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INDIA
Interview: Satish Sharma – Apollo Tyres
Our Indian correspondent Satnam Singh recently had the opportunity to interview Satish Sharma, President, Asia Pacific, Middle East & Africa, Apollo
makers and professional tread suppliers have entered the retreading sector. How has this impacted the industry?
focus in 2014. Since then we haven’t looked back, as the retreading business keeps expanding.
Retreading Business: Apollo slowed down its activities on the retread side a few years back after first entering the market. The interest in the retreading business has renewed in last few years. What are the reasons for this?
Satish Sharma: Radialisation in the commercial vehicle segment in India caught up very late, and so did the demand for quality retreading. Apollo Tyres renewed its focus on the retreading business when the demand for quality retreading started improving.
Retreading Business: What are Apollo Tyres' plans on expanding the country wide network of retread plants? Is there any five- year expansion programme in place?
Satish Sharma: We are growing the business steadily and have a plan to open 150 outlets by the year 2020.
Retreading Business: How many retread plants does Apollo currently operate and what is the number of units you plan to open in 2016?
Satish Sharma: Currently, we have 15 outlets, which is likely to double by the end of 2016. We plan to cover all the major cities in India in 2016. The capacity for the new units would be at similar levels to the current ones.
Retreading Business: Which is the biggest Apollo retread plant?
Satish Sharma: Our biggest unit is in Navi Mumbai. It started operation in 2015 and is performing very well for us. Retreading Business: Does Apollo operate a franchisee platform or company owned plants or a combination of both? Satish Sharma: Our outlets are mostly on a franchise platform.
However, we own a plant for training and research related to retreading.
Retreading Business: What percentage increase is Apollo recording annually in the retread business and what targets are there for 2016?
Satish Sharma: Our retread business is growing at the rate of 18%, which we intend to grow to 25%. Our manufacturing unit located in K alamasser y, Kerala produces tread rubber for us, and we increased the capacity of this plant in 2015 to 600 metric tonnes per month. The capacity could be further increased, based on market requirements.
Retreading Business: Are there any plans to expand retreading footprints in the international market, if yes, by when (year) and in which market?
Satish Sharma: We do have plans in place to expand our retreading footprint outside India. We are looking to start with the South Asian Association for Regional Cooperation (SAARC) region and then move to other geographical areas.
Satish Sharma, President, Asia Pacific, Middle East & Africa, Apollo Tyres Ltd
Tyres Ltd, and was able to conduct the following Q&A session outlining the Indian company’s plans in the retreading market.
Retreading Business: How do you view the currently evolving retreading scenario in the Indian retread market?
Satish Sharma: Retreading in India is growing at a steady pace with increased radialisation in the commercial vehicle segment, improved infrastructure and the use of multi-axle vehicles carrying rated loads.
Retreading Business: In the past the retreading industry has largely been controlled by the unorganised sector, but over the years tyre
Satish Sharma: The unorganised sector is not fully equipped to deliver quality retreading. Fleet owners generally prefer tyre manufacturers for quality retreading to lower their cost per kilometre (CPKM). The tyre manufacturers in the recent past have increased their focus on retreading, which has resulted in customers getting total tyre life solutions, in addition to better confidence on the tyres.
Retreading Business: When did Apollo enter the retreading market and since when has it renewed its efforts in the sector?
Satish Sharma: While we entered the retreading business in 2007, we re-energised our
82 Retreading Business