Apollo Tyres

Sector: Automotive Components, Tyres  |  HQ: Gurugram, Haryana, India  |  Founded: 1972  |  Employees: 20,000+

Listed as: NSE / BSE listed (APOLLOTYRE)  |  NSE / BSE  |  Ticker: APOLLOTYRE.NS

Company overview

Apollo Tyres Limited (NSE: APOLLOTYRE, BSE: 500877) is one of India's largest tyre manufacturers and among the top-fifteen tyre manufacturers globally by revenue. Founded in 1972 by Mathew T Marattukalam and joined by Onkar S Kanwar (the current Chairman) in 1975, the company has grown over five decades from a single Indian plant to a global operation with manufacturing in India, Hungary, Netherlands, and Germany. The flagship Apollo brand serves the Indian market across passenger car, commercial vehicle, two-wheeler, off-highway, and industrial segments, while the acquired Vredestein brand (Netherlands, acquired 2009) serves the premium European passenger car and agricultural tyre markets, and the Maloya brand serves select European replacement markets. Apollo Tyres operates seven manufacturing plants globally: Perambra (Kerala, the historical flagship), Chennai (Tamil Nadu), Limda (Gujarat), Chinnapanduru (Andhra Pradesh), Enschede (Netherlands), Gyongyoshalasz (Hungary), and select select tyre operations in Germany. Combined daily production capacity is approximately 2,400 tonnes of tyres serving truck and bus radial, light commercial vehicle, passenger car, two-wheeler, and off-highway segments. The company is the second-largest Indian tyre company by revenue after MRF Limited and ahead of JK Tyre and Industries, CEAT Limited, Balkrishna Industries (off-highway specialist), TVS Srichakra, Continental India, Bridgestone India, Michelin India, and Yokohama India.

Financial performance and recent trajectory

Disclosed revenue (FY25): ₹26,500 crore (FY 2024-25 estimate, consolidated).

12-month price trajectory

Monthly closes over the last 12 months. Source: Yahoo Finance.

Competitive position

Apollo Tyres is the second-largest Indian tyre company by revenue after MRF Limited (NSE: MRF, the leader with FY25 estimated revenue of ₹27,000-plus crore) and ahead of CEAT Limited (NSE: CEAT, Goenka group), JK Tyre and Industries (NSE: JKTYRE), and Balkrishna Industries (NSE: BALKRISIND, the off-highway tyre specialist). Other major Indian competitors include TVS Srichakra (Eurogrip brand), Birla Tyres (corporate restructuring), and Yokohama India. In the global premium passenger car segment, the Vredestein brand competes with Michelin, Bridgestone, Continental, Goodyear, Pirelli, and Hankook. In the off-highway segment, Apollo competes with Balkrishna Industries (the global leader by volume in agricultural tyres), Bridgestone, Michelin (OTR), and Continental. The competitive moats are the dual-brand strategy (Apollo for India and emerging markets, Vredestein for premium European), the integrated global R&D pipeline through the Apollo Tyres Global R&D Centre at Enschede and the Chennai R&D centre, the deep OEM relationships in India (Maruti Suzuki, Tata Motors, Mahindra, Ashok Leyland, Hyundai, Bajaj Auto, Hero MotoCorp), and the scale of the Indian and European manufacturing footprint. The principal vulnerabilities are natural rubber and synthetic rubber input cost volatility, the structural premium tier challenge in Indian passenger car against MRF and CEAT's brand strength, and the cyclical exposure to commercial vehicle replacement demand.

Key risks

Natural rubber and synthetic rubber input cost volatility Competitive intensity from MRF in Indian passenger car premium tier European operations currency exposure and demand cyclicality

Outlook

Apollo Tyres was founded in 1972 by Mathew T Marattukalam in Perambra, Kerala. Onkar S Kanwar joined the company in 1975 and subsequently led the Kanwar family acquisition of the operations. The Perambra plant commissioned in the early 1970s was the flagship for over two decades. The company expanded through the 1990s and 2000s with new plants at Limda (Gujarat) and Chennai (Tamil Nadu), and through the 2010s with capacity additions at Chinnapanduru (Andhra Pradesh). The 2009 acquisition of Vredestein Banden (the Dutch tyre company) for approximately EUR 200 million was a transformative international expansion that gave Apollo access to premium European technology, brand, and customer relationships. The 2017 commissioning of the Gyongyoshalasz plant in Hungary added European manufacturing capacity. The acquired Cooper Tire and Rubber Company in 2013 was attempted but the transaction was terminated. The business is organised across four reportable segments. The Asia Pacific Middle East and Africa segment (APMEA) covers India and adjacent markets serving passenger car, commercial vehicle, two-wheeler, off-highway, and industrial tyres under the Apollo brand. India contributes the largest share of APMEA revenue. The Europe segment covers operations under both Apollo and Vredestein brands serving passenger car, agricultural, light truck, and industrial tyres across European replacement and OEM markets. The Off-Highway and Specialty segment includes agricultural radial tyres, off-the-road tyres, and industrial tyres. The Two-Wheeler segment includes scooter and motorcycle tyres for the Indian market. Manufacturing footprint includes seven principal plants. Perambra (Kerala) is the historical flagship with combined truck and bus radial, light commercial vehicle, and select passenger car capacity. Chennai (Tamil Nadu) is a modern truck and bus radial focused plant. Limda (Gujarat) hosts passenger car radial and two-wheeler capacity. Chinnapanduru (Andhra Pradesh) is the newest Indian plant with significant truck and bus radial capacity. Enschede (Netherlands) is the Vredestein-branded passenger car and agricultural tyre flagship. Gyongyoshalasz (Hungary) hosts the European passenger car radial expansion. Combined daily production is approximately 2,400 tonnes. The product portfolio is comprehensive. The Apollo brand covers truck and bus radial (TBR, the largest segment by volume), truck and bus bias, light commercial vehicle, passenger car radial (PCR) under the Apollo Apterra, Apollo Alnac, Apollo Amazer, and Apollo Aspire ranges, two-wheeler (Apollo Acti series for scooters and motorcycles), and off-highway (agricultural and industrial). The Vredestein brand covers premium and ultra-high-performance passenger car (Vredestein Ultrac, Quatrac, Sportrac), agricultural radials (Vredestein Traxion), and select industrial. The Maloya brand serves Eastern European replacement markets. Distribution covers India through over 6,000 dealer outlets supported by a multi-tier distributor network. OEM supply to Maruti Suzuki, Tata Motors, Mahindra, Ashok Leyland, Hyundai, Bajaj Auto, Hero MotoCorp, TVS Motor, and Honda Motorcycle and Scooter India represents the OEM channel. Vredestein in Europe serves over 60 country markets through retailer and OEM channels. Financial trajectory has been strong through the FY22 to FY25 cycle. Revenue grew from ₹19,300 crore in FY22 to ₹23,700 crore in FY23, ₹25,400 crore in FY24, and approximately ₹26,500 crore in FY25. EBITDA margin expanded from approximately 10 percent in FY22 (when natural rubber prices spiked) to 17 to 19 percent in FY24 and FY25 driven by raw material cost normalisation, premium product mix lift, and operational efficiency. Net debt has been progressively reduced through operating cash flow generation. Recent corporate development has included continued investment in Chennai and Chinnapanduru plant expansion, the launch of new Apollo and Vredestein passenger car radial products, the Apollo Tyres Global R&D Centre Enschede expansion, and progressive renewable energy procurement at major plants. Strategy through 2025 to 2030 is anchored on five themes. First, Indian passenger car radial share defence and gain against MRF and CEAT through premium product launches and OEM specification wins. Second, European Vredestein brand growth in the ultra-high-performance and EV-specific tyre segments where premium tyre demand is structurally robust. Third, off-highway agricultural radial tyre expansion under both Apollo and Vredestein brands competing with Balkrishna Industries' global leadership. Fourth, EV-specific tyre development (lower rolling resistance, higher load capacity for battery weight, lower noise) where the global EV transition requires reformulated tyre specifications. Fifth, capacity rationalisation and optimisation across the global footprint. The regulatory environment includes the Bureau of Indian Standards specifications (IS 15633 for truck and bus radial, IS 15636 for passenger car radial, IS 15663 for two-wheeler), the Automotive Industry Standards (AIS) under the Central Motor Vehicles Rules, the Tyre Pressure Monitoring System mandates, the EU tyre labelling regulation for European markets, the Environment Protection Act 1986 for manufacturing emissions, and the Goods and Services Tax framework treating tyres at 28 percent (with select categories at 18 percent). The Companies Act 2013 and SEBI LODR govern listed company disclosure. Risks include natural rubber and synthetic rubber input cost volatility (natural rubber pricing has been one of the largest variable cost line items), competitive intensity from MRF in Indian passenger car premium and CEAT in two-wheeler, structural challenge of EV-specific tyre cost economics, currency exposure on European operations and global procurement, and the cyclical exposure to commercial vehicle replacement demand. Management quality is anchored by Onkar S Kanwar as Chairman, Neeraj Kanwar as Vice Chairman and MD, and a professional management team across India and Europe. The board has a majority of independent directors with statutory audit by Walker Chandiok & Co LLP. Disclosure has been comprehensive with quarterly investor presentations and detailed segment-level reporting. ESG positioning is moderate to strong. Apollo Tyres has committed to renewable energy procurement, water recycling, and progressive carbon footprint reduction across global plants. Sustainable natural rubber sourcing under the Global Platform for Sustainable Natural Rubber framework is an active workstream. The Apollo Tyres Foundation operates rural development and healthcare programmes around major Indian plants. BRSR disclosure is filed under SEBI LODR.

KAMRIT point of view

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Disclaimer: This profile is compiled by KAMRIT Financial Services LLP for educational and benchmarking purposes only. It is not investment advice, a recommendation to buy or sell securities, or a solicitation. Stock data is provided by Yahoo Finance and may be delayed by up to 20 minutes. Company financial commentary draws on publicly available filings, exchange disclosures, and KAMRIT industry research. Readers should consult a SEBI-registered investment adviser before making investment decisions. KAMRIT is a financial services and compliance firm, not a SEBI-registered investment adviser.