A fire broke out in the mixing department of Apollo Tyres’ Kalamassery on the evening of 2 September. According to a company statement, nobody was injured in the blaze. Fire crews battled the fire for several hours before gaining the upper hand, and machinery and rubber is said to have been destroyed. Apollo says the unit will be out of commission several days. In the meantime, alternative arrangements for supplying mixed compound have been made.
Apollo Vredestein, the company behind the Vredestein tyre brand, says recently announced major investments are in line with its focus on continuous sustainable growth, even in economically challenging times. The investments are to be made over the course of 2013 and the company anticipates production capacity for Vredestein agricultural tyres to be some 50 per cent greater when the project is fully implemented. The decision to invest an undisclosed sum in the agricultural sector was made in response to growing demand within the European agricultural market for Vredestein tyres.
In addition to discussing strategic plans for the coming years, today’s Apollo Tyres annual general meeting saw the release of the company’s approved unaudited results for the first quarter of India’s 2012-13 financial year, the three months to 30 June 2012. During the quarter, net sales rose 12 per cent to Rs 31.65 billion (£367.5 million) and operating profit increased 48 per cent year-on-year to Rs 3.61 billion (£41.9 million). Net profit jumped 79 per cent to Rs 1.38 billion (£16.0 million); Apollo attributes this rise to “a more judicious product and customer mix.”
Apollo Tyres has rolled out its product range in the Nigerian market and the tyre maker has appointed the Stallion Group, a conglomerate that already boasts partnerships with several global vehicle manufacturers, as its representative within the country.
In its July 2012 report into India’s tyre industry, ICRA Research Services states that “changing revenue mix and softer rubber price” will “pay dividends.” The investment and credit rating agency observes that rubber prices have declined from their peak of around Rs 240 (£2.79) per kilogram at the start of the 2011-12 financial year (April 2011), easing to approximately Rs 195 per kilogram in November and then stabilising at between Rs 185 and Rs 200 per kilogram.
Several tyre makers have expressed their interest utilising natural rubber sourced from guayule and Russian dandelions, but Apollo Vredestein has announced it has actually produced tyres containing such materials. The company says the first tyres manufactured with European natural rubber rolled off its production belt this week.
Apollo Tyres has opened its first formal training centre for heavy and light commercial vehicle drivers. The centre is located in Ujjain city, a location within India the tyre maker describes as a busy transportation hub, and is being run in partnership with the non-profit organisation B-ABLE. Apollo says the centre will focus on two key areas: educating those wishing to make a career in the segment on all aspects of road and vehicle safety and maintenance, and promoting a holistic approach to health and wellbeing.
In addition to soon to be announced plans for a new factory in Central/Eastern Europe, Apollo Tyres has voiced interest in establishing a plant somewhere in Asia. On 11 May, the Hindu Business Line quoted Apollo vice-chairman and managing director Neeraj Kanwar as saying “we would like to set up a production base in Asean.”
Apollo Vredestein has announced its involvement in research into sources of natural rubber as a partner in the EU-PEARLS project. The objective of the project is to find a European alternative to Hevea brasiliensis-derived natural rubber. The tyre maker notes that replacing natural rubber with a synthetic variant is not always a practical consideration for tyre makers, and with demand for natural rubber continuing to rise, other sources are becoming increasingly attractive. The threat to rubber trees posed by diseases such as South American Leaf Blight provides additional incentive to find an alternative.
Apollo Vredestein has introduced its new ultra high performance summer tyre in Budapest, the Ultrac Vorti. The tyre, like the simultaneously launched Sportrac 5, has been designed by Italian company Giugiaro for a sporty, distinctive appearance. Vredestein says the Y-indexed tyre excels in terms of grip, handling and braking on both dry and wet surfaces. The Ultrac Vorti name was also created by Giugiaro, inspired by the powerful vortex air flow that is generated, for example, when a helicopter takes off. The name reflects the speeds and forces that the Ultrac Vorti can handle, rated for up to 300kmh, while the tread is reminiscent of the tips of helicopter blades.
Apollo Vredestein is in Budapest this week, as it launches two new UHP tyres under the Vredestein brand. The Sportrac 5 is the successor to the successful Sportrac 3, which won the ADAC 2011 summer tyre test. The Sportrac 5 is marketed on its quietness, stability and sportiness, offering excellent handling on both wet and dry surfaces. Its size range is designed to provide fitments on upper medium cars. The company notes that the name Sportrac 4 has not been used in order to prevent confusion with Vredestein’s all-season tyres.
Following Apollo Vredestein’s launch of the Apollo Aspire 4G at Geneva, the tyre manufacturer is “taking over” Hungarian capital Budapest for another major launch between 25 March and 2 April. Vredestein is introducing two new summer tyres – the Ultrac Vorti and the Sportrac 5 – in a grand event that will see major sites in the city, including the five-star Four Seasons Hotel and the Museum of Applied Arts, embellished with Vredestein branding. On Sunday 25 March, the brand announced its arrival with a convoy of 35 vehicles with Vredestein branding, while several mega-billboards in the city centre draw attention to its week-long residence.
The Goodwood Festival of Speed, billed as “world’s greatest celebration of car culture”, takes place this year between 29 June and 1 July. The event is sponsored by a roll call of the world’s most prominent vehicle manufacturers, and Michelin has also announced its sponsorship of the event. As well as maintaining a stand at the Festival of Speed, the tyre maker will also sponsor the Supercar Paddock and Supercar Run to highlight its links with manufacturers of some of the world’s fastest cars.
Less than three years ago, Apollo Tyres acquired Dutch tyre maker Vredestein and set about developing a company that draws upon both firms’ strengths. Now, at this week’s Geneva Motor Show, Apollo Vredestein showed the world what its Netherlands and India-based research and development departments are capable of jointly achieving; the very first tyre to come out of this international collaboration – the Apollo Aspire 4G – was given its official debut on 7 March.
A number of Indian tyre makers have shared their views on commercial vehicle radialisation with the Financial Chronicle. Estimates of current radialisation levels within this sector vary between 18 and 24 per cent, and all who spoke to the newspaper believe the radial to cross-ply ratio will change dramatically in the coming years.
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