Appolo Tyres Project

8/21/2019 Appolo Tyres Project

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Company history :-1972

- Apollo Tyres Ltd. (ATL) was incorporated 28th September 1972

As a !"blic Limited #ompany and obtained certi$icate o$ #ommencement o$

%"siness on &ctober 2' 1972. The #ompany was !romoted by %harat SteelT"bes Ltd. a"na *nternational !+t.Ltd. a"na , #o. !+t. Ltd. a"na

Sinh athew T.aratt"/alam and 0acob Thomas.The #ompany man"$act"re

a"tomobile tyres and t"bes camel bac/retreadin materials and

"bber con+eyor belts.

- 1344444 5o. o$ e"ity shares iss"ed to %harat Steel T"bes Ltd.

234444 5o. o$ e"ity shares to 6erala o+t. and 134444 5o. o$ e"ity

shares to promoters etc. and associate companies. 73444 pre$. shares and

'34444 5o. o$ e"ity shares o$$ered at par to the p"blic in &ctober 1973.

1978

- 3 !re$. and 14244 5o. o$ e"ity shares $or$eited in 1977-78. :"rin

1978-79 $or$eit"re on 22244 5o. o$ e"ity shares ann"lled.

1984

- ;or$eit"re on 24434 5o. o$ e"ity shares ann"lled.

1981

-A$ter the e


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1988

- The #ompany set "p a plant with a capacity o$ .73 la/h tyres per ann"m at

Limda %aroda "Barat at an estimated cost o$ s 18.9 crores.

- The #ompany promoted a new #ompany "nder the name o$ a"na A/er

:rillin Ltd. in technical collaboration with A/er :rillin As 5orway.

The company was to "nderta/e m"lti$ario"s onshore and o$$shore drillin

ser+icesrelated acti+ities in *ndia.

- The #ompany entered into an areement with !ersterp A% Sweden $or

promotion o$ Boint +ent"re company in the name o$ "Barat !erstorp

Cle/tronics Ltd. *t "ndertoo/ man"$act"re o$ electronic rade copper clad

laminates.

1989

- adial tyres $or ar"ti cars and premi"m tyre $or tr"c/s were la"nched

d"rin the year.

- :"rin A""st the #ompany o$$ered '241444-12.3D sec"red partly

con+ertible debent"res o$ s 144 each on ihts basis in the ratio 1

debent"re E 2 C"ity shares held. Additional 4134 debent"res were

allotted to retain o+er s"bscription.

- The #ompany also iss"ed 214434 - 12.3D partly con+ertible debent"res to

the employees? (incl"din *ndian wor/in directors) o$ the #ompany (only

8873 debent"res were ta/en "p). The "ns"bscribed portion o$ 241173

debent"res was allowed to lapse.

- s 3 (!art A) o$ the $ace +al"e o$ each debent"re was a"tomatically and

comp"lsorily con+erted into one e"ity share o$ s 14 each at a premi"m o$

s 23 per share.

- s '4 (!art %) o$ the $ace +al"e o$ each debent"re was a"tomatically and


s 4 per share at the end o$ 12 months $rom the date o$ allotment o$debent"res.

- The remainin s 23 (!art #) o$ the $ace +al"e o$ each debent"re was to

be redeemed in two instalments o$ s 14 and s 13 at the end o$ 8th and 9th

year respecti+ely $rom the date o$ allotment o$ debent"res.

- :"rin September the #ompany iss"ed thro"h a prospect"s '239713 -

12.3D sec"red partly con+ertible debent"res o$ s 1'4 each o$ which the

$ollowin debent"res were reser+ed and allowed on a $irm basisE (i) '4444

debent"res to #ommonwealth :e+elopment #orporation (#:#)F (ii) 144444

debent"res to S%* "t"al ;"nd and (iii) 37444 debent"res to =T*.

- &$ the balance 72713 debent"res (i) 33444 debent"res to

shareholders o$ the promoter and other companies +iG. %ST $. Ltd.%harat ears Ltd. Apollo T"bes Ltd. a"na *nternational Ltd. a"na ,

#o. !+t. Ltd. =ni+ersal Steel , Alloys Ltd and a"na A"tomoti+e C


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- s 3 (!art A) o$ the $ace +al"e o$ each debent"res was a"tomatically and

comp"lsorily con+erted into one e"ity shares o$ s 14 each at a premi"m o$

s 23 per share at the end o$ months $rom the date o$ allotment o$

debent"res.

- s '4 (!art %) o$ the $ace +al"e o$ each debent"res was a"tomatically and


s 4 per share at the end o$ 12 months $rom the date o$ allotment o$

debent"res.

- s 3 (!art #) o$ the $ace +al"e o$ each debent"re was to be redeemed in

three instalments o$ s 24 s 24 and s 23 each at the end o$ 7th 8th ,

9th year $rom the date o$ allotment o$ debent"res.

1991

- The #ompany proposed to "nderta/e e


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- 14237 5o. o$ C"ity shares iss"ed aainst detachable warrants

attached with 1'D - 5#:s on 1..199. 332'92 ihts C"ity shares o$ s

14 each (!remi"m s 94 per share) allotted on 4..9 (!ropn. 1E1).

- The #ompany emered as the larest e


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- Apollo Tyres has des"bsidiarised two wholly-owned companies - Apollo

;inance and Apollo *nternational - by dil"tin its holdin in both to below

31 per cent.

- ;or Apollo Tyres its !erambara tyre plant has not been doin too well

and actin as a dra on the company?s reso"rces. This is mainly d"e to the

contin"ed labo"r "nrest and loc/-o"ts leadin to hea+y prod"ction loss at

that "nit.

- Apollo *nternational recently set "p a s"bsidiary $irm *n$onet

orldwide $or pro+idin *T sol"tions to corporate clients.

- The company is settin "p a reen$ield proBect at opar in !"nBab to

man"$act"re 144 tonnes a year o$ aric"lt"re and o$$-the-road tyres that

is mainly tyres $or tractors earthmo+ers etc.

- The company has a total installed capacity o$ 1.3 la/h tr"c/ tyres per

month. The two plants in 6erala ha+e a capacity o$ 74444 tyres per month

the %aroda plant has a installed capacity o$ 33444 tyres per month and the

con+ersion arranement with T#*L contrib"tes another 23444 tyres per month.

- !remier Tyres Ltd. became a s"bsidiary o$ the company.

- '194 5o. o$ e"ity shares iss"ed on con+ersion o$ warrants and another

414444 5o. o$ e"ity shares iss"ed on con+ersion o$ part-A o$ con+ertible

debent"res o$ s 92 each.

1999

- Apollo Tyres Limited (ATL) has sined an areement with national

Sec"rities :epository Limited (5S:L) $or holdin and tradin o$ shares in

demant $orm.

- Apollo Tyres Ltd. has in$ormed the "mbai Stoc/ CAA-? ratin assined to the s. 14'.'3-crore

non-con+ertible debent"re (5#:) proramme o$ Apollo Tyres Ltd.

- The #ompany proposes to p"mp in s. 223 crore as e"ity in its new

wholly-owned s"bsidiary which will set "p a ree$ield man"$act"rin "nit.

- The #ompany is settin "p a s '34-crore plant to man"$act"re crossply

radial tyres.

St. Marys College of Engineering & Technology5


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- The #ompany?s plant at Limba was closed $or 19 days $rom 1st ay to 19th

ay on acco"nt o$ an illeal stri/e by wor/ers.

- *n a bid to attract the 5et-sa++y c"stomers Apollo Tyres has tied "p

with indiatimes.com to accent"ate brand association with sa$e and pleasant

Bo"rneys.

- The 6alamassery "nit o$ Apollo Tyres has won the 2th 5ational

#ompetition $or Io"n anaers $or 2444 oranised by the All *ndia

anaement Association in 5ew :elhi.

- #redit ratin aency #risil has rea$$irmed the hih sa$ety ratin o$

>AA-? to the s 14'.'3 crore non-con+ertible debent"re proramme o$ Apollo

Tyres.

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- Apollo Tyres Ltd. has Geroed in on Tamil 5ad" $or settin "p its s '34-

crore reen$ield tr"c/ radial tyre man"$act"rin plant.

- Apollo Tyres Ltd has posted a '8.'8 per cent decline in net pro$it at s

.22 crore $or the "arter ended September 4 2441.

2442

- Apollo Tyres Ltd has in$ormed that the appointment o$ Shri a"na Sinh

as anain :irector. @e will howe+er contin"e to be a :irector and 5on-

C


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2443

- The $irst tyre-man"$act"rin "nit o$ the Apollo Tyres Ltd (ATL) at

!erambra in Thriss"r district celebrates its 4 years o$ s"ccess$"l

operations on 17th April 2443.

244 -Apollo Tyres rolls o"t :"raTreads

List Of DirectorsSr. No.Director's NameDesignation

1. &n/ar S 6anwar #hairman and anain director

2. 0 @an/inson :irector

. T %ala/rishnan :irector

'. aBa 6anwar :irector

3. 6 0ose #yriac :irector

. obert SteinmetG :irector

7. Shard"l S Shro$$ :irectors

8. = S &beroi hole Time :irector9. 5imesh 5 6ampani :irector

14. S 5arayan :irector

11. 6 0acob Thomas :irector

12. 5eeraB 6anwar 0oint anain :irector

1. S"nam Sar/ar hole Time :ir

1. ector



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Onkar S Kanwar

Chairman & Managing Director

As a corporate Apollo Tyresbelieves in investing in initiatives which have the ability

to have a direct impact on the lives of its stakeholders, while strengthening the

companys e!istence as a b"siness entity# $his ens"res that all activities are

s"stainable, meas"rable and form a core part of its entire b"siness plan# $he largest

area of work involves awareness and prevention of %'(ADS# $hree key gro"ps are

addressed directly thro"gh this programmes on(gro"nd activities

$he tr"cking comm"nity is a cr"cial stakeholder in the tyre b"siness and is known to

be v"lnerable to se!"al infections and therefore the ADS vir"s, d"e to their nomadic

and irreg"lar lifestyle on the road# )esides truck drivers, the comm"nity also

incl"des cleaners, mechanics, loaders, migrant workers, small b"siness owners and

those living at some of ndias largest transportation h"bs and catering to the

trucking profession# Apollo has established targeted intervention centres called

Apollo Tyres%ealth Care Clinics o"tside the capital city of *ew Delhi, Kanp"rin

+ttar radesh, Coimbatorein $amil *ad", 'ashio"tside M"mbai city and *agp"rin

Maharashtra, +daip"rand -aip"rin .a/asthan# Others large tr"cking centres are

being considered for f"t"re Clinic sites#

$hese Clinics are r"n by 0"alified doctors, co"nsellors, pharmacists and o"treach

workers who foc"s on1

Diagnosis and treatment of se!"ally transmitted diseases 2S$D3

)ehavio"ral change comm"nication

Condom promotion



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A complete workplace programme caters to awareness creation among all white and

bl"e(collar employees# At all locations, Master $rainers have been trained to facilitate

contin"o"s knowledge "pgradation and implementation of all on(gro"nd activities#

$his is the key vehicle for taking the ADS awareness and prevention programme to

a larger mass of the active working pop"lation# Apollo Tyresworks with its b"siness

partners to assist them in "ndertaking workplace programmes for their employees#

Avert Society

nternational 4inance Corporation

nternational 5abo"r Organisation

op"lation Services nternational

.a/asthan State ADS Control Society

As the chief architect of the companys vision, Onkar S Kanwar plays a pivotal role in thecompanys operations and artic"lation of its b"siness philosophy# +nder his leadership in

the 6789s and 79s, Apollo became a professionally(r"n and competitive Indian tyre

manufacturer# nnovation, 0"ality and e!cl"sivity are his g"iding principals, which have

helped the company achieve pioneering initiatives#

Onkar Kanwar is a former member of the :overnment of ndias *ational Man"fact"ring

Competitiveness Co"ncil and the Kerala Development and overty Alleviation Advisory

Co"ncil# %e is a ast resident of the 4ederation of ndian Chambers of Commerce &

nd"stry 24CC3, nternational Chamber of Commerce 2CC3, Automotive Tyre

Manufacturers Association 2A$MA3, a former Director, ;!port Credit :"arantee

Corporation of ndia and of the Kerala State nd"strial Corporation#

A science and administration grad"ate from the +niversity of California, he is a widelytravelled individ"al and a keen st"dent of modern management practices and their

s"ccessf"l application in b"siness# %e devotes a large part of his time to reading#

St. Marys College of Engineering & Technology


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*eera/ Kanwar began his career with Apollo Tyres5td in 67799? and elevated to 'ice Chairman in >998#

A hands(on manager, *eera/ Kanwar grad"ated from 5ehigh +niversity, +SA, with a

)achelor of Science in nd"strial ;ngineering and a specialisation in Management

Systems# An avid sports person, he en/oys playing tennis, swimming & travelling in his

leis"re time#

St. Marys College of Engineering & Technology1!


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Yearly Results ------------------- in Rs. Cr. -------------------

Mar "!3 Mar "!4 Mar "!5 Mar "!6 Mar "!7

*ncome

Sales T"rno+er 2423.2 21'.1 22.3 448.4 781.41

C


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&ther ritten &$$ 4.44 4.44 4.44 4.44 4.44

!ro$it %e$ore Ta< 1.3 143.2 8'.91 14.7 183.8

C


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!ro$it &n Sale &$ Assets -- -- -- -- --

!ro$it &n Sale &$

*n+estments-- -- -- -- --

ainLoss &n ;orein

C


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BS: 344877 NS:A!&LL&TIC !S!N: *5C'8A41422

!n"ustry :Tyres

Balance Sheet------------------- in Rs. Cr.

-------------------

Mar "!3 Mar "!4 Mar "!5 Mar "!6 Mar "!7

12 #ths 12 #ths 12 #ths 12 #ths 12 #ths

So"rces &$ ;"nds

Total Share #apital .2 8.' 8.' 8.' '.'1

C"ity Share #apital .2 8.' 8.' 8.' '.'1Share Application oney 4.44 4.44 4.44 4.44 11.72

!re$erence Share #apital 4.44 4.44 4.44 4.44 4.44

eser+es 79.' 34.74 3'.9' 392.7 917.3

e+al"ation eser+es .78 2.89 .' .1 .1

5et worth '19.'' 371.9 37.7' '.42 978.83

Sec"red Loans 21.1' 7.'1 '8.73 81.44 '7.7



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=nsec"red Loans 8.2 '3.44 193.4 9.44 1''.9'

Total :ebt 28'.7 '21.'1 3'.81 734.44 18.74

Total Liabilities 74'.24 99.' 1124.33 18'.42 1397.33

ar ?4ar

?4'

ar ?43 ar ?4 ar ?47

12 mths12

mths12 mths 12 mths 12 mths

Application &$ ;"nds

ross %loc/ 724.4 973.87 11'8.' 114.1 1'92.31

LessE Acc"m.

:epreciation287.7 27.79 98.4 '9.9' 3'1.

5et %loc/ '2. '8.48 734.1 8'4.7 934.83

#apital or/ in !roress 33.88 3.8' 8'. 77.9 84.'

*n+estments 23.3' '.21 3'.'8 4.3 238.11

*n+entories 21.'8 22. 4.12 '19.'1 '31.93S"ndry :ebtors 7'.7 87.78 13.32 173.1' 24.4

#ash and %an/ %alance 83.3' 91.97 9'.'9 93.91 11.74

Total #"rrent Assets 7.9 ''2.'1 381.1 94.' 78.71

Loans and Ad+ances 122.92 28.9 47.98 78.7 '31.73

;i


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;*5A#*AL A5ALIS*S

#=C5T AT*&J#=C5T ASSCTS#=C5T L*A%*L*T*CS

ICA #=C5T AT*&

244' 1.3714.8'J1.32

2443 11.'218.17J4.2

244 29.771.8J4.9

2447 1.98.2'J4.8

*5TC!CTAT*&5E The c"rrent ratio in the year 244' is 1.32 and decreased

to 4.8 in 2447.o+erall c"rrent ratio is less than 2. *t indicates that

the $irm is not ha+in ade"ate li"idity.

#A!*TAL ST=#T=C AT*&KS

:C%T C=*TI AT*&JL&5 L*A%*L*T*CSS@AC @&L:C ;=5:S

ICA :C%T AT*&

244' 4.441.97J4.44

2443 .7922.J4.1

244 4.43.31J4.44



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2447 4.4'11.72J4.44

*5TC!CTAT*&5E The debt e"ity ratio is 4.44 in the year 244'.*n 2443

it has been increased 4.1 respecti+ely in 2447 it has decreased to

4.44.

!&!*CT&I AT*&J5CT&T@T&TAL ASSCTS

ICA !&!*CT&I AT*&

244' 1.971.98J4.99

2443 22.2.'2J4.8'

244 .31.3J4.99

2447 11.7211.73J1.44

*5TC!CTAT*&5E The !roprietary ratio is 4.99 in 244' .%"t it come down

to 4.8' in 2443.Then it increase to 1.44in 2447.*t means the assets

$inanced by owner $"nds has increased.

;*MC: ASSCT AT*&J;*MC: ASSCTS#A!*TAL CL&IC:



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ICA ;*MC: ASSCT AT*&

244' .'11.97J4.24

2443 '.'22.'2J4.1

244 2.22.3J4.4

2447 9.411.7J4.48

*5TC!CTAT*&5E The $i


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T=5&HC AT*&SE

*5HC5T&I T=5 &HC AT*&J#&ST &; &&:S S&L:AH ST

ICA *.T.&.

244' 1.144.27J'8.31

2443 22.'1.42J.31

244 '.'91.13J1.98

2447 33.'4.'J128.9

*5TC!CTAT*&5E The in+entory t"rno+er ratio is '8.31 in 244' b"t it

decreased .31 in 2443and in 244 and 2447 it increases to 1.98 and

128.94 which indicates that stoc/ has t"rned o+er into sales is

increased.

:C%T&S T=5 &HC AT*& J5CTSALCSAHCAC :C%T&S

ICA :.%.T.

244' 1.141.2J8.41

2443 22.22.84J8.48

244 '.'99.J'.92447 33.'17.49J.2'



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*5TC!CTAT*&5E The debtors t"rno+er ratio is 8.41 in 244' it has been

decreased to .2' in 2447 which is also below than ideal. An ideal ratio

sho"ld be 14-12.

c) &6*5#A!*TAL T=5 &HC AT*& J5CTSALCS&6*5#A!*TAL

ICA .#.T.

244' 1.143.7J2.28

2443 22.'-1.73J-.3

244 '.'9-2.49J-22.2'

2447 33.'-8.11J-.8

*5TC!CTAT*&5E The wor/in capital t"rno+er ratio is 2.28 in 244'.And

it come down to -22.2' in 244.it indicates the "tiliGation o$ $irm

$"nds is come down .b"t it increase to -.8 in 2447 it indicates the

"tiliGation o$ $irm $"nds is increased.

d) ;*MC: ASSCTS T=5 &HC AT*&J5CTSALCS;*MC: ASSCTS

St. Marys College of Engineering & Technology2!


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ICA ;.A.T.

244' 1.14.'1J.8'

2443 22.''.'2J3.12

244 '.'92.22J24.9'

2447 33.'9.4J.11

*5TC!CTAT*&5E The $i


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*5TC!CTAT*&5E The operatin ratio is 4.37in 244'.And it has increased

to4.77 in 2447.*t indicates that operatin e$$iciency o$ the b"siness is

come down .%"t it has increased to 4.77 it means that is satis$actory.

&!CAT*5 !&;*T AT*&J1-&!CAT*5 AT*&

ICA &.!.

244' 1-4.37J4.'

2443 1-4.33J4.'3

244 1-4.'9J4.31

2447 1-4.77J4.2

*5TC!CTAT*&5E The operatin pro$it ratio is 4.'2 in 244'. %"t it

increases to 4.34 in 244.Aain it decreased to 4.22 in2447 it indicates

operatin pro$it is increased.

5CT !&;*T AT*&J!.A.T5CTSALCS


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2443 .422.'


24/27

CT=5 &5 5CT &T@ AT*& J!.A.T5CT &T@

ICA .&.5.

244' '.41.97J4.2

2443 .422.J4.29

244 13.'3.31J4.'2

2447 9.'11.72J4.48

*5TC!CTAT*&5E The et"rn on net worth is 4.2 in 244' and it come downto 4.48 in 2447.*t indicates that the b"siness was ris/y in 2447.

CT=5 &5 ASSCTS AT*& J !.A.TT&TAL ASSCTS

ICA .&.A

244' '.41.98J4.2

2443 .42.'2J4.23

244 13.'3.3J4.'2

2447 9.'11.72J4.48



25/27

*5TC!CTAT*&5E The et"rn on assets ratio is 4.2 in 244'.*t came down

to 4.48 in 2447.*t means that ret"rn on assets is come down.hich is notsatis$actory.



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atios 244' 2443 244 2447

#. 1.32 4.2 4.9 4.8

:.C. 4.44 4.1 4.44 4.44

!. 4.99 4.8' 4.99 1.44

;.A. 4.24 4.1 4.4 4.48*.#. 9'.'2 78.83 128.21 .88

*.T. '8.31 .31 1.98 128.94

:.T. 8.41 8.48 '.9 .2'

.#.T. 2.28 -.3 -22.2' -.8

;.A.T. .8' 3.12 24.9' .11

5.!. 4.99 29.13 .2 1.83

&. 4.37 4.33 4.'9 4.77

&.!. 4.'2 4.'2 4.34 4.22

.#.C. 4.9 4.'1 4. 4.13

.&.5. 4.2 4.29 4.'2 4.48

.&.A. 4.2 4.23 4.'2 4.48

C.!.S 11.38 18.82 8. .8%&&6 HAL=C '8.'9 '. 24.'4 '.8

;*5:*5S A5: #&5#L=S*&5



27/27

The c"rrent ratio o$ the company is bellow 2.hich indicates it is less

than ideal. So the company is "nder capitaliGation .The debt e"ity

ratio o$ the company is also below 2 .hich means that the company is

"se more e"ity than debt. This means

Larer sa$ety marin $or creditors. The proprietary ratio is also not

impressi+e.

The interest co+erae ratio o$ the company in 244' is 8.89 and it come

down to '.'2 and '.'' in years 2443 and 244.hich indicates that the

pro$its has comedown .%"t in 2447 the ratio one "p to 3.29 which

implies that are s"$$icient pro$its to pay the interest chares.

The $i

Documents

Appolo Tyres Project