These are uncertain times. The year gone by saw events which further added to thechallenges we face as individuals organisation and even countries. The US electionsreferendums in Britain and Italy rise of populism across Europe Indias currencyreforms... they all led to an increased uncertainty across the globe.
Challenging times for many are also opportunities for others. We at Apollo Tyresfaced these uncertainties with openness optimism and believing in our DNA of go thedistance.
What has helped your Company in such uncertain times is the sustained focus on its keyprinciples to attain its vision. Since the inception of the Company in good times anddownturns we have never let go of these principles. These are
Profitable growth by maintaining a healthy top and bottom-line. It is not yourCompanys way to focus on the philosophy of growth at all cost. To have a comfortablebottom-line your Company continues to leverage its strong R&D to ensure that wemaintain gebaseof the right product mix create a price and product leadership andcontinuously invest in building the products brands - Apollo and Vredestein.
Nurturing existing markets and seeding new ones. While India continues to be ourlargest market we have seeded new markets in Asia the Middle East and other geographiesin the world. Your Company is seeing success of this model as it witnesses double-digitgrowth from most of the new markets. Further with your Companys first overseasGreenfield plant in Hungary inaugurated recently it can now focus on expanding its basein Europe and the US.
An unwavering focus on cost and quality. To have profitable growth it is important tomaintain cost and your Company has relentlessly focussed on reducing cost and enhancingefficiencies across the organisation. It is my firm belief that we need to do away withunnecessary cost as that is the delta between a profitable and a loss-making organisationin this increasingly global industry.
Despite the uncertainties the Indian economy continued to shine brightly in the globaleconomy. Our confidence in the Indian economy saw us continuing our investments in theChennai plant as we completed the Phase 1 expansion of the Truck-Bus Radial capacity. Wehave also announced plans to set up our fifth Indian manufacturing plant in the state ofAndhra Pradesh to create capacities for the two-wheeler tyre and other emerging productcategories.
In these exciting yet demanding times your Company does not forget its commitment tolive by one of its core values Care for Society. Our SocialResponsibility and Sustainability effortscontinuetobenefit stakeholders because weundertake these with the same beliefs and conviction as we do our commercial activities.Our CSR initiatives are not an afterthought but an integral element of Apollo Tyrescorporate strategy. Your Company has taken multiple initiatives in India and Europe tohave a positive impact on the everyday lives of its stakeholders.
I see the uncertainties as a way of life hence it is hard to gaze into the crystalball and see the future. At such times I take comfort in the quote of the AmericanPresident Abraham Lincoln who said "The best way to predict the future is tocreate it". Your Company will continue to invest heavily and will write its owndestiny as it walks down the path of achieving its Vision To be a Premiertyre company with a diversified and multinationalpresence. I am confident that teamApollo is firmly guided by its three principles as it sets to create new benchmarksintroduce new products across markets and expand the distribution network.
I would like to acknowledge every single employee network partner and business partnerfor having stood by Apollo and actively contributed to its success. I would like to thankeach one of you our valuable shareholders for having been with us in this excitingjourney. The support that we continue to receive from our banks financial institutionsand the various State and National Governments where we operate enable us to excel and weremain grateful as ever.
The next financial year is and as ever we at Apollo remain committed and sincere inour efforts to keep delivering ever better value to you our shareholders. I look forwardto having many more exciting updates for you in the new year.
Onkar S. Kanwar
Chairman & Managing Director