Companies

Apollo Tyres chalks out three-fold expansion plan for West Asia

Pratim Ranjan Bose Dubai | Updated on March 12, 2018 Published on June 09, 2011

Mr Satish Sharma, Chief, India Operations, Apollo Tyres Ltd (in the centre) cutting the ribbon to inaugurate the company’s new office in Dubai.   -  PTI

Dubai to have office, warehouse to address regional demand





Apollo Tyres today rolled out its plan for a three-fold expansion in business in the next one year to $100 million (Rs 450 crore) in West Asia, through group subsidiary Apollo Tyre Middle East (ATME) Ltd in Dubai. Sales are expected to rise up to $250 million in three years.

While, ATME will henceforth also be responsible for spreading business in Turkey, in the longer run – in a span of two-odd years, Apollo plans to have its office in the country to capitalise on the strong in-country (Turkey) demand as well as make inroads in neighbouring East European markets.

The entire demand in the region will be catered by Apollo's Indian operations. India currently contributes 62 per cent of the group revenue of $2 billion as on March 2011. Apart from India, Apollo has operations in South Africa (Apollo Tyres South Africa) and the Netherlands (Apollo Vredestein).

Elaborating the company's plans in the Gulf, Mr Satish Sharma, Chief, Indian operations, told Business Line that so far Apollo was serving the West Asian market directly from India. “In the changed events, we are now having our office and warehouse in Dubai; to be supported by a team of professionals to push up sales and take care of the after-sales issues and supply chain management.”

Truck bus radial market

While the company's cross-ply truck/bus tyres and the passenger radials were already in sale; with its Chennai plant in place, Apollo will now target the dominating truck bus radial market in the region in a big way. “We expect truck-bus radials to contribute 25 per cent of sales in the region,” he said.

“Dubai will be our sales hub for the region including Iran, Iraq, Saudi Arabia and others. And, with supply logistics now in place in Dubai we will be able to cater even the smallest market segment in any of the countries in the region,” Mr Sharma said.

Meanwhile, with its long term interests in view, the company has set up a testing centre with dedicated test drivers for truck bus radials in Turkey. The idea is satisfy the customers on product quality and farther the brand's image.

Published on June 09, 2011
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