Apollo Tyres Net Sales up 26 per cent

At the end of January, Apollo Tyres Ltd, published un-audited financial results for the 2006/07 financial year that show net sales grew by 26 per cent year-on-year to 8.575 billion rupees (£100 million). At the same time net profit as a percentage of sales increased to 4.1 per cent from 2.4 per cent.

Commenting on the results, Neeraj R S Kanwar, joint managing director and COO, Apollo Tyres Ltd, said: “Our production and the concurrent sharp sales growth has enabled us to inch towards a better bottomline growth. Even though average raw material prices have been higher this quarter compared to the year before, the stability in prices has enabled us to better utilise capacities to fulfil market demands. Natural rubber is once again on the upward swing, but we hope it is a temporary phenomenon and this quarter will mark a turnaround for the tyre industry as a whole.”

During the meeting where the figures were announced Michael J Hankinson, CEO, Dunlop South Africa (an Apollo Tyres subsidiary) was inducted into the Board of Directors of Apollo Tyres. Mr Hankinson is also the non-executive chairman of Spar, a leading supermarket chain in South Africa.

Speaking on this development, Onkar S Kanwar, chairman and managing director, Apollo Tyres Ltd, said: “Mike is a global manager who has played a very significant part in the origin, negotiation and consummation of the Apollo-Dunlop transaction. He continues to play a vital role in the operational integration. And we are sure that at a group level, Apollo Tyres will benefit vastly from his experience, knowledge and business skills.” On his part, Mr Mike Hankinson, CEO, Dunlop South Africa, commented that he was, “Excited and proud to be inducted into the primary decision-making and strategic forum of a company that is going places.”