By Alex Kapadia
Leading tyres manufacturer Apollo has announced it will soon hike the prices of its products due to the increasing cost of rubber, according to a report in the Business Standard.
Neeraj Kanwar, vice chairman and managing director of the Indian tyres company, made the comments to reporters during the India Economic Summit.
Kanwar said: “In October, we had raised prices by about 2.5 per cent and we will be going for another price correction soon.”
He said imminent price hike in tyre was because of the increasing raw material prices.
Rubber prices are going beyond Rs 120 per kg, which is unreasonable, he said, adding the company will pass on the increase in commodity prices to customers.
Apollo tyres has surprised the industry by posting a sharp rise in its net profit during the September 2009 quarter.
A major factor cited in aiding the company to achieve this top line was the low expenses incurred on the raw materials.