A meeting between the management of Apollo Vredestein BV (AVBV) and employees took place today to discuss the future of the company’s tyre factory in Enschede, the Netherlands. The workforce was told that Apollo Tyres intends to “specialise” production at the site in order to ensure profitability. Measures related to this realignment include reducing AVBV’s personnel by approximately 750 full-time employees over a period of 24 months.
Private equity firm Warburg Pincus is investing around £117 million in Apollo Tyres via a subsidiary. On 26 February, the tyre maker’s Board of Directors approved the issue of up to 108 million compulsorily convertible preference shares, each with a face value of Rs 100, to Emerald Sage Investment Ltd. The transaction is subject to shareholder and regulatory approvals.
Some 21 per cent of the world’s population live in countries belonging to the South Asian Association for Regional Cooperation (SAARC). Nepal is one of these eight countries, and this is the market where Apollo Tyres generates more than 35 per cent of its SAARC region export revenues. To better service customers there, the company has now set up an office in the capital, Kathmandu.
Under a new partnership with commercial vehicle manufacturer Ashok Leyland, Apollo Tyres will provide healthcare facilities to truckers at a major transport hub in southern India. The tyre maker describes this collaboration as “a unique, first of its kind partnership.”
Apollo Tyres Ltd has entered the Saudi Arabia tyre market in cooperation with Al-Jomaih Tyres Company Limited, the exclusive distributors for the Kingdom. Apollo Tyres reports that it will be focussing on the large and growing truck-bus radial and passenger car tyre market, aiming to capture “a sizeable market share” in each of these segments.
The team at Auto Bild Allrad faced a problem when it came to performing their annual winter tyre test – they couldn’t find enough snow. To get around this shortcoming, the testers travelled to Japan with their equipment and ten brands of European market winter tyres. They also took a set of summer tyres with them for comparison and to serve as a warning to anyone tempted to drive on them in the snow and ice.
The Apollo Tyres TOR Truck Racing team will bring its racing truck ‘Thelma’ to Le Mans on 28-29 September for its final 2019 appearance on track. The team has been making a few alterations to the racing truck following a successful weekend at the ‘Convoy in the Park’ event at Donington in August, in preparation for the penultimate rounds of the European Truck Racing Championship.
Apollo Tyres has extended its Apollo Truck Tyre Zone (ATTZ) fleet service concept to Thailand. The first ATTZ outlet, a collaboration between Apollo and local partner Ten Ten Auto Tyres has opened in Hat Yai District, Songkhla Province and is equipped to provide a range of services such as wheel alignment for trucks and cars, tyre changing and wheel balancing.
The radialisation in India’s commercial vehicle and off-highway tyre market has slowed down but is still progressing, says Apollo Tyres. During an earnings call earlier this month, chief financial officer Gaurav Kumar commented that radialisation in the market as a whole has “slowed down slightly from earlier expectations.”
Passenger car tyre production and capacity at Apollo Tyres’ Gyöngyöshalász plant in Hungary has steadily grown over the past two years. These respectively reached 2.1 million and almost 3 million units a year by the end of March 2019, and Apollo is still ramping up in Hungary. It’s a different story in Enschede, some 700 miles to the west, but Apollo Tyres says it isn’t preparing to end car tyre production in the Netherlands any time soon.
Apollo Tyres has introduced the Endumaxx brand of tyres for light trucks in India. The company described light truck radial demand as having “a potential of 112,000 tyres per month in India, and it is growing at a much faster pace than any other segment”.
Leveraging its association with the sporting legend, Sachin Tendulkar, Apollo Tyres has launched a corporate advertising campaign called: “Ganga: the River of People”. The campaign covers television, digital, print and cinema mediums. Indian musical director, composer, musician and singer, A R Rahman has specially composed and sung a song for this television commercial (TVC).
Riders in the UK and Europe will encounter a new brand of motorcycle tyre later this year, a brand with its sights set on the big players. Entering a hotly-contested market poses a sizable challenge, but the newcomer has several aces up its sleeve. Not only is it produced by a major tyre maker that is already established in Europe, anyone who’s ever shopped for car tyres will find the brand reassuringly familiar.
In addition to his existing remit as chief quality & business excellence officer, Pedro Matos has now taken on the added responsibility of leading Apollo Tyres’ original equipment strategy and sales for passenger car tyres in Europe.
Extending its sports sponsorship engagement beyond football, Apollo Tyres has entered into a five-year agreement with former Indian international cricketer and team captain Sachin Tendulkar. This is the first time an individual celebrity has served as Apollo brand ambassador.