India
Following on from its acquisition of Cooper Tire & Rubber, Apollo Tyres intends to focus investment where it anticipates growth – and vice-chairman and managing director Neeraj Kanwar has identified one such area as Eastern Europe.
Birla Tyres says it is ready to get its passenger car tyre factory project back on track, and the Indian tyre maker also intends to target export markets, including Europe, with its agricultural and other niche products.
Leading European performance brakes brand Brembo is continuing to diversify its global strategy in a bid to tackle sales figures that continue to fall in much of its traditionally strong markets. In the first quarter of 2013, the German and, to a lesser extent based on the relatively good performance of its automotive manufacturing, UK markets were the only two to increase sales, while domestic Italian and southern Europe continued to look weak. However, growing sales in the USA and China are prompting global investment, such as the 115 million euro investment the manufacturer recently announced to expand its US and Brazilian operations. And the company has continued to indulge its penchant for spectacle, with involvement in top-level motorsport series, such as MotoGP and Formula One, and Hollywood blockbusters driving its continued premium brand marketing.
Exhibition organisation company ECI International has announced dates for the forthcoming 2014 British tyre exhibition, Brityrex International, which will run from 7 – 9 October 2014. Like the last edition of the show, the 2014 event will once again be held at the EventCity exhibition centre in Manchester.
ECI International is now a wholly-owned subsidiary of Singex-ECI International Pte Ltd following the company’s acquisition by Singex Exhibition Ventures (SEV). According to the companies, the Tyrexpo series of events (including Brityrex in the UK) will continue to be marketed as “An ECI International Event” providing all exhibitors, supporters, partners and visitors with a joint commitment to service excellence. Working closely with ECI founders, Paul Farrant and Rowena Suthers, this will include expansion into new market segments. As a result of the investment SEV reports that it will put its “full resources” to work on the organisation of future Tyrexpo events, to assist them reach their full potential.
Apollo Vredestein’s new European distribution centre recently entered service. Located in Staalsteden, near the company’s Enschede plant, the centre has the capacity to store 500,000 tyres. The company says the additional storage space is needed to accommodate growing production and sales volumes, combined with a wider product range.
Financial analysts will need to form their own opinions when Cooper Tire & Rubber releases its second quarter 2013 financial results on 8 August. The US tyre maker has announced that in light of its pending acquisition – described as a “merger” in a Cooper press release – by India’s Apollo Tyres, the company will not host a financial community conference call. In the absence of this otherwise regular event a press release will be published on the tyre maker’s website, and Cooper says further information will be available in Form 10-Q of the company’s quarterly report.
Although India’s Automotive Tyre Manufacturers Association recently expressed a measure of dissatisfaction about the domestic rubber situation, member company MRF Ltd’s latest quarter results show profits that have been helped by the commodity. In the three months between 1 April and 30 June (the third quarter of MRF’s financial year), the tyre maker’s net profit leapt 57.2 per cent to Rs 2.27 billion (£25.0 million).
India’s RPG Enterprises, parent company of Ceat Ltd, shares that the tyre maker aims to become one of the most profitable firms within the domestic market. Comments made by Ceat managing director Anant Goenka to this effect during an interview with local motoring journal Motown India were published on RPG’s website on 25 July.
Upon announcing first half 2013 results, Michelin voiced its expectation that mature markets will continue their recovery from last year’s weakness in the remainder of the year, while expansion should be seen in emerging markets. Should this trend play out, the French manufacturer sees itself in good stead to achieve its projected full-year volumes. This is all well and good, however Michelin’s reportage of its latest results said little about the first-half bottom line, which is markedly down on the same time last year.
On July 22, Goldman Sachs Singapore PTE acquired 2,768,258 Apollo Tyres shares on the National Stock Exchange of India for Rs 69.70 per share. This gives the investment banking and securities firm a 0.55 per cent holding in the tyre maker.
Ongoing concerns over the availability of natural rubber have prompted India’s tyre makers to cast an envious eye on supplies from outside the country. Now the Automotive Tyre Manufacturers Association (ATMA), the organisation representing ten of India’s tyre manufacturers, has handed the country’s Commerce Minister a statement saying the tyre industry will more strongly rely on rubber imports.
The organisers of last week’s Tyrexpo India 2013 exhibition (9-11 July) have confirmed their plans to return to Chennai in July 2015. ECI International managing director Paul Farrant, says: “This was our second exhibition in India and we were greatly encouraged by the reaction received from both exhibitors and visitors. There is enormous potential in the tyre sector and we are very confident that the show will continue to grow and develop into a significant event for the tyre and equipment aftermarket.”
Swiss Finance Corporation has purchased 6.78 million Apollo Tyres shares on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange of India) for Rs 482.19 million (£5.3 million). This transaction gives the trading institution a 1.34 per cent stake in Apollo. The shares were purchased at an average price of Rs 71. In a separate deal, Swiss Finance then sold 200,000 Apollo Tyres shares on the NSE for a total of Rs 14.8 million, or Rs 74 per share.
Motor Wheel Service Distribution has welcomed news that the European Parliament (EP) has voted to support the testing of commercial vehicle wheels fitted onto non-standard axles as part of the EU Roadworthiness Package. The measure has also received the endorsement of the Department for Transport (DfT) in MWSD’s home UK market. The company, distributor of Wheels India’s xlite wheel range, has campaigned for many years to achieve greater recognition for the dangers associated with what it believes to be unsuitable wheel safety check requirements. Managing director John Ellis has lobbied for more stringent checks to be carried out on wheels, first to guard the distribution chain against potentially faulty take-off wheels, and latterly to catch signs of premature fatigue and damage for wheels fitted to incompatibly shaped hubs. Ellis presented expert testimony to the EP’s Committee on Transport and Tourism (TRAN), and this was raised as an amendment by Transport Committee chair and North West MEP, Brian Simpson following the initial report in March. As a result the compatibility of wheels and the hubs on which they are mounted has been included within new TRAN legislation.
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