Apollo Tyres Sees Growth in India and Beyond

In a recent Manchester United Football Club event, the Managing Director of Apollo Tyres, Neeraj Kanwar, said that tyres being produced in India are going to the rest of the world. These tyres, bearing the Apollo and Vredestein brands, are being distributed worldwide, including to destinations like Germany’s high-speed autobahn and now the United States

Apollo Tyres owns two tyre brands, Apollo and Vredestein. While the Apollo brand predominantly focuses on manufacturing tyres for the Indian subcontinent, the Vredestein brand has a presence in Europe and boasts over 110 years of industry experience.

Kanwar noted that these tyres are being used in various countries, including Germany and the US, under the Apollo and Vredestein brands, proving their capability to perform well in diverse conditions, including high-speed autobahns. Apollo Tyres has served as the club’s global sponsor for over a decade, spanning 11 years.

Kanwar stated that Apollo Tyres consistently achieves top positions in various tests, including random tests conducted in Germany, where Vredestein tyres often ranks within the top three. Apollo Tyres acquired Dutch tyre manufacturer Vredestein in 2009. After this, Kanwar relocated to London to facilitate the global integration of the two companies. The company identifies significant growth prospects for the Vredestein brand in India. It manufactures tyres for the Apollo and Vredestein brands across seven facilities, with five located in India and two overseas plants in the Netherlands and Hungary.

Kanwar mentioned that Vredestein’s opportunities will expand as India’s production of premium cars increases. Some Mercedes models, like the E and C classes, are assembled in India using completely knocked-down (CKD) kits. As more premium original equipment manufacturers (OEMs) start assembling cars in India, Vredestein aims to enter the original equipment segment. Additionally, Vredestein is a significant tyre supplier for Volkswagen, providing tyres for their new vehicle models.

About Apollo Tyres

Founded in 1972, Apollo Tyres specialises in producing automatic bias and radial tyres and tubes. The company operates manufacturing facilities in Kochi, Vadodara, Pune, and Chennai. Apollo’s product range encompasses leading tyre brands across various segments, including trucks and buses, light trucks, passenger cars, and agricultural vehicles in India. Their clientele includes both original equipment manufacturers and customers in the replacement market. The company owns and runs five manufacturing facilities in India and two in Europe, the Netherlands, and Hungary.

On June 3, 2024, the share price of Apollo Tyres opened at ₹477.00, touching the day’s high of ₹479.75 as of 03:30 PM on the NSE

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.