Annual Report FY2019
Board of Directors
Board of Directors
  • 1.
    Dr. S. Narayan Former Principal Secretary to the Prime Minister of India
  • 2.
    Onkar S. Kanwar Chairman & Managing Director
  • 3.
    Anjali Bansal Former Global Partner and MD,
    TPG Private Equity
  • 4.
    Nimesh N. Kampani Chairman, JM Financial Group
  • 5.
    Robert Steinmetz Former Chief of International Business, Continental AG
  • 6.
    Satish Sharma Whole-time Director
  • 7.
    Vikram S Mehta Former Chairman, Shell Group of Companies
  • 8.
    Pallavi Shroff Regional Managing Partner, Shardul Amarchand Mangaldas & Co
  • 9.
    Francesco Gori Former CEO, Pirelli Tyre
  • 10.
    Vinod Rai Ex-Comptroller and Auditor General of India
  • 11.
    General Bikram Singh (Retd.) Former Chief of Indian Army
  • 12.
    Neeraj Kanwar Vice Chairman & Managing Director
  • 13.
    Akshay Chudasama Regional Managing Partner, Shardul Amarchand Mangaldas & Co
  • 14.
    Sunam Sarkar President & Chief Business Officer, Apollo Tyres Holdings (Singapore) Pte Ltd
  • A.
    Francis Crispino Advisor to the Board
  • B.
    Gaurav Kumar Chief Financial Officer
Board of Directors
  • 1.
    Dr. S. Narayan Former Principal Secretary to the Prime Minister of India
  • 2.
    Onkar S. Kanwar Chairman & Managing Director
  • 3.
    Anjali Bansal Former Global Partner and MD, TPG Private Equity
  • 4.
    Nimesh N. Kampani Chairman, JM Financial Group
  • 5.
    Robert Steinmetz Former Chief of International Business, Continental AG
  • 6.
    Satish Sharma Whole-time Director
  • 7.
    Vikram S Mehta Former Chairman, Shell Group of Companies
  • 8.
    Pallavi Shroff Regional Managing Partner, Shardul Amarchand Mangaldas & Co
  • 9.
    Francesco Gori Former CEO, Pirelli Tyre
  • 10.
    Vinod Rai Ex-Comptroller and Auditor General of India
  • 11.
    General Bikram Singh (Retd.) Former Chief of Indian Army
  • 12.
    Neeraj Kanwar Vice Chairman & Managing Director
  • 13.
    Akshay Chudasama Regional Managing Partner, Shardul Amarchand Mangaldas & Co
  • 14.
    Sunam Sarkar President & Chief Business Officer, Apollo Tyres Holdings (Singapore) Pte Ltd
  • A.
    Francis Crispino Advisor to the Board
  • B.
    Gaurav Kumar Chief Financial Officer

Key Performance Highlights

FY2019

Gross Sales

172.73 Bn

EBITDA Margin

12.05 %

EBIT

12.69 Bn

Net Profit

6.80 Bn

Capital Expenditure

21.37 %

RoE

6.9 %

Milestones of FY2019
  • March 2019
    Golden Peacock Innovative
    Product/ Service
  • November 2018
    Best Corporate Social
    Responsibility Film
  • September 2018
    Game Changer of India
FIVE-YEAR
FINANCIAL SUMMARY
FY2019
Gross Sales 172.73 Bn 172.73 Bn
EBIDTA 20.82 Bn 20.82 Bn
Net Profit 6.8 Bn 6.8 Bn
About Us

The Company remains the preferred partner for global and Indian original equipment auto players, catering to more than 100 countries worldwide. With its corporate headquarter in Gurgaon, Apollo Tyres has multiple manufacturing units in India, the Netherlands and Hungary.

The extensive operations, backed by a global workforce of approximately 17,200 employees, deliver a turnover of US$ 2.48 Bn. The Company markets its products under two international brands – Apollo and Vredestein – that are available across the world through a vast network of branded, exclusive and multi-product outlets.

VISION 2020 "To be a premier tyre company with a diversified and multinational presence".

Awards & Accolades

Five Year
Financial Summary

Apollo Tyres Ltd: Key Figures

FY2019 FY2018FY2017FY2016FY2015
Key Financial Highlights        
Gross Sales Bn 172.73149.3140.5127.4137.3
EBIDTA Bn 20.82 17.720.020.719.8
EBIT Bn 12.69 11.815.416.416.0
Net Profit  Bn 6.80 7.211.011.29.8
Equity Capital Bn 0.57 0.570.510.510.51
Basic Earnings Per Share 11.88 13.421.622.119.3
Margins        
EBIDTA Margin% 12.05 11.814.216.214.5
Net Profit Margin% 3.94 4.87.88.87.1

Key Performance Highlights

FY2019

EBITDA 20.82 Bn
NET DEBT/ EBITDA 2.08 (Ratio)
Net Debt/EBIT 3.41 (Ratio)
NET DEBT / EQUITY 0.43 (Ratio)
Revenue Segmentation
By Customer
  1. Replacement73.0 %
  2. OEM27.0 %
Revenue Segmentation
By Product
  1. Passenger
    Vehicles
    31.7 %

  2. Truck-Bus
    45.0 %
  3. Off
    Highway
    10.1 %
  4. Light
    Truck
    5.7 %

  5. Others
    2.1 %
Revenue Segmentation
by Geography
  1. APMEA 70.0 %
  2. Europe 29.3 %
  3. Others 0.7 %
NATURAL RUBBER PRICE MOVEMENT (₹/KG)
CRUDE OIL PRICE MOVEMENT - (BRENT Crude) ($/Barrel)

Annual Report FY2018

HIGHLIGHTS
Gross Sales 149.3 Bn 149.3 Bn
EBITDA 17.7 Bn 17.7 Bn
Net Profit 7.2 Bn 7.2 Bn

Annual Report FY2017

HIGHLIGHTS
Gross Sales 140.53 Bn 140.53 Bn
EBIDTA 20.01 Bn 20.01 Bn
Net Profit 10.99 Bn 10.99 Bn

Annual Report FY2016

HIGHLIGHTS
Gross Sales 127.43 Bn 127.43 Bn
EBIDTA 20.65 Bn 20.65 Bn
Net Profit 11.23 Bn 11.23 Bn

Please Note: The FY2016 Highlights numbers above are as per IND AS. The downloadable Annual Report for FY2016 is as per iGAAP and hence the numbers will not match.

Annual Report FY2015

HIGHLIGHTS
Gross Sales 137.25 Bn 137.25 Bn
EBIDTA 19.84 Bn 19.84 Bn
Net Profit 9.78 Bn 9.78 Bn

Chairman’s Message

Dear Shareholders,

As I look back at the tough, uncertain and challenging FY2019, I am reminded of what Kalpana Chawla, American astronaut and the first woman of Indian descent to go to space, once said - The path from dreams to success does exist. May you have the vision to find it, the courage to get on to it, and the perseverance to follow it.

For all of us at Apollo Tyres, the year was about moving to achieve our vision of becoming a ‘Premier tyre company with a diversified and multinational presence’ and continued, with a steadfast resolve, to do what we do best – create best in class products, offer superior value proposition to our customers, work with our partners, support and empower communities, and, in the process, deliver above industry growth and create wealth to you, our shareholders. We had the courage to dream and work on it and I am proud to mention that we are getting close to achieve our 2020 aspirations for India of building market leadership and to achieve our premiumization strategy in Europe. Despite the uncertain times faced in the financial year, our growth is a testimony of achieving the high standards that we set for ourselves. I remain bullish that even with a challenging year ahead, our employees across the globe will put in tremendous work to deliver above industry numbers. This is because, we are committed to our vision and have the perseverance to achieve it in our pursuit to build Apollo Tyres as a world class institution.

It has been my firm belief that every organization needs to focus on its employees in its journey for meaningful success. Personally for me, the Apollo Tyres journey has been exciting and invigorating as we grew from employees who were based only in India to now where we have a multi-cultural and multi-locational employee base. In this long journey, what has certainly not changed is our philosophy of ‘People First’. Our team has ensured that we take every step to induct new people from various geographies and ethnicities into the global Apollo family. Despite the diversity, I am proud to say that we have built an Apollo culture of taking on challenging tasks and moving together to achieve the goals. Further, it is this focus on people and building a strong capability of effectively integrating cultures that has helped us to spread our wings far and wide.

‘Care for Society’ is one of the core values deeply etched in the DNA of your company and therefore our CSR strategy is not an afterthought but an integral element of Apollo Tyres corporate strategy. The year saw Kerala witnessing one of its worst floods in recent times. Your Company rose to the challenge and contributed money, material and time to bring relief to the people whose lives were severely affected by the calamity. Also, during the financial year, your Company continued with its multiple initiatives and created a real positive impact in the lives of the communities it serves. We received multiple recognition including the CSR Times Award 2018 and CSR Health Impact Award for its Health CSR Project, relating again to the healthcare programme for our truck drivers. As a strong proponent of sustainability, your Company continues to reduce its own carbon footprint and with the Apollo Tyres’ Partnership Pact helps and supports its partners to integrate relevant policies and processes related to the environment, occupational health & safety, human rights and labour laws into their business and decision making processes. This is further extending the use of environmentally responsible practices for growing natural rubber within the overall supply chain network.

I take this opportunity to thank all the banks, financial institutions, various Indian State Governments and the Central Governments of India, the Netherlands and Hungary, our network and business partners for their unstinted support and actively contributing to our success. Equally, I am humbled with your continued support and grateful for standing with us in times of prosperity and adversities. We at Apollo Tyres remain ever committed and sincere in our efforts to keep delivering ever better value to you. I look forward to having many more exciting updates for you in the current financial year.

Wishing you all the best.

Onkar S. Kanwar

Chairman and Managing Director

Vice Chairman’s Message

Dear Shareholders,

The cornerstone for Apollo Tyres’ success has been its relentless focus on profitable, sustainable growth. This unceasing focus is what makes each employee of your Company Unstoppable and a reason why we have picked the theme for this year’s annual report. In the pages that follow, I hope you get a sense of how we have worked to deliver above industry growth by upping the brand, continuing our intense focus on R&D and launching best in class products, winning new customers and much more. We continue to be unstoppable in our bid to achieve our 2020 vision - ‘To be a leading and premier tyre company with a diversified and multinational presence’.

All of us at Apollo Tyres was the two honours bestowed on our Chairman, Onkar S Kanwar. The Government of Japan, in its 2018 Autumn Imperial Decorations, conferred upon our chairman the Order of the Rising Sun, Gold and Silver Star. He received this recognition for his contributions towards strengthening the economic relations between Japan and India. Further, our Chairman was awarded with the Officers Cross (Civilian Division) of the ‘Order of Merit’ of Hungary. This award was conferred upon our Chairman in recognition of his work towards strengthening Hungarian-Indian economic relations through your Company’s investment in Hungary, thereby helping create new jobs in Hungary.

The financial year began with a blast for Apollo Tyres as in our bid to further our brand journey and build a stronger brand around sports, we welcomed Sachin Tendulkar, the god of cricket and an icon in the Indian and global cricketing world, to the Apollo family. Our brand will highly benefit for the association as we leverage his huge fan following and popularity as a sports idol and a crusader of safe driving, to drive home the Company’s own message of making every journey a safe and inspiring one. Continuing our sports journey and deepening our connect with Hungary, we partnered with DVTK, the leading sports club in Hungary. Currently, your Company is associated with the I-league team, Minerva Punjab FC and the Indian Super League team, Chennaiyin FC and global powerhouse Manchester United as its official tyre partner.

Beyond upping the brand quotient, we continued to aggressively replicate our Indian success of building deeper engagement with Original Equipment (OE) in Europe. In Europe, we added Ford Fiesta to the list which will run on Vredestein Quatrac 5 as a standard fitment. We are already working closely with Volkswagen for Polo, Seat for Ibiza and Ford for its EcoSport vehicle. We will continue to build on these successes and I am confident that with our plants in Europe, we will increase our leadership position in the region.

Further, our global R&D centres continued to support both APMEA and Europe as we launched multiple products in our key markets including the new Wintrac Pro, the new ultra-high-performance winter tyre, and Vredestein Quatrac Pro, the all-season tyre for the ultra-high performance segment and cars such as the Alfa Romeo Stelvio, Volvo XC90 and BMW 5-series. We continued to expand into new markets and became a full range player in multiple markets including Nepal, Sri Lanka, etc. The prowess of our R&D was again demonstrated as the Vredestein Wintrac Pro was rated with the prestigious exemplary (vorbildlich) rating in 2018 Auto Bild test.

Just like the year began, it ended with a high decibel #BadRoadBuddies initiative. The much talked event was a first of its kind event by any tyre company and we see this as building a deeper connect with the community of SUV owners/drivers, one of the fastest growing segment in India. We have continued smaller versions of the initiative across multiple cities and seen a high traction from the community.

FY2019 was a year filled with excitement as we took the challenges head on and powered ahead delivering above industry numbers. While FY2020 will not be an easy year and we have our work cut out to post above average growth, I am confident that we will continue to be unstoppable in our pursuit to achieve our Vision 2020. I will continue to update you on an annual basis and I do look forward to be in touch with you.

With best regards,

Neeraj Kanwar

Vice Chairman and Managing Director

About Us

The Company remains the preferred partner for global and Indian original equipment auto players, catering to more than 100 countries worldwide. With its corporate headquarter in Gurgaon, Apollo Tyres has multiple manufacturing units in India, the Netherlands and Hungary.

The extensive operations, backed by a global workforce of approximately 17,200 employees, deliver a turnover of US$ 2.48 Bn. The Company markets its products under two international brands – Apollo and Vredestein – that are available across the world through a vast network of branded, exclusive and multi-product outlets.

Over the years, Apollo has come to be known for its ability to understand the market’s emerging trends and futuristic needs and build world-class products to meet the same. Innovative DNA, cutting-edge technology and R&D, deep and wide-spread market outreach and pragmatic strategies have become its cornerstones of sustainable growth.

Vision

To be a premium tyre company with a diversified and multinational presence.

1977First plant in Perambra, Kerala
1991Second plant in Limda, Gujarat
1995Acquired plant in Kalamassery, Kerala
2009Acquired Vredestein Banden BV, Netherlands
2005Acquired Dunlop Tyres, South Africa
2010Truck Radial Plant in Oragadam, Tamil Nadu
2011Sales & Marketing Office, Dubai
2013
  • Sales & Marketing Office, Thailand
  • Global R&D Centre Europe, Netherlands
  • Global Marketing Office in London, UK
  • Partnered with Manchester United
2014Global R&D Centre Asia, India
2016
  • Launched two-wheeler tyres in India
  • Sales & Marketing Office, Malaysia
2015
  • Acquired Reifencom- German Tyre Distribution Company
  • Laid foundation stone for the Hungary Greenfield Plant
  • Global Procurement Office, Singapore
2017
  • Launch of the Hungary plant
  • TBR Launch in Europe
2018Laid foundation stone for the Apollo Tyres seventh manufacturing facility globally in Andhra Pradesh