Apollo Tyres sets up 2nd exports hub in Thailand

Apollo Tyres today said it has set up its second exports hub in Thailand to cater to the ASEAN region, which contributes 40 per cent to the company's overseas income.

"Apollo Tyres today opened its sales office in Bangkok to serve the entire ASEAN region with Thailand as the hub of operations. This region would be catered to by exports out of India currently," the company said in a statement.

After Dubai for West Asian region, this is the second hub outside the company's operations in India, The Netherlands and South Africa, it added.

"The ASEAN region has gradually become one of Apollo's strongest export markets out of India, accounting for more than 40 per cent of exports revenue," the statement said.

The contribution of the ASEAN region to the total exports revenue of the company out of India has doubled in the last three years, it added.

Apollo Tyres sells its range of passenger vehicle, 4x4, commercial and off-highway tyres in the ASEAN region. Tyres for this region are produced at the company's four plants in India. Exports out of India are projected to grow at a double digit rate in the next few years.

The company's global operation is divided into three divisions -- Zone I, E and A. Zone I, which includes India, Middle East, ASEAN and the Asia Pacific region, is Apollo Tyres' largest revenue earner accounting for 67 per cent of the company's USD 2.5 billion turnover.

Commenting on the new development, Apollo Tyres Chief (Zone I) Satish Sharma said: "As a company, we are currently in our second phase of expansion. In the last few years, due to high customer satisfaction, the demand and acceptability of our tyres has increased manifold in the ASEAN region."

The size of the commercial vehicle tyre replacement market in ASEAN is 6 million units a year. The fastest growing segment is the 22.6 million units a year passenger vehicle tyres, the company said.