Apollo Tyres eyes growth, global top 10 slot in 5 yrs
Gurgaon based Rs 4,985-crore Apollo Tyres is in an expansion mode, and looking for acquisitions outside India as a route to increase its presence in the global market. At present, the company has presence in Europe and Africa.business Updated: Sep 06, 2009 22:28 IST
Gurgaon based Rs 4,985-crore Apollo Tyres is in an expansion mode, and looking for acquisitions outside India as a route to increase its presence in the global market. At present, the company has presence in Europe and Africa.
“We are looking out, we have the appetite to acquire companies with synergies outside India,” Onkar S Kanwar, chairman, Apollo Tyres said. He however refused to divulge in further investment detail.
In March, 2009, Kanwar acquired a Netherlands based company which manufactures high end passenger car tyres.
Kanwar added that the focus of the company is to expand global reach through both organic and inorganic growth. "We want to grow and we are looking at organic and inorganic growth," he said.
Apollo Tyres is also building a greenfield plant near Channai with an initial capacity of 150 tonnes. The plant is expected to be operational by the end of the year. The company also has plants in South Africa. Currently, about 70 per cent of its revenues come from India.
Kanwar said that the target is to touch a turnover of $2 billion by 2011. “We want to expand and be among the top 10 tyre manufacturers across the globe in the next five years,” he said, adding that the company’s position is 16th at present. The company has been focusing heavily on the replacement tyre market both in India and outside India with 75 per cent of the revenue coming from this segment.
However, Kanwar said that the export market, which had been affected by the global slowdown, is yet to pick up. Apollo, Vredestein and Dunlop are the key brands of the company.