Apollo Acquires Dunlop International – Update
Further details of Apollo Tyres’ acquisition of Dunlop International (also known as Dunlop South Africa) have emerged. Firstly Dunlop Nigeria (estimated turnover of $65 million, £40 million) is not included in the sale. Apollo representatives gave no reason for this. Furthermore, the Indian company confirmed it would keep the troubled Dunlop Zimbabwe business.
“Dunlop is the only tyre manufacturer in Zimbabwe and it is a profitable operation,” Apollo spokesperson Kankana Das told Tyres & Accessories. However in light of inflation rates as high as 800 per cent any profitability must be difficult to maintain. “Any operation can be profitable as long it is able to pass on price increases to cover the cost push. The Zimbabwe operations have been able to do this,” Das added.
One way the company maintains its position is through Dunlop Africa Marketing (UK) Ltd. Despite a name that suggests active involvement in the UK and/or European markets, Apollo describes the business as a “holding company for Zimbabwe operations. It does not serve either the UK or Europe market.” Instead the subsidiary reportedly “provides limited services to group companies.”
The Indian manufacturer also clarified that Dunlop International has no relationship with Dunlop India: “The two entities — Dunlop SA and Dunlop India are…completely separate entities and have no relationship with each other,” Kankana Das commented.
As far as branding is concerned the new parent company says it will continue to market both the Dunlop and Apollo names and has the right to use the Dunlop name in South Africa, Zimbabwe and 28 other African nations.