Apollo Tyres Ltd

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BSE Code: 500877 NSE Code: APOLLOTYRE

Business Profile

Business Profile

The flagship of the Raunaq Singh group Apollo Tyres Limited (APOLLOTYRE) was
incorporated in 1972. The company`s main business is the manufacture and sale of
automobiles tyres, tubes and flaps. Its product range includes truck and bus bias,
light truck bias and radial, passenger car radial, farm bias and radial. It also exports
its products to South America, Pakistan, South East Asia, Middle East countries and
Africa.

It has a network of around 4,500 dealerships in India, of which over 3,000 are
exclusive outlets and nearly 230 multi-brand Dunlop accredited dealers in South
Africa and Zimbabwe.

APOLLOTYRE has plants in Perambra, Kerala, Vadodara, Gujarat and Pune. It is the
second largest tyre manufacturer in India with a total installed capacity of 250,000
million TPA. The company`s joint venture with Michelin, France for producing dual
branded truck & bus radial tyres in India is the market leader in the category.
APOLLOTYRE in technical collaboration with General Tire International Company
USA, produces some of India`s most advanced tyres for trucks, tractors, light
commercial vehicles and cars. Mahindra and Mahindra and TAFC are its major OEM
clients.

APOLLOTYRE plans to enter the healthcare sector with a 500-bed hospital in

Gurgaon with an investment of Rs 2,500 million. Artemis Health Sciences, a group
company, would be a wholly-owned subsidiary of APOLLOTYRE and will have
interests in medical education, research and manufacturing of medical accessories.
The phase I would be completed in the next 18 months with an investment of
around Rs 1,450 million. The company will also invest Rs 400 million in truck and
bus radial (TBR) tyre projects in Limda.
Financials

The company reported a steep drop in standalone net profit for the quarter ended
March 2009. During the quarter, the profit of the company declined 22.06% to Rs
461.92 million from Rs 592.65 million in the same quarter last year. Net Sales for
the quarter rose 10.91% to Rs 11105.66 million, while total income for the quarter
rose 11.70% to Rs 11184.93 million, when compared with the prior year period. It
posted earnings of Rs 0.92 a share during the quarter, registering 25.20% decline
over previous year period.

Recent Developments

18-MAY-09

The company through its special purpose vehicle (SPV) has successfully concluded
the acquisition of 100% shareholding of Dutch company `Vredestein Banden B.V. `
(VBBV).

31-MAR-09

The company through its managers ICICI Securities announced that the company
would be commencing the buy-back offer from Apr. 23, 2009. The buy-back would
conclude on Mar. 18, 2010.

08-DEC-08

The company announced its decision to pass on the benefits of the recent reduction
in excise duty rates to its customers with retrospective effect from December 1.