GURGAON, India (May 9, 2008) — After doubling net income for the fiscal year ended March 31, Apollo Tyres Ltd. is planning “unprecedented investments” this year in its global operations.
At the same time, though, Apollo Chairman and Managing Director Onkar Kanwar warned shareholders the company faces tough times in light of record raw material prices and the spectre of a global slowdown.
To compensate, Apollo anticipates having to raise prices, Kanwar said.
For the fiscal year, Apollo reported net income of $66.9 million on sales of $1.16 billion, improvements of 130.4 and 9.1 percent, respectively. Operating profits jumped 48.8 percent to $151.4 million.
The firm's accomplishments during the past year include breaking ground on an off-the-road tire plant in Limda, India; announcing plans for a passenger tire plant in Hungary; a doubling of exports from both India and South Africa; and the establishment of branded retail outlets for cars called Apollo Radial World in India and Dunlop Zone in South Africa.
Earlier this year Apollo disclosed plans to invest nearly $300 million in a plant in Hungary and $24 million in the OTR tire plant. Site selection in Hungary is still ongoing.