ASEAN first, then Europe – Apollo
During an interview with an Indian publication, Apollo Tyres’ chief of India operations commented on plans to establish a Greenfield plant in the ASEAN (Association of Southeast Asian Nations) region in the near future, while a factory in Eastern Europe may follow a couple of years later. Speaking with the Financial Chronicle, Satish Sharma said a favourable volume outlook was a key motivating factor behind the company’s plans in Asia.
“We see the ASEAN region as a growing market for our products, and to be competitive in this market it is important to have our own manufacturing presence in the region,” Sharma told the Financial Chronicle’s G Balachandar. “We will proceed with this at the earliest and shall make the necessary announcements at the appropriate time.” The head of India operations added that the ASEAN region is “a large and growing market.” He noted that while Apollo currently services the market with tyres produced in India – 30 per cent of Apollo’s exports from India are destined for ASEAN countries – other global tyre majors already have a manufacturing presence in the ASEAN area. “We are aiming to start with having a sales and marketing office in this region in quarter four of this financial year,” he added, referring to the three months to 31 March 2013.
As for Apollo’s intention to build a facility in Europe, Sharma explained that the tyre maker’s plans are “based on the acceptability and the demand for our products, which in Europe has been good.” Sales within the region include Apollo and Vredestein brand summer and winter tyres, and the head of India operations said that when demand further increases, exporting tyres from India will “not be a viable business option in the long run.”
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