Apollo Tyres records surge in demand after ease in Covid-19 lockdowns
ROADS & HIGHWAYS

Apollo Tyres records surge in demand after ease in Covid-19 lockdowns

Tyre manufacturing major Apollo Tyres has recorded a surge in demand across product categories after state governments eased Covid-19 lockdowns.

Despite the outbreak of the second wave of the pandemic, Apollo Tyres has not changed its business plans due to the traction. They had previously announced a capex of Rs 1800 crore for FY22, which they are proceeding with. They will keep an eye on the situation to see if there's a demand slowdown that might necessitate some minor capex deferment. But there will almost certainly be little deviation from this Capex figure in FY22, Kanwar said. Capacity utilisation across the company's manufacturing units is currently at over 80%.

The company has been expanding its overseas markets to de-risk operations. In North America, the company has launched a comprehensive brand offering, which includes a complete line of Apollo and Vredestein tyres for commercial and passenger vehicles. Apollo Tyres intends to grow its business in the United States organically.

According to Apollo Tyres, its international business has performed better than India in recent quarters. In the truck, bus, and farm tyre segments, the company has increased its market share in Europe.

Apollo Tyres has set a mid-term revenue target of $ 5 billion approximately Rs 36,600 crore per year, up from Rs 17,397 crore in FY21. With the global pandemic hastening the pace of digitalisation, as well as several changes in the autonomous industry, such as electrification and autonomous driving, Kanwar stated that these will be key focus areas for the company in its growth journey.

In terms of rising input costs, Kanwar said that they have been on the rise for several months, putting pressure on margins. Raw material prices are expected to increase by 5% in the current quarter compared to the previous quarter.

Image Source


Also read: Ceat to invest Rs 1,200 cr to expand into truck, bus radial capacity

Also read: Govt issues draft notification for fuel-efficient, safer tyres in India

Tyre manufacturing major Apollo Tyres has recorded a surge in demand across product categories after state governments eased Covid-19 lockdowns. Despite the outbreak of the second wave of the pandemic, Apollo Tyres has not changed its business plans due to the traction. They had previously announced a capex of Rs 1800 crore for FY22, which they are proceeding with. They will keep an eye on the situation to see if there's a demand slowdown that might necessitate some minor capex deferment. But there will almost certainly be little deviation from this Capex figure in FY22, Kanwar said. Capacity utilisation across the company's manufacturing units is currently at over 80%. The company has been expanding its overseas markets to de-risk operations. In North America, the company has launched a comprehensive brand offering, which includes a complete line of Apollo and Vredestein tyres for commercial and passenger vehicles. Apollo Tyres intends to grow its business in the United States organically. According to Apollo Tyres, its international business has performed better than India in recent quarters. In the truck, bus, and farm tyre segments, the company has increased its market share in Europe. Apollo Tyres has set a mid-term revenue target of $ 5 billion approximately Rs 36,600 crore per year, up from Rs 17,397 crore in FY21. With the global pandemic hastening the pace of digitalisation, as well as several changes in the autonomous industry, such as electrification and autonomous driving, Kanwar stated that these will be key focus areas for the company in its growth journey. In terms of rising input costs, Kanwar said that they have been on the rise for several months, putting pressure on margins. Raw material prices are expected to increase by 5% in the current quarter compared to the previous quarter. Image Source Also read: Ceat to invest Rs 1,200 cr to expand into truck, bus radial capacity Also read: Govt issues draft notification for fuel-efficient, safer tyres in India

Next Story
Infrastructure Transport

Anand Vihar and Punjabi Bagh Flyovers Ready

Work on two major road infrastructure projects, the Anand Vihar flyover and the Punjabi Bagh flyover, has been completed but are yet to be opened for public use, according to officials. Located in highly congested areas, work on these projects started around two years ago. "The work on the flyover is complete and it is ready for opening," said a PWD official on Wednesday. According to sources, both the flyovers are likely to be inaugurated closer to the assembly elections in Delhi, scheduled for early next year. During the time the work was under way, motorists faced heavy traffic congestion ..

Next Story
Infrastructure Transport

RDSO finalise oscillation trials on Indore Metro

Indore Metro Phase 1 advances with the completion of oscillation and brake performance trials on the Yellow Line through three coaches manufactured by Alstom conducted by Research Design and Standards Organisation (RDSO). The oscillation trials were conducted with an aim to evaluate the stability and performance of the three different coaches during the movement, ensuring that the commencement of operation on Indore metro meets the safety and performance standard. The Emergency Braking Distance (EBD) was also reviewed by the RDSO team to evaluate the efficient stopping of trains during the op..

Next Story
Infrastructure Urban

IIT Guwahati develops sustainable geopolymer

A research team at the Indian Institute of Technology Guwahati, led by Prof. Anil K. Mishra from the Department of Civil Engineering, has developed an innovative solution to two major global challenges: industrial waste management and sustainable construction. Their research focuses on creating a geopolymer using industrial byproducts and waste materials, such as water treatment sludge (WTS), fly ash (FA), and ground granulated blast furnace slag (GGBS). “With the rapid pace of urbanisation and industrialisation, managing industrial waste has become a critical global issue," said IIT Guwaha..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000