APOLLO TYRES Bullish On Key Markets, Pushing Ahead With Fresh Acquisitions

Speech delivered by Onkar S. Kanwar, Chairman, Apollo Tyres Ltd., at the company’s 45th AGM held in Kochi.

Uncertainty has become the new normal … in the year gone by, we have come to expect the unexpected: the changing world order, alliances breaking up and life-long partners in public fights, protectionism by countries either from an economic or immigration perspective and many more uncertain events across the globe. However, in India, we have always been used to living on the edge, from droughts to floods, from one extreme to another, and are always used to fast-changing realities.

Other countries and economies have only recently started adapting to this ever-changing and uncertain world, and we have an inherent advantage now. According to the International Monetary Fund (IMF) data, the global economy posted a robust growth rate of 3.8%, powered largely by India and other emerging economies.

Your company has been no stranger to uncertainties. In fact, time and again, we have gone against the tide and acted differently, and from an outside view forced elements of uncertainties to our operations. We invested in the Chennai plant when conventional wisdom dictated to avoid any investments during recessionary times and made international acquisitions when we were told to cover our flanks in India.

Before I dwell on Apollo Tyres and its operations, I would particularly like to mention that the Government of India listened to the pleas of the tyre manufacturers in India to impose customs duties on the low-cost Chinese imports. These low-cost imports had been wreaking havoc on the manufacturers in India and also on the customers who buy the low-cost products but are not aware of the safety issues, as the tyres have not been tested on the Indian roads. By levelling the playing field, the Government has done tremendous service to the industry and to the millions of stakeholders who depend on it.