significant global presence with a strong footprint in various international markets. The company's global expansion has been driven by strategic acquisitions, partnerships, and the establishment of manufacturing facilities in key regions. Here are some aspects of Apollo Tyres' global presence:

  • Europe: Apollo Tyres entered the European market with its acquisition of Vredestein Banden B.V., a well-known tire manufacturer based in the Netherlands, in 2009. This acquisition allowed the company to gain access to the European customer base and distribution networks.
  • North America: The company made an ambitious move to acquire Cooper Tire & Rubber Company, an American tire manufacturer, in 2013. Although the acquisition did not materialize due to various challenges, it demonstrated the company's intention to strengthen its presence in the North American market.
  • Africa: Apollo Tyres established a manufacturing plant in Durban, South Africa, which began operations in 2018. This facility caters to the African market and helps the company meet the increasing demand for its products in the region.
  • Asia-Pacific: Apart from its presence in India, Apollo Tyres has a significant presence in various countries in the Asia-Pacific region. The company exports its products to over 100 countries worldwide, including many in Asia.
  • Middle East: Apollo Tyres has a distribution network and sales presence in several Middle Eastern countries. The company's tires are available in markets like the United Arab Emirates, Saudi Arabia, and Qatar.
  • Oceania: The company also has a presence in Australia and New Zealand, where its products are distributed and sold through various channels.
  • Latin America: Finally, Apollo Tyres has made strides to establish a presence in select Latin American markets, though the extent of its reach in the region might vary.

Acquisitions and Partnerships

Apollo Tyres had been involved in several notable acquisitions and partnerships to expand its business and strengthen its position in the global tire market. These strategic moves have allowed the company to enter new markets, gain access to advanced technologies, and enhance its product offerings.

  • Acquisition of Vredestein Banden B.V.: In 2009, Apollo Tyres acquired Vredestein Banden B.V., a well-known Dutch tire manufacturer based in the Netherlands. This acquisition provided Apollo Tyres with a significant foothold in the European market and access to Vredestein's established distribution network and customer base. It allowed the company to offer a wider range of products to European consumers and strengthen its presence in the region.
  • Joint Venture with ADNOC: In 2019, Apollo Tyres entered into a joint venture with Abu Dhabi National Oil Company (ADNOC) to establish a manufacturing plant in Abu Dhabi, United Arab Emirates. The joint venture aimed to produce high-performance tires for passenger cars, catering to the growing demand in the Middle East region.
  • Acquisition of Reifencom GmbH: In 2015, Apollo Tyres acquired Reifencom GmbH, one of the largest tire retailers in Germany. This acquisition expanded Apollo Tyres' retail presence in Europe and helped the company strengthen its position in the European aftermarket.


Apollo Tyres Global Centre in Asia


Innovations and Technological Achievements

Apollo Tyres has been committed to technological advancements and innovations in the tire industry. Through continuous research and development, the company has introduced several technological achievements and innovative tire solutions that have enhanced performance, safety, and sustainability. Here are some of the notable innovations and technological achievements of Apollo Tyres:

  • Advanced Tread Patterns: The company has developed advanced tread patterns that improve traction and handling in various weather conditions. These tread designs are optimized for wet, dry, and snowy roads, providing drivers with enhanced grip and stability.
  • Eco-Friendly Tires: Apollo Tyres has been focusing on developing eco-friendly tires with reduced rolling resistance. By minimizing energy loss due to tire friction, these tires improve fuel efficiency, leading to lower carbon emissions and better environmental sustainability.
  • Silica Technology: The company has incorporated silica technology in its tire compounds. Silica helps in reducing rolling resistance and enhances wet grip, resulting in improved fuel efficiency and better performance on wet roads.
  • Variable Contact Patch Technology (VCP): Apollo Tyres introduced VCP technology in its high-performance tires. This innovative technology optimizes the contact patch with the road surface, providing better handling and control during cornering.
  • Jointless Bead Wire Technology: The company employs jointless bead wire technology in some of its tires. This technology enhances tire stability and durability, providing a smoother and more comfortable ride.
  • Hydro Grooves: Apollo Tyres has incorporated hydro grooves in its tire designs to improve water dispersion, reducing the risk of hydroplaning and enhancing wet weather performance.
  • Use of Sustainable Materials: The company has been exploring the use of sustainable materials in tire manufacturing. By incorporating renewable and eco-friendly materials, Apollo Tyres aims to reduce the environmental impact of its products.
  • Continuous R&D Efforts: Apollo Tyres invests significantly in research and development to stay at the forefront of tire technology. Its research facilities work on tire design, materials, and manufacturing processes to constantly improve product performance and meet evolving customer needs.
  • Smart Sensors and Connectivity: Like many other tire manufacturers, Apollo Tyres has been exploring the integration of smart sensors and connectivity features in its tires. This technology allows for real-time monitoring of tire conditions, leading to improved safety and maintenance.

Summary

Throughout its five-decade-long history, Apollo Tires evolved from a local company to one of the biggest tire manufacturers in India and became a global player that exports to more than 100 countries. Innovations, partnerships and acquisitions, a diverse portfolio and a great combination of affordable price and solid quality allowed this company to establish a respectable position in the tire universe. Today, the company continues to grow, so we may expect even bigger impact on the industry in the future.