Apollo Tyres will be unveiling the European tyre brand Vredestein in India next month, said the company’s vice-chairman and managing director Neeraj Kanwar.
“Vredestein will be targeting the niche market in India — the higher segment of the market that would also mean higher profitability products,” Mr. Kanwar said during the third quarter earnings call.
“We have brought the moulds straight from Europe into India and manufacturing has already started. So, the launch is in March as per the plan,” he added. Asserting that Vredestein tyres would compete with Michelin, Bridgestone and Goodyear, he said that the offering would lead to a sustainable growth for Vredestein in India. On the rising raw material costs, he said that Apollo Tyres had already effected a 2-3% price increase in the replacement market across all product categories, resulting in a slight jump in profit. Currently, the company is monitoring the situation and might effect another hike by the end of the quarter if there was an increase in raw material price, he said.
Mr. Kanwar said that the company’s strategy was to sweat its assets and improve the utilisation levels.
While the company has announced a capex of ₹1,600 crore for FY22, it might go in for additional investment if the strong growth momentum continues. “We haven’t initiated any new growth capex for FY23, as of now,” said Gaurav Kumar, CFO.