By Denna Bowman
Apollo Tyres is continuing its march to become a leading player in the global market, according to an online stock market information site.
The Indian tyres manufacturer is looking for more worldwide acquisitions as a route to increase its presence in the global market, says a report on TradingMarkets.com.
At the moment Apollo ranks 16th in the world, but the company has set its sights on breaking into the top 10 tyre manufacturers within the next five years.
Company chairman Onkar S Kanwar said: “We are looking out, we have the appetite to acquire companies with synergies outside India.”
Apollo, which acquired Netherlands-based tyres manufacturer Vredestein-Baden back in March, already has a presence in Europe and Africa.
Kanwar added that the focus of the company is to expand global reach through both organic and inorganic growth. “We want to grow and we are looking at organic and inorganic growth,” he said.
Apollo Tyres is also building a greenfield plant near Channai with an initial capacity of 150 tonnes. The plant is expected to be operational by the end of the year. The company also has plants in South Africa. Currently, about 70 per cent of its revenues come from India.
Although Kanwar refused to divulge details of further investment plans, he said the company was targeting a turnover of $2 billion by 2011.
The company is presently positioned at 16th, however he said: “We want to expand and be among the top 10 tyre manufacturers across the globe in the next five years.”
Apollo has been focusing heavily on the replacement tyre market both in India and outside India with 75 per cent of the revenue coming from this segment.
However, Kanwar said that the export market, which had been affected by the global slowdown, is yet to pick up. Apollo, Vredestein and Dunlop are the key brands of the company.