appolo tyres project
TRANSCRIPT
-
8/21/2019 Appolo Tyres Project
1/27
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$$ered at par to the p"blic in &ctober 1973.
1978
- 3 !re$. and 14244 5o. o$ e"ity shares $or$eited in 1977-78. :"rin
1978-79 $or$eit"re on 22244 5o. o$ e"ity shares ann"lled.
1984
- ;or$eit"re on 24434 5o. o$ e"ity shares ann"lled.
1981
-A$ter the e
-
8/21/2019 Appolo Tyres Project
2/27
1988
- The #ompany set "p a plant with a capacity o$ .73 la/h tyres per ann"m at
Limda %aroda "Barat at an estimated cost o$ s 18.9 crores.
- The #ompany promoted a new #ompany "nder the name o$ a"na A/er
:rillin Ltd. in technical collaboration with A/er :rillin As 5orway.
The company was to "nderta/e m"lti$ario"s onshore and o$$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
comp"lsorily con+erted into one e"ity share o$ s 14 each at a premi"m o$
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
-
8/21/2019 Appolo Tyres Project
3/27
- 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
comp"lsorily con+erted into one e"ity share o$ s 14 each at a premi"m o$
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
-
8/21/2019 Appolo Tyres Project
4/27
- 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
-
8/21/2019 Appolo Tyres Project
5/27
- 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
-
8/21/2019 Appolo Tyres Project
6/27
- 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$$irmed the hih sa$ety ratin o$
>AA-? to the s 14'.'3 crore non-con+ertible debent"re proramme o$ Apollo
Tyres.
2441
- Apollo Tyres Ltd. has Geroed in on Tamil 5ad" $or settin "p its s '34-
crore reen$ield tr"c/ radial tyre man"$act"rin plant.
- Apollo Tyres Ltd has posted a '8.'8 per cent decline in net pro$it at s
.22 crore $or the "arter ended September 4 2441.
2442
- Apollo Tyres Ltd has in$ormed that the appointment o$ Shri a"na Sinh
as anain :irector. @e will howe+er contin"e to be a :irector and 5on-
C
-
8/21/2019 Appolo Tyres Project
7/27
2443
- The $irst tyre-man"$act"rin "nit o$ the Apollo Tyres Ltd (ATL) at
!erambra in Thriss"r district celebrates its 4 years o$ s"ccess$"l
operations on 17th April 2443.
244 -Apollo Tyres rolls o"t :"raTreads
List Of DirectorsSr. No.Director's NameDesignation
1. &n/ar S 6anwar #hairman and anain director
2. 0 @an/inson :irector
. T %ala/rishnan :irector
'. aBa 6anwar :irector
3. 6 0ose #yriac :irector
. obert SteinmetG :irector
7. Shard"l S Shro$$ :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
St. Marys College of Engineering & Technology7
-
8/21/2019 Appolo Tyres Project
8/27
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
St. Marys College of Engineering & Technology8
-
8/21/2019 Appolo Tyres Project
9/27
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
-
8/21/2019 Appolo Tyres Project
10/27
*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!
-
8/21/2019 Appolo Tyres Project
11/27
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
-
8/21/2019 Appolo Tyres Project
12/27
&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
-
8/21/2019 Appolo Tyres Project
13/27
!ro$it &n Sale &$ Assets -- -- -- -- --
!ro$it &n Sale &$
*n+estments-- -- -- -- --
ainLoss &n ;orein
C
-
8/21/2019 Appolo Tyres Project
14/27
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
St. Marys College of Engineering & Technology14
-
8/21/2019 Appolo Tyres Project
15/27
=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
-
8/21/2019 Appolo Tyres Project
16/27
;*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
St. Marys College of Engineering & Technology16
-
8/21/2019 Appolo Tyres Project
17/27
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:
St. Marys College of Engineering & Technology17
-
8/21/2019 Appolo Tyres Project
18/27
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
-
8/21/2019 Appolo Tyres Project
19/27
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'
St. Marys College of Engineering & Technology1
-
8/21/2019 Appolo Tyres Project
20/27
*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!
-
8/21/2019 Appolo Tyres Project
21/27
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
-
8/21/2019 Appolo Tyres Project
22/27
*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$it is increased.
5CT !&;*T AT*&J!.A.T5CTSALCS
-
8/21/2019 Appolo Tyres Project
23/27
2443 .422.'
-
8/21/2019 Appolo Tyres Project
24/27
CT=5 &5 5CT &T@ AT*& J!.A.T5CT &T@
ICA .&.5.
244' '.41.97J4.2
2443 .422.J4.29
244 13.'3.31J4.'2
2447 9.'11.72J4.48
*5TC!CTAT*&5E The et"rn on net worth is 4.2 in 244' and it come downto 4.48 in 2447.*t indicates that the b"siness was ris/y in 2447.
CT=5 &5 ASSCTS AT*& J !.A.TT&TAL ASSCTS
ICA .&.A
244' '.41.98J4.2
2443 .42.'2J4.23
244 13.'3.3J4.'2
2447 9.'11.72J4.48
St. Marys College of Engineering & Technology24
-
8/21/2019 Appolo Tyres Project
25/27
*5TC!CTAT*&5E The et"rn on assets ratio is 4.2 in 244'.*t came down
to 4.48 in 2447.*t means that ret"rn on assets is come down.hich is notsatis$actory.
St. Marys College of Engineering & Technology25
-
8/21/2019 Appolo Tyres Project
26/27
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
St. Marys College of Engineering & Technology26
-
8/21/2019 Appolo Tyres Project
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