Apollo Tyres India Ltd.'s Growth Strategy: Treading Global Markets
|
Case Code: BSTR397 Case Length: 18 Pages Period: 2005-2011 Pub Date: 2011 Teaching Note: Not Available |
Price: Rs.500 Organization: Apollo Tyres Industry: Tyres Countries: India; Europe; Africa Themes: Globalization, Industry Analysis, International Business |
Abstract Case Intro 1 Case Intro 2 Excerpts
"We had been the market leaders in India for a while and had been growing at a very good rate. We have good people. We also see opportunities that we needed to act on to ensure that we are able to continue to ride this growth. As a company we had matured to a level where we were confident of going global."
- Neeraj R. S. Kanwar, Vice Chairman and Managing Director, Apollo Tyres, in 2009.
Introduction
In 2011, Apollo Tyres had realized its dream of becoming a US$2 billion company by venturing into the global markets. However, Satish Sharma (Sharma), Chief, India operations, hoped that the company would grow three-fold by 2015 - 2016 and feature among the world's top 10 tire companies. Apollo Tyres India Ltd. (Apollo), headquartered in Gurgaon, India, was incorporated in 1976. The Indian tire industry, with a licensing regime prevalent during those times, was highly competitive with both the domestic and international players competing for market share. Apollo, a family-run business, went through changing leaderships over generations. It eventually emerged as the leading player in the industry.
Apollo owed its success to the technology and marketing innovations that it had taken up with a clear understanding of the needs of the customers. Though it had become the second largest player in the country, it aspired to become a US$2 billion company. To realize this, it turned to the global markets for future growth. After attaining a leading position in the Indian tire industry, Apollo acquired South Africa's Dunlop Tires International (pty) Ltd. and Vredestein Banden BV of the Netherlands in 2006 and 2009 respectively.
After tasting success with its overseas ventures, fulfilling its aspirations, and making a mark in the global market, the company set out to become a US$6 billion company by 2015-2016. To lead the company toward achieving its goals, the company executives were keen on further expansion into China and the ASEAN1 region. However, analysts opined that challenges like fluctuating raw material prices, regulations, price fixing, etc., might hinder its growth plans.
Buy this case study (Please select any one of the payment options)
| Price: Rs.500 |
Price: Rs.500 | PayPal (11 USD) |
