Apollo Tyres Ltd
Apollo Tyres Ltd (APOLLOTYRE)

Apollo Tyres Ltd (APOLLOTYRE)


Key Stats

Day's Price Range
52-Week Price Range
1 Month Return10.72 %
3 Month Return16.63 %
1 Year Return6.15 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

Rank 188
Rank 140
Rank 85
Dividend Yield
Rank 68
Rank 262
Price To Book Ratio
Rank 103
Debt To Asset
Rank 272

Company Information

Apollo Tyres Ltd is the leading tyre manufacturing company in India. They are engaged in manufacturing of automobile tyres and tubes. 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. Apollo Tyres currently has four manufacturing facilities in India two including a leased facility in the rubberproducing state of Kerala and one each in Gujarat and Tamil Nadu. Outside India the company has a manufacturing facility each in The Netherlands and Hungary.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 November 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 Indias first Hspeed 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 increased the production capacity by 1466432 Nos and 1567200 Nos respectively.During the year 200506 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 relationship 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 200506 and they further increased the production capacity by 888340 Nos and 218440 Nos during the next year. During the year 200708 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 200607 they increased the manufacturing capacity of Camel Back/Pre Cured Tread Rubber by 217000 Nos to 220000 Nos and in the next year they further increased 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.In May 2008 the company opened their first fullservices branded commercial vehicle tyre outlet called Apollo Trust in Salem Tamilnadu. In September 2008 Apollo Tyres launches XT100K which is a crossply tyres designed for unmatched performances.On 10 February 2011 Apollo Tyres formally inaugurated its 9th global tyre manufacturing unit and the 4th in India on the outskirts of Chennai city. The Chennai plant currently produces 7000 passenger vehicle tyres and 1300 commercial vehicle tyres a day. At its terminal capacity production is expected to reach 16000 passenger vehicle and 6000 commercial vehicle tyres a day.On 30 May 2011 Apollo Tyres announced the launch of Indias only fullservice outlet for commercial vehicles Apollo Commercial Vehicle CV Zone on the outskirts of Delhi in Sanjay Gandhi Transportnager.On 14 June 2011 Apollo Tyres announced its entry into Sri Lanka market through a tieup with Ideal Motors the automobile distribution and marketing arm of the Ideal Group of Companies. Initially Apollo Tyres will focus on passenger vehicle and crossply truck and light truck tyres. This will be gradually expanded over time to include Apollos entire range currently sold in India including truck bus radial agriculture and offhighway tyres if and when needed. On 10 May 2012 Apollo Tyres announced that its consolidated revenue crossed yet another milestone of US 2.5 billion in the year 201112 despite challenging circumstances.On 14 January 2013 Apollo Tyres announced the opening up of its global RD centre in Enschede the Netherlands. This stateoftheart facility will serve as a hub for the development and testing of car and van tyres for all product brands Apollo Vredestein and Dunlop 32 countries in Africa of the company. On 2 May 2013 Apollo Tyres inaugurated its Sales Office in Bangkok to serve the entire ASEAN region with Thailand as the hub of operations. The ASEAN region has gradually become one of Apollos strongest export markets out of India accounting for more than 40 of exports revenue.On 12 June 2013 Apollo Tyres and Cooper Tire Rubber Company NYSE: CTB announced the execution of a definitive merger agreement under which a whollyowned subsidiary of Apollo will acquire Cooper in an allcash transaction valued at approximately Rs 14500 crore. Under the terms of the agreement which has been unanimously approved by the boards of directors of both companies Cooper stockholders will receive 35 per share in cash. The transaction represents a 40 premium to Coopers 30day volumeweighted average price. Cooper the 11thlargest tire company in the world by revenue was founded in 1914 and supplies premium and midtier tires worldwide through renowned brands such as Cooper Mastercraft Starfire Chengshan Roadmaster and Avon. The combined company will be the seventhlargest tire company in the world and will have a strong presence in highgrowth endmarkets across four continents. With a combined 6.6 billion in total sales in 2012 the combined company will have a full range of brands and greater ability to satisfy customer needs worldwide. The transaction is expected to be immediately accretive to Apollos earnings.On 2 December 2013 Apollo Tyres announced the closure of the transaction with Sumitomo Rubber Industries SRI wherein SRI takes over Apollo Tyres South Africa ATSA including the Ladysmith passenger car tyre plant and the Dunlop brand rights that Apollo had in 32 countries of Africa for US 60 million. Apollo retains the Durban plant which manufactures Truck Bus Radial TBR tyres and Off Highway tyres OHT used in the mining and construction industries. Post this transaction Apollo Tyres will continue to sell Apollo Vredestein and Regal branded tyres in Africa and at the same time focus on creating and strengthening its sales and distribution network across the continent.On 5 December 2013 Apollo Tyres announced the introduction of its premium European brand Vredestein in India. These premium tyres would be sold through multibranded outlets including existing Apollo Zones.On 26 February 2014 Apollo Tyres announced its entry into the growing Qatar market in the Middle East region. The entry was marked with a product introduction to the Business Partners in Qatar. This entry is part of the companys strategy to enter newer markets across geographies.On 15 May 2014 Apollo Tyres announced that its consolidated net profit crossed Rs 1000 crore in financial year 201314. The Board of Directors of the company at its meeting held on 15 May 2014 approved Greenfield project in Eastern Europe at a project cost of about Euro 500 million over the next 4 years funded with internal accruals and debt at its European subsidiary. The planned capacity of the Greenfield project is expected to be 16000 passenger car tyres per day and 3000 Truck Bus Radial Tyres per day.On 13 December 2014 Apollo Tyres announced the launch of the dual branded Apollo Manchester United tyres in Thailand. Thailand is the first country in Asia and only the second country globally after United Kingdom to see the launch of the Manchester United branded tyre. The tyres will be available at Apollos retail network partners nationwide with prices starting at Baht 2000 per tyre depending on size of tyres that range from 1516 inches for the market in Thailand.On 26 August 2015 Apollo Tyres announced that it has successfully closed a Rs 300 million financing for its Greenfield plant in Hungary. An international consortium of banks consisting of ABN AMRO Bank N.V. Magyar ExportImport Bank Zrt. Raiffeisen Bank Zrt. Standard Chartered Bank and UniCredit Bank Hungary Zrt. supported the company and provided the debt financing.On 5 October 2015 Apollo Tyres inaugurated it first branded retail outlet in Lebanon. Branded as Apollo Zone this outlet is designed to provide customers with an enhanced retail experience and a better feel for the brand and products on display including passenger car truck bus and agriculture tyres.On 26 October 2015 Apollo Tyres inaugurated two new Apollo Zones the companys branded retail outlets in Amman Jordan. These outlets are designed to provide customers with an enhanced retail experience and a better feel for the brand and products on display including passenger car truckbus and agriculture tyres.On 16 November 2015 Apollo Tyres announced the acquisition of Reifencom GmbH one of the largest tyre distributors in Germany for Euro 45.6 million. Reifencom GmbH has an online presence in 6 countries Germany France Italy Austria Switzerland and Denmark. In addition it operates 37 stores and service centers across Germany.On 7 March 2016 Apollo Tyres launched Apollo Acti series two wheeler tyre thereby making its foray in two wheeler tyre segment. Designed and developed at the companys Global RD Centre in Chennai Apollo Acti series for bikes and scooters would cover nearly 85 of the replacement market for twowheeler tyres in India.On 30 May 2016 Apollo Tyres inaugurated the companys Malaysian office. Subsequent to settingup its sales distribution hub in Bangkok for the ASEAN region Apollo Tyres has been increasingly focusing on expanding its footprint in South East Asia. The company is targeting a bigger share of the pie in the Malaysian replacement tyre market which has an annual capacity of 580000 truckbus radials and 9.5 million passenger car tyres. Apollo Tyres is building a complete team of sales and service personnel to service the Malaysian customers. On 15 September 2016 Apollo Tyres launched three new truckbus radials Apollo EnduRace RD HD Apollo EnduMile LHD and Apollo EnduComfort CA. The new product introduction is part of the companys overall strategy to dominate the truckbus radial category in IndiaOn 9 November 2016 Apollo Tyres formally inaugurated its Global RD Centre Asia just outside the southern Indian city of Chennai. This is companys 2nd Global RD Centre after the Global RD Centre Europe in the Netherlands which is operational since 2013. On 10 April 2017 Apollo Tyres introduced Apollo Apterra HT2 tyre for the growing 4x4 and SUV segment and the actiZip F2 and actiZip R3 tubeless tyres for motorcycles.On 10 April 2017 Apollo Tyres formally inaugurated its tyre manufacturing unit in Hungary. Located less than 100 km from the capital Budapest this is Apollo Tyres first greenfield facility outside India. This facility will help us further increase the companys presence and market share in Europe. The company is investing Euro 475 million in this facility. The final capacity at the end of Phase I would be 5.5 million passenger car light truck PCLT tyres and 675000 commercial vehicle tyres. This facility will complement Apollo Tyres existing facility in the Netherlands and will produce both Apollo and Vredestein brand of tyres for the European market.On 27 April 2017 Apollo Tyres announced its debut in the extremely competitive Truck and Bus Radial TBR tyre segment in Europe at the ongoing Commercial Vehicle Show in Birmingham. It has also become the first and only manufacturer to launch its TBR range exclusively online with a new gotomarket approach.On 18 July 2017 Apollo Tyres announced the launch of its twowheeler tyres in Sri Lanka. Since its introduction in the Sri Lankan market in 2011 Apollos products have been well accepted across the country and this has prompted the company to introduce its twowheeler range as well to service the estimated 250000 300000 vehicles a year market.On 6 September 2017 Apollo Tyres announced that the companys premiere tyre brand Vredestein has been selected as a fitment on the Volkswagen Polo SEAT Ibiza and Ford EcoSport and the supplies have already begun to these European Original Equipment Manufacturers. By entering the supply chains of worldleading carmakers such as Volkswagen Ford and SEAT Apollo Tyres has embarked on a very important journey with European OEMs.On 10 October 2017 the company had issued and allotted 63025210 Equity Shares to eligible qualified institutional buyers at the issue price of Rs 238/ per share including premium of Rs 237/ per share aggregating to Rs 15000 million through private placement under QIP. Pursuant to the allotment the paid up equity share capital of the Company stands increased from Rs 509024770 to Rs 572049980 comprising of 572049980 Equity Shares of Rs 1/ each.The foundation stone of Apollo Tyres ultra modern global scale manufacturing facility located in Chinnapanduru village Chittoor district in the state of Andhra Pradesh was laid on 10 January 2018. Apollo Tyres has purchased 200 acres of land from the AP Govt for the manufacturing facility and would be investing close to Rs 1800 crore in the first phase. The construction will start within the next 6 months and the tyres are expected to start rolling out from this facility in the following 24 months. The company plans to start with manufacturing of passenger vehicle tyres in this facility due to the growing demand in this segment and will later on expand to start producing other product categories as well.On 5 March 2018 Apollo Tyres announced that it is launching a brandnew summer tyre onto the market called the Apollo Aspire XP. Leveraging on the very latest developments in terms of construction and material technologies the Aspire XP combines outstanding levels of onroad comfort with a high degree of safety. Featuring a total lineup of 52 SKUs the Aspire XP replaces Apollos range of Aspire 4G and Apterra HP tyres.As on March 31 2019 your Company had 37 Overseas Subsidiary Companies including step subsidiaries 2 Associate Companies and 1 Joint Venture company under its roof.Reifencom GmbH Hannover RCH a wholly owned Step Subsidiary was merged into its parent Company Reifencom GmbH Bielefeld RCB w.e.f. August 16 2018. Pursuant to the merger the name of RCB was changed to Reifencom GmbH Hannover. Also Reifencom Einkaufsgesellschaft GmbH Co. OHG Hannover equally owned by RCH and RCB was merged with RCB.Retail Distribution Holding B.V. wholly owned Subsidiary of Apollo Tyres Cooperatief U.A. was wound up on November 27 2018. Apollo Vredestein Italia Srl a Subsidiary of Apollo Vredestein B.V. was wound up on December 06 2018. Apollo Tyres Cyprus Pvt Ltd wholly owned Subsidiary of the Company was wound up on January 19 2019. Vredestein Marketing B.V. Co. KG a Subsidiary of Apollo Vredestein GmbH was wound up on January 31 2019. During the FY2019 the Company had invested Rs 22.50 million in KT Telematic Solutions Private Ltd. an Associate of the Company.The company bagged Golden Peacock Award for Excellence in Corporate Governance 2018 for Corporate Governance and Sustainability given by Indias Institute of Directors IoD.The Company has following material unlisted Subsidiaries viz. Apollo Vredestein B. V. Apollo Tyres Hungary Kft. Apollo Tyres B. V. Apollo Tyres Cooperatief U. A. and Apollo Tyres Holdings Singapore Pte Ltd. as on March 31 2019. The Research Development allocated Capex consolidated for the FY2019 stood at Rs 1410.06 million.During the FY2020 the Members of the Company approved the issue of 6.34 Compulsorily Convertible Preference Shares CCPS upto 108000000 One hundred and eight million having a face value of Rs 100/ each aggregating to Rs 10800000000 Rupees ten thousand eight hundred million only to be allotted to Emerald Sage Investment Ltd the Allottee an affiliate of Warburg Pincus LLP by way of preferential allotment on a private placement basis in Public category. The aforesaid CCPS shall be convertible into 63050966 Sixty three million fifty thousand nine hundred and sixty six equity shares of the Company at a face value of Re 1/each at a conversion price of Rs 171.29 each.The Company entered into an Investment Agreement dated 27 February 2020 and Amendment Agreement dated 21 April 2020 with Allottee certain specified persons belonging to the promoter and promoter group of the Company for the aforementioned preferential allotment. In terms of the Amendment Agreement dated 21 April 2020 the parties agreed to make the allotment in 2 Tranches.In Tranche 1 CCPS allotment of 54000000 Fifty four million aggregating to Rs 5400000000 Rupees five thousand four hundred million only was made to the allottee on 22 April 2020 which shall be convertible into 31525483 equity shares of Re 1/ each at a conversion price of Rs 171.29 within 18 months from the date of allotment.As on 31 March 2020 your Company had 35 Overseas Subsidiary Companies including step subsidiaries 1 Associate Company and 1 Joint Venture company under its roof.Apollo South Africa Holdings Pty Ltd. had executed a sale of shares agreement with Tacoma Foods Pty Ltd. to sell its entire stake in Pressurite Pty Limited effective 31 May 2019. Hence Pressurite Pty Limited is no more an Associate Company of Apollo South Africa Holdings Pty Limited.Rubber Research LLC a wholly owned subsidiary of Apollo Tyres Cooperatief U.A. was liquidated on 25 July 2019. S.C. Vredestein RO S.R.L. a wholly owned subsidiary of Apollo Vredestein Kft. was liquidated on November 11 2019. The RD allocated capital expenditureCAPEX and operational expenditure consolidated for FY2020 stood at Rs 1368.11 million.A prolonged lockdown due to COVID19 in many parts where the Company operates can have a significant impact on its business. On February 26 2020 the Company executed an agreement with Emerald Sage Investment Ltd an affiliate of Warburg Pincus LLC to issue 108000000 6.34 Compulsorily Convertible Preference Shares CCPS having a face value of Rs. 100 each at par for cash by way of preferential allotment on a private placement basis. The Members of the Company approved the issue of CCPS Tranche 1 through its Extraordinary General Meeting held on March 23 2020 and issue of CCPS Tranche 2 through Postal Ballot held on September 24 2020. The Company had allotted 54000000 CCPS Tranche 1 and 54000000 CCPS Tranche 2 for cash for an aggregate amount of Rs. 10800 Million on April 22 2020 and October 7 2020 respectively. These CCPS have been accounted for as compound instruments in the financial results.During the quarter ended 31 December 2020 one of the conditions for conversion was met and accordingly the Company has issued 63050966 equity shares having a face value of Re 1 per share. Equity portion of compound instrument and unpaid dividend liability as on the date of conversion has been transferred to equity share capital Rs. 63.05 Million and Securities Premium Account Rs. 10450.95 Million net of share issue expenses. After issue of the aforesaid equity shares the paidup equity share capital of the Company has increased to 635100946 equity shares of Re 1 per share.
OrganisationApollo Tyres Ltd