Apollo Tyres bullish on export revenue
ERJ staff report (TP)
Kolkata, India – Apollo Tyres is expecting a 50 percent increase in export revenue from Asia Pacific, West Asia and North African markets in this fiscal, according to President Satish Sharma, reported Pratim Ranjan Bose for The Hindu.
The region contributes around 11 percent of the company’s turnover of 8,507 crore (2012-13) (€1bn). “Our spade work for nearly two years in these markets will start yielding results from this quarter,” Sharma said.
He is particularly bullish about the company’s prospects in the developed tire markets of West Asia and the ASEAN (Association of South East Asian Nations) countries, where realisation is higher than the Indian markets due to higher prices and lower cost of distribution.
Having set up a sales outfit in Thailand last year, Apollo has now launched its own dealership network with 18 people on the ground. The marketing structure is the same as in India and does not involve any intermediary, Sharma said, referring to it as a “breakthrough”.
While the company nurtures a long term dream of setting up a manufacturing base in ASEAN, so as to further reduce the cost of distribution, Apollo claims its competitively priced truck bus radials, are doing “exceedingly well” in the Philippines.
“We developed specific products for these competitive markets. They are used in [driving] a Volvo, Mercedes or Hino,” Sharma said to underscore that his export strategy is independent of sales of Indian commercial vehicles in these markets.
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Full story from The Hindu