In FY24, Apollo Tyres had USD 3.4 bn revenue and 17.5% EBITDA along with its significant improvement in the premium tyre sales to 36%. The company has stated in its investors presentation that it also targets to double (x2) its Net Debt to EBITDA in FY26, along with its ROCE (Return on capital employed) to be around 12%-15%.
5 Key ingredients of Apollo Tyres growth
Coping up with the latest trends and technologies, Apollo Tyres has deployed new aged cloud-native automated cyber technologies with Advanced Manufacturing Execution System (AMES) and Digital Maintenance platform across its manufacturing facilities to enhance manufacturing efficiency in FY24. To further boost its logistics the company is planning to rollout advancements in its supply chain digitilisation along with cybersecurity for the current financial year. In FY26, Apollo Tyres aims to implement Industry 4.0 technology to boost its manufacturing facilities.
This digitilisation will be aligned with latest technological innovations with the company’s prime focus on add-on tyre technologies such as tyre sensor for performance monitoring, noise cancellation, and extended mobility in this financial year. For the next FY, Apollo Tyres has visioned to manufacture sustainable green tyre technology (renewable / recycle materials & Energy efficient tyre technology) along with the support by AI - virtual development in advanced testing and materials.
These will help the company to strengthen its leadership in different countries. To further strengthen its market scenario in India, the company is focusing on price premium positioning along with building the Vredestein brand for FY25. In FY26, the company plans to strengthen its brand equity with enhanced retail experience to build omnichannel connected brand journeys.
For European markets, Apollo Tyres strategy is to expand market share across categories with monitoring for customer satisfaction score in FY25. The company will focus on product mix enrichment across product categories / brands with volume growth in targeted categories in FY26.
Along with these the company has also visioned to implement latest technologies such as AI in HR management with keeping inclusivity and diversity its goal for both FY25 and FY26.
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