Apollo Tyres on target for $2000 million by 2010

Kochi, Kerala, India - Apollo Tyres is on target to achieve an annual turnover of $2000 million ( €1455 million) by 2010, acording to the comapny's chairman, Onkar Kanwar, presenting at the company's annual general meeting in Kochi.

Kanwar said, "this year we have reached the half-way mark of a one billion dollar turnover. Making your Company, the largest Indian tyre manufacturer by both value and volume. Having achieved the first billion in 30 years, we now propose to achieve the next one in just three. I am confident that with your continued support, we will not only achieve this, but also move beyond."

He noted that some imported tyres do not meet Indian safety standards: "just like India promises to take only our best to the global marketplace, it is only fair that products imported into India also adhere to standards of safety. Regrettably, many imported tyres do not. Sadly, a lower price point seems to have taken in, not only some of our regular customers, but also some of our most prestigious vehicle manufacturers. I do hope, in the long run, our Indian customers will choose product and service quality over a lower price."

Apollo released its first quarter figures at the same just after releasoing its annual report, showing sales grew by 22 percent over the first quarter of 2006, to Rs 11 500 million ( €208 million). Net profits more than tripled, to Rs 546.4 million ( €9.88 million).

Commenting on these results, Kanwar said, “Consistent sales growth, along with stability in global raw material prices, has helped us improve our profitability. The integration of our South African operations is complete, and the synergy benefits are accruing, as visible in the financials. However, the profitability of the tyre industry as a whole continues to remain well below that of other related industries like auto and auto ancillaries. This must change for the industry to be globally competitive, by investing in new technology and higher capacity.”

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Press release (Q1 results) from Apollo

Press release listing from Apollo