APOLLO TYRES LTD

Regd. Office: 3rd Floor, Areekal Mansion, Near Manorama Junction, Panampilly Nagar, Kochi- 682036 (Kerala)
(CIN-L25111KL1972PLC002449) Tel: +91 484 4012046 Fax: +91 484 4012048, Email: [email protected]
Web: apollotyres.com

NOTICE

NOTICE is hereby given that the 46th Annual General Meeting of the Members of APOLLO TYRES LTD will be held as under:-

DAY : Wednesday
DATE : July 31, 2019
TIME : 10:00 AM
PLACE : Kerala Fine Arts Theatre, Fine Arts Avenue,
Foreshore Road, Ernakulam,
Kochi (Kerala), India
to transact the following businesses:-

ORDINARY BUSINESS:
1. To consider and adopt:
a. the audited financial statement of the Company for the financial year ended March 31, 2019, the reports of the Board of
Directors and Auditors thereon; and
b. the audited consolidated financial statement of the Company for the financial year ended March 31, 2019 and report of
Auditors thereon.
2. To declare dividend of 3.25 per equity share, for the financial year ended March 31, 2019.
3. To appoint Mr. Robert Steinmetz (DIN: 00178792), who retires by rotation, and being eligible, offers himself for re-appointment
and in this regard to consider and if thought fit, to pass the following resolution as a Special Resolution:-
“RESOLVED THAT pursuant to provisions of Section 152 and all other applicable provisions of the Companies Act, 2013
and Regulation 17(1A) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, and other applicable
provisions, if any, (including any statutory modification(s) or re-enactment thereof, for the time being in force), consent of the
Members of the Company be and is hereby accorded to re-appoint, Mr. Robert Steinmetz (DIN: 00178792), Director, aged 79
years, who retires by rotation and being eligible offers himself for re-appointment, as a Director of the Company, liable to
retire by rotation.”
4. To appoint a Director in place of Mr. Francesco Gori (DIN: 07413105), who retires by rotation, and being eligible, offers
himself for re-appointment.

SPECIAL BUSINESS:
5. To ratify the payment of remuneration to the Cost Auditor for the financial year 2019-20 and in this regard to consider and if
thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions of the Companies Act,
2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof
for the time being in force), the Cost Auditor, M/s. N.P.Gopalakrishnan & Co., Cost Accountants appointed by the Board
of Directors of the Company for carrying out Cost Audit of the Company’s plants at Perambra (Kerala), Limda (Gujarat),
Chennai (Tamil Nadu) and Chinnapandur (Andhra Pradesh) as well as Company’s leased operated plant at Kalamassery
(Kerala) for the financial year 2019-20 be paid out a remuneration of ₹ 3.00 lakhs per annum plus reimbursement of out of
pocket expenses.
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to do all acts and take all
such steps as may be necessary, proper or expedient to give effect to this resolution.”
6. To appoint Mr. Satish Sharma (DIN: 07527148) as Whole-time Director and in this regard to consider and if thought fit, to
pass the following resolution as an Ordinary Resolution:-
“RESOLVED THAT pursuant to the provisions of Sections 152, 161 and all other applicable provisions, if any, of the

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 Companies Act, 2013 (the Act) and the Rules made thereunder (including any statutory modification(s) or re-enactment(s)
thereof for the time being in force), Mr. Satish Sharma (DIN: 07527148) who was appointed as an Additional Director of the
Company with effect from April 1, 2019 and who holds office upto the date of this Annual General Meeting and in respect of
whom the Company has received a notice in writing under Section 160 of the Act from a Member proposing the candidature
for the office of the Director be and is hereby appointed as Director of the Company.
RESOLVED FURTHER THAT pursuant to the provisions of Sections 196, 197 and any other applicable provisions of
the Companies Act, 2013 and the rules made thereunder (including any statutory modification(s) or re-enactment thereof
for the time being in force), read with Schedule V to the Companies Act, 2013, SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, and pursuant to the recommendation of the Nomination & Remuneration Committee, Mr.
Satish Sharma (DIN: 07527148) be and is hereby appointed as Whole-time Director of the Company for a period of 5 years
with effect from April 1, 2019 to March 31, 2024, with such designation as the Board of Directors (hereinafter referred to as
the “Board” which expression shall also include the ‘Nomination and Remuneration Committee’ of the Board) may decide
from time to time, on the terms and conditions of appointment and remuneration as set out in the explanatory statement
annexed to the notice with liberty and power to the Board, to grant increments and to alter and vary from time to time, the
terms and conditions of the said appointment, subject to the same not exceeding the limits specified under the Companies Act,
2013 or any statutory modification(s) or re-enactment thereof.
RESOLVED FURTHER THAT in the event of absence or inadequacy of profits in any financial year, Mr. Satish Sharma will
be paid the salary and perquisites as minimum remuneration in accordance with Section II of Part II of Schedule V of the
Companies Act, 2013, by making such compliances as provided in the said schedule.
RESOLVED FURTHER THAT the Board of Directors of the Company, severally and jointly, be and is hereby authorized
to do all such acts, deeds, things and execute all such documents, instruments, writings as, in its absolute discretion, it may
be considered necessary, expedient or desirable, including power to sub-delegate, in order to give effect to the foregoing
resolution or otherwise as considered by the Board to be in the best interest of the Company as it may deem fit.”
7. To re-appoint Mr. Akshay Chudasama (DIN: 00010630) as an Independent Director and in this regard to consider and if
thought fit, to pass the following resolution as a Special Resolution:-
“RESOLVED THAT pursuant to Sections 149 and 152 read with Schedule IV and other applicable provisions, if any, of the
Companies Act, 2013 (“the Act”) and Companies (Appointment and Qualification of Directors) Rules, 2014 (“the Rules”) and
the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any
statutory modification(s) or re-enactment(s) thereof, for the time being in force), Mr. Akshay Chudasama (DIN: 00010630),
who was appointed as an Independent Director and who holds office of Independent Director upto August 5, 2019, be and is
hereby re-appointed as an Independent Director of the Company, not liable to retire by rotation, to hold office for a second
term of 5(five) consecutive years with effect from August 6, 2019 to August 5, 2024, on the Board of the Company.
RESOLVED FURTHER THAT the Board or any Committee thereof, be and is hereby authorized to do all such things, deeds,
matters and acts, as may be required to give effect to this resolution and to do all things incidental and ancillary thereto.”
8. To re-appoint Mr. Vikram S. Mehta (DIN: 00041197) as an Independent Director and in this regard to consider and if thought
fit, to pass the following resolution as a Special Resolution:-
“RESOLVED THAT pursuant to Sections 149 and 152 read with Schedule IV and other applicable provisions, if any, of the
Companies Act, 2013 (“the Act”) and Companies (Appointment and Qualification of Directors) Rules, 2014 (“the Rules”) and
the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (including any
statutory modification(s) or re-enactment(s) thereof, for the time being in force), Mr. Vikram S. Mehta (DIN: 00041197), who
was appointed as an Independent Director and who holds office of Independent Director upto August 5, 2019, be and is hereby
re-appointed as an Independent Director of the Company, not liable to retire by rotation, to hold office for a second term of
5(five) consecutive years with effect from August 6, 2019 to August 5, 2024, on the Board of the Company.
RESOLVED FURTHER THAT the Board or any Committee thereof, be and is hereby authorized to do all such things, deeds,
matters and acts, as may be required to give effect to this resolution and to do all things incidental and ancillary thereto.”
9. To authorise Private Placement of Non-Convertible Debentures and in this regard to consider and, if thought fit, to pass the
following as a Special Resolution:-
“RESOLVED THAT in accordance with the provisions of Section 42, 71 and all other applicable provisions, if any, of the
Companies Act, 2013 (including any statutory modification(s) or re-enactment thereof, for the time being in force) read
with the rules made thereunder, as may be amended from time to time and any other applicable laws including the SEBI
(Issue & Listing of Debt Securities) Regulations, 2008, as amended from time to time and other applicable SEBI regulations
and guidelines, the provisions of the Memorandum and Articles of Association of the Company and subject to the receipt
of necessary approvals as may be applicable and such other approvals, permissions and sanctions, as may be necessary,

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 consent of the Company be and is hereby accorded to raise funds not exceeding ₹15,000 Million through Private Placement
of Unsecured/ Secured Non-Convertible Debentures during the period of one year from the date of passing of this resolution
within overall borrowing limits of the Company, as approved by the Members from time to time, in one or more tranches, to
such person or persons, who may or may not be the debenture holder(s) of the Company, as the Board (or any duly constituted
Committee of the Board or such other authority as may be approved by the Board) may at its sole discretion decide, including
eligible investors (whether residents and/or non-residents and/or institutions/incorporated bodies and/or individuals and/or
trustees and/or banks or otherwise, in domestic and/or one or more international markets), Non-Resident Indians, Foreign
Institutional Investors (FIIs), Foreign Portfolio Investors (FPIs), Venture Capital Funds, Foreign Venture Capital Investors,
Mutual Funds, State Industrial Development Corporations, Insurance Companies, Development Financial Institutions, Bodies
Corporate, Companies, private or public or other entities, authorities and such other persons in one or more combinations
thereof through Private Placement in one or more tranches and including the exercise of a green-shoe option (within overall
borrowing limits of the Company, as approved by the Members from time to time), if any, on such terms as may be determined
under the guidelines as may be applicable, and on such terms and conditions as may be finalized by the Board or any duly
constituted Committee of the Board or such other authority as may be approved by the Board.
RESOLVED FURTHER THAT for the purpose of giving effect to Private Placement of Unsecured/ Secured Non-Convertible
Debentures, the Board of Directors of the Company (the “Board”) or any duly constituted Committee of the Board or such
other authority as approved by the Board, be and is hereby authorized to determine the terms of the Issue, including the class
of investors to whom the Debentures are to be allotted, the number of Debentures to be allotted in each tranche, issue price,
tenor, interest rate, premium/ discount to the then prevailing market price, amount of issue, discount to issue price to a class
of Debenture holders, listing, issuing any declaration/undertaking etc. required to be included in the Private Placement Offer
Letter and any other regulatory requirement for the time being in force.”

By Order of the Board
Place: Gurgaon For Apollo Tyres Ltd
Date: May 9, 2019
SEEMA THAPAR
Company Secretary
FCS No.: 6690

NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY/
PROXIES TO ATTEND AND VOTE INSTEAD OF HIMSELF/HERSELF. SUCH A PROXY/ PROXIES NEED NOT
BE A MEMBER OF THE COMPANY.

A PERSON CAN ACT AS PROXY ON BEHALF OF MEMBERS NOT EXCEEDING 50 (FIFTY) AND HOLDING
IN THE AGGREGATE NOT MORE THAN 10 (TEN) PERCENT OF THE TOTAL SHARE CAPITAL OF THE
COMPANY CARRYING VOTING RIGHTS. A MEMBER HOLDING MORE THAN 10 (TEN) PERCENT OF
THE TOTAL SHARE CAPITAL OF THE COMPANY CARRYING VOTING RIGHTS MAY APPOINT A SINGLE
PERSON AS PROXY AND SUCH PERSON SHALL NOT ACT AS A PROXY FOR ANY OTHER PERSON OR
MEMBER.

THE INSTRUMENT OF PROXY IN ORDER TO BE EFFECTIVE, SHOULD BE DEPOSITED AT THE

REGISTERED OFFICE OF THE COMPANY, DULY COMPLETED AND SIGNED, NOT LESS THAN 48 HOURS
BEFORE THE COMMENCEMENT OF THE MEETING. A PROXY FORM IS ENCLOSED HEREWITH.
2. Members/ Proxies should fill the Attendance Slip for attending the meeting and bring their Attendance Slip along with the
copy of the Annual Report to the meeting.
3. The Register of Members and Share Transfer Books shall remain closed from July 25, 2019 to July 31, 2019 (both days
inclusive) for payment of dividend on equity shares. The dividend, as recommended by the Board of Directors, if declared at
the meeting, will be paid, within 30 days from the date of declaration, to the Members holding shares as on the cut off date i.e.
July 24, 2019 on 572,049,980 equity shares of the Company. In respect of shares held in dematerialised form, the dividend
will be paid on the basis of beneficial ownership as per details furnished by the respective depositories for this purpose.

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4. Corporate Members are requested to send a duly certified copy of the Board resolution/ authority letter, authorizing their
representative(s) to attend and vote on their behalf at the meeting.
5. The relevant explanatory statement pursuant to Section 102 of the Companies Act, 2013, in respect of the ordinary/ special
businesses set out above is annexed hereto.
6. All documents referred to in the notice are available for inspection (in physical or electronic form) at the Registered Office
and Corporate Office of the Company between 11:00 AM to 5:00 PM on any working day prior to the date of the meeting and
will also be available at the meeting venue on the date of the meeting.
Every Member entitled to vote at a meeting of the Company, or on any resolution to be moved thereat, shall be entitled during
the period beginning twenty-four hours before the time fixed for the commencement of the meeting and ending with the
conclusion of the meeting, to inspect the proxies lodged, at any time during the business hours of the Company, provided not
less than 3 days’ notice in writing of the intention so to inspect is given to the Company.
7. The Register of Contracts or Arrangements in which Directors are interested maintained under Section 189 of the Companies
Act, 2013 and the Register of Directors and Key Managerial Personnel and their shareholding maintained under Section 170
of the Companies Act, 2013, will be available for inspection by the Members at the Annual General Meeting (AGM).
8. Members intending to require information about accounts to be explained at the meeting are requested to write to the Company
at least 10 (ten) days in advance of the AGM.
9. The shares of the Company are under compulsory demat list of Securities & Exchange Board of India w.e.f. November 11,
1999. The trading in equity shares can now only be done in demat form. In case you do not hold shares in demat form, you
may do so by opening an account with a depository participant and complete dematerialisation formalities.
10. Members holding shares in dematerialised mode are requested to intimate all changes with respect to their bank details,
mandate, nomination, power of attorney, change of address, e-mail address, change in name etc. to their depository participant.
These changes will be automatically reflected in the Company’s records which will help the Company to provide efficient and
better service to the Members.
11. Members holding shares in physical form are requested to intimate changes with respect to their bank account
(viz. name and address of the branch of the bank, MICR code of branch, type of account and account number), mandate,
nomination, power of attorney, change of address, e-mail address, change in name etc. immediately to the Company.
12. Voting through Electronic Means:
I. In compliance with Section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration)
Rules, 2014, as amended and Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, the Company has provided a facility of casting the votes by the Members using an electronic voting system from a
place other than venue of AGM (“remote e-Voting”) through the electronic voting service facility arranged by National
Securities Depository Limited(NSDL).
The facility for voting, through polling paper, will also be made available at the AGM and the Members attending the
AGM who have not already cast their votes by remote e-Voting shall be able to exercise their right at the AGM through
polling paper. Members who have cast their votes by remote e-Voting prior to the AGM may attend the AGM but shall
not be entitled to cast their votes again.
In case of joint holders attending the meeting, only such joint holder who is higher in the order of names, will be entitled
to vote at the Meeting.
The Instructions for e-voting are as under:
How do I vote electronically using NSDL e-Voting system?
The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:
Step 1 : Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/
Step 2 : Cast your vote electronically on NSDL e-Voting system.
Details on Step 1 is mentioned below:
How to Log-into NSDL e-Voting website?
1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.
com/ either on a Personal Computer or on a mobile.
2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under
‘Shareholders’ section.

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 3. A new screen will open. You will have to enter your User ID, your Password and a Verification Code as shown on
the screen.
Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/
with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on
e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.
4. Your User ID details are given below :
Manner of holding shares i.e. Demat (NSDL or Your User ID is:
CDSL) or Physical
a) For Members who hold shares in demat account 8 Character DP ID followed by 8 Digit Client ID
with NSDL. For example if your DP ID is IN300*** and Client ID is
12****** then your user ID is IN300***12******.
b) For Members who hold shares in demat account 16 Digit Beneficiary ID
with CDSL. For example if your Beneficiary ID is
12************** then your user ID is
12**************
c) For Members holding shares in Physical Form. EVEN Number followed by Folio Number
registered with the Company
For example if folio number is 001*** and EVEN is
101456 then user ID is 101456001***
5. Your password details are given below:
a) If you are already registered for e-Voting, then you can use your existing password to login and cast your
vote.
b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’
which was communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial
password’ and the system will force you to change your password.
c) How to retrieve your ‘initial password’?
(i) If your email ID is registered in your demat account or with the Company, your ‘initial password’ is
communicated to you on your email ID. Trace the email sent to you from NSDL from your mailbox.
Open the email and open the attachment i.e. “ATLe-voting.pdf” file. Open the pdf file. The password to
open the pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account
or folio number for shares held in physical form. The pdf file contains your ‘User ID’ and your ‘initial
password’.
(ii) If your email ID is not registered, your ‘initial password’ is communicated to you on your postal
address.
6. If you are unable to retrieve or have not received the “ Initial password” or have forgotten your password:
a) Click on “Forgot User Details/Password?”(If you are holding shares in your demat account with NSDL or
CDSL) option available on www.evoting.nsdl.com.
b) Physical User Reset Password?” (If you are holding shares in physical mode) option available on www.
evoting.nsdl.com.
c) If you are still unable to get the password by aforesaid two options, you can send a request at evoting@
nsdl.co.in mentioning your demat account number/folio number, your PAN, your name and your registered
address.
7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.
8. Now, you will have to click on “Login” button.
9. After you click on the “Login” button, Home page of e-Voting will open.

Details on Step 2 is given below:

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 How to cast your vote electronically on NSDL e-Voting system ?
1. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then, click
on Active Voting Cycles.
2. After click on Active Voting Cycles, you will be able to see all the Companies “EVEN” in which you are holding
shares and whose voting cycle is in active status.
3. Select “EVEN” of Company for which you wish to cast your vote.
4. Now you are ready for e-Voting as the Voting page opens.
5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which
you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.
6. Upon confirmation, the message “Vote cast successfully” will be displayed.
7. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.
8. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

General Guidelines for shareholders

1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/
JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly
authorized signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to [email protected] with a copy
marked to [email protected].
2. It is strongly recommended not to share your password with any other person and take utmost care to keep your
password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the
correct password. In such an event, you will need to go through the “Forgot User Details/Password?” or “Physical
User Reset Password?” option available on www.evoting.nsdl.com to reset the password.
3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user
manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.: 1800-
222-990 or send a request at [email protected].
II. The e-voting period commences on July 28, 2019 (10:00 AM) and ends on July 30, 2019 (5:00 PM). During this period
Members of the Company, holding shares either in physical form or in dematerialized form, as on the cut-off date of July
24, 2019, may cast their vote electronically. The e-voting module shall be disabled by NSDL for voting thereafter. Once
the vote on a resolution is cast by the Member, the Member shall not be allowed to change it subsequently.
III. The voting rights of Members shall be as per the number of equity shares held by Members as on the cut-off date of July
24, 2019.
IV. Mr. P.P. Zibi Jose, Practicing Company Secretary, has been appointed as the Scrutinizer to scrutinize the e-voting process
in a fair and transparent manner.
V. The Scrutinizer shall, immediately after the conclusion of voting at the General Meeting, first count the votes cast at the
meeting, thereafter unblock the votes cast through remote e-voting in the presence of at least two witnesses not in the
employment of the Company and make, not later than 48 (forty eight) hours of conclusion of the meeting, a consolidated
Scrutinizer’s Report of the total votes cast in favour or against, if any, to the Chairman or a person authorised by him in
writing who shall counter sign the same.
VI. The Results shall be declared by the Chairman or the person authorised by him in writing not later than 48 (forty
eight) hours of conclusion of the AGM of the Company. The Results declared along with the Scrutinizer’s Report shall
be placed on the Company’s website (www.apollotyres.com) and on the website of NSDL (www.evoting.nsdl.com)
immediately after the result is declared by the Chairman. Members may also note that the Notice of the 46th AGM and
the Annual Report FY 2019 will be available on website of Company and NSDL.
Any person, who acquires shares of the Company and becomes Member of the Company after dispatch of the notice and
holding shares as on the cut-off date i.e. July 24, 2019, may obtain the login ID and password by sending a request at
[email protected] or to the Company.
In case of any grievance connected with the facility for voting by electronic means, Members can directly contact Ms.
Pallavi Mhatre, NSDL, 4th Floor, ‘A’ Wing, Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel,
Mumbai- 400 013. Email id: [email protected] or [email protected], Toll free no.: 1800-222-990. Members may
also write to the Company Secretary at the Email id: [email protected].

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13. Electronic copy of the Annual Report and Notice of the 46th AGM of the Company inter alia indicating the process and manner
of e-voting along with Attendance Slip and Proxy Form is being sent to all the Members whose Email ids are registered with
the Company/Depository Participants(s) for communication purposes unless any Member has requested for a hard copy of the
same. For Members who have not registered their email address, physical copies of the Annual Report and Notice of the 46th
Annual General Meeting of the Company inter alia indicating the process and manner of e-voting along with Attendance Slip
and Proxy Form is being sent through the permitted mode. Members who have received the Notice of AGM, Annual Report
and Attendance Slip in electronic mode are requested to print the Attendance Slip and submit a duly filled in Attendance Slip
at the Registration Counter at the AGM.
14. Those Members who have so far not encashed their dividend warrants for the below mentioned financial years, may claim or
approach the Company for the payment thereof, as the same will be transferred to Investor Education and Protection Fund
(IEPF) established pursuant to Section 125(1) of the Companies Act, 2013, if a Member does not claim the dividend amount
for a consecutive period of seven years or more.
Financial Year Ended Due date of Transfer
31.03.2012 09.09.2019
31.03.2013 07.09.2020
31.03.2014 06.09.2021
31.03.2015 11.09.2022
31.03.2016 09.09.2023
31.03.2017 05.08.2024
31.03.2018 01.09.2025
In accordance with Section 124 (6) of the Act read with Rule 6 of Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016 (as amended from time to time), if a Member does not claim the
dividend amount for a consecutive period of seven years or more, then the shares held by him/her shall be transferred to
the DEMAT Account of IEPFA. The details of the Members whose shares are liable to be transferred are also posted on the
website of the Company i.e. www.apollotyres.com. The unclaimed or unpaid dividend which have already been transferred
or the shares which were transferred can be claimed back by the Members from IEPFA by following the procedure given
on its website i.e. http://iepf.gov.in/IEPFA/refund.html. Both unclaimed dividend amount and the shares transferred can be
claimed from the IEPF Authority by making an online application in the prescribed form “IEPF-5” available on http://iepf.
gov.in/IEPFA/refund.html and by sending the physical copy of the same duly signed along with requisite documents to the
Company at the above mentioned address for verification of the claim. The Company Secretary acts as the Nodal Officer for
IEPF matters.
15. Pursuant to Section 101 and Section 136 of the Companies Act, 2013 read with relevant rules made thereunder, Companies
can serve Annual Reports and other communications through electronic mode to those Members who have registered their
E-mail address with the Company or with the Depository Participant(s). Members holding shares in demat form are requested
to register their E-mail address with their Depository Participant(s) only. Members of the Company, who have registered their
E-mail address, are entitled to receive such communication in physical form upon request.
16. The Notice of AGM and the copies of audited financial statements, board’s report, auditor’s report etc. will also be displayed
on the website (www.apollotyres.com) of the Company.
17. As per the provisions of Regulation 39 (4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
read with Schedule VI of the Regulations, the unclaimed/undelivered shares lying in possession of the Company had been
dematerialised and transferred into an “Unclaimed Suspense Account”. Members who have not yet claimed their shares are
requested to immediately approach the Company by forwarding a request letter duly signed by all the Members furnishing the
necessary details to enable the Company to take necessary action.
18. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account Number (PAN) by
every participant in securities market. Members holding shares in electronic form are, therefore, requested to submit the PAN
to their depository participants with whom they are maintaining their demat accounts. Members holding shares in physical
form are requested to submit their PAN details to the Company.
19. To prevent fraudulent transactions, Members are advised to exercise due diligence and notify the Company of any change
in address or staying abroad or demise of any Member as soon as possible. Members are also advised not to leave their
demat account(s) dormant for a long period. The statement of holdings should be obtained from the concerned Depository
Participants and holdings should be verified periodically.

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20. Information under Regulation 36 (3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
Secretarial Standard-2 on General Meetings, in respect of the Directors seeking appointment at the AGM, forms integral part
of the notice. The concerned Directors has furnished the requisite declarations for their appointment and their brief profile
forms part of the explanatory statement.
21. Kindly register your email address and contact details with us, by writing to us addressed to the Secretarial Department at
our Corporate Office, or at our E-mail ID: [email protected]. This will help us in prompt sending of notices, annual
reports and other shareholder communications in electronic form.
22. Members can also provide their feedback on the shareholder services of the Company using the ‘Shareholders Satisfaction
Survey’ form available on the website of the Company (refer link: https://corporate.apollotyres.com/en-in/investors/corporate-
governance/?filter=Others ). This feedback will help the Company in improving Shareholder Service Standards.
23. The route map of the venue for the AGM is attached herewith and also available on the website of the Company.
24. As per Section 118(10) of the Companies Act, 2013, read with the Secretarial Standard-2 on General Meetings issued by
Institute of Company Secretaries of India “No gifts, gift coupons or cash in lieu of gifts shall be distributed to Members
at or in connection with the meeting”.

EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

Item No. 3
As per the provisions of Section 152 (6) of the Companies Act, 2013, one-third of the two-thirds of the total Non- Independent
Directors are liable to retire by rotation at every AGM and on the basis of the dates of appointment of retiring Directors, Mr. Robert
Steinmetz being in the office for the longest term is liable to retire by rotation and being eligible, offers himself for re-appointment.
Pursuant to Regulation 17(1A) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, applicable w.e.f. April
1, 2019, no listed Company shall appoint or continue the Directorship of a Non-Executive Director who has attained the age of
75 years unless a special resolution is passed by the Members to that effect and justification thereof is indicated in the explanatory
statement annexed to the Notice for such appointment.
The Members of the Company through Postal Ballot dated September 7, 2018 had approved the continuation of Directorship of Mr.
Robert Steinmetz, who had attained the age of 75 years to hold office till he is liable to retire by rotation. Mr. Robert Steinmetz is
liable to retire by rotation at the ensuing AGM and being eligible, offers himself for re-appointment.
Accordingly, a Special Resolution needs to be passed for the re-appointment of Mr. Robert Steinmetz, who is liable to retire by
rotation at the ensuing AGM.
Mr. Robert Steinmetz, aged about 79 years, joined the Board of the Company on September 10, 1999. He has been the Chief of
International Business Unit of Continental AG, Germany.
Mr. Robert Steinmetz is known for his unwavering focus on value creation and sound long term business strategy, has almost 40
years of extensive experience in the international tyre manufacturing industry. As an active Member, he not only contributes to
discussion but also facilitates discussion by sharing his insightful feedback on various business strategies and consumer behaviour.
He holds a diploma in machinery building and has worked with Continental AG for most of his career.
He is not holding Directorship on the Board of other Companies.
He is a Member of the Audit Committee and Risk Management Committee of the Company. He is not holding any other Committee
positions on the Board of other Companies.
He is not holding any shares in the Company either directly or in form of beneficial interest for any other person.
He has attended five Board Meetings during FY2019.
He is not relaled with any other Director and Key Managerial Personnel (KMP) of the Company.
The sitting fees for attending the Board Meetings and the commission as approved by the Members within the overall ceiling of
1% of the net profits of the Company, is paid to the Directors of the Company other than Managing Directors in proportion to their
tenure of Directorship. Mr. Robert Steinmetz is entitled to a remuneration of ₹4.86 million as commission, as approved by the
Board, for FY2019.
The Company has received from Mr. Robert Steinmetz, an undertaking that he is not debarred from holding the office of Director
pursuant to order of SEBI or any other authority and Intimation in Form DIR 8 in terms of Companies (Appointment and Qualification
of Directors) Rules, 2014, to the effect that he is not disqualified under Sub Section (2) of Section 164 of the Companies Act, 2013.
The Board considers that his continued association would be of immense benefit to the Company and it is desirable to continue to
avail services of Mr. Robert Steinmetz.

8
This Explanatory Statement may also be regarded as a disclosure under Regalation 36 of SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015.
None of the Directors or KMP of the Company or their relatives except Mr. Robert Steinmetz is concerned or interested (financial
or otherwise) in the resolution.
The Board of Directors recommends resolution set out at item no.3 for your consideration and approval.

Item No. 5
The Board at its meeting held on May 9, 2019, on the recommendation of the Audit Committee, had re-appointed M/s. N.P.
Gopalakrishnan & Co., Cost Accountants for carrying out Cost Audit of the Company’s plants at Perambra (Kerala), Limda
(Gujarat), Chennai (Tamil Nadu) and Chinnapandur (Andhra Pradesh) as well as Company’s leased operated plant at Kalamassery
(Kerala) for the financial year 2019-20 on a remuneration of ₹ 3.00 Lakhs per annum plus reimbursement of out of pocket expenses.
In accordance with provisions of Section 148 of the Companies Act, 2013 read with Rule 14 of the Companies (Audit and Auditors)
Rules, 2014, the remuneration of the Cost Auditors which is recommended by the Audit Committee shall be considered and approved
by the Board of Directors and subsequently ratified by the Members.
None of the Directors or Key Managerial Personnel (KMP) of the Company or their relatives is concerned or interested (financial
and otherwise) in the resolution.
The Board of Directors recommends resolution set out at item no.5 for your consideration and ratification.

Item No. 6
In recognition of the excellent performance of Mr. Satish Sharma for the past 22 years in the organisation and keeping in view the
Company’s policy on Board Diversity and to further strengthen the Board, the Board, on the recommendation of the Nomination
& Remuneration Committee, at its meeting held on March 26, 2019 had appointed Mr. Satish Sharma, President (APMEA) of the
Company as an Additional Director with effect from April 1, 2019. He was also appointed as a Whole-time Director on the Board
of the Company w.e.f. April 1, 2019 for a period of 5 years subject to the approval of the Members.
The Company has received from Mr. Satish Sharma, the consent to act as Director and a declaration that he is not disqualified from
being appointed as a Director of the Company.
The Company has also received a notice in writing, from a Member under Section 160 of the Act, proposing his candidature for the
appointment as Director of the Company.
The terms and conditions of appointment are detailed below:
1. Salary: ₹ 10.91 Lakhs per month (approx.) with suitable annual increases at such rate as may be determined by the Board
of Directors of the Company (which expression shall include a Committee thereof) from time to time, commensurate with
average percentile increase in the remuneration of employees at one level below the Board of Directors.
2. Perquisites, Allowances & Other Benefits: Mr. Satish Sharma shall be entitled to perquisites and allowances like accommodation
(furnished or otherwise) or house rent allowance in lieu thereof, house maintenance allowance, reimbursement of expenses or
allowances for furnishings, repairs & driver salary, medical reimbursement, leave travel concession for himself and his family,
club fee, medical/ accident insurance, retiral benefits including provident fund, superannuation fund, gratuity and such other
perquisites and allowances as may be allowed under the Company’s rules/ schemes and restricted to an amount not exceeding
250% of annual salary.
The above perquisites shall be allowed in addition to the salary, to be evaluated as per Income Tax rules, wherever applicable,
and in the absence of any such rule, perquisites shall be evaluated at actual cost.
3. Performance Linked Bonus/ Commission: An amount of ₹ 16.50 Lakhs per month or such other amount as may be approved
by the Board of Directors on the recommendation of the Nomination and Remuneration Committee subject to ceiling of 1%
of the Profits before Tax (PBT) of the Company on overall annual remuneration (including Salary, Perquisites, Allowances &
Other Benefits) payable to Mr. Satish Sharma as per Company’s policy.
4. Amenities:
i) Communication facilities: The Company shall provide appropriate telephone, including cellular phone, telefax, internet
and other communication facilities to Mr. Satish Sharma at his residence for discharging his functions effectively.
ii) The Company shall provide office space required by Mr. Satish Sharma either at his residence or any other convenient
place for discharging his official duties along with the required office support facilities.

9
 iii) Mr. Satish Sharma shall be entitled to official travel for himself and his spouse, if considered expedient to accompany
him in the Company’s interests, during domestic and/ or overseas business trips as per Company’s policy.
5. Other benefits:
i) Earned Leave: On full pay and allowances as per the rules of the Company.
ii) Encashment of leave at the end of the tenure, in accordance with the rules of the Company, if any, will not be included
in the computation of the ceiling on perquisites.
iii) Provision of car(s) for use on Company’s business.
iv) Housing, education and medical loan and other loans facilities as applicable in accordance with the rules of the
Company.
6. Mr. Satish Sharma shall also be entitled to reimbursement of entertainment expenses incurred in the course of business of the
Company.
7. The above remuneration payable to Mr. Satish Sharma is subject to the condition that the total remuneration shall be within
the permissible limits under with Section 197 of the Companies Act, 2013, or any amendment thereto or any other provisions
as may be applicable.
8. Notwithstanding anything to the contrary contained herein, where in any financial year, during the currency of tenure of the
appointee, the Company has no profits or its profits are inadequate, the Company will pay salary, perquisites and allowances
in accordance with Section II of Part II of Schedule V of the Companies Act, 2013, to Mr. Satish Sharma as minimum
remuneration, subject to other compliances of Schedule V of the Act.”
The copies of the resolutions passed at the Nomination & Remuneration Committee meeting and the Board of Directors meeting
held on March 26, 2019 are open for inspection of the Members, during business hours between 11:00 AM to 5:00 PM on all
working days of the Company, upto the date of the meeting, at the Registered Office and Corporate Office of the Company during
normal business hours on any working day, excluding Saturday and at the venue of the meeting.
Mr. Satish Sharma aged 51 years is a Chemical Engineer from the National Institute of Technology, Raipur, Madhya Pradesh.
He also holds a post-graduate diploma in Business Management from Institute of Management Technology, Ghaziabad. He is a
Member of the Institute of Engineers, Indian Rubber Institute and All India Management Association (AIMA).
He is not holding Directorship on the Board of other Companies.
He is a Member of the Risk Management Committee of the Company. He is not holding any other Committee positions on the Board
of other Companies.
He is not related with any other Director and Key Managerial Personnel (KMP) of the Company.
He is not holding any shares in the Company either directly or in form of beneficial interest for any other person.
Mr. Satish Sharma is not debarred from holding the office of Director pursuant to any order of SEBI or any other authority.
None of the Directors or KMP of the Company or their relatives, except Mr. Satish Sharma, himself, is concerned or interested
(financial & otherwise) in the resolution.
This Explanatory Statement may also be read and treated as disclosure in compliance with the requirements of Section 190 of the
Companies Act, 2013 and Regulation 36 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
The Board of Directors recommends the Ordinary resolution set out at item no.6 for your consideration and approval.

Item No. 7
Mr. Akshay Chudasama was appointed as an Independent Director on the Board of the Company pursuant to the provisions of
Section 149 of the Act read with the Companies (Appointment and Qualification of Directors) Rules, 2014. He holds office as
an Independent Director of the Company up to August 5, 2019 (“first term” in line with the explanation to Sections 149(10)
and 149(11) of the Act). The Nomination and Remuneration Committee of the Board of Directors, on the basis of the report of
performance evaluation of Independent Director, has recommended re-appointment of Mr. Akshay Chudasama for a second term
of 5 (five) consecutive years on the Board of the Company.
The Board, based on the performance evaluation of Independent Director and based on the recommendation of Nomination and
Remuneration Committee, considered that his continued association would be of immense benefit to the Company and it is desirable
to continue to avail services of Mr. Akshay Chudasama as an Independent Director. Accordingly, it is proposed to re-appoint Mr.
Akshay Chudasama as an Independent Director for a second term of 5 (five) consecutive years on the Board of the Company w.e.f.
August 6, 2019 to August 5, 2024. The Company has also received a notice in writing from a Member under Section 160 of the Act,
proposing his candidature for appointment as Director of the Company.

10
Mr. Akshay Chudasama, aged about 49 years, holds a Degree in Bachelors of Arts from St. Xavier’s College (University of Bombay)
and is a Law Graduate from the London School of Economics (University of London), UK. He is enrolled as an Advocate with
the Bar Council of Maharashtra and Goa, and as a Solicitor with the Law Society (England and Wales). He is also enrolled with
the Bombay Bar Association, International Bar Association and Inter-Pacific Bar Association and is a Member of Entrepreneurs
Organization and Young Presidents’ Organization.
Mr. Akshay Chudasama is the Managing Partner of Shardul Amarchand Mangaldas & Co. and heads the Firm’s practice in the
Mumbai Region. He has expertise in cross-border M&A and Private Equity across a range of sectors, particularly, real estate. He
advises both Foreign Companies entering India and Indian Companies in their outbound acquisitions.
Mr. Akshay Chudasama has been practicing law since 1994. He was a Partner at AZB & Partners for over 3 years and thereafter at J.
Sagar Associates (JSA) for almost 10 years. He has won several awards from various international agencies including Chambers &
Partners, Legal 500, Asia Legal and IFLR. He has addressed several prestigious domestic and international seminars and conferences
on various aspects related to his practice.
Mr. Akshay Chudasama was first appointed on the Board of the Company on November 11, 2013.
He is on the Board of the following other Companies:-
Sl.No Name of the Company Designation
1 Bata India Ltd. Director
2 Artemis Medicare Services Ltd. Director
3 Raymond Ltd. Director
4 Artemis Global Life Sciences Ltd. Director
5 Wyosha Real Estates Private Ltd. Director
He is the Member of Audit Committee, Nomination and Remuneration Committee, Business Responsibility Committee and
Stakeholders Relationship Committee of the Company.
He is also a Member / Chairman of Committees in the following other Companies:-
Sl.No Name of the Company Name of the Committee Position
1 Bata India Ltd. Corporate Social Responsibility Committee Chairman
Audit Committee Member
Nomination and Remuneration Committee Member
2 Artemis Medicare Audit Committee Member
Services Ltd. Nomination and Remuneration Committee Member
3 Artemis Global Life Audit Committee Member
Sciences Ltd.
4 Raymond Ltd. Stakeholders Relationship Committee Chairman
He is not holding any shares of the Company either directly or in form of beneficial interest for any other person.
He has attended six meetings of the Board during FY2019.
He is not related with any other Director and Key Managerial Personnel (KMP) of the Company.
Section 149 and Section 152 of the Companies Act, 2013 inter alia specifies that:
(a) Independent Directors shall hold office for a term of upto five consecutive years, and shall be eligible for re-appointment
upto five years, subject to passing of special resolution by the Shareholders in General Meeting; and
(b) An Independent Director shall not be liable to retire by rotation at the Annual General Meeting.
The provisions further provide that the Independent Directors shall give a confirmation of independence and meeting of the
prescribed criteria, as mentioned in Section 149(6) of the Companies Act, 2013.
In terms of Section 149 and other applicable provisions of Companies Act, 2013, Mr. Akshay Chudasama, being eligible and
offering himself for re-appointment, is proposed to be appointed as an Independent Director for 5 (five) consecutive years w.e.f.
August 6, 2019 to August 5, 2024.
The Company has received from Mr. Akshay Chudasama:-
(i) Intimation in Form DIR 8 in terms of Companies (Appointment and Qualification of Directors) Rules, 2014, to the effect
that he is not disqualified under Sub Section (2) of Section 164 of the Companies Act, 2013.

11
 (ii) A declaration to the effect that he meets the criteria of independence as provided under Sub Section (6) of Section 149
of the Companies Act, 2013.
(iii) An undertaking that he is not debarred from holding the office of Director pursuant to order of SEBI or any other
authority.
The sitting fees for attending the Board Meetings and the commission as approved by the Members within the overall ceiling of
1% of the net profits of the Company, is paid to the Directors of the Company other than Managing Directors in proportion to their
tenure of Directorship. Mr. Akshay Chudasama is entitled to a remuneration of ₹ 4.86 million as commission, as approved by the
Board, for FY2019.
In the opinion of the Board, Mr. Akshay Chudasama fulfils the conditions specified in the Companies Act, 2013 and rules made
thereunder and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, for his re-appointment as an Independent
Director of the Company and he is independent of the management. Copy of the draft letter for re-appointment of Mr. Akshay
Chudasama as an Independent Director would be available for inspection, without any fee, by the Members at the Registered Office
and Corporate Office of the Company during normal business hours on any working day, excluding Saturday.
This Explanatory Statement may also be regarded as a disclosure under Regulation 36 of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015.
None of the Directors or KMP of the Company or their relatives except Mr. Akshay Chudasama himself is concerned or interested
(financial or otherwise) in the resolution.
The Board of Directors recommends resolution set out at item no.7 for your consideration and approval.

Item No. 8
Mr. Vikram S. Mehta was appointed as an Independent Director on the Board of the Company pursuant to the provisions of Section
149 of the Act read with the Companies (Appointment and Qualification of Directors) Rules, 2014. He holds office as an Independent
Director of the Company up to August 5, 2019 (“first term” in line with the explanation to Sections 149(10) and 149(11) of the Act).
The Nomination and Remuneration Committee of the Board of Directors, on the basis of the report of performance evaluation of
Independent Director, has recommended re-appointment of Mr. Vikram S. Mehta for a second term of 5 (five) consecutive years
on the Board of the Company.
The Board, based on the performance evaluation of Independent Director and based on the recommendation of Nomination and
Remuneration Committee, considered that his continued association would be of immense benefit to the Company and it is desirable
to continue to avail services of Mr. Vikram S. Mehta as an Independent Director. Accordingly, it is proposed to re-appoint Mr.
Vikram S. Mehta as an Independent Director for a second term of 5 (five) consecutive years on the Board of the Company w.e.f.
August 6, 2019 to August 5, 2024. The Company has also received a notice in writing from a Member under Section 160 of the Act,
proposing his candidature for appointment as Director of the Company.
Mr. Vikram S. Mehta, aged about 66 years holds B.A. Mathematics honors degree from St. Stephens College, Delhi University, MA
economics honors degree from Magdalen College, Oxford University and a post-graduate degree in energy economics from the
Fletcher School Of Law and Diplomacy, Tufts University.
Mr. Vikram S. Mehta started his career with the Indian Administrative Service (IAS) in 1978. He resigned in 1980 to join Phillips
Petroleum in London as their senior economist. In 1984, he returned to India to join the Government Company, Oil India Ltd. as
its advisor, strategic planning. Mr. Mehta joined Shell International in London in 1988. He was appointed as Managing Director of
Shell Markets and Shell Chemical Companies in Egypt in 1991 and Chairman of the Shell Group of Companies in India in 1994.
Mr. Mehta left Shell in October 2012. He was Chairman of the Hydrocarbon Committee of the Confederation of Indian Industry
(CII) and a Member of its National Council.
Mr. Vikram S. Mehta was the recipient of Asia House’s “Businessmen of the year” award for 2010. He also received the Asia Centre
for Corporate Governance and Sustainability‘s Award for “Best Independent Director“ for 2016.
Mr. Vikram S. Mehta was first appointed on the Board of the Company on February 6, 2013.
He is on the Board of the following other Companies:-
Sl.No Name of the Company Designation
1 Colgate Palmolive (I) Ltd. Director
2 Mahindra & Mahindra Ltd. Director
3 HT Media Ltd. Director
4 Larsen and Toubro Ltd. Director
5 Jubilant Food Works Ltd. Director

12
 6 N V Advisory Services Pvt Ltd. Additional Director
7 L & T Hydro Carbon Engineering Ltd. Director
He is also a Member / Chairman of Committees in the following other Companies:-
Sl.No Name of the Company Name of the Committee Position
1 Larsen and Toubro Ltd. CSR Committee Chairman
2 Colgate Palmolive (I) Ltd. Audit Committee Member
Nomination and Remuneration Committee Member
Risk Management Committee Member
3 Mahindra & Mahindra Ltd. Corporate Social Responsibility Committee Member
Nomination and Remuneration Committee Member
4 Jubilant Food Works Ltd. Audit Committee Member
Stakeholders Relationship Committee Member
Nomination Remuneration and Member
Compensation Committee
He is holding 6000 shares of the Company.
He has attended five meetings of the Board during FY2019.
He is not related with any other Director and Key Managerial Personnel (KMP) of the Company.
Section 149 and Section 152 of the Companies Act, 2013 inter alia specifies that:
(a) Independent Directors shall hold office for a term of upto five consecutive years, and shall be eligible for re-appointment upto
five years, subject to passing of special resolution by the Shareholders in General Meeting; and
(b) An Independent Director shall not be liable to retire by rotation at the Annual General Meeting.
The provisions further provide that the Independent Directors shall give a confirmation of independence and meeting of the
prescribed criteria, as mentioned in Section 149(6) of the Companies Act, 2013.
In terms of Section 149 and other applicable provisions of Companies Act, 2013, Mr. Vikram S. Mehta, being eligible and offering
himself for re-appointment, is proposed to be appointed as an Independent Director for 5 (five) consecutive years w.e.f. August 6,
2019 to August 5, 2024.
The Company has received from Mr. Vikram S. Mehta:-
(i) Intimation in Form DIR 8 in terms of Companies (Appointment and Qualification of Directors) Rules, 2014, to the effect that
he is not disqualified under Sub Section (2) of Section 164 of the Companies Act, 2013.
(ii) A declaration to the effect that he meets the criteria of independence as provided under Sub Section (6) of Section 149 of the
Companies Act, 2013.
(iii) An undertaking that he is not debarred from holding the office of Director pursuant to order of SEBI or any other authority.
The sitting fees for attending the Board Meetings and the commission as approved by the Members within the overall ceiling of
1% of the net profits of the Company, is paid to the Directors of the Company other than Managing Directors in proportion to their
tenure of Directorship. Mr. Vikram S. Mehta is entitled to a remuneration of ₹4.86 million as commission as approved by the Board,
for FY2019.
In the opinion of the Board, Mr. Vikram S. Mehta fulfils the conditions specified in the Companies Act, 2013 and rules made
thereunder and SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, for his re-appointment as an Independent
Director of the Company and he is independent of the management. Copy of the draft letter for re-appointment of Mr. Vikram S.
Mehta as an Independent Director would be available for inspection, without any fee, by the Members at the Registered Office and
Corporate Office of the Company during normal business hours on any working day, excluding Saturday.
This Explanatory Statement may also be regarded as a disclosure under Regulation 36 of the SEBI (Listing Obligations & Disclosure
Requirements) Regulations, 2015.
None of the Directors or KMP of the Company or their relatives except Mr. Vikram S. Mehta himself is concerned or interested
(financial or otherwise) in the resolution.
The Board of Directors recommends resolution set out at item no.8 for your consideration and approval.

13
Item No. 9
In order to meet funds requirements for Company’s growth, the Members of the Company at the Annual General Meeting held on
August 1, 2018 had passed the resolution for raising of funds for an amount not exceeding ₹15,000 million through Issue of Secured
Non-Convertible Debentures (NCDs) through Private Placement, in one or more tranches within overall borrowing limits of the
Company. The above resolution is valid upto July 31, 2019. During the validity of aforesaid resolution, the Company has not raised
any funds through issue of NCDs.
In order to meet the funds requirements for growth/ capex, the Board approved raising of funds through issue of NCDs for an
amount not exceeding ₹15,000 million.
In order to enable the Company to offer or invite subscriptions for Non-Convertible Debentures on a Private Placement basis, in one
or more tranches, as per provisions of Section 42 of the Companies Act, 2013, read with Rule 14 of the Companies (Prospectus and
Allotment of Securities) Rules, 2014 and Rule 18 of the Companies (Share Capital and Debentures) Rules, 2014, a Company shall
not make a Private Placement of its securities unless the proposed offer of securities or invitation to subscribe to securities has been
previously approved by the Members of the Company by a Special Resolution for each of the offers or invitations. However, in case
of offer or invitation for “Non-Convertible Debentures”, it shall be sufficient if the Company passes a Special Resolution only once
in a year for all the offers or invitations for such Debentures during the year.
Further, the Board of Directors of the Company or any duly constituted Committee of the Board or such other authority as may be
approved by the Board, shall be authorized to determine the terms of the Issue, including the class of investors to whom the NCDs
are to be allotted, the number of NCDs to be allotted in each tranche, issue price, tenor, interest rate, premium/ discount to the then
prevailing market price, amount of issue, discount to issue price to a class of bond/debenture holders, listing, issuing any declaration
/ undertaking etc. required to be included in the Private Placement Offer Letter and any other regulatory requirement for the time
being in force.
The Board of Directors of the Company, at its Meeting held on May 9, 2019, had approved the above proposal and recommends the
passing of proposed Special Resolution by Members of the Company.
The approval of the Members is being sought by way of a Special Resolution under Section 42 & 71 of the Companies Act, 2013,
read with the Rules made there under, to enable the Company to offer or invite subscriptions for NCDs on a Private Placement basis,
in one or more tranches, during the period of one year from the date of passing of the resolution, within the overall borrowing limits
of the Company, as approved by the Members from time to time.
None of the Directors or Key Managerial Personnel (KMP) of the Company or their relatives is concerned or interested (financial
& otherwise) in the resolution.
The Board of Directors recommends resolution set out at item no.9 for your consideration and approval.

DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT AS REQUIRED UNDER REGULATION

36 OF THE LISTING REGULATIONS & SECRETARIAL STANDARD-2 ON GENERAL MEETINGS.

Item Nos. 3 and 6 to 8

For the details of Mr. Robert Steinmetz, Mr. Satish Sharma, Mr. Akshay Chudasama and Mr. Vikram S. Mehta, please refer to item
nos. 3 and 6 to 8 under the Explanatory Statement of this Notice.

Item No. 4
Mr. Francesco Gori, aged about 66 years, has a degree in Economics from Universita degli Studi in Florence and he possesses
experience over 33 years with Pirelli Tyre S.p.A Group in the field of product development, sales & marketing, product management
etc. He has had a long and illustrious career in the tyre industry. His last appointment was as the CEO of Pirelli Tyre, a position that
he held from 2006 till he left the Company in 2012. He has also served as a Member of the Board of Directors of many companies
of Pirelli & C Group. He had joined the Company as “Advisor for Strategy” effective from October 26, 2015 to support the goal
of international growth, identification and development of new opportunities and has been Member of Management Board of the
Company.
Mr. Francesco Gori was first appointed on the Board of the Company on February 9, 2016.
He is not holding Directorship on the Board of other Companies.
He is a Member of Risk Management Committee of the Company. He is not holding any other Committee positions on the Board
of other Companies.

14
He is not holding any shares in the Company either directly or in from of beneficial interest for any other person.
He has attended six Board Meetings during FY2019.
He is not related with any other Director and Key Managerial Personnel (KMP) of the Company.
The sitting fees for attending the Board Meetings and the commission as approved by the Members within the overall ceiling of
1% of the net profits of the Company, is paid to the Directors of the Company other than Managing Directors in proportion to their
tenure of Directorship. Mr. Francesco Gori is entitled to a remuneration of ₹4.86 million as commission, as approved by the Board,
for FY2019.
The Company has received from Mr. Francesco Gori, an undertaking that he is not debarred from holding the office of Director
pursuant to order of SEBI or any other authority and Intimation in Form DIR 8 in terms of Companies (Appointment and Qualification
of Directors) Rules, 2014, to the effect that he is not disqualified under Sub Section (2) of Section 164 of the Companies Act, 2013.
The Board considers that his continued association would be of immense benefit to the Company and it is desirable to continue to
avail services of Mr. Francesco Gori.
None of the Directors or KMP of the Company or their relatives except Mr. Francesco Gori is concerned or interested (financial or
otherwise) in the resolution.
The Board of Directors recommends resolution set out at item no.4 for your consideration and approval.

By Order of the Board

Place: Gurgaon For Apollo Tyres Ltd
Date: May 9, 2019
SEEMA THAPAR
Company Secretary
FCS No.: 6690

15
 Kerala Fine Arts Theatre, Fine Arts Avenue,
Foreshore Road, Ernakalam,
Kochi (Kerala), India

Route Map to the Venue of the AGM

Regd. Office: Apollo Tyres Ltd, 3rd Floor, Areekal Mansion, Near Manorama Junction,
Panampilly Nagar, Kochi - 682036, India.
CIN: L25111KL1972PLC002449 Tel: +91 484 4012046
Fax No.: +91 484 4012048 Email: [email protected]
Website: apollotyres.com

16
CONTENTS

02
Unstoppable Corporate overview
We have been persistent 02 Unstoppable
in our aim to establishing
04 Chairman’s Message
and maintaining market
leadership to be able to achieve 06 Vice Chairman’s Message
unprecedented growth for our
08 Board of Directors
stakeholders.
10 Management Board

12 Key Performance Highlights

14 14 Integrated Report

28 Management Discussion &

Integrated Report Analysis
Apollo Tyres’ contribution
51 Sustainability Snapshot
to social and economic
development is critical to
create and sustain an enabling
environment for investment.
This has enabled the Company’s
positioning as a credible Statutory Reports
stakeholder partner.
84 Board’s Report

95 Annual Report on CSR

28 102 Business Responsibility Report

126 Corporate Governance Report

Management
Discussion &
Analysis
Financial Statements
161 Standalone Financial Statements

223 Consolidated Financial Statements

UNSTOPPABLE

Since inception, we have worked towards establishing ourselves

as a leading player in the sale and manufacture of tyres. We have
been persistent in our aim to establishing and maintaining market
leadership and be able to achieve unprecedented growth for our
stakeholders.

In FY2018-19 (FY2019), we continued to focus We are unstoppable in establishing our

on our key revenue generating regions APMEA leadership across multiple segments.
(Asia Pacific, Middle East and Africa, including
Our consistently advancing product range coupled
India) and Europe. We expanded our presence in
with product innovations are enabling us to achieve
Americas by added new territories and increasing
the same.
our value proposition. The APMEA operation
continued its focus on consolidating its leadership We are unstoppable in working towards achieving
and enhancing share in India through the cutting edge manufacturing capabilities and
introduction of best in class and technologically world-class R&D.
advanced products.
Increased OEM approvals and increased customer
We believe growth can be achieved both the satisfaction evident from our number one rank
organically and inorganically. Following this in the JD Power 2018 India Original Equipment
guiding principle, in the fiscal under review, we Tyre Customer Satisfaction Index in small cars
continued our steady growth trajectory and segment and number two rank in the midsize cars
reached closer towards achieving our vision. or sedan segment category are proof that we are
on the right track and initiatives such as enhancing
We believe exciting times are ahead of us and we
our technological advancements and unwavering
are working towards capitalising upcoming market
focus on quality fuelling our journey of growth.
opportunities through our ‘Vision 2020’ strategy.
We are unstoppable in building brand salience and
We are unstoppable in the pursuit of this
establish ourselves as a premium player in Europe.
vision.
Our strategy of seeding markets with country-
specific products and expanding distribution
networks are the major drivers helping us in
building our brand equity.
 Corporate Overview Statutory Reports Financial Statements

COMPANY OVERVIEW

Headquartered in Gurgaon, Headquartered in Gurgaon, India, Apollo Tyres

Limited was founded in 1972 and has since been a
India, Apollo Tyres Limited was trusted name in the business of manufacture and
founded in 1972 and has since sale of tyres.
been a trusted name in the We cater to over 100 nations across the world
and market products under two brands- Apollo
business of manufacture and and Vredestein. We sell our products across the
sale of tyres. globe through our extensive network of branded,
exclusive and multi-product outlets and source them
through our multiple manufacturing units in India,
Netherlands and Hungary. We clocked a turnover of
`17,273 crores at the end of the fiscal under
review, backed by our robust global workforce of
approximately 17,176 employees.

`172.73 BN `6.80 BN
Revenues Net profit

`20.82 BN 12.1 % `21.37BN

Operating profit EBITDA margin CAP Expenditure

3
 Apollo Tyres Ltd Annual Report 2018-19

CHAIRMAN’S MESSAGE
People First

Dear Shareholders,
As I look back at the tough,
uncertain and challenging FY2019,
I am reminded of what Kalpana
Chawla, American astronaut and
the first woman of Indian descent
to go to space, once said - The
path from dreams to success does
exist. May you have the vision to
find it, the courage to get on to it,
and the perseverance to follow it.

4
 Corporate Overview Statutory Reports Financial Statements

For all of us at Apollo Tyres, the year was about an integral element of Apollo Tyres corporate
moving to achieve our vision of becoming a strategy. The year saw Kerala witnessing one of its
‘Premier tyre company with a diversified and worst floods in recent times. Your Company rose to
multinational presence’ and continued, with a the challenge and contributed money, material and
steadfast resolve, to do what we do best – create time to bring relief to the people whose lives were
best in class products, offer superior value severely affected by the calamity. Also, during
proposition to our customers, work with our the financial year, your Company continued with
partners, support and empower communities, and, its multiple initiatives and created a real positive
in the process, deliver above industry growth and impact in the lives of the communities it serves.
create wealth to you, our shareholders. We had the We received multiple recognition including the CSR
courage to dream and work on it and I am proud Times Award 2018 and CSR Health Impact Award
to mention that we are getting close to achieve for its Health CSR Project, relating again to the
our 2020 aspirations for India of building market healthcare programme for our truck drivers. As a
leadership and to achieve our premiumization strong proponent of sustainability, your Company
strategy in Europe. Despite the uncertain times continues to reduce its own carbon footprint and
faced in the financial year, our growth is a with the Apollo Tyres’ Partnership Pact helps
testimony of achieving the high standards that we and supports its partners to integrate relevant
set for ourselves. I remain bullish that even with policies and processes related to the environment,
a challenging year ahead, our employees across occupational health & safety, human rights and
the globe will put in tremendous work to deliver labour laws into their business and decision
above industry numbers. This is because, we are making processes. This is further extending the
committed to our vision and have the perseverance use of environmentally responsible practices for
to achieve it in our pursuit to build Apollo Tyres as growing natural rubber within the overall supply
a world class institution. chain network.

It has been my firm belief that every organization I take this opportunity to thank all the banks,
needs to focus on its employees in its journey for financial institutions, various Indian State
meaningful success. Personally for me, the Apollo Governments and the Central Governments of
Tyres journey has been exciting and invigorating India, the Netherlands and Hungary, our network
as we grew from employees who were based only and business partners for their unstinted support
in India to now where we have a multi-cultural and actively contributing to our success. Equally,
and multi-locational employee base. In this long I am humbled with your continued support and
journey, what has certainly not changed is our grateful for standing with us in times of prosperity
philosophy of ‘People First’. Our team has ensured and adversities. We at Apollo Tyres remain ever
that we take every step to induct new people from committed and sincere in our efforts to keep
various geographies and ethnicities into the global delivering ever better value to you. I look forward
Apollo family. Despite the diversity, I am proud to to having many more exciting updates for you in
say that we have built an Apollo culture of taking the current financial year.
on challenging tasks and moving together to
Wishing you all the best.
achieve the goals. Further, it is this focus on people
and building a strong capability of effectively
integrating cultures that has helped us to spread
our wings far and wide.

‘Care for Society’ is one of the core values deeply

etched in the DNA of your company and therefore
our CSR strategy is not an afterthought but Onkar S. Kanwar
Chairman and Managing Director

5
 Apollo Tyres Ltd Annual Report 2018-19

VICE CHAIRMAN’S MESSAGE

Unstoppable to achieve our 2020 vision

Dear Shareholders, Beyond upping the brand quotient, we continued to

aggressively replicate our Indian success of building deeper
The cornerstone for Apollo Tyres’ success has been its
engagement with Original Equipment (OE) in Europe. In
relentless focus on profitable, sustainable growth. This
Europe, we added Ford Fiesta to the list which will run on
unceasing focus is what makes each employee of your
Vredestein Quatrac 5 as a standard fitment. We are already
Company Unstoppable and a reason why we have picked the
working closely with Volkswagen for Polo, Seat for Ibiza and
theme for this year’s annual report. In the pages that follow,
Ford for its EcoSport vehicle. We will continue to build on
I hope you get a sense of how we have worked to deliver
these successes and I am confident that with our plants in
above industry growth by upping the brand, continuing our
Europe, we will increase our leadership position in the region.
intense focus on R&D and launching best in class products,
winning new customers and much more. We continue to be Further, our global R&D centres continued to support both
unstoppable in our bid to achieve our 2020 vision - ‘To be APMEA and Europe as we launched multiple products in our
a leading and premier tyre company with a diversified and key markets including the new Wintrac Pro, the new ultra-
multinational presence’. high-performance winter tyre, and Vredestein Quatrac Pro,
the all-season tyre for the ultra-high performance segment
One of the big highlights and an incredibly proud moment for
and cars such as the Alfa Romeo Stelvio, Volvo XC90 and
all of us at Apollo Tyres was the two honours bestowed on
BMW 5-series. We continued to expand into new markets
our Chairman, Onkar Kanwar. The Government of Japan, in
and became a full range player in multiple markets including
its 2018 Autumn Imperial Decorations, conferred upon our
Nepal, Sri Lanka, etc. The prowess of our R&D was again
chairman the Order of the Rising Sun, Gold and Silver Star.
demonstrated as the Vredestein Wintrac Pro was rated with
He received this recognition for his contributions towards
the prestigious exemplary (vorbildlich) rating in 2018 Auto
strengthening the economic relations between Japan and
Bild test.
India. Further, our Chairman was awarded with the Officers
Cross (Civilian Division) of the ‘Order of Merit’ of Hungary. Just like the year began, it ended with a high decibel
This award was conferred upon our Chairman in recognition #BadRoadBuddies initiative. The much talked event was a
of his work towards strengthening Hungarian-Indian first of its kind event by any tyre company and we see this
economic relations through your Company’s investment in as building a deeper connect with the community of SUV
Hungary, thereby helping create new jobs in Hungary. owners/drivers, one of the fastest growing segment in India.
We have continued smaller versions of the initiative across
The financial year began with a blast for Apollo Tyres as
multiple cities and seen a high traction from the community.
in our bid to further our brand journey and build a stronger
brand around sports, we welcomed Sachin Tendulkar, the FY2019 was a year filled with excitement as we took the
god of cricket and an icon in the Indian and global cricketing challenges head on and powered ahead delivering above
world, to the Apollo family. Our brand will highly benefit for industry numbers. While FY2020 will not be an easy year and
the association as we leverage his huge fan following and we have our work cut out to post above average growth,
popularity as a sports idol and a crusader of safe driving, to I am confident that we will continue to be unstoppable in our
drive home the Company’s own message of making every pursuit to achieve our Vision 2020. I will continue to update
journey a safe and inspiring one. Continuing our sports you on an annual basis and I do look forward to be in touch
journey and deepening our connect with Hungary, we with you.
partnered with DVTK, the leading sports club in Hungary.
With best regards,
Currently, your Company is associated with the I-league
team, Minerva Punjab FC and the Indian Super League team,
Chennaiyin FC and global powerhouse Manchester United as
its official tyre partner.

Neeraj Kanwar
Vice Chairman and Managing Director

6
Corporate Overview Statutory Reports Financial Statements

7
 Apollo Tyres Ltd Annual Report 2018-19

BOARD OF DIRECTORS
1 Dr. S. Narayan 4 Nimesh N. Kampani 7 Vikram S Mehta
Former Principal Secretary to the Chairman, JM Financial Group Former Chairman, Shell Group of
Prime Minister of India Companies
5 Robert Steinmetz
2 Onkar S. Kanwar Former Chief of International
Chairman & Managing Director Business, Continental AG

3 Anjali Bansal 6 Satish Sharma A Francis Crispino

Former Global Partner and MD, Whole-time Director Advisor to the Board
TPG Private Equity

6 7

1 2

8
 Corporate Overview Statutory Reports Financial Statements

8 Pallavi Shroff 11 General Bikram Singh (Retd.) 14 Sunam Sarkar

Regional Managing Partner, Former Chief of Indian Army President & Chief Business Officer,
Shardul Amarchand Apollo Tyres Holdings
Mangaldas & Co 12 Neeraj Kanwar (Singapore) Pte Ltd
Vice Chairman & Managing Director
9 Francesco Gori
Former CEO, Pirelli Tyre 13 Akshay Chudasama B Gaurav Kumar
Regional Managing Partner, Chief Financial Officer
10 Vinod Rai Shardul Amarchand
Ex-Comptroller and Auditor Mangaldas & Co
General of India

12 14
13

11

10

8 9

9
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT BOARD

1 2

3 4
5

1) Onkar S. Kanwar 2) Neeraj Kanwar 3) Daniele Lorenzetti

Chairman & Managing Director Vice Chairman & Managing Chief Technology Officer
Director

4) Francesco Gori 5) Gaurav Kumar 6) K Prabhakar

Director Chief Financial Officer Chief, Projects

10
 Corporate Overview Statutory Reports Financial Statements

7 8

9
10 11

12 13

7) Markus J Korsten 8) P K Mohamed 9) Pedro Matos 10) Robert Steinmetz

Chief Manufacturing Chief Advisor, Research Chief Quality Officer Director
Officer & Development

11) Satish Sharma 12) Sunam Sarkar 13) Benoit Rivallant

President, APMEA President & Chief President, Europe
(Asia Pacific, Middle East & Africa) Business Officer

11
 Apollo Tyres Ltd Annual Report 2018-19

KEY PERFORMANCE INDICATORS

GROSS SALES `BN NET PROFIT `BN

FY15 137.25 FY15 9.78

FY16 127.43 FY16 11.23

FY17 140.53 FY17 10.99

FY18 149.29 FY18 7.24

FY19 FY19
172.73 6.80

CAPITAL EXPENDITURE `BN EBITDA `BN

FY15 6.93 FY15 19.84

FY16 17.93 FY16 20.65

FY17 39.02 FY17 20.01

FY18 30.80 FY18 17.68

FY19 FY19
21.37 20.82

EBIT `BN NET DEBT / EQUITY RATIO

FY15 15.96 FY15 0.08

FY16 16.39 FY16 0.06

FY17 15.39 FY17 0.37

FY18 11.75 FY18 0.28

FY19 FY19
12.69 0.43

NET DEBT/ EBITDA RATIO NET DEBT/ EBIT RATIO

FY15 0.21 FY15 0.26

FY16 0.18 FY16 0.23

FY17 1.35 FY17 1.76

FY18 1.53 FY18 2.30

FY19 FY19
2.08 3.41
Note: Data for FY15 is as per previous GAAP (ie. IGAAP) and for FY16, FY17, FY18 and FY19 is as per Ind AS.

12
 Corporate Overview Statutory Reports Financial Statements

RETURN ON EQUITY (%) HIGHLIGHTS FY2019

• We roped in Sachin Tendulkar as our brand ambassador
FY15 20.3 and introduced multiple initiatives to ramp up our
product portfolio.
FY16 18.7
• We continued to focus on our key regions APMEA (Asia
Pacific, Middle East and Africa) and Europe.
FY17 15.8
• We maintained our leadership position in the CV tyre
FY18 8.5 segment and further built on our dominant position in the
overall TBR market.
FY19
• We became the first tyre company in India to introduce
6.9 a range of fuel-efficient tyres in FY2019 highlighting
the role played by our R&D team in creating first-to-
market products.
REVENUE SEGMENTATION
• We became the exclusive supplier to Tata
Motors’ ultra-electric buses.
0.7
APMEA
• We bagged the prestigious ‘TATA Motor’s Partner-level
Europe
Supplier’ award and had the distinction of being the only
Others
Geography (%) tyre company to receive this award.

• We doubled our Apollo CV zones to 50 along with the

29.3 70 expansion of Apollo Retread Zones.

• We introduced SUV tyres—Apterra White Lettered—with

white lettering on the sidewall.

27 • We launched Apollo Alpha—India’s first ‘zero-degree steel

Replacement motorcycle radial tyre’— in FY2019.
OEM
• We delivered above industry growth of 18% as we posted a
Customers (%) consolidated revenue of `17,273 crores.

73

2.1
5.7 Passenger Vehicles
37.1
Truck-Bus
10.1
Off Highway
Light Truck
Products (%) Other

45

NATURAL RUBBER PRICE MOVEMENT `/KG CRUDE OIL PRICE MOVEMENT ($/Barrel)
(BRENT Crude)
79.11 80.63
77.01
132.66 74.95
75.93
127.79 128.02 73.84
126.45
130.55 71.76 67.03
129.13 124.25 66.11
122.02 64.32
120.45
124.34 124.66 60.12
121.59

57.67

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
18 18 18 18 18 18 18 18 18 19 19 19 18 18 18 18 18 18 18 18 18 19 19 19

13
 Apollo Tyres Ltd Annual Report 2018-19

INTEGRATED REPORT
ON THE ROAD TO INTEGRATED
THINKING WITH VISION 2020
Apollo Tyres’ Vision 2020 – ‘To be a premier
tyre company with a diversified and
multinational presence’ is the driving force
towards integrated thinking.
The organisation has identified key
priorities to realise Vision 2020 – ‘build
leadership in India’, ‘premiumisation
in Europe’, and ‘explore strategically
attractive markets where we are currently
not represented.’
These priority areas are integrated within
the six capitals and interconnected in order
to create value in the short, medium and
long-term.

14
 Corporate Overview Statutory Reports Financial Statements

MATERIALITY

Apollo Tyres has conducted the materiality The process of materiality assessment
assessment in the FY2018, according to included establishing process parameters
the Integrated Reporting framework’s and identification of relevant non-financial
materiality assessment process. It has topics; evaluating the importance of relevant
conducted materiality through a third-party matters based on magnitude of effect and
study and identified the material issues by likelihood of occurrence; survey among key
mapping stakeholder concerns and business stakeholder groups representing investors,
priorities. customers, senior management, employees,
suppliers, NGOs, institutions, associations
and sustainability professionals.

15
 Apollo Tyres Ltd Annual Report 2018-19

BUSINESS MODEL
INPUTS

VISION 2020
TO BE A PREMIER TYRE COMPANY WITH A
Natural Capital
DIVERSIFIED AND MULTINATIONAL PRESENCE
Natural rubber and crude oil linked raw
materials

THREE PRONGED STRATEGY

Consolidate market Continue

position in existing investment in core
Seek growth
markets and seek brands and capacity
opportunities
Human Capital new markets/ expansion via
High performance and skilled people segments greenfield facilities
with diverse experience
GROW STAKEHOLDER VALUE SUSTAINABLY

Social and Relationship Capital

Integrating needs and requirements
of stakeholders into our business
processes

Intellectual Capital
For our competitive advantage- R&D,
patents, etc.

Manufactured Capital
Continuous investments in plants and
equipment allow us to operate safely with
efforts to reduce environmental footprint

BUSINESS MODEL
Financial Capital
Financial strength to run our operations
and fund our growth-debt and equity
financing- as well as cash generation

EXTERNAL ENVIRONMENT Raw material price and volatility Economic slowdown in India and European markets

16
 Corporate Overview Statutory Reports Financial Statements

OUTPUTS OUTCOMES

BUSINESS ACTIVITIES

Supply Chain Natural Capital • Working through various initiatives

Raw material Carbon abated to create a positive impact on the
COMMUNITY

procurement from South Water conserved environment

East Asia Region GHG emissions
• Reduced environmental impacts by
Wastewater treated
protection and conservation
Waste generated and disposed
R&D Locations Used tyres recovered • Invested in human capital
SHAREHOLDERS

Asia and Europe development to upgrade skills

capabilities and a responsible
Human Capital
remuneration policy
Employee satisfaction
Manufacturing Locations Safety performance • Expanded market share, strengthened
Asia and Europe brand value and social prosperity

Social and Relationship Capital • Expanded market share by introducing

Community satisfaction index new products in Europe and growing
CUSTOMERS

5 Segments Number of beneficiaries its presence in 2W market

Customer satisfaction index
• Safe work places, globally competitive
products, value to customers through
Truck & Bus quality
STAKEHOLDERS

• Sustainable revenues and focus on

cost reduction, leading to healthy
Intellectual Capital
Passenger Vehicles RoI and capital buffers for growth
No. of IPRs registered
opportunities
No. of innovations
Savings due to innovations
Off Highway No. of employees in certified training
DEALERS

Light Truck
Manufactured Capital
Production capacity
Sales revenue
Two Wheeler
EMPLOYEES

Global Markets
Financial Capital
US
Underlying RoE
Europe
Underlying EPS
Middle East
Credit rating
India/Asia
SUPPLIERS

Global competition Climate change–Monsoon and natural rubber Radial technology

17
 Apollo Tyres Ltd Annual Report 2018-19

NATURAL CAPITAL

Apollo Tyres converts natural capital into financial and

societal value by deploying advanced technology and other resources.
Our intervention impacts stakeholders by supporting economic developmental needs by transforming
natural capital into high-value products. To minimise negative impacts, the Company continuously
invests in emerging technologies to improve performance, enhance resource efficiency, reduce
environmental footprint and expand contributions of its products and processes.

INPUTS APMEA Europe

TOTAL RAW MATERIAL

CONSUMED*
886,773 80,836 ENERGY 6,010
METRIC TONNES METRIC TONNES CONSUMPTION* TJ

Natural Rubber 22.7% 20.2% Direct energy 69.5%

Synthetic Rubber 8.8% 18.8% Indirect energy 30.5%

Carbon Black 15.2% 17.4%

TOTAL WATER USAGE 64,35,535
TOTAL RECYCLED 5538 716 APMEA & Europe M3
MATERIAL* METRIC TONNES METRIC TONNES Annual water withdrawal

* for FY2019

OUTPUTS Emissions: GHG (Scope 1, Scope 2 and

Scope 3), NOx, SOx, PM10 (Refer to SR-19
Solid
1,136
for more details) Hazardous MT
waste
generated
Liquid
21,236
KL

Non-hazardous solid 26,067

waste generated MT

OUTCOMES Managing Outcomes

• The Company makes conscientious efforts to measure its ENERGY SAVINGS/ 22,800
carbon footprint across domestic and international markets CONSERVED GJ
The Company has also got its carbon footprint externally and
independently assured as per ISO 14064 and AA1000 RECYCLED/REUSED 8,10,164
• Investing in R&D to find innovative solutions related to our WATER m3 (APMEA)
processes, products and by-products
• Partnering municipalities and communities to promote
water stewardship, waste management and conservation of
biodiversity through various initiatives
• End of Life Tyres (ELT) playgrounds as a solution to avoid them
being disposed in landfill

INTERLINKAGE OF NATURAL CAPITAL WITH OTHER CAPITALS

To reduce the impact on Natural Capital, the Company invests in community development projects such as environmental
protection, thereby increasing Social & Relationship Capital through generation of livelihood opportunities for the local
community.

18
 Corporate Overview Statutory Reports Financial Statements

HUMAN CAPITAL

Apollo Tyres is committed to enhance the capabilities of its people

through an enabling environment fostering growth.
The skills, experience, diversity and productivity of its employees enable the organisation to operate
facilities safely, reliably and sustainably, and deliver on its growth objectives. Apollo Tyres is focused
on best safety practices and wellness interventions for its people. The Company invests considerably
in employee development to attract and retain high-performing and diverse talent.

INPUTS A safe, healthy, engaged and productive workforce of A strong

leadership team,
17,176 driving a culture of
(as of March 31, 2019)
high performance
people with relevant skills, knowledge and experience

OUTCOMES Managing Outcomes

• Passion in Motion (PIM) 2.0 launched to achieve strategic
A consistent Great Place to
priorities and serve as a foundation to Vision 2020 Work-CertifiedTM Organisation
• Promoting a working environment that allows employees to Recognised once again amongst the Top
deliver high performance 50 Great Places to Work in India. This year
• Engaging, enabling and energising teams by embedding the we have further climbed on the rankings
critical behaviours and high-performance culture by being a high-trust, high-performance
• Developing critical skills to drive business performance workplace with a culture that engages
• Building leadership capability to enable productivity, high employees and assists in driving better
performance and sustainable growth business..
• Driving a high-performance culture to ensure growth
objectives are delivered Functional teams identified 30,121 risk
• Setting on a transformational journey on Safety with launch of reduction opportunities in Safety in the
Safety Absolutes – targeted on effective risk identification and reporting year.
response.

INTERLINKAGE OF HUMAN CAPITAL WITH OTHER CAPITALS

The Company’s Human Capital is positively impacted when it invests in skill development initiatives to improve the technical
know-how for better operations. This also benefits individuals for career enhancements, and increasing growth prospects,
thereby increasing Social and Relationship Capital stock and Intellectual Capital stock as well positively impacting the
Financial Capital by enhanced profitability.

19
 Apollo Tyres Ltd Annual Report 2018-19

SOCIAL AND RELATIONSHIP CAPITAL

Apollo Tyres travels the extra mile to contribute to socio-economic

well-being to enable sustainable partnerships. The Company’s primary
focus is on developing shared value through collaborations with its wide
spectrum of stakeholders, based on mutual trust.
‘Care for Society’ as a core value, has been embedded in the Company’s DNA which defines the
purpose of the organisation. Apart from value creation through direct business activities, it also
endeavours to enrich the social quotient by means of targeted community intervention. This in turn
has created a repository of knowledge emanating out of relationships with stakeholders.

INPUTS
Promote an employees relations Collaborative relationships with Sustained confidence of
culture that encourages customers based on mutually agreed suppliers and dealers in
employee inputs and terms of engagement and the drive to our business have led
involvement through various innovate and excel. In order to improve to building strong and
initiatives to enable employee its products and services, the Company committed partnerships.
engagement. Our core value - conducts regular customer staisfaction With a well-defined purchase
“Communicate Openly” further surveys. The Company’s customer- policy, our suppliers/
underlines this spirit. centric approach and customer- dealers development and
oriented values have led to the initiative management systems are
‘Customer Champion Project’ aligned with our business
goals and objectives.

Open channels of The Company has constructive and

communication and constructive informed engagement with government
relationships with neighbouring representatives and regulators. It
communities, NGOs and the maintain constructive relationships and
media. The Company is actively partnerships with all representative
working in the communities to unions and works councils who enjoy
address issues like environment consultative or negotiating powers
conservation, healthcare and on issues of mutual interest. It has
livelihood generation. The CSR effective partnerships with business
expenditure for FY2019 was peers, sector organisations and
`213.83 MN. research bodies

INTERLINKAGE OF NATURAL CAPITAL WITH OTHER CAPITALS

The Company invests proactively in Social and Relationship Capital to enable growth in Financial Capital
over the long-term.

20
 Corporate Overview Statutory Reports Financial Statements

OUTCOMES
Managing Outcomes
• Prioritising social investment projects • CSR Activities Beneficieries: 6,74,142
in skills development, community beneficaries were outreached from healthcare,
development, environment, health and environment conservation and livelihood
livelihood generation where there is a generation programmes in the year FY2019.
convergence of multiple stakeholder Some beneficiaries may be common to one or
interests to achieve maximum impact in more initiatives and hence may have got double
our communities counted
• Fostering positive employee relations • Healthcare Programme outputs: In the reporting
culture, informed by trust and respect. year total 4,91,382 people were outreached
Implementation of ‘Horizon’ has helped from awareness activities and 1,60,574 received
in improving employee’s relationship treatment facility. There is 34.80 % increase
through constructive dialogue with in the people treated from the reporting year
superiors. Building strong Industry- FY2018. Out of the total treated in the reporting
Employee relations, employee health & year, 44,741 people opted for HIV testing, 58,128
safety, developing ‘Apollo One Family’ for vision screening and 43,823 for diabetes
value system and bringing diversity testing. Total 966 TB tests were conducted
across cultures are some of the focus • In the reporting year total 18,122 people
areas of Apollo Tyres outreached from awareness generation and
• Ensuring consistent and effective 24,607 people were outreached from door to
engagement with suppliers/dealers door waste collection activities. Total 2,606
with the objective of aligning their metric ton (MT) was collected from CMV and
expectations with our strategy and CMTN projects. Out of the collected waste 298
targets. Natural Rubbers Suppliers meet, MT was biodegradable and 2,308 MT was non-
Dealers meets, IT-enabled digitised biodegradable waste
solution for business transaction, • To promote recyling of waste tyres total 02 new
queries, benefits and grievances ELT play structures were made using 696 waste
tyres
• For safe sanitation 150 toilet cum bathing space
in Chennai. Around 600 people are directly
benefitted from the newly constructed toilets
• In the reporting year total 2,012 women
outreached and 1,158 received income
generation training in farming and non-farming
activities. Out of the total trained, 1,030 women
are engaged in income generation. Around
733 farmers received training in sustainable
agriculture
• Total 719 ITI students/graduates received job
counselling and skill buliding training

21
 Apollo Tyres Ltd Annual Report 2018-19

INTELLECTUAL CAPITAL

Apollo Tyres value proposition is based on its research and development &
intellectual capital inputs to achieve technological leadership. The Company has
focused on developing its own technology through in-house efforts or through
collaborative research.
Key organisational intangibles also include know-how and management systems. Apollo Tyres assesses the
extent to which its proprietary or licensed technologies, in combination with team expertise, provide adequate
advantage to generate targeted returns on investment. The Company is striving to develop innovative and high-
quality products and also protect its proprietary intellectual property.

INPUTS Skilled, experienced Business processes and

Research & Development allocated
and technically qualified management systems
capex (consolidated) for FY2019 is
employees, industry thought
leaders and experts `1,410.06 MN
Started Centre of Excellence Investments in innovation
as a new function to drive partnerships and ventures
efficiency

OUTPUTS Patent application in last FY in the below mentioned Intangible assets worth
technological area:
• Self healing materials for sidewalll crack resistance
`314 MN
(standalone) in FY2019
• Variable installation TPMS sensor for tyres
• Six number of patent applications are in pipeline for current FY.

OUTCOMES
• 21 Truck-Bus Tyre (5 design applied outside Managing Outcomes
India),Indian defence tyre design, Electric • Prioritising focused research and development
commercial vehicle tyre design, 7 Two wheeler, activities
Motorcycle sport touring for Europe, off-highway • Focus on new product development to grow
port tyre & Mining tyre design applied for market share
protection in India so far. • Partnering with academic institutions, research
• Partnership with various research institutes, bodies and OEM partners across the world to
universities & OEM partners across the world - develop, pilot and implement new technologies
Collaboration with Centire USA in tyre research, • Providing training and technical skills
Dresden university ,Twente University, SRM development for engineers and other non-
University & BITS-Pilani University. technical employees
• Research for new transportation solutions with
low impact on environment
• Exploring the feasibility of usage of alternate
materials for natural rubber including the use of
recycled materials

INTERLINKAGE OF INTELLECTUAL CAPITAL WITH OTHER CAPITALS

The Company bolsters investments in stocks of Intellectual Capital through modern R&D facilities for passenger
and commercial vehicle tyres. This will play a key role in ushering in cutting-edge technology and innovation to drive
organisational growth. Consequentially, Financial Capital, as well as Manufactured Capital, Natural Capital, Human
Capital and Social & Relationship Capital, are likely to be enhanced.

22
 Corporate Overview Statutory Reports Financial Statements

MANUFACTURED CAPITAL

Apollo Tyres relies on its significant fixed assets (property, plant, equipment) to
deliver goods and services safely, efficiently, reliably and sustainably.
Apollo Tyres continues to invest to nurture and grow these assets, reducing the environmental footprint
of their facilities and enabling compliance with new regulatory requirements. Given the ever-changing
environment, the Company has de-risked and re-phased certain projects, while prioritising capital to advance
its growth projects in European markets and also beginning to look at US markets. It has also invested in a
greenfield in India. Sufficient capital has been allocated for maintenance and sustenance activities to ensure
that the business continues to operate sustainably.

INPUTS Property, plant Under the

and equipment operating lease
Four MANUFACTURING Two GLOBAL
LOCATIONS IN INDIA MANUFACTURING LOCATIONS
(consolidated) of agreements, the
(Chennai, Perambra, Limda – Netherlands and Hungary
`108.84 BN (net Company has
and Kalamassery). In 2017,
asset value as on acquired assets,
March 31, 2019) office space and
the Company announced Two GLOBAL RESEARCH &
plans of the fifth Indian DEVELOPMENT CENTERS
warehouses
manufacturing plant in – Chennai (India) and
Andhra Pradesh Enschede the Netherlands

OUTPUTS Installed Capacities: India Installed Capacities: Europe

1,85,419 MT 1,13,724 MT 67,187 MT 74,372 MT

Limda Perambra Enshcede Gyongyose

2,95,792 MT 35,567 MT
Chennai Kalamassery

OUTCOMES Managing Outcomes

• Dedicated satellite R&D office in Raunheim, Germany and Bengaluru, CAPITAL EXPENDITURE
India. R&D Centre in Germany is primarily dedicated to work towards
establishing ties with leading German OE customers for both Apollo
`21.4 BN
(Consolidated): FY2019
and Vredestein brands. The R&D centre in Bengaluru focuses on
development of advanced solutions for tyre performance Depreciation and Amortization
• Apollo’s new Malaysia office, ASEAN region’s third largest automotive
market `8.1 BN
• Commercial production at Chennai brownfield expansion (Consolidated): FY2019
• Commenced production at Hungary (PCR & TBR) greenfield plant Depreciation and Amortization
• Continuing to invest in planned maintenance programme to extend the
lifespan of assets, enhance operational improvements, and ensure safe, `4.5 BN
reliable and efficient operations (Standalone): FY2019

Impairement of assets FY2019

NIL
INTERLINKAGE OF MANUFACTURED CAPITAL WITH OTHER CAPITALS

With the Company’s strategic focus on growth projects, it increases the stock of Manufactured Capital. Increasing capex
on manufacturing plants to access domestic as well as global markets impacts financial capital and natural capital in the
near term. The enhanced Manufactured Capital in terms of new products across segments will help company in achieving
its market leadership in India. The Company’s commitment to reduce the environmental footprint of its existing facilities
will benefit Natural, Intellectual, Human and Social & Relationship Capital.

23
 Apollo Tyres Ltd Annual Report 2018-19

FINANCIAL CAPITAL

The Company’s effective management of the balance sheet and cash flows
is of prime importance for consideration in investing to sustain and grow their
business.
Delivering a significant positive contribution to financial capital by using advanced technologies, well-defined
processes, skilled people and resource management that monetise natural capital. Considering the targeted
return on capital, the Company’s investment decisions are strategically evaluated. Apart from creating value
through its business initiatives, the resulting financial capital is also reinvested in each of the six capitals in a
carefully balanced manner. This is done to ensure the most effective and efficient achievements to succeed in
the industry.

INPUTS Market capitalisation Capital Expenditure

`127.42 BN `21.37 BN
as of March 31, 2019 for FY2019  

Net Debt (Consolidated) Capital Employed (Consolidated)

`43.24 BN `100.40 BN
as of March 31, 2019 as of March 31, 2019

OUTCOMES Consolidated Operating profit Earnings per share Managing Outcomes

(EBITDA including other income) (Consolidated) • Strategically located Singapore
for FY2019 office to work closely with South
`11.88 East Asian region suppliers to
`20.82 BN address natural rubber price
volatility
Cash generated by operating Return on Equity (Consolidated)
• Focusing on optimal capital
activities (Consolidated)
6.9% allocation and delivering returns on
`10.71 BN invested capital
• Considering alternatives to fund
Net debt to EBITDA (ratio) Dividends paid to shareholders capital growth investments –
including project financing, bank
(Consolidated)
300% loans, and other alternatives of
2.08 for FY2017-18
financing
• Benefiting from intensified risk
Net debt to Equity (ratio) Credit ratings: AA+ (CRISIL)
management systems to define
(Consolidated) for Long term, A1+ (CRISIL)
financial risk appetite and tolerance
for Short term; IND AA+
0.43 for Long term, IND A1+ for
measures, ensuring business
sustainability
Short term

24
 Corporate Overview Statutory Reports Financial Statements

CREATING ENDURING VALUE

APOLLO TYRES’ RESPONSE TO THE VOLATILE MACRO-ECONOMIC ENVIRONMENT

The slowdown of global economic growth, along with oil
and natural rubber price volatility continue to adversely impact
the domestic tyre manufacturing industry.

FOCUS AREAS TO CREATE VALUE OUR ACTIONS TOWARDS FOCUS AREAS

• Decline in demand for some products
• Erosion of competitive advantage • By initiating or intensifying a business
• Reduced revenue, margins and performance enhancement program and
earnings response plan, the Company conserved financial
• Curtailed capital investment capital.
programme • With a diversified market base across
• Lower return on invested capital geographies, Apollo Tyres is not dependent
resulting in pressure on share price on domestic market alone and is strategically
• Premium positioning of Vredestein working towards growth opportunities in other
brand in Europe large markets.
• With the entry in two-wheeler segment, the
Company is now a full range tyre manufacturer in
India and can service the large and growing two-
wheeler tyre segment.
• Advanced R&D facilities will support growth
through cutting-edge technology and innovation.
• Highly automated state of art greenfield plant
in Hungary is operational and positioned to
grow in the European market due to a new cost
competitive manufacturing facility.

25
 Apollo Tyres Ltd Annual Report 2018-19

CREATING ENDURING VALUE

APOLLO TYRES’ CONTRIBUTION TO PROMOTE SUSTAINABILITY BY DELIVERING

SOCIAL AND ECONOMIC VALUE
Apollo Tyres’ contribution to social and economic development
is critical to create and sustain an enabling environment for
investment. This has augmented the Company’s positioning as a
credible stakeholder partner.
The Company’s sustainability agenda is focused on fostering inclusive growth. Social
investments towards various programmes provide support to respond directly to the
community’s desired outcomes and also aligned with the country’s economic growth
drivers such as livelihood creation, health issues and environment protection, among others.

FOCUS AREAS TO CREATE VALUE OUR ACTIONS TOWARDS FOCUS AREAS

• Stimulating economic growth by • Promoting social value through business activities and
providing markets for our products applying financial capital, building trust through effective
and services stakeholder engagement and delivering value through social
• Maintaining production integrity investment Apollo Tyres built the stocks of human and
by ensuring responsible supplier social and relationship capital.
management • Promoting ethical behaviour and respect for human rights
• Localising and diversifying supply also had a positive impact on those capitals, as did its
chain / distribution networks contributions to the communities in which the company
• Developing the skills needed to operates.
maintain technological lead • Apollo Tyres work to empower community to address issues
like environment, health and livelihood generation boosted
natural capital, social and relationship capital.
• Spent `213.83 MN in FY2019 on social investment
programmes to uplift communities in which Apollo Tyres
operates.
• Continue efforts to build trust and accountability through
effective stakeholder engagement
• The Company invested in Health programme for the trucking
community, Solid Waste Management and Sanitation,
Community Development (Livelihood for women and
farmers) and Environment Conservation- Biodiversity &
Climate Change

26
 Corporate Overview Statutory Reports Financial Statements

CREATING ENDURING VALUE

APOLLO TYRES’ CONTRIBUTION TO PROMOTE PEOPLE CENTRIC APPROACH BY

ENHANCING HUMAN CAPITAL
Apollo Tyres’ human resources policies seek to enable effective
delivery of its strategy.
The Company provides a work environment that attracts, develops and retains the best
talent, promotes a values-driven, high-performance culture embedding diversity and
transformation. The Company has continued to focus on critical skills development to
ensure that teams have the right skills base and culture for smoother performance at
present and to accelerate future growth. With global operations spanning Europe and
Asia, the Company has managed to align cultural diversity to cultivate sound employee
relationships.

FOCUS AREAS TO CREATE VALUE OUR ACTIONS TOWARDS FOCUS AREAS

• Skilled, experienced, diverse and • By investing in the safety, health and wellbeing
productive people enable the Company of its employees, Apollo Tyres ensures a culture
to operate safely, reliably and of high performance and nurturing talent to build
sustainably the stocks of human and social and relationship
• Pursuing zero accident culture is capital.
paramount: safe plants are stable • There has been visible impact of the Safety
plants, allowing the Company to meet culture within the organisation. This is manifested
production targets in significant rise in proactive risk reduction with
• Providing a safe work environment functional teams identifing 30,121 risk reduction
where employees are healthy and opportunities in FY2019.
engaged • The transformation of workforce and promoting
• Ensuring that the Company has the an inclusive culture is key in protecting Apollo
right talent in the right place at the Tyres’ human, social and ultimately its financial
right time enabling transformation capital.
and growth • Despite challenges posed by volatile oil and
natural rubber prices, it provided fit-for-purpose
remuneration to attract and retain values-driven,
high‑performing people

27
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION
AND ANALYSIS

28
Corporate Overview Statutory Reports Financial Statements

VISION 2020

‘To be a premier tyre

company with a diversified
and multinational presence’.

29
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

The global economy, led by robust growth in the emerging enabled the Company continue towards a northward path as
markets and developing countries, posted a 3.8% growth in it posted a consolidated revenue of `17,273 crore, a growth of
Calendar Year 2017 (CY2017) racing past the 3.2% growth in 18% over the previous financial year.
CY2016. The expectations and estimates for CY2018 included
better performance than CY2017. While CY2018 did begin on MARKET OVERVIEW
a strong note and posted solid numbers in the first half of the
India
year, the growth engine started sputtering during the second
During financial year 2018-19 (FY2019), India was back
half. Increased trade tensions between the US and China saw
on a 7%+ growth track as it shed the residual effects
major economies posting weaker numbers, impacting the
of demonetisation and Goods and Services Tax (GST)
global economy. The trade conflicts also negatively impacted
implementation. According to the International Monetary Fund
market sentiments leading to a tightening of the financial
(IMF), the real GDP growth was estimated at 7.2% for FY2019;
market for the emerging economies and later for the developed
and the industrial segment grew at a faster clip compensating
markets, as well. Demand from Asia softened further and
for the deceleration in the services sector. Agriculture growth
affected the Euro-area economies, which was already dealing
was robust at 4%. India’s story continued to be driven by
with the loss of momentum due to weak consumer and
domestic consumption and the fiscal in review witnessed a rise
business confidence. According to the data from April 2019
in contributions by gross fixed capital formation and exports.
edition of IMF’s World Economic Outlook, the global economy
posted a growth of 3.6%, a shade below the 3.8% in 2017.
Auto Segment
Despite India’s over 7% growth rate, the automobile segment
For Apollo Tyres, FY2019 was a year of enhanced focus on
failed to get traction hitting multiple speed breakers and was
its offerings and brand front. The Company roped in Sachin
forced to shift gear to the slow growth lane. Liquidity concerns
Tendulkar as its brand ambassador and introduced multiple
and crunch, uncertainty around the forthcoming elections,
initiatives to ramp up its product portfolio. These actions

30
 Corporate Overview Statutory Reports Financial Statements

price hikes, mandatory insurance and other such challenges Tyre Segment
took a toll on India’s automobile market as it grew by 5.2% Despite the slow growth in the overall automotive sector, the
in FY2019 vis-à-vis a strong 14.2% and 6.8% in FY2018 and tyre industry had a good run during FY2019. According to the
FY2017, respectively. The Passenger Vehicles (PV) segment, Automotive Tyre Manufacturers’ Association, the tyre industry
the poster child of Indian automobile industry, sputtered witnessed double digit growth during FY2019 and posted a
as it moved to the slow lane and posted a 2.7% growth rate, growth of nearly 11% to an estimated `63,000 crore
against a 7.9%, 9.2% and 7.2% for the previous three financial (US$ 9 BN*). In terms of key segments, the CV segment (truck
years. Despite several product launches during the year under bus tyre) continued to be on a stellar growth path and recorded
review, sales failed to rev up, especially during the second half a 16% growth. However, the PV segment posted a flatish
of the year. However, it is interesting to note that the overall growth for the year. The CV industry, aided by good monsoon
value of purchase has gone up with customers upgrading from and an uptick in the economy, followed a growth path in line
entry-level hatchbacks to premium hatchbacks and compact with the auto industry. The CV segment continued to account
SUVs. While Commercial Vehicles (CV) segment continued to for the highest value within the industry.
be on a strong footing as it expanded by 17.5% for the financial
year, two-wheelers saw a sharp drop in growth to 4.9% as
against 14.8% in the previous financial year.

FOR FY2019, THE COMPANY

However, like FY2018, the auto sector continued to post
POSTED A CONSOLIDATED
strong numbers on the exports front. Overall automobile
REVENUE OF `17,273 CRORE,
exports in FY2019 grew by 14.5% as against 16% for FY2018
A GROWTH OF 18% OVER THE
and negative growth of 4% for FY2017. The growth was
PREVIOUS FINANCIAL YEAR.
led by three-wheelers, which grew at a whopping 49% and
two-wheelers growing at 16.5%.

31
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

Europe
Like the global economy, the European economy in CY2018
was significantly influenced by the uncertainties of Brexit EFFECTIVE LEGISLATIONS
and the trade war between the US and China. Although the ON LOW COST TRUCK BUS
migration crisis of the past year calmed down, finding a RADIAL (TBR) TYRES IMPORTS
common and sustainable solution to the issue remained one IN EUROPE RESULTED IN A
of the European Union’s (EU) major challenges in CY2018. ROBUST 9% GROWTH IN AFTER
The second half of CY2018 witnessed a softer momentum for MARKET AND 4% GROWTH FOR
Europe’s economy. This was primarily due to the introduction THE OEM SEGMENT.
of new automobile fuel emission standards in Germany and
concerns about sovereign and financial risks weighing on
domestic demand in Italy, apart from the weakening financial
market sentiment. After six years of uninterrupted growth,
EU’s GDP grew by 1.9% in CY2018 with the growth dynamics Tyre Segment
slowed compared to the past three years. According to the European Tyre and Rubber
Manufacturers’ Association (ETRMA), the performance of the
Auto Segment tyre sector was generally stable for CY2018. The European
CY2018 witnessed Europe posting its fifth consecutive year market witnessed a small increase (1%) in the replacement
of growth for the industry. The PV registrations reached market for passenger car tyres due to a strong increase
18.1 MN units during the year under review to have a minor in the growing market for all-season tyres. The growth
growth of 0.1% compared to 3.8% in CY2017. The demand for the segment could have been much higher but for
was mostly driven by Central European countries where new imports of PV tyres, which continued to grow and gained
car registrations grew by 8.0%. In Western Europe, Spain market share. In line with the decline in registration and
and France led the growth with 7% and 3%, respectively production of cars, the market for consumer tyres from the
while Germany saw a fall of 0.2% in registrations, even as Original Equipment Manufacturers (OEMs) declined by 4%.
Italy and the UK posted negative growth rates of -3.1% Agricultural tyre sales posted its fifth year of negative growth
and -6.8%, respectively. of 4%. Effective legislations hit the imports of Truck Bus Radial
(TBR) tyres significantly and resulted in a robust 9% growth in
As car production in Europe declined by 1.7%, exports could aftermarket and 4% growth for the OEM segments.
not buck the trend and posted a decline of 1.6%. Interestingly,
there was a substantial increase in imports, which
was up by 9.3%.

The Company’s Vredestein Sportrac 5 was one of just two compact car tyre models to receive the coveted ‘highly recommended’ mark in the latest summer tyre test of ADAC

32
 Corporate Overview Statutory Reports Financial Statements

INDUSTRY STRUCTURE AND DEVELOPMENTS

India
India’s tyre industry is directly dependent on the auto market
and any changes in the latter has an impact on the industry.
For instance, new axle load norms were introduced in early
part of FY2019 and this led to a drop in the vehicle demand
in the second half of the year with a consequent hit on the
tyre sales to the CV OEMs. Again the Non Banking Financial
Company (NBFC) liquidity crunch impacted the truck
purchases of small fleet operators and directly affected the
OEM sales in the industry. In FY2018, the government had
introduced anti-dumping duty on Chinese tyres leading to
drop in imports. During the year, imports did not see a growth
indicating that customers were looking at other factors rather
than price. In the PV segment, one of the key trends visible
was the continued ‘uberisation’ phenomenon. With the success
of ride-hailing services like Uber and Ola and availability of
public transport, customers continued to postpone purchase
of their second car, instead opting for high-end variant as their
first car. This is further validated by the fact that the demand
for Compact SUVs and premium cars/hatchbacks is on the rise
and consequently demand for such tyres continued unabated
during the year.

Concerns around raw material, especially natural rubber, Given the continued strong demand for the All Season tyres, it
continued to plague the industry. The production of natural posted robust growth in the previous financial year. While there
rubber in India has been continuously dropping in the last was a slight growth in the Winter tyre segment, it is expected
decade, even as consumption has been on the rise. This has that the All Season growth will cannibalise the market of
led to a huge demand-supply mismatch. During FY2019, Winter and Summer tyres in the long term. The financial year
the problem was further compounded by the Kerala floods. in review witnessed a sharp increase in the number of players
Over the years, other factors have added to the woes of the in the All Season segment resulting in pricing pressure on the
industry. Export obligation period has been reduced from 18 existing players. The overall Ultra High Performance (UHP)
months to six months and the pre-import clearance has been segment showed a positive trend with a high single-digit
made mandatory. Additionally, only two ports, JNPT and the growth driven by an increase in winter volumes and All
Chennai Port, have been permitted and there are now port Season volumes.
restrictions in other ports. Further, the industry continues
to grapple with the inverted duty structure. While import of Imports from China and other countries has become a worry
natural rubber is an option, the current inverted duty structure for the industry as FY2019 saw that the low-cost imported
taxes imports of natural rubber at a higher rate of 25% to tyres are highly visible in the market putting an increasing
compared to that of finished tyre, which has a duty of less than volume and price pressure on all segments.
10%. Beyond natural rubber, the variation in oil prices, along
with the weakening of the rupee against the US Dollar by 8%
also added to the increase in raw material costs.

Europe
THE PRODUCTION OF
In Europe, the year witnessed a trend in the tyre distribution
NATURAL RUBBER IN INDIA
segment where further vertical and horizontal integration
HAS BEEN CONTINUOUSLY
drove market participants into a consolidation process,
DROPPING OVER THE
resulting in fewer and bigger market participants. All major
LAST DECADE, EVEN AS
industry players continued to drive initiatives to integrate
CONSUMPTION HAS BEEN
manufacturing and trade, which in the long term will reduce
ON THE RISE. THIS HAS LED
independent participants in Europe’s tyre distribution market.
TO A HUGE DEMAND-SUPPLY
MISMATCH.

33
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

SWOT ANALYSIS • The Company is best positioned to maintain its leadership

position in the truck radial segment and drive growth
Strengths
through the same.
• Apollo Tyres has the advantage of a diversified market
base across geographies and therefore, it is not dependent • The Company has a global and culturally-diversified
on the Indian market alone. Further, the Company is management team driving growth across geographies.
working towards establishing and growing operations in
• The Company’s Research & Development (R&D) facilities for
other large markets.
PV and CV tyres will play a key role in bringing cutting-edge
• With its entry in the two-wheeler segment, the Company technology and innovation to drive growth for the Company.
is now a full-range tyre player in India and can service
• Increased spends on building the corporate brand, including
the large and growing two-wheeler tyre segment in
Apollo Tyres’ association with Manchester United and its
India and Europe.
association with football in India, is starting to make Apollo
• The Company is powered by strong product brands in its key a stronger brand in India and a recognised one globally.
markets – Apollo and Vredestein.
• The Company has long established relationships with global
• Apollo Tyres enjoys an extensive distribution network for its OEMs present in India and has forayed into the premium
products across its two key markets. Original Equipment (OE) segments in India.

• In Europe, the Company’s brand, Vredestein, has a heritage • The Company is aggressively pursuing its strategy of building
of over 110 years and an established presence. It enjoys a OE relationships in Europe and has seen few initial wins.
reasonable premium positioning, especially in Winter and All
• In the premium Winter segment, we successfully introduced
Season segments.
the new Wintrac Pro that was awarded test winner in a major
• In India, the Company is a leading brand in the CV segment, German specialised press magazine.
which accounts for the bulk of the industry’s revenue.

Welcoming cricketing legend Sachin Tendulkar to the Apollo Family as its brand ambassador.

34
 Corporate Overview Statutory Reports Financial Statements

Weaknesses
• In a rapidly-rising raw material cost scenario, the Company
is unable to pass on cost escalations to consumers, in a
timely fashion, due to intense competition and various
market dynamics resulting in pressure on margins.

• The necessary improvement of our footprint in Europe

will need special focus on the Summer segment, which is
needed to supersede competition in a non-growing market.
OE homologations are needed to develop the necessary
acceptance in the markets, accompanied by good test
results compared to other premium manufacturers.
Summer tyres are the pinnacle of the UHP strategy, as
summer sizes lead the conversion into higher dimensions in
Winter and All Season.

• Europe operations have been under strain with a weak

market scenario coupled with pricing pressures and
our own internal situation of a large investment and a
ramping up plant.

Opportunities
• In India, the Company has a healthy lead over its
competition in terms of capacity and market share in the
Truck Bus Radial (TBR) segment. This implies healthy
growth prospects with increasing ‘radialisation’.

• In India, the Company’s two-wheeler tyre product has been

widely accepted by the market and there are prospects of
scaling the market share in a fast-growing and profitable
segment. There are also plans to introduce the products in
Europe and other parts of the world.

• The Company’s highly automated state-of-the-art

greenfield plant in Hungary is now operational and it is
well-positioned to grow in the European market due to its
cost-competitive manufacturing.

• The Company is continuously working towards building OE

capability in Europe. With enhanced capacity and a state-of-
the-art plant, it is well positioned to win more OE business,
Apollo Tyres’ Chairman Onkar Kanwar was conferred the Order of the Rising
which in turn will generate replacement demand and Sun, Gold and Silver Star by the Government of Japan. He was also awarded
enhance brand positioning. the Officers Cross (Civilian Division) of the ‘Order of Merit’ of Hungary.

• With the premium positioning of the Vredestein brand in

Europe and the new state-of-the-art plant in Hungary, the
Company has good prospects for improving its product mix
towards a more profitable premium car tyre segment.

• The Company continues to increase its focus on new

geographies such as North America and in geographies
where it has already made some inroads, such as in the
Association of Southeast Asian Nations (ASEAN) and THE COMPANY HAS
the Middle East. These geographies will be the growth THE ADVANTAGE OF A
avenues for future. DIVERSIFIED MARKET BASE
ACROSS GEOGRAPHIES AND
NOT DEPENDENT ON THE
INDIAN MARKET ALONE.

35
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

• The Company has launched truck radial tyres in Europe, • Economic and political instability factors like Brexit and
which will further enhance revenue and market presence. the trade war between China and the US can impact
business in Europe.
• The Company continues to have a focussed approach on
increasing its sales channels and distribution expansion. • Consolidation in the distribution landscape as independent
dealers disappear and wholesalers and company-owned
• The Company has started its deliveries to European
networks are grow may affect the Company’s market reach.
OEMs, endorsing the premium position of its Vredestein
Internet is playing a major role in the change (vertical and
brand and further strengthening its position in the
horizontal integration).
Summer segment.
• High capital intensity resulting in regular need of large capex
• Growth in premium segment of PV (17” and above) in all
for growth puts pressure on free cash flow.
product segments (Summer/All Season/Winter).

• Anti-dumping measures in EU against Chinese imports will SEGMENT-WISE PERFORMANCE

support to expand Apollo’s TBR footprint.
The Company continued to focus on its key regions, APMEA
• The Company still needs to establish a larger (Asia Pacific, Middle East and Africa) including India and
presence in new growing geographies to reach Europe. While Apollo Tyres has a small presence in the
economic-sized operations. Americas, it further added new territories in its key regions and
offered an expanded product range in these markets.
Threats
• Economic downturn or slowdown in key markets
In FY2019, the APMEA operation continued its focus on
(India and Europe) can lead to decreased volumes and
key themes for the Indian market: consolidating leadership
capacity utilisation.
position and expanding market share by introducing new
• The coming year will have one large investments on stream. products across segments. The Vision 2020 for the India
There would be pressure on margins as the utilisations business aims at building leadership in multiple industry
ramp up gradually. segments. Committed investments in R&D and brand
building continued to fuel the growth journey of the region
• Increased competition from global players in India could
to attain its vision. The region has seen continued OEMs
impact the Company’s growth plans and/or profitability.
approvals with high satisfaction, as well as increased
• Tight labour market in Europe and low level customer acknowledgements. For other countries in the
of unemployment can make talent acquisition APMEA region, the Company continued seeding the markets
challenging in Hungary. with country-specific products, building brand salience and
expanding distribution networks.
• There is a continued threat of raw material price volatility
and this translates into pressure on margins in case of a
Commercial Vehicles
rapid rise in raw material prices.
In the CV tyre segment, the Company continued its leadership
• A weak Indian currency can result in pressure on margins, position. It further built on its dominant position in the overall
since the Company is a net importer. TBR market. In the TBR replacement market, the Company
posted strong growth as it increased its market share
• A growing influence of budget tyres, mainly Tier 2 and 3
significantly over the last financial year. Improved product
brands from established manufacturers, could further
portfolio, network expansion and creating high visibility
impact business, particularly in Europe.
were the key themes to the Company’s success during the
year. Apollo Tyres became the first tyre company in India to
introduce a range of fuel-efficient tyres in the later part of the
FY2019, which highlights the role played by its R&D team in
creating first-to-market products. Furthermore, the Company
saw lot of action in the light commercial vehicle (LCV) segment
IN THE CV TYRE SEGMENT, as it expanded its 17.5” portfolio in the LCV radial segment with
THE COMPANY CONTINUED the launch of trailer tyres. Based on the market feedback from
ITS LEADERSHIP POSITION the LCV bias segment, R&D helped the team introduce a new
AND FURTHER BUILT ON ITS and improved rib tyre to further strengthen the Company’s
DOMINANT POSITION IN THE position in the segment.
OVERALL TBR MARKET.

36
 Corporate Overview Statutory Reports Financial Statements

The FY saw the Company’s successful inaugural edition of #BadRoadBuddies, an initiative to connect with the SUV/4x4 community in India

The Company’s best-in-class and robust product portfolio Company to offer best-in-class range of tyre services ensuring
backed by cutting-edge R&D ensured that the OEM business maximum return on investments to the trucking community.
paced ahead at a healthy clip as it continued to maintain and
build on its OEM leadership position in the Indian market. Beyond the introduction of new products and laser sharp focus
With the emergence of electric vehicles, the financial year on the network, the Company upped its engagement with its
witnessed the Company becoming the exclusive supplier customers. It conducted over 100 activities with fleet owners
to Tata Motors’ ultra-electric buses. On similar lines, the under the banner of ‘Apollo Sakushal Sarathi’ programme and
Company saw its tyres fitted on the 9 mtr electric buses of strengthened its relationship with large- and medium-fleet
Ashok Leyland. Both these wins validated the role played by operators. Further, the Company conducted over 250 ‘Leaders
the Company’s R&D team. Apollo Tyres was the preferred & Movers Meet’ programmes to deeply engage with its
choice of Indian and global OEMs, including Tata Motors, customers and support them in their journey of improving
Ashok Leyland, Eicher Motors and Bharat Benz during the efficiencies and reducing cost. For the LCV segment, the
year under review. This has ensured that Apollo Tyres now Company piloted its innovative and first-of-its-kind school
have high visibility not only in the Indian market but also engagement programme called the ‘Apollo Safe Scholars’.
in the export markets of these OEMs, including the Middle
East, Mexico, South Africa, Bangladesh, North and Central
Africa. Another notable win for the Company was bagging
the prestigious ‘TATA Motor’s Partner-level Supplier’ award
ANOTHER NOTABLE WIN FOR
as it had the distinction of being the only tyre company to
THE COMPANY WAS BAGGING
receive this award.
THE PRESTIGIOUS ‘TATA
MOTOR’S PARTNER-LEVEL
Network expansion remained a key focus for the Company
SUPPLIER’ AWARD, THE ONLY
during the year. The Company doubled its Apollo CV zones
TYRE COMPANY TO RECEIVE
to take the total number to 50. Further, the Company also
THIS AWARD.
expanded its Apollo Retread Zones. This has helped the

37
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

Passenger Vehicle off-roaders, social media influencers and journalists from

The Company continued its market leadership journey in India different parts of India. The community was joined in the final
in the PV segment as well. FY2019 was a year of achieving leg of the drive by cricketing legend Sachin Tendulkar—brand
key milestones from technology and branding perspective. ambassador for Apollo Tyres—and the senior leadership team
Banking on its cutting-edge R&D, the Company introduced of the Company.
SUV tyres—Apterra White Lettered—with white lettering on
the sidewall. A key technological advancement, the offering On the OEM front, the Company continued its growth march as
marks Apollo Tyres’ entry into high-visibility tyres market and the #1 supplier. Its tyres are now standard fitment in the top
the distinction of being amongst a few manufacturers in India 8 car brands of the top 10 highest selling cars.
with this technology capability. The financial year saw the
Company expand its co-branded tyre range with Manchester Off-Highway Tyres
United Football Club (Man Utd) and the tyre was available In this segment, the Company focussed on three key
to Man Utd fans driving fast selling cars like Brezza, Nexon, sub-segments: Industrial, Earthmovers and Agricultural.
BRV-WRV, XUV 500, Duster and Scorpio/XUV 500. Further, the
Company was extremely successful in growing its premium In the Industrial and Earthmovers segments, Apollo Tyres
range—Apollo Alnac 4G—meant for premium hatchbacks and persisted with its focus on the existing market and expanded
sedans. To make deeper inroads in the luxury tyre segment, its product offerings to cater to newer markets, including
the Company expanded its range of Aspire 4G branded tyre. underground mining, port and loader applications. According to
With multiple branding initiatives and a focus on increasing internal estimates, the category grew more than 2x that of the
distribution for the brand, the Company grew this business industry growth of ~17%. Again, a best-in-class range helped
significantly over the corresponding previous financial year. in bagging new OEMs like Case Construction Equipment and
Luigong and the year witnessed an increased demand from
As part of its long-term strategy, the Company aims to reach existing partners.
the highest echelon of customer preference and has put in
ample resources in the last few financial years to achieve this
objective. The Company accomplished an important milestone
as it ranked #1 in the JD Power 2018 India Original Equipment
IN THE AGRICULTURAL
Tyre Customer Satisfaction Index in small cars segment and
SEGMENT, THE COMPANY
#2 in the midsize cars or sedan segment category.
INCREASED ITS MARKET
SHARE, DESPITE A
For the PV tyre segment, the financial years ended with a bang
DEPRESSED YEAR FOR THE
as it concluded its inaugural edition of #BadRoadBuddies,
SEGMENT.
an initiative to build and stay connected with the SUV/4x4
community. The event recorded participation of nearly 50

38
 Corporate Overview Statutory Reports Financial Statements

Further, the Company added a new range to target new Company has a presence only in the replacement market,
segments like compactors and cranes with the existing OEMs. according to internal estimates, it has now a sizable market
share in the category.
In the Agricultural segment, the Company increased its
market share, despite a depressed year for the segment. Brand building
The confidence in its products made the Company the first FY2019 was a year of focussing on further brand building.
player in the segment to increase standard manufacturing The Company adopted a 360-degree approach to strengthen
warranty from five to seven years. its brand awareness. To target the biking community, the
Company used OOH media across major biking routes,
As part of its branding strategy for the Industrial segment, the including Manali to Leh, Delhi to Chandigarh, Coimbatore to
Company participated in various events like Bauma 2018 & Ooty, Mumbai to Lonavala and others. Similarly, the Company
IMME 2018 exhibitions. The Company combined its Corporate effectively used the same media to target customers in over
Social Responsibility (CSR) activity, along with its innovative 30 cities for its Amazer 4G live range and cities with high
Industrial tyres van campaign in eight states across India concentration of luxury cars like Chandigarh, Ludhiana and
to showcase the product range and help its customers with Cochin for its Aspire brand. Apollo Tyres participated in the
health and eye check-up camps. For the Agricultural segment, Kumbh Mela with wall paintings, parking lots services and
the Company continued with its ATOM platform to engage with safety activations, among others. The Company continued
its customers. During the financial year in review, the Company to use its connection with Man Utd and related football
conducted more than 300 ATOM events with an outreach to associations for social media and on-ground activations.
over 20,000 customers. Along with conglomerate ITC Ltd., All these brand awareness efforts have yielded results as
the Company jointly organised 250+ activations to touch over the Company moved to the #1 position in brand awareness
10,000 customers. The Company and auto giant Mahindra & in India and #2 position in overall Brand Equity as per the
Mahindra Ltd. conducted joint campaigns and reached out to commissioned Brand Track Study.
the tractor customers across a few states. Apollo Tyres also
participated in multiple exhibitions in India, including Agro
Vision, Krishithon, Agro World and others. It effectively used
wall paintings to enhance its rural reach with over 25 lakh
square feet of branded walls across the length and breadth
of the country.

Two-wheelers
With an objective of becoming a full range player, the Company
continued to strengthen its brand in the two-wheeler tyres
segment even as it continued to expand its range during the
year under review. Apollo Alpha—India’s first ‘zero-degree
steel motorcycle radial tyre’—was launched during FY2019.
Designed and developed at Apollo Tyres’ Global R&D
Centre, Chennai, the tyres cater to the biking enthusiasts.
The launch was accompanied by a high-voltage campaign
#ThrillUpYourBeast.

During the financial year, the Company further expanded its

two-wheeler range to cater to premium sports bikes like KTM,
Dominar, BMW and TVS Apache. Currently, the Company’s
portfolio covers the entire market in India. Even though the

THE COMPANY MOVED TO

THE #1 POSITION IN BRAND
AWARENESS IN INDIA AND
#2 POSITION IN OVERALL
BRAND EQUITY AS PER THE
COMMISSIONED BRAND
TRACK STUDY.

39
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

Beyond India The financial year saw the region’s volumes of PV tyres
Apollo Tyres continued to invest in brand building and range marginally declining over the previous year, in line with the
expansion in key countries like Thailand, Malaysia and Vietnam overall market sentiment. However, a strong improvement in
in the APMEA region. In the SAARC regions, the Company the product mix witnessed revenue growth move to the positive
witnessed significant gains in Nepal. During the financial year, zone for FY2019. The region continued to seed the market with
the Company introduced its two-wheeler range in Nepal, its TBR offering and the reviews of customers and dealers have
adding it to the list of countries in SAARC where the product is been positive. In line with the market trend, while the volumes
available. Currently, the two-wheeler tyres are also available for Agricultural segment declined, again a healthy product mix
in Bangladesh and Sri Lanka. The Oceania region continued to helped the region to show an uptick in turnover and increase
show stable growth. its market share in a declining market. During the financial
year, the Company entered the radial compact tractor tyre
Europe segment as it introduced 14 sizes from 16” up to 20” in the new
For the Europe region, FY2019 was a challenging year, Traxion70 and Traxion65 product lines.
given the slow growth in the automobile and tyre industry.
The region continued to focus on introducing new range of The Company renewed its focus on the bicycle segment as
PV tyres and Agricultural tyres, seeding the TBR market and it introduced the innovative and sustainable Fortezza Flower
getting more OEMs on board. The Company’s strategy to move Power – the first bicycle tyre in the world to be produced from
from a replacement-only player and get associated with OEM rubber produced from the roots of the Russian dandelion
players in Europe saw major traction as Vredestein Quatrac flowers. Also, the Vredestein brand returned to the highest
5 was chosen as a standard fitment for Ford Fiesta and the level of professional bicycle racing as it joined forces with the
Vredestein Quatrac 5 (All Season) and Vredestein Ultrac Satin French World Tour Team AG2R-La Mondiale.
(Summer tyre) became part of the new Volkswagen Touareg
in Europe. With a sharp focus on performance and design, the
Company’s Vredestein Wintrac Pro was declared winner in
2018 Auto Bild test with the prestigious exemplary (Vorbildlich)
rating, a testimony to the R&D prowess of Apollo Tyres.

IN EUROPE, THE
COMPANY INTRODUCED
THE INNOVATIVE AND
SUSTAINABLE FORTEZZA
FLOWER POWER – THE FIRST
BICYCLE TYRE IN THE WORLD
TO BE PRODUCED FROM
RUBBER PRODUCED FROM
THE ROOTS OF THE RUSSIAN
DANDELION FLOWERS.

40
 Corporate Overview Statutory Reports Financial Statements

Like the APMEA region, Europe continues to leverage the Man According to rating agency ICRA, the domestic tyre demand
Utd association to promote the Apollo brand throughout the is expected to grow in the range of 7-9% over the five-year
region. Its other key brand, Vredestein, is the main sponsor of period from FY2019 to FY2023. This will be hand in hand
the Mille Miglia, one of the most prestigious classic car events. with investments made by the industry players over the same
Furthermore, the Vredestein brand was associated with the time frame. Moreover, a forecast of normal monsoon for 2019
ISU speed ice skating world championships in Inzell, Germany will support the CV and Agriculture businesses, especially
to create more visibility and build awareness. To celebrate the for the replacement business given the uncertainties of an
rich legacy and the 110 years anniversary of the Vredestein election year.
brand, the Company created a heritage movie during the
introduction of the Quatrac Pro in March 2019. Against this background of global and Indian outlook, Apollo
Tyres will continue its three-pronged strategy:
OUTLOOK
• To consolidate market position in existing markets and seek
According to IMF estimates, the world economy will grow
new markets/segments
3.3% in CY2019, the weakest since 2009, when the world
economy shrank However, the growth will pick up in CY2020 • To continue investment in both brands – Apollo and
to 3.6%. The slow growth in the global economy is due to Vredestein – and capacity expansion via organic expansions
the fall in the growth rate from 2.2% to 1.8% in the Advanced
• To seek other growth opportunities
Economies. Nevertheless, the emerging markets and
developing economies will continue to grow around 4.4%, As part of its strategy, the Company will continue to seed
albeit a tad slow than that of 2018 at 4.5%. existing and new markets in APMEA and will continue to
seed other important markets across the globe, including the
Europe Americas. However, the Company will stay focussed on its
According to European Commission projections, the entire key markets: India and Europe. For Europe region, the focus
EU’s GDP growth is expected to slow to 1.5% in CY2019, will remain around premiumisation in the sizes 17” and above
before rising slightly to 1.7% in CY2020. Continued uncertainty for the PV tyres segment and all its sub-categories: Summer,
related to global trade and the slowdown of Chinese economy Winter and All Season segments. Importantly, the Company
are expected to have a negative impact on the EU economic will focus on getting OEMs on board and move away from its
growth. Also, the effects of Brexit on the economy are likely to replacement-only strategy in the past. With the initial positive
start being felt in 2019. Major economies, including Germany feedback of the TBR tyres from its Hungary plant, the region
where weak global demand and tougher car-emission will see an aggressive focus on this segment. However, the
standards have hit factory production; France with street region is gearing to pricing pressure for its All Season tyres
protests; and Italy with weak domestic demand and high given increased competition in the segment. The Company has
sovereign-debt spreads continue to dim the growth outlook. ended the year with a showcase of its highly rated Quatrac Pro
Despite the negative outlook, the tyre industry is expected for the UHP and Ultra-UHP segments. For India, the Company
to be relatively stable for the year ahead. It is expected that plans to maintain its leadership position in the TBR segment.
the All Season tyres will continue to grow. The replacement With increased brand building activities and on-ground
market for truck is another segment, which should see good activations around key initiative like #BadRoadBuddies, the
growth numbers. Company aims for the leadership position in PV tyres segment.
The Company plans to replicate its radialisation success story
India in the truck/bus segment in the two-wheeler segment with its
According to IMF estimates, India’s growth is expected Alpha range of radial tyres.
to accelerate moderately to 7.5% in FY2020, driven by
continued investment, improved export performance and
resilient consumption. However, Society of Indian Automobile
Manufacturers (SIAM) estimates that the automobile sector
in FY2020 will continue to be muted for PV sales and the
year will end with 5% growth over FY2019. While the first
half of FY2020 is expected to remain tepid due to the general ACCORDING TO RATING
elections, the industry can expect a rise in demand in the AGENCY ICRA, THE DOMESTIC
second half of the year. With BS-VI coming into play in FY2021, TYRE DEMAND IS EXPECTED
the industry is gearing for a jump in prices by ~10-15% for TO GROW IN THE RANGE OF
petrol vehicles and ~20-25% for diesel variants. It is expected 7-9% OVER THE FIVE-YEAR
that customers will prepone buying, thereby bolstering PERIOD FROM FY2019 TO
demand in second half of FY2020. FY2023.

41
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

RISK MANAGEMENT FRAMEWORK c) In Europe, the Company’s tyre sales in winters

are subject to seasonal requirement, which can be
Apollo Tyres has in place a robust risk management framework
adversely impacted in case of a mild winter.
that identifies and evaluates business risks and opportunities.
The Company recognises that these risks need to be handled
4. Current investment plans
effectively and mitigated to protect the interest of the
a) Apollo Tyres started investment on setting up a new
shareholders and stakeholders, to achieve business objectives
greenfield facility in Andhra Pradesh. This involves
and create sustainable value and growth. The risk management
a significant capital commitment, along with other
processes focus on ensuring that the business risks are
investment needs (both growth and maintenance/
identified promptly; and a mitigation action plan is evaluated
administrative). These will result in higher leveraging
and monitored periodically to ensure that the risks are being
of the balance sheet and a strain on the financials.
addressed accordingly. The Company’s risk management
infrastructure operates with the following objectives:
5. Future growth
a) Lower profitability due to some of the above factors
• Proactively identify and highlight risks to the
impacts the ability to invest in future growth.
right stakeholders
b) Increased competition from global players such
• Facilitate discussions around risk prioritisation and mitigation as Michelin, Bridgestone and others in India, may
also hamper growth.
• Provide a framework to assess risk capacity and
SOCIAL
appetite; develop systems to warn when the appetite is
getting breached 6. Manpower and Labour
a) Retaining skilled personnel may become increasingly
The list of key risks and opportunities identified by the difficult in India due to the entry of global majors in
management are the following: the Indian tyre industry.

b) Attracting and retaining manpower in Hungary will

FINANCIALS
continue to be a challenge.
1. Raw material price volatility
c) Tyre manufacturing is significantly dependent on
a) Natural rubber is an agricultural commodity and
availability of skilled labour. Any labour unrest,
subject to price volatility and production concerns.
shortage of labour, diversion of labour to other
b) Most other raw materials are affected by the industries; may impact tyre production.
movement in crude prices. Any increase in crude
oil prices may impact the prices of some of INTERNAL CONTROLS AND SYSTEMS
the raw materials.
The Company believes that internal control is one of the
c) Both natural rubber and crude prices are controlled key pillars of governance, which provides freedom to the
by external environment and are, therefore, beyond management within a framework of appropriate checks
reasonable control of the management. and balances. Apollo Tyres has a robust internal control
infrastructure, which has been instituted considering the
2. Ability to pass on increasing cost in a timely manner
nature, size and risks in the business. The framework
a) Demand-supply situation must remain in favour of the
comprises, inter alia, a well-defined organisation structure,
industry to enable it to undertake price increases.
roles and responsibilities, documented policies and
b) The situation is further impacted by competitive procedures, financial delegation of authority and other
activities and a general reluctance by other industry such elements. IT policies and processes also ensure that
players, to make quick and appropriate price hikes. they mitigate the current business risks. These policies
are complemented by a management information and
3. Continued economic growth
monitoring systems, which ensure compliance with internal
a) Demand in the tyre industry is dependent on
processes, as well as with applicable laws and regulations.
economic growth and/or infrastructure development.
The operating management is not only responsible for
Any slowdown in the economic growth across regions
revenue and profitability, but also for maintaining financial and
impacts the industry.
commercial discipline.
b) In the past few years, the Company has made
significant investments to increase in production The Company’s internal control environment ensures efficient
capacities, both in India and Europe. Any slowdown in conduct of operations, security of assets, prevention and
economic activities, may adversely impact return on detection of frauds/errors, accuracy and completeness of
such investments.
42
 Corporate Overview Statutory Reports Financial Statements

accounting records and the timely preparation of reliable Director of the Company. Key internal audit findings are
financial information. The Company uses SAP—an Enterprise presented to the Audit Committee at its quarterly meetings.
Resource Planning (ERP) software—as its core IT system.
The systems and processes are continuously improved Most importantly, the senior management sets the tone at the
by adopting best-in-class processes and automation and top of ‘no tolerance to non-compliance’ and promotes a culture
implementing the latest IT tools. of continuous innovation and improvement.

The Company has a well-established independent in-house DISCUSSION ON FINANCIAL PERFORMANCE WITH
Internal Audit function that is responsible for providing RESPECT TO OPERATIONAL PERFORMANCE
assurance on compliance with operating systems, internal
Apollo Tyres prepared the financial statements in accordance
policies and legal requirements, as well as suggesting
with the requirement of the Companies Act 2013, and
improvements to systems and processes. The Company has
applicable accounting standards issued by the Institute of
also identified and documented key internal financial controls
Chartered Accountants of India. The management of Apollo
for critical processes across all plants, warehouses and offices
Tyres accepts the integrity and objectivity of these financial
wherein financial transactions are undertaken. The financial
statements, as well as the various estimates and judgments
controls are evaluated for operating effectiveness through
used therein. The estimates and judgments relating to the
management’s ongoing monitoring and review process, and
financial statements were made on a prudent and reasonable
independently by Internal Audit.
basis, in order that the financial statements are reflected in
a true and fair manner and also reasonably represent the
The Head of Internal Audit reports functionally to the Audit
Company’s state of affairs and profit for the year.
Committee and administratively to the Chairman and Managing

( ` MN)
Year ended Year ended
Sl.No Particulars March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Standalone Consolidated
1 Revenue from operations
Gross sales 120,896 103,881 172,734 149,290
Less: Excise duty - 2,549 - 2,549
Net sales 120,896 101,332 172,734 146,741
Other operating income 2,642 1,688 2,755 1,688
2 Other income 1,114 1,195 1,231 1,142
Total 124,652 104,215 176,720 149,571
3 Total expenditure
a) Decrease/(Increase) in finished goods & work in (2,615) 125 (4,704) (1,474)
process
b) Consumption of raw materials/Purchase of stock in 83,194 65,329 105,969 85,430
trade
c) Employee benefits expense 7,372 7,097 24,562 21,566
d) Other expenses 20,795 17,972 30,075 26,371
Total 108,746 90,523 155,902 131,893
4 Operating profit 15,906 13,692 20,818 17,678
5 Finance costs 1,379 1,375 1,811 1,629
6 Depreciation & mortisation expenses 4,463 3,644 8,127 5,926
7 Profit before share of profit in associates/joint 10,064 8,673 10,880 10,123
venture, exceptional items & tax
8 Exceptional items (2,000) - (2,000) -
9 Share of profit in associate/joint venture - - 1 0
10 Profit before tax 8,064 8,673 8,881 10,123
11 Provision for tax
-Current 1,807 1,885 1,871 2,389
-Deferred 336 564 212 495
Total 2,143 2449 2,083 2,884
12 Profit after tax 5,921 6,224 6,798 7,239

43
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

KEY FINANCIAL RATIOS • Data Centre refurbishment

In accordance with the SEBI (Listing Obligations and • Continuing our journey to cloud-based applications and
Disclosure Requirements 2018) (Amendment) Regulations, landscape to reduce cost of ownership and redundancy
2018, the Company is required to give details of significant of our IT assets
changes (i.e. change of 25% or more as compared to the
• Disaster recovery enhancement for our critical applications
immediately previous financial year) in key financial ratios.
Please note that there is no significant change of 25% or more • Rollout of Managed Security Service to monitor the IT
in the Key Ratios viz. Debtors Turnover, Inventory Turnover, environment from internal and external threats
Interest Coverage Ratio, Current Ratio Debt Equity Ratio,
• Started an initiative for technology enablement journey,
Operating Profit Margin and Net Profit Margin as compared to
including machine learning and artificial intelligence
the previous year.
• Multiple dealer digitisation initiatives to improve access and
Change in Return on Net Worth
connection to the Company’s dealer network
Sl.No Particulars FY2019 FY2018 % Change
i) Return on Net Worth* 7.95 9.89 -20% GENERAL DATA PROTECTION REGULATION (GDPR)
* Return on Net Worth is computed as Net Profit by Average Net Worth. Decline in The Company is implementing its GDPR roadmap with all
Return on Net Worth is primarily due to decline in Net Profit from `6,223.9 MN
to `5,921.1 MN. major compliances in place to ensure protection of personal
data at all locations in the organisation. An awareness
INFORMATION TECHNOLOGY (IT)
campaign was rolled out to ensure that data privacy becomes
At Apollo Tyres, the IT function continues to play an part of its DNA.
important role in ensuring the execution of all operations
across the Company. Furthermore, IT is the custodian of HEALTH AND SAFETY
the organisation’s cyber security and intellectual properties.
The Health, Safety and Environmental (HSE) transformation
Additionally, it also guides and supports the organisation
journey gained significant momentum in the previous financial
through digital transformations that underpin its growth
year to achieve the Company’s safety vision: ‘Committed
ambitions. FY2019 was a year of stabilising and modernising
to highest safety standard to make sure we return safe
the IT through various infrastructure and security initiatives, as
and healthy to our families’. The impetus was led by the
well as supporting digitisation and technology projects for the
Management Board as it laid down strategic priorities to bring
business functions. Some of the key initiatives in areas such
in a culture of safety across the organisation.
as infrastructure, compliance and our digital journey, during
FY2019, included:

India’s 1st full-service farm/agriculture tyre outlet in Nashik, Maharashtra, a state-of-the-art service centres with trained personnel including an Agronomist to guide
the farmers in the tyre selection process

44
 Corporate Overview Statutory Reports Financial Statements

The Company joined hands with Ashok Leyland to provide healthcare facility to the trucking community in and around Chhindwara, in the central
Indian state of Madhya Pradesh.

Visible leadership management, individual and team that had brought a

The Chairman, Vice Chairman & MD and the entire significant change in work culture. Further, plant and function
Management Board members personally started driving the level reward and recognition programme was established at
safety transformation efforts. One of the strategic pillars for various levels to inspire and motivate employees to participate
the Company is safety. The year saw the formation of the HSE in the HSE culture transformation.
Council headed by the Vice Chairman & MD, Neeraj Kanwar, to
review and monitor safety performance. Based on the detailed Awareness and communication
analysis and review of hazards, risks and incidents in whole During the previous financial year, safety messaging was
value chain, the Company launched its seven Safety Absolutes integrated in all formal communication. Further, the messages
during the year. Further, the leadership team visited multiple were reinforced through frequent safety campaigns, messages
work locations and conducted HSE Gemba to understand the and awareness drives.
depth of implementation and key issues.
HUMAN RESOURCES & INDUSTRIAL RELATIONS
Functional ownership
In an ever-increasing competitive and challenging world,
The financial year saw the functional leadership team deciding
Apollo Tyres continues to focus on its ‘people pillar’ as a key
to renew focus on incident reporting and investigation process.
to achieve its core objective of sustainable growth and social
The incident investigation is led by respective functional
objectives. The Company acknowledges the role of the Human
heads and the learning cascaded to the whole organisation.
Resource (HR) community as a strategic business partner
A total of 79 work related Lost Time Incidents were reported
in the organisation and continues to invest in a wide variety
during the year.
of HR activities.

Capability Building
During the year under review, the Company continued with its
Safety training programmes were conducted at various levels.
HR strategy and a sharp focus on the following themes:
Risk-based training programmes offered to all employees
and training effectiveness monitored at functional level.
Capability Building
Over 12,000 employees/contractors were trained in Safety
Given the lack of technical institutes to teach about
Absolutes course.
tyre technology, the Company has had a sharp focus on
building capability since its inception. The Europe region
Positive reinforcement
continued with its ‘Essential 7’ programme to talk to the line
During the year, the first Chairman Safety awards for
manager to support and enhance the line manager’s skill.
three categories were distributed. The categories include
Around 15 workshops were held in FY2019 with a special

45
 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

focus on mentoring, performance management and coaching. by ensuring that the above parameters are met. A robust
The Hungary plant created a self-service platform learning Internal Job Posting system ensures that employees are
environment for its employees. The platform contains aware of available prospects. The leadership team actively
instructions for its various processes and the employee can participates in the quarterly ‘townhalls’ as it answers any
use multiple learning methods (text, video, pictures and tests). and every questions from the employees. Finally, each
Moreover, for the ease of access, the content is available location has a list of events to continuously engage with the
through smartphone, desktop and tablet. In the Indian plants, employees and, at times, their families as well. The Hungary
initiatives like Signature 2019 was launched where employees plant has a regular programme for employees and their
were asked to present their Kaizen projects to share their family members called ‘Family Factory Visit’ and gives an
learning. There was also Saksham, a programme, which opportunity to the closest relatives of the employees to visit
focusses on the development required during the transition in the plant. The Indian plants held various events like festival
the new role of an employee. celebrations, Women’s Day celebrations, running and wellness
programmes and others.
Employee Engagement
With ‘One Family’ as one of the core values of the Company, Performance Management
it actively engages with the employees at all levels. The performance management process, ‘Horizon’, completed
The Company looks at engagement as beyond the traditional its third annual cycle. The Company’s performance
event-based engagement programmes and at a holistic management system gives ample opportunities to each
engagement initiative where the endeavour is to provide clear employee to discuss not only about the performance but also
job knowledge; clarity about the scope of opportunities (both the opportunities available in the organisation.
horizontal and vertical); an environment, which promotes
learning and sharing; open communication and others.
The Company endeavours to provide an engaging environment

The Company’s Vredestein brand launched the brand-new all-season tyre, the Vredestein Quatrac Pro and is specially designed for the ultra-high performance (UHP)
segment and cars such as the Alfa Romeo Stelvio, Volvo XC90 and BMW 5-series.

46
 Corporate Overview Statutory Reports Financial Statements

Talent Management Company started its first initiative, Healthcare for the Trucking
In an increasingly competitive world, talent management Community in 2000, it created Apollo Tyres Foundation in
has become a key focus area for the HR function in the 2008 to undertake all its CSR initiatives.
organisation. The Company actively endeavours that its
employees look at job enlargement and rotation opportunities. The organisation respects the value of the community
For the Company, supporting such a journey is a win-win by supporting rural livelihood, addressing solid waste
arrangement wherein employees discover avenues of growth management in the community and protecting biodiversity.
and the organisation can leverage well-inducted candidates It also encourages its supply chain partners and employees to
with a deep understanding of its business and culture. be equally conscious of the environment and play their part as
Multiple people across the organisation were given the responsible citizens. The long trajectory of the organisation in
opportunity to work in new functions or move to a new location. the space has helped it to focus its efforts towards four core
areas of work: Healthcare for Trucking Community, Solid Waste
Industrial and Employee Relations Management, Livelihood for Underprivileged Women and
The Company continuously engages with its unions and work Biodiversity Conservation. In addition to these four core areas,
councils across its global locations. In the Indian plants, the a few local initiatives pertaining to watershed management,
Company concluded long-term agreements with its unions. computer literacy and philanthropy were also undertaken.
The Company has implemented a structured grievance
redressal system in its India plants. A new pension plan During FY2019, the Company managed to achieve some
for all Netherlands-based employees was agreed upon. significant milestones. Under its Healthcare for Trucking
The agreement was cost neutral and is innovative in its kind. Community programme, which is rolled out through the 31
centres across 19 states, a 33% increase of beneficiaries
CSR: SOCIAL COMMITMENTS availing the service was recorded compared to the previous
year. Under the Solid Waste Management programme, the
Apollo Tyres is fully committed to fulfil its responsibility to
Company set up End-of-Life Tyres playgrounds in rural schools
the society and environment, given the wide range of CSR
addressing environmental threats of disposal of used tyres.
activities it undertakes within and outside India. While the

The Company established a one-of-its-kind ‘Farmer

Producer’ organisation for organic farming for women farmers
under the Livelihood for Underprivileged Women initiative.
The Company’s honey making unit in Kottayam, Kerala got
certified to the international standard on Food Safety Systems
Certification [FSSC], a rare feat in this area. The Mangrove
Conservation programme under its Biodiversity theme hosted
its first inter-college quiz competition in Kerala. The Mangrove
audio-visual film won an International Woodpeckers Film
Festival Award 2018 for the best CSR initiative.

In Europe, the Company joined hands with Municipality of

Enschede to solve the existing problems with rainwater and
groundwater nuisance and to improve the living environment of
the area, called ‘Stadsbeek’. The Company participated in the
initiative of laying coconut mats along the banks of the stream
to grow native plants which will help in increasing various
animal species, such as insects and frogs.

THE COMPANY FIRMLY

BELIEVES THAT ITS HR IS
A STRATEGIC BUSINESS
PARTNER AND CONTINUES TO
INVEST IN A WIDE VARIETY
OF HR ACTIVITIES.

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 Apollo Tyres Ltd Annual Report 2018-19

MANAGEMENT DISCUSSION AND ANALYSIS

During the year, the Kerala floods devastated the state. In a Tyres’ foothold in the space of managing carbon footprint.
heart-warming gesture, the Company and its employees across During FY2019, the organisation received its first external
the organisation rallied together and provided assistance to the verification of the Corporate Carbon Footprint, in line with
beneficiaries and communities at large in Kerala. Additionally, International Standards of AA1000 and ISO 14064 for
in Europe, employees of the Company donated a fixed sum and FY2018 and FY2019. This is aligned to our vision to be in the
suggested a charity organisation to which the funds could be league of forward-looking organisations. The details of all the
donated. Last year, the total amount of donations was divided initiatives listed above are further elaborated in the subsequent
among five foundations. section under Sustainability.

The Company’s sustainability journey has not just been limited

to the work in the communities. This year marks Apollo

THE MANGROVE AUDIO-

VISUAL FILM WON
AN INTERNATIONAL
WOODPECKERS FILM
FESTIVAL AWARD 2018 FOR
THE BEST CSR INITIATIVE.

48
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 Apollo Tyres Ltd Annual Report 2018-19

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SUSTAINABILITY SNAPSHOT
This section provides an overview of the
sustainability performance of Apollo Tyres,
focussed on its key stakeholders.

The Company has developed its own Sustainability Management

Framework (SMF), aligned to the global standard of ISO 26000
on social responsibility. It has also commenced on its roadmap to
undertake external assurance on the framework according to ISO
26000. As a part of that roadmap, the procedures for core subjects
of environment and community development have been externally
assured.
The sustainability performance reporting draws elements from globally
available and accepted guidelines like the Global Reporting Initiative.

PERIOD OF REPORTING SCOPE OF THE REPORT

The period covered for the purpose of this report The Company has made comprehensive efforts
is April 1, 2018 to March 31, 2019. to ensure transparency, accuracy and materiality
in this report. The information disclosed in this
report relates to the Company’s operations across
two geographies – Europe and Asia Pacific Middle
East and Africa (APMEA). This report primarily
encompasses manufacturing operations, with the
exception of the ‘Care for Employees’ section, which
also discusses non-manufacturing operations.

READ INSIDE

Centre of Excellence
Read more on Pg 54

Research and Customers as the

Development Brand Ambassadors
Read more on Pg 82 Read more on Pg 56

Community Workforce
Involvement Read more on Pg 60
Read more on Pg 77

Environment Health and

Read more on Pg 69 Safety
Read more on Pg 62
Partners
Read more on Pg 63

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SUSTAINABILITY SNAPSHOT

2 5
3 1
4

Operational Unit
Project Site

MANUFACTURING LOCATIONS
Europe Operations
1. Enschede, Netherlands
2. Gyöngyöshalász, Hungary

APMEA Operations
1. Chennai
2. Limda
3. Perambra
4. Kalamassery (leased unit)
5. Andhra Pradesh

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MANAGEMENT APPROACH TOWARDS STAKEHOLDER ENGAGEMENT

SUSTAINABILITY
The Company engages with a wide range of stakeholders
The Company’s sustainability strategy outlines its approach globally. At the local/regional level, the operations are
and effort towards syncing its growth agenda with environment encouraged to work with communities to identify and
conservation, social prosperity and economic wellbeing. It implement stakeholder engagement initiatives.
incorporates environmental and social considerations in its day-
to-day operations and the sustainability strategy has made its
growth balanced and responsible.

While the Company continues to be India’s market leader, it

aspires to be the global industry leader by pursuing emerging
opportunities and continually embedding sustainability into the
business model. This is further enhanced through its well-
developed and implemented SMF. The Company has identified
key priorities as a part of its sustainability journey. It is aspiring
to be carbon-neutral, water-positive, energy-efficient and eco-
conscious producer, combating challenges around End of
Life Tyres.

The Company ensures that the sustainability goals are aligned

with the business, as it is imperative to create value for all
stakeholders. A major shift, over the past few years, has been the
integration of sustainability principles into all levels of corporate
strategy, business model as well as the value chain. The
framework and the associated roadmap are further embedding
sustainability principles at the heart of the organisation.

Moreover, to reach out to a wider range of stakeholders and

communicate its sustainability performance, the Company
started making disclosures based on international guidelines
since 2010. The sustainability disclosures were instrumental in
assessing actual performance, setting benchmarks and seeking The Company believes in communicating with various
continual improvement towards a better growth trajectory in all stakeholders to understand their concerns and respond with
domains of the triple-bottom line – social, environmental appropriate mechanisms. Various functional departments use
and financial. diverse communication channels to fulfil this responsibility.

Regular formal and informal interactions with stakeholders over

the years have been fruitful in creating enduring stakeholder
relationships. Such engagements reflect onto key business risks
and opportunities. Sustainability risks are identified through such
engagements and strategies are formulated to mitigate
these risks.

APOLLO’S THREE-PRONGED STRATEGY FOR STAKEHOLDER ENGAGEMENT

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SUSTAINABILITY SNAPSHOT: CENTRE OF EXCELLENCE

New Initiative
towards Efficiency
A key challenge to any growing global organisation is often increasing resource
requirements, limited leveraging of skills and scattered investments, this in turn can
lead to reduced profits and compromised efficiencies. If this materialises, organisations
are often unable to sustain, support and manage future growth & objectives.
In order to overcome this potential risk, it is important to build some form of
organisation-wide shared services. In line with this we have embarked on the journey
towards an Apollo Centre of Excellence (CoE). This Centre of Excellence will be a
strong enabler for our wider business strategy by implementing a best-in-class services
organisation which provides support & value added services to every business function.

The Centre of Excellence will allow the Company to leverage a shared talent pool to streamline activities, drive
efficiency and enhance organisation-wide control.

VISION MISSION

• COMPETENCE, CAPACITY, EFFICIENCY AND

RESOURCE FLEXIBILITY

• AUTOMATION, ANALYTICS AND REPORTING AND

TO BE THE BEST IN CLASS SERVICES SHARING OF BEST PRACTICES
ORGANISATION DRIVING EFFICIENCY, ENHANCING
• INCREASE STANDARDISATION AND VISIBILITY
CONTROL AND ENABLING ROBUST PERFORMANCE
TO AVOID DUPLICATION AND REWORK
MANAGEMENT THROUGH STANDARDISATION AND
AUTOMATION LEVERAGING THE RIGHT TALENT, • EMBED CORPORATE DATA SECURITY, DATA
WITH CLEAR ROLES AND RESPONSIBILITIES. OWNERSHIP, CONTROL AND MONITORING

• DRIVE COST EFFICIENCY

• STRATEGIC BUSINESS PARTNER WHICH FREES

UP CAPACITY FOR BETTER DECISION MAKING

• DRIVE OPERATIONAL ACCOUNTABILITY WITH

A STRICT CODE OF GOVERNANCE

KEY BENEFITS OF CoE

Efficiency and effectiveness Cost efficiency and leveraging Foster innovation and knowledge
globally CoE will enable the company to sharing across the organisation
CoE will enable efficiency by leverage its resources more efficiently CoE will share best practices, ideas,
consolidating and streamlining on a thereby maximising every investment in ways of working from one department,
global scale. People and Technology. location and region to the other
parts of the organisation, enabling a
learning organisation and continuous
Enable core organisation to focus Streamline and share common improvement.
on critical success areas processes
CoE will cater to transactional activities CoE will provide shared resources
centrally and free up critical skills and which enables activity streamlining and
resources to enhance our productivity. efficiency gains.

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 Apollo Tyres Ltd Annual Report 2018-19

SUSTAINABILITY SNAPSHOT: CUSTOMERS

Customers as the
brand ambassadors
Customer centricity has always been critical to everything we do at Apollo Tyres.
It is part of our value system as enshrined in the Apollo Way, a philosophy of life
advocated by the Company for each and every employee. Our ‘Customer First’
approach is encapsulated in the words: ‘We believe that our customers and those
whom they serve are central to everything we do’. It highlights the importance of
the customer for each and every employee in the Company.

With the democratisation of information, customers are

increasingly becoming well-informed and discerning. For a
large number of products, two key factors continue to drive
customer’s preferences – quality and price. At Apollo Tyres,
listening to customers to understand their requirements and
identify efficient solutions have been one of the Company’s
greatest strengths that has enabled us to grow successfully.
AT APOLLO TYRES, LISTENING TO CUSTOMERS
TO UNDERSTAND THEIR REQUIREMENTS AND
CUSTOMER RELATIONSHIP MANAGEMENT
IDENTIFY EFFICIENT SOLUTIONS HAVE BEEN
In the evolving producer-to-consumer paradigm, which ONE OF THE COMPANY’S GREATEST STRENGTHS.
is becoming network driven, customers remain a key
stakeholder. Customer loyalty begins with the quality of
the products and then impacted by the quality of services
and the level of engagement. In line with the perspective, Our education drive on Tyre care and
the Company has restructured its approach to customer maintenance, particularly on vehicle alignment
relationship management around three broad themes: gaps, lead to establishment of CV alignment
centers in last 3-4 years.

The Company was successful in increasing its CV

Zone footfall by 18% in the fiscal. It initiated the
journey by offering the best alignment services
to customers and saw a rise of 22% in CV Zone
Service Experience by the end of the fiscal
Apollo Tyres continued its initiative to expand
its CV Zone centers to cater to the need of truck
wheel alignment and more than doubled its CV
Zones to 44 at the end of the fiscal.

During the year, the Company’s specialized CV Forza team

continued to engage with the commercial vehicle (CV) fleet
owners providing them with regular knowledge updates,
technical assistance and trainings on care and maintenance of
tyres to ensure their durability.

There were no incidents of non-compliance with regards to

product safety, labelling, marketing communications or data
privacy from any of our operations during the reporting period.

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CUSTOMER SERVICES
In the tyre industry, beyond quality and a competitive price, The function is also supported by the Company’s Regional
quality of services also plays a key role in enhancing customer Inspection Centres. These centres conducted inspections
loyalty. The Company continued to focus on its Customer and checks on the returned products and the feedback shared
Services function. The department specialises in providing with functions like manufacturing and R&D. This, in turn,
superior value-added services to customers. supports the Company’s objective of providing best-in-class
products.
The function plays an important link between multiple
departments including sales, marketing, manufacturing Additionally, the CS adopts a 360˚-service approach to
and R&D with its robust feedback from the customers. The connect all customer service touchpoints, enriching the
Company has launched multiple products and services, based overall customer experience. The features of the approach are
on voice of customers. outlined in the table below:

Apollo Certified Fitter Apollo Radial Service Apollo Radial Repair

(ACF) Assistance (ARSA) Centre (ARRC)
A fitter engagement An initiative to engage with An initiative to motivate and
and welfare initiative to customers to optimise equip dealers to support
educate customer to follow operational efficiency in their customers by repairing
recommended fitment fleet. A technically trained and damaged tyres, instead of
practices, inflation pressures qualified person is allocated to scrapping them.
for tyre longevity and the fleet for standard checks
using right tools and safety like vehicle inspection, scrap
measures. The Company tyre inspection, inflation and
increased its network of other routine work, which
ACF to 300 in FY2019 a sharp leads to an enhancement
increase from 120 in FY2018. in operational efficiency by
15-20%.

Apollo Quick Service Apollo Tractor Owners Apollo Direct (Contact

(AQS), Tubeless Service Meet (ATOM) Centre Management)
Point (TSP) A farmer engagement and A 365 days dedicated customer
A programme to provide quick welfare initiative to educate care service center for grievance
complaint redressal to customer tractor owners in tyre care redressal and addresses queries
for tubeless tyre puncture and repair. Over 349 dealers, and complaints in English and
through recommended tools and franchisees, fitters and regional languages.
procedure. The Company added retreaders are invited to training
100 AQS centres during the sessions during the fiscal.
fiscal to take the number to 350
across the country.

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SUSTAINABILITY SNAPSHOT: CUSTOMERS

CUSTOMER ENGAGEMENT
TBR Tyre Service Experts: Pilot launch at
Uttar Pradesh Providing a world-class customer experience is integral to our
The Company launched its high quality TBR customer engagement strategy at Apollo Tyres. We continue
products in 2010 supported with 360 degree to engage with our customers through multiple forums to
service approach to manage the entire tyre receive inputs and suggestions in order to serve them better.
life cycle. A sustained focus on the approach Some of these are as follows:
helped the Company to establish a leadership
position in the TBR segment.

As radialisation of truck tyres in India

continues to rise, the Company has been
an advocate to help understand customers
the importance and benefit of radialisation
for truck owners. FY2019 saw the Company
launch a unique initiative called ‘TBR Tyre
Service Expert’ to help customers make
the TBR journey smarter and fruitful for his
commercial operation. Voice of Market
With a diverse customer base ranging from fitters to
The Company provided multiple services
retreaders to casing dealer to drivers, feedback from these
including customized recommendation of
multiple stakeholders is imperative to understand their
tyres, monitor tyre performance, improve
requirement and loop it back into the system for product
tyre life, reduce operational cost and quick
and service improvements; and as inputs to key business
complaint redressal.
decisions. The Company conducts regular studies to capture
The Company’s pilot project in Uttar Pradesh customer’s satisfaction levels, usage practices, product pain
was a big success as the CS function was able areas and new expectations on products and services.
to resolve customer queries.

Load & Fitment Studies

The Company conducts monthly Load and Fitment studies,
which provide a comparative insight into product parameters
such as fitment share, brand of choice, current loading trends,
usage practices by customers on various tyre brands, among
others. The studies were conducted at 11 key locations with
Truck / LCV/ SCV and ICV category as a major focus area.

CUSTOMER SAFETY IS DEEPLY EMBEDDED IN THE

COMPANY’S PRODUCT DEVELOPMENT STRATEGY,
STARTING FROM THE DESIGN PHASE. IT HAS PUT
IN PLACE ROBUST PROCEDURES TO CONDUCT
RIGOROUS QUALITY CHECKS AT EACH STAGE CPKM – Real value for Commercial Vehicle users
OF THE MANUFACTURING PROCESS TO CREATE FY2019 saw the Company kick start the Cost Per Kilometre
PRODUCTS, WHICH ARE SAFE, EFFICIENT AND (CPKM) concept to spread awareness to its wide cross-
RELIABLE. section of customers on the value a tyre brings to their
businesses. Beyond the CS function, the Company also
trained about 106 Apollo Exclusive Dealers during the year.

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 Corporate Overview Statutory Reports Financial Statements

ENGAGING WITH PV COMMERCIAL FLEET

OWNERS
The Company launched a campaign with PV Commercial
fleet owners to increase its SOA (Share of Account). Through
the initiative, the CS team conducted 1057 activities for
fleets owners across the country. The campaign focused
on improving customer engagement, enhancing product
information and disseminating good safety practices. The
campaign highlighted the benefits of the tyre brand ‘4G Life’
and further strengthened the connect with the Apollo brand.

CUSTOMER SAFETY
region. In Asian markets for example, one-on-one interactions
are more prominent and effective.

Responding to the changing dynamics of the business, we

initiated our first market intelligence project- ‘Customer Value
Management’ eight years ago. The project objectively targeted
the interface points, where the Company’s product interacts
with customers such as end-users and dealers and where
customers form a perception about the Company’s tyres.

Through the exercise, we were able to gather crucial

information about our customer’s preferences, buying
capacity, geographic location and experience with a particular
brand that influence their buying decisions. The results helped
us in designing appropriate strategies to maximize benefits
to our customers. The method of quantifying the Voice of
Customers and collection of data is scientifically designed to
present a value vs price ratio for Apollo and all
competitor brands.
Customer safety is deeply embedded in the Company’s
Benefits of the Study:
product development strategy, starting from the design
phase. It has put in place robust procedures to conduct
rigorous quality checks at each stage of the manufacturing
process to create products, which are safe, efficient and
reliable. The Company’s products adhere to applicable safety
standards and are labelled to provide customers with relevant
information regarding product safety.

Globally businesses are undergoing dynamic transformations,

largely influenced by changing consumer preferences,
impact of globalization and increasing use of internet and
communication technologies. While a large volume of
information about a company, products or a component
is easily available, critical data required to take effective
decisions are not easily accessible. Acquiring such information
requires dedicated investments into market intelligence.

For decades, western markets have depended on market

intelligence for introducing products or growing their
businesses, but these trends have started emerging in
developing economies in recent years. Besides, the methods
of conducting market intelligence vary from one region to

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 Apollo Tyres Ltd Annual Report 2018-19

SUSTAINABILITY SNAPSHOT: WORKFORCE

Apollo Tyres is proud of its people and recognizes that they are a key
differentiating factor in achieving business objectives. The company continues
to invest in its human resource activities that support the overall growth and
success of our employees.
The HR department continues its focus to provide a work culture that creates
avenues for professional and personal growth. As of March 31, 2019, the Apollo
family has 17,176 permanent and contract employees worldwide

Region wise employee distribution % RECRUITMENT

Our recruitment activities focus on both experienced and
5 3
78 emerging talent. For example, through our 2018 Indian GET
programme, 105 young engineers from some of the best tech-
schools in India joined us as Apollo Tyres Graduate Engineer
Trainees. This structured training program, aims to contribute
APEMA towards the organisational objectives of high productivity,
Europe automation, innovation and creativity through team work to
Corporate & Others become the number one tyre company in India. This specially
14
Reifen trained group will meticulously support manufacturing and
allied systems to ensure that every single Apollo Tyre adds
best-in-class value to the customers’ business.

MANAGING INDUSTRIAL RELATIONS

APMEA Europe %
%
Apollo Tyres is a proactive organisation and we continue
60
92 to maintain healthy industrial relations across our global
40 8
operations. The company has consistently worked in
collaboration with Trade Unions and other employee bodies
to improve the working environment for our people as well as
productivity and cost effectiveness for the company.
Permanent Permanent
Contract Contract As a proactive measure, a structured grievance redressal
system has been successfully implemented in our India
operations this year. In Europe we successfully renewed
our Collective Labour Agreement (CLA) and concluded new
pension arrangements through consultation with trade unions
and our works council.

Corporate & Others % REIFEN %

2 4 Total participants in successful

96
ADMIRE prgramme
98

270
Permanent
Permanent
Contract
Contract Employees covered by on-line learning platform
worldwide, covering core manufacturing and
sales disciplines

450
60
 Corporate Overview Statutory Reports Financial Statements

TRAINING AND DEVELOPMENT EMPLOYEE ENGAGEMENT

We recognize the importance of developing our people and in Apollo Tyres engages with its employees regularly by
FY2019 we ran training programmes covering a broad range providing them innovative platforms to share their skills,
of technical and leadership disciplines. knowledge and viewpoints. Exploring various opportunities for
keeping the employees engaged has been a key priority.
In India our successful ADMIRE programme was attended
by 270 frontline field sales employees while our Step-Up In India we have been venturing into newer aspects of
programme continues to deliver high quality product and engagement initiatives in order to keep the employees
process training for new recruits into our frontline field teams. engaged both “on the job” and “off the job”. Activities include
competitions, employee forums and interest groups that have
We continue to invest in mandatory and safety training and
proved to be both popular and effective.
in the ongoing education of our operators. Our Hungary plant
has invested in a self-service platform for individual training In both our European plants we have held various social
that allows access to workstation specific videos, pictures events for our employees, their friends and families that
and text to aid problem solving and technical development. continue to be well attend.

In 2018, we launched an on-line learning platform for over

450 employees worldwide covering core manufacturing and
APOLLO FOR SPORTS
sales disciplines as well as core personal and management
skills. We will extend this programme in the coming year Apollo Tyres has adopted sports as a medium to inculcate
adding content and expanding access. team spirit and healthy competition amongst its employees.
It organises various sports events throughout the year where
Our leadership capability has been expanded through our
employees are motivated to join.
flagship Technical Leadership Development Programme and
through a number of executive coaching programmes aimed In India we have introduced a running and wellness
at senior leaders. programme with the aim of participating in the Airtel Delhi
Half Marathon as well as great success at state level
corporate cricket tournaments.

JOB ENRICHMENT AND ROTATION REWARDS & RECOGNITION

As a growing organisation, the scope for career enhancement Apollo Tyres has adopted various mechanisms to motivate
within the Company is expanding and evolving at a rapid and encourage its employees from ‘on-the-spot’ recognition
pace. We always strive to further job enrichment and rotation with ZOOM coupons to social events that celebrate individual
opportunities to internal talent as a win-win arrangement and team success stories.
where employees have opportunities to grow and the
At a global level, Apollo runs a number of coveted recognition
organisation can leverage well-inducted candidates with a
schemes aimed at rewarding employees. The Employee of the
deep understanding of our business and culture.
Year award is given to a senior level employee in recognition
Our Enschede plant has developed a programme that of outstanding contribution to the company. In addition,
provides training to established operators allowing them to our Roll of Honour award is given to a number of individuals
work across multiple departments and equipment in order to below Head level from across the organisation in recognition
develop a more flexible workforce. of consistent performance and significant contribution in
their respective function. Winners are invited to enjoy a short
Talent and succession planning activities at local and
city break with other winners as a team event. This year 50
functional level provide structure to job rotation identifying
winning employees visitied Dubai .
opportunities for individuals whilst minimizing operational risk
for the organisation. The company also applies for various external awards.
In FY2019, Chennai Quality Circle won the Regional Level
Competition for the QCC project titled ‘Loading time reduction
in tyre building machine’ and in other QCC forum like
CCQC and NCQC, Chennai teams participated and won 16
prizes at Chennai.

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 Apollo Tyres Ltd Annual Report 2018-19

SUSTAINABILITY SNAPSHOT: HEALTH & SAFETY

The Health and Safety transformation journey gained significant
momentum in FY2019 to achieve the Company’s safety vision –
‘Committed to highest safety standard to make sure we return safe and
healthy to our families’.
The initiative was led by the Management Board to inculcate a culture
of safety in the organisation. As a part of the ongoing journey, HSE
Council was established at the corporate level, headed by VCMD, Neeraj
Kanwar, to review and monitor safety performance. Based on meticulous
observation and analysis of critical risks, the organisation launched
seven safety absolutes in the World Safety Day programme in 2018,
which are applicable to all employees, contractors and partners.

Besides, the leadership team visited work locations

and conducted HSE Gemba to understand the depth of
implementation and key issues. A total of 313 Safety Gemba
walks were conducted to make the operation safer.

FUNCTIONAL OWNERSHIP CAPABILITY BUILDING AWARENESS AND

COMMUNICATION
The fiscal saw the functional leadership Safety training programmes were
team deciding to renew focus on conducted at various levels. Risk-based During the previous fiscal, safety
incident reporting and investigation training programmes were offered to all messaging was integrated in all formal
process. The incident investigation is employees and training effectiveness communication. Additionally, the
led by the respective function head and was monitored at the functional level. messages were reinforced through
the learning is cascaded to the whole Over 12,000 employees /contractors frequent safety campaigns, messages
organisation. A total of 81 work related were trained in Safety Absolutes and awareness drives. Safety is a
Lost Time incidents were reported course. critical facet to achieve organisational
during the year. growth and sustainability, and its
POSITIVE REINFORCEMENT
prominence has been stressed across
Additionally, functional teams identified
During the year, the first Chairman all operations.
1591 near-misses and 28530 BBS
Safety awards for three categories
observations during the fiscal year,
were given. The categories include
which is significant and demonstrates a
management, individual and team - who
proactive behaviour to reduce risks.
had brought a significant change in the
The organisation successfully work culture. Additionally, plant and
transitioned from ISO 14001:2004 function level reward and recognition
to ISO 14001: 2015 to enhance the programme was established at
environment performance. various levels to inspire and motivate
employees to participate in the Health
and Safety culture transformation.

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SUSTAINABILITY SNAPSHOT: PARTNERS

(RAW MATERIAL SUPPLIERS)
Sustainable procurement practices are becoming increasingly
integral to organisations globally. By adopting and integrating
corporate responsibility principles into procurement processes
and decision-making, the organisation is able to meet the
requirements of its stakeholders as well as positively impact
the environment and society.

While balancing the environmental, social and economic aspects,

the focus on the upstream supply chain extends to sourcing of
raw materials, their processing and the use in the manufacture
of intermediate and final products from the supplier’s side.

With a centralised purchase function with footprints in India,

Singapore and the Netherlands, the Company works efficiently
with its suppliers across Asia, Africa, Europe and USA. The
suppliers are constantly expected to ensure that their services
and products delivered to the Company comply with all national
and other applicable laws and regulations.

PURCHASE POLICY PURCHASING GUIDELINES

Apollo Tyres considers its suppliers as long term business To reap the twin benefits of reduced transportation costs and
partners and is committed to conducting its business affairs lower carbon footprint, domestic suppliers are preferred by the
in a fair and ethical manner that promotes open and fair Company, considering other factors being equal. In addition,
competition in the best interests of Apollo Tyres and its dealing directly with manufacturers enables the Company to
business partners. understand and react to any quality and logistic issues promptly.

The Company strives to continuously enhance customer On the other hand, in the areas of new technology and innovation,
satisfaction by providing cost- effective and quality materials suppliers outside India have been developed for additional
on a timely basis, while working with its supply chain partners material sources and technical partnerships.
on environmental, economic and social aspects to enable
The Company also encourage its suppliers to develop
sustainable business practices.
environmental management systems in line with international
standards such as ISO14001. Apollo Tyres regularly engages
with its supplier communtiy to promote sustainable practices at
their respective manufacturing plants, offices and urge them to
adopt environmentally compliant policies.

SUSTAINABLE SUPPLY CHAIN POLICY

Apollo Tyres is conscious about environment protection
and has been continually engaging its suppliers to reduce
environmental impacts. The focus on the upstream supply
chain extends to sourcing of raw materials, their processing,
and their use in the manufacture of intermediate and final
products. To align its upstream supply chain with this objective,
the Company has evolved a Sustainable Supply Chain policy. It
articulates elaborate guidelines for conducting business in an
environmentally sustainable manner through good governance,
ethics and adherence to human rights.

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SUSTAINABILITY SNAPSHOT: PARTNERS (RAW MATERIAL SUPPLIERS)

GREEN PROCUREMENT APOLLO PARTNERSHIP PACT

The Company pursues the incorporation of green Apollo Tyres, in line with its core philosophy of sustainable
procurement standards into its procurement activities and growth, strives to work continuously with its supply chain
encourages an enabiling environment to foster sustainable partners on environmental, economic and social aspects to
development. As a part of promoting sustainability, the entire enable sustainable raw material supply chain.
purchase order system has been automated and processed
Apollo Tyres’ Partnership Pact (formally known as Partner
digitally. In addition, the Company promotes and encourages
Code of Conduct), used successfully since 2008, helps and
its suppliers to embrace eco-friendly practices in production
supports its partners to integrate relevant policies and
processes, including the use of recycled materials.
processes related to the environment, occupational health
The Company also emphasises on the use of environment- and safety, human rights and labour laws into their business
friendly, re-usable, recyclable packing material like returnable and decision-making processes. Such a strategy further
pallets, metal boxes, metallic spools for the supply of raw extends the use of environmentally responsible practices
material to its multiple manufacturing plants and aims for for growing natural rubber within the overall supply chain
‘wood-free’ packaging. network.

The Company continues to promote the use of technology,

like video conferencing, to balance the need to connect with
employees and partners and creating a postive impact on the
environment.

REACH COMPLIANCE
REACH (Registration, Evaluation, Authorisation and
Restriction of Chemicals) is a European Union regulation
adopted to improve the protection of human health and the
environment from the risks posed by chemicals. Import
of tyres in EU has certain obligations under REACH and
companies need to ensure that the tyres do not contain any
of the listed SVHCs (substance of very high concern) beyond
the specified limits. The Company’s suppliers are either
registered for REACH or are executing the required activity as
prescribed by REACH. TYRE LABELLING REQUIREMENTS
The Company is geared to meet all raw material related The Company continues to engage with its raw material
requirements with reference to the usage of PAH free suppliers to steadily improve the labelling parameters related
materials for the supply of tyres to Europe and other markets. to its tyre, in line with evolving market requirements and
expectations from OEM customers.

Safety @ Workplace
The Company encourages suppliers
to follow all relevant applicable
industrial practices to ensure
their safety and conducts periodic
assessment of prevailing safety
practices and development of their
workplace conditions.

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 Corporate Overview Statutory Reports Financial Statements

SUPPLIER ENGAGEMENT
The Company has mutliple initiatives to continuously engage
with the supplier community. To mention a few - vendor
meets, joint technical projects, quality workshops with
natural rubber producers and processors, quality review
meets, CSR workshops at suppliers manufacturing facilities,
among others.

The following are the supplier engagement framework and key

initiatives :

New Supplier Selection

Supplier selection is the process by which the Company
identifies, evaluates and approves the suppliers. It is a stage-
wise evaluation and approval process, involving commerical
and technical evaluation of the supplier through a cross-
functional team of purchase, R&D, plant technology and
manufacturing.

Joint Development Projects

Based on customer’s aspirations and concerns, the emerging
market requirements and changes in regulatory requirements,
Apollo Tyres engages with its supplier or potential new raw
material suppliers to initiate the joint development work for
new materials and tyres development.

The organisation also seeks technical collaboration from its

suppliers through active participation in various technical
seminars and its Technical Leadership Development
Programmes (TLDPs).

Supplier Audits
The Company conducts audits of the supplier’s Quality
Management System, first when a new supplier comes on
board and then at defined frequency for existing suppliers.
The scope of such audits encompasses various facets
including product & process quality, quality management
system, environmental standards, occupational health and
safety standards, among others as defined by the Company’s
Green Procurement Standards and Apollo Partnership Pact.
The Company’s audit teams conduct supplier audits at regular
intervals for comprehensive evaluation in accordance with the
standard audit checklist.

The supplier improvement plans are drawn up post the audit,

agreed and followed up with the suppliers until closure.

Supplier Performance Evaluation

Supplier performance evaluation is done on quality, delivery
and service performance to ensure timely feedback to
suppliers to improve their performance at Apollo Tyres. The
evaluation outcome is communicated to suppliers periodically,
following which action plans are drawn up and implemented.

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SUSTAINABILITY SNAPSHOT: PARTNERS (RAW MATERIAL SUPPLIERS)

Corporate Social Responsibility in Supply Chain Apollo Natural Rubber Dirt Free Centres
With a view to support the cause of good health of workers in The Company is an industry frontrunner in contributing to the
its upstream supply chain, the Company conducts awareness quality improvement of natural rubber in India with establishing
programmes on HIV / AIDS prevention and the ill effects of ‘Dirt Free Centres’ where natural rubber sheets sourced from
substance abuse. the farmers are graded using international practices making it
suitable for critical applications. Importantly, the centres are
The programme is conducted by internal resources from
providing training and livilihood to women.
the Purchase department, who have been trained by the
International Labour Organisation (ILO). The programme’s
objective is to educate workmen at the supplier premises as
well as develop peer educators at the supplier end, who can
carry this knowledge further in their respective organisations.

THE COMPANY HAS MUTLIPLE INITIATIVES TO

CONTINUOUSLY ENGAGE WITH THE SUPPLIER
COMMUNITY INCLUDING VENDOR MEETS, JOINT
TECHNICAL PROJECTS, QUALITY WORKSHOPS AND
REVIEW MEETS, CSR WORKSHOPS, ETC.

Along with laying down clear processes to safeguard

CSR IN
SUPPLY CHAIN the environment, Apollo Tyres was the first Company to
FOR FY2019
provide training in sheet rubber grading and to empower
women in an otherwise male dominated area.

Additionally, the Company has also established a rubber

sheet making unit for the rubber tappers’ wives in
Kerala. Apollo Tyres, in association with Rubber Board
of India, have trained the group of women running this
unit on rubber tapping, sheet making, sheet smoking
and general entrepreneurial skills. The Company plans
to replicate this model soon, which will empower more
women, and at the same time, help with getting better
quality rubber sheets.

Total Participants

99
Apollo Natural Rubber Advisory Council meet
The key natural rubber domestic suppliers, which formed
the Apollo Natural Rubber Advisory Council, met in Kochi
in January 2019, along with key members of Apollo Tyres’
R&D, Purchase and Vendor Quality teams. It was an
exchange of information ranging from current market trends
on demand, supply and increasing the readiness of domestic
natural rubber suppliers to meet our volume and quality
requirements.

Natural Rubber Business Partners Summit 2019 In the last two years, Apollo Tyres has reached out to nearly
The Company invited its key natural rubber suppliers to join 600 women in Kottayam, who had very little or no income,
the Partners Summit at Kochi in January 2019. The event and provided them with alternate sources of livelihood. These
included a plant tour, presentations on natural rubber quality women have been trained in jackfruit processing, mushroom
and discussions. This was followed with an award ceremony. cultivation, aqua culture, organic farming and apiculture. In
The company created a selfie booth where the NR Business addition, the Company continues to provide healthcare facilities
Partners took a selfie with the placard depicting their number by conducting regular health camps and specialised cancer
of years of association with Apollo Tyres. screening camps for around 500 families of rubber tappers.

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SUSTAINABILITY SNAPSHOT: PARTNERS

(DEALER DEVELOPMENT AND MANAGEMENT)
The dealer community acts as an interface between an
organisation and its customers, by strengthening linkages
and understanding the customer’s expectations to better fulfil
those needs.
Apollo Tyres maintains a strong, trustworthy relationship with
its dealers. The Company has an efficient dealer management
system. Policies such as commercial policy and trade
communication policy laid down by it act as guiding tools for
dealer management.

During the FY2019, Apollo Tyres has been able to

expand its retail network by reaching out to new
dealers at different levels.

To provide best consumer experience, a state of art display Dealer development and growth are essential for the
centre was opened in Chennai. The centre displays both Company’s global aspirations. In FY2019, 65% of its Business
passenger and commercial vehicle tyre range of the Company. Partners have grown their Non-Truck sales by 25%. In
During the year, the Company also introduced ‘Road Hazard addition various activities such as Apollo Value Club, FB live
Protection’ to boost premium and luxury segment sales in sessions, competitions etc. are organized regularly to keep
passenger car radial segment. A first of its kind program in dealers engaged and motivated.
the tyre Industry, it includes Optional Paid Protection to cover
damages caused by poor road conditions.

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SUSTAINABILITY SNAPSHOT: PARTNERS

(DEALER DEVELOPMENT AND MANAGEMENT)

Further the Company has various mechanisms that promote

ease of doing business for its dealers.

Digital channel finance

It is a unique digital paperless solution to address
financing needs of the business partners with features
such as enhanced credit limit and credit period. In
addition, it also supports end-to-end digital transactions.

Delivery tracking system

A 100% transparent process, the system facilitates live
stock tracking from billing to delivery thereby taking
ease of doing business to another level. It also provides
an auto update of pending dispatch.

Privileged Helpdesk
It assures personalised support for all the business
transactions of its dealers through Privileged Helpdesk,
a dedicated unit that provides priority services on daily
business handling needs.

YourRange Selling Tracker

To ensure that their business partners do not miss sales
targets and maximize range selling incentives for them,
Apollo Tyres supports its partners through customized
softwares such as YourRange Selling Tracker.

GST Helpdesk
Apollo Tyres has a GST Helpdesk to raise awareness
among its dealers on new reforms on Goods and
Services Tax (GST) system. The dedicated team
conducts webinars and provides CN DN working Support
from one platform to enhance the understanding of the
dealers on new amendments in GST.

Digital bidding process

To facilitate transparency in the distribution of
Promotional stock, the company has introduced Digital
Bidding Process.

These enablers have helped cement the trust between Apollo To impart various skills to its dealers and technicians, Apollo
Tyres and its business partners, resulting in better products Tyres conducts various training programmes. In FY2019, the
and service turnaround time. Company trained 256 technicians under its Star Technician
programme. Further, more than 1,000 dealers were trained
The company also rolled out ‘Tiger Job Card’, focused on
through 498 sessions on various topics including Tyre care,
providing digital solutions facilitating CV zones to increase
product awareness to rural dealers, etc.
revenue, vehicle footfall and improve customer experience.

The company further organised Diamond Boys conclave

for various categories including CV, Farm, PV, 2 wheelers
categories. Besides these, the Company conducted multiple
field activities, campaigns and road shows during the year.

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SUSTAINABILITY SNAPSHOT: ENVIRONMENT

At Apollo Tyres, we consider environment as a key stakeholder and
work towards ensuring environmentally conscious operations. This
approach has been developed under the framework of ISO 14001
- Environment Management System. The Company enhanced its
manufacturing footprint with the commencement of operations of its
Hungary facility in FY2018.
The Company’s environment consciousness is not limited to ‘within
the fence’, but is taken ‘beyond the fence’ into the communities in
the form of Corporate Social Responsibility programmes. These
initiatives aim to promote and raise awareness among communities
on environment conservation.

The Company continues to implement its sustainability There are four environmental issues identified in the
management framework, according to the international standard stated below:
standard on social responsibility, ISO 26000:2010.

Taking the sustainability journey forward, it integrated the

provisions of the standards in the form of Standard Operating
Procedures for the Core Subject of Environment last year.

The Company also streamlined the reporting parameters

in line with the requirements of the Core Subject during the
same period. The section presented below follows the
above structure.

ENVIRONMENTALLY CONSCIOUS OPERATIONS

Environment management is integral to the sustainability
strategy of Apollo Tyres. The Company is relentlessly focusing
on reducing the environmental impact of its products and
making its manufacturing process environmentally benign.

ENVIRONMENTAL ISSUE 1: PREVENTION OF

POLLUTION
Apollo Tyres strives towards improving its environmental
performance by reducing pollution, including emissions
reduction, water management, waste management, usage
/disposal of toxic and hazardous chemicals and other
identifiable pollution forms.

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SUSTAINABILITY SNAPSHOT: ENVIRONMENT

Emission reduction
The manufacturing operations at Apollo Tyres use state-
of-the-art technology to ensure clean operations. The
concentration of air emissions across plants was within the
prescribed limits throughout the reporting period.

Waste management
The Company’s waste generated from operations, include
solid and liquid forms and hazardous and non-hazardous in
nature. The total solid waste generated during the reporting
period was 27,203 metric tonne.

Break-up of solid waste by type generated(%), FY2019

95.82

4.18

Non-Hazardous
Hazardous

In the APMEA operations, 688 metric tonne of hazardous

and 18,983 metric tonne of non-hazardous solid wastes were
generated. The generated hazardous liquid waste was 21,236
kilo litres.
Total solid waste generated
A total of 448 metric tonne of hazardous and 7,084 metric
during the reporting period
tonne of non-hazardous solid wastes were generated during
27,203 METRIC TONNE the reporting period in the Europe region.

ENVIRONMENTAL ISSUE 2: SUSTAINABLE

RESOURCE USE
The Company promotes sustainable use of resources such as
energy, fuels, water and raw materials in its manufacturing
process.

Energy performance
Apollo Tyres utilises both direct and indirect energy sources
with a mix of renewable and non-renewable fuel types.

In its India operations, the main source of direct energy

continues to be coal, followed by furnace oil. Solar and wind
power are the other direct energy sources. In the Europe
operations, direct energy is sourced from natural gas.

Indirect energy sources in the Company’s Indian operations

comprised grid electricity, wind and solar energy.

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 Corporate Overview Statutory Reports Financial Statements

In the Netherlands, electricity is the primary source of The total energy consumption (both direct and indirect) for
indirect energy. the reporting year was 5,939 TJ vis-à-vis 5,093 TJ in FY2018.
The share of direct energy was 70.3% (4,174 TJ) and indirect
Share of direct and indirect energy consumed (%), FY2019
energy (1,765 TJ) accounted for the balance (29.7%).
69.45
Non-renewable energy sources contributed to the major share
30.55 in the total energy consumption. Coal remained the leading
source of direct energy at 3,296 TJ, accounting for almost
79% of direct energy consumption.
Direct Energy
In the reporting year, the Company’s Limda and Chennai
Indirect Energy
facilities contributed captive capacities for solar energy into
the renewable sources portfolio.

Energy efficiency initiatives Break-up of direct energy by source(%), FY2019

2.05 0.31
1.54
78.96
13.68
Coal
Furnace Oil
0.38
HSD
Natural Gas
RLNG
3.08
Wind
Solar

The Company continues to make efforts to achieve energy Break up of indirect energy by source(%), FY2019
efficiency through improvements in process design,
5.53
conversion and retrofitting of equipment and use of energy 59.89
efficient equipment. Several initiatives were undertaken
during the reporting period, which resulted in energy savings
of 22,800 GJ.
Electricity from Grid
The table below lists the energy saved across operations
34.59 Thermal Power
during the reporting period.
Wind Energy

Energy saved in manufacturing operations from different

levers (in GJ), FY2019

Particulars
Plants Process Conversion and Use of Energy Total Energy
Design Retrofitting Equipment Efficient Equipment Saved
Limda 2,996 – 3,350 6,346
Chennai 1,891 4,457 0 6,438
Kalamessery 699 130 119 948
Perambra 6,527 2,344 – 8,871
Netherlands – – 197 197
Total Energy 12,113 7,021 3,666 22,800
Saved 2018–19

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SUSTAINABILITY SNAPSHOT: ENVIRONMENT

Water sourcing and management
The primary water source during operations is surface water,
which accounted for 97.4% of total water consumption during
the fiscal. Other sources include ground water and
municipal water.

ANNUAL WATER
WITHDRAWAL (M3)
IN FY2019

The APMEA operations conducted several initiatives to Share of water withdrawal by source in APMEA and
conserve water in the reporting year. These included: Europe Operations (%), FY2019

• Improvements in quality of curing trench water to reuse as 0.88

99.12
process water

• Recycling water recovery up to 95% of fresh effluent

through a three-stage reverse osmosis

• Provided cooling tower water to bead extruder TCU instead

Surface Water
of fresh water
Ground Water

Share of water withdrawal by source in Europe (%),

FY2019
Total recycled or reused water
96.40

8,10,164 M 3.60
3

% of water recycled/reused in
Surface Water
the reporting year FY2019
Municipal Water Supplies
12.6
% of water recycled/reused in
the previous year FY2019

9.18

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 Corporate Overview Statutory Reports Financial Statements

Break-up of total water usage in terms of recycled water Water Recycle, APMEA Operations (in m3), FY2019
and freshwater withdrawal (%), FY2019
5,17,307
87.41 Perambra 73,548
12.59

2,27,086
Kalamassery 66,672

Withdrawal
8,37,900
Recycled
Limda 4,08,660

7,10,527
Chennai 2,61,284

In the APMEA operations, the total annual water withdrawal 22,92,820

was 22,92,820 m3, of which 8,10,164 m3 (35%) was recycled Total APMEA 8,10,164
or reused.
Withdrawal Water Recycled or Reused

Raw material sourcing and management Total raw material consumed across operations: 9,67,609
The three primary constituents for manufacturing tyres are metric tonne
natural rubber, synthetic rubber and carbon black. In the
Total recycled material: 6,254 metric tonne
reporting period, these three components amounted close
to 47.4% of our total raw material consumption. The APMEA In the APMEA operations the total raw materials consumed
operations reported natural rubber use of 72% of the total was 8,86,773 metric tonne and the total recycled material
rubber used. The share of natural rubber use in the Europe was 5,538 metric tonne.
region stood at 52%.
In Europe operations, the total raw materials consumed was
Share of raw material consumed, APMEA and Europe 80,836 metric tonne. The total recycled material was 716
operations(%) in FY2019 metric tonne.
15.23
Break-up of recycled raw materials by Type, APMEA and
Europe operations(%) in FY2019

8.76 1
APMEA 52
Natural Rubber
53.35
Synthetic Rubber
Carbon Black
APMEA
Other Raw Materials
Ultrafine Reclaim
47
22.66 80 Mesh Crumb
Butyl Reclaim

43.62
17.44

EUROPE 3.07 91.06

Natural Rubber
Synthetic Rubber
Carbon Black
18.76 5.87 EUROPE
Other Raw Materials
Butyl Reclaim
NR Reclaim
Ultrafine Reclaim
20.18

*Other raw materials include associated process materials.

In APMEA it also includes the steam used in Limda.

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SUSTAINABILITY SNAPSHOT: ENVIRONMENT

Environmental Issue 3: Climate change mitigation

and adaptation
As a responsible corporate citizen, Apollo Tyres continues
to measure and report its carbon footprint. It has also
undertaken an independent third-party verification for its
carbon footprint for FY2019. The verification has been done
by TUV India according to ISO 14064 and AA1000 AS
standards. To promote climate adaptive manufacturing set
up, the Company has invested in renewal energy as well as
various energy-saving initiatives.

GHG Emissions (t CO2 eq) - Scope Breakup, FY2019 Green House Gas (GHG) emissions
At present, the Company’s operations mostly depend on non-
1,05,586.10 3,52,752.30 renewable energy sources. With the addition of manufacturing
facility at Hungary, the footprint has increased.

In FY2019, the Company made its GHG footprint estimations

APMEA more comprehensive by including Scope 3 emissions from
Scope 1 upstream supply chain, downstream logistics as well
3,69,701.25 Scope 2 employee air travel. This is, in addition to the Scope 1 and
Scope 3 Scope 2, reported as earlier.

Environmental Issue 4: Protection of the

environment, biodiversity and restoration of
natural habitats
Protection and enhancement of biodiversity is important from At the Kalamassery plant, the activities included maintaining
the perspective of the entire value chain. During the reporting the existing theme gardens such as butterfly garden,
period, as part of the Company’s environment programme snake repellent plant belt and fruit garden to enhance the
HabitAt Apollo, several initiatives were conducted within the biodiversity and increase the species of flora and fauna.
plants to enhance biodiversity. While some of these activities Apiculture, for collection of honey within the premises, was
were directly aimed at biodiversity conservation, others had also continued at Perambra during the reporting period.
indirect benefits. Additionally, the Company initiated an organic farming project
within the plant premises in
Formal risk and impact assessment studies to measure the
Limda, Gujarat.
impact on biodiversity in the manufacturing locations were
conducted by third-party agencies. As an outcome of this
study, biodiversity conservation projects were initiated at the
Company’s Cochin plants.

Community initiatives on environment conservation

The Company promotes eco-conscious behaviour among
its communities and works closely with them on subjects of
environmental conservation as a part of its CSR mandate.
These efforts have been detailed below and are aligned to the
respective environment issue according to the ISO 26000
standard.

Environmental Issue 1: Prevention of pollution

India generates over 60 MN tonnes of waste, of which about
69% is collected. The appalling reality is that only 30% of the
collected waste is treated and the rest is taken to land fill
sites. The ‘Swachh Bharat’ initiative is the need of the hour,
which aims to promote clean hygienic practices and the use of
proper sanitation.

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 Corporate Overview Statutory Reports Financial Statements

To support the cause, the Company launched its SPARSH, During the reporting year, the programme reached out to
Swachh Banao initiative. This initiative aims to provide 18,000+ people to spread awareness and 24,000+ people
comprehensive solutions for better health and hygiene, which were connected for door-to-door waste collection. A total of
include proper waste management and promoting the use of 2,606 metric tonne (MT) was collected from CMV and CMTN
toilets. projects. Of the collected waste, 298 MT was bio-degradable,
and 2,308 MT was non-biodegradable waste.
SPARSH stands for: S – Segregate Waste, P – Practice
Composting, A – Awareness Generation, R – Reduce-Reuse- In line with safe sanitation for all, the Company constructed
Recycle, S – Safe Sanitation, H – Hygiene for All 150 toilet-cum-bathing space in Chennai. Around 600 people
continue to directly benefit from the newly constructed
Clean My Transport Nagar (CMTN), Clean My Village (CMV),
toilets.
Sanitation Management and End- of-life Tyres (ELT) projects
are initiated under the SPARSH umbrella. ELT projects promote the recycle of waste tyres by
constructing playgrounds. Apollo Tyres has been strategically
The primary features of CMTN and CMV projects comprise
evaluating various ways on how to increase the product
door-to-door waste collection, daily cleaning of lanes,
lifecycle through the expansion of re-treading footprint, which
segregation of waste, compost creation from wet waste,
reinforces the Re-use concept. In addition, the Company is
awareness generation and others.
also exploring various ways of using the ELT in innovative and
yet useful ways such as play structures. A total of two new
ELT play structures were made using 696 waste tyres.

Environmental Issue 2: Sustainable resource use

Water crisis has been identified as a key intervention area, as
it features in the top 5 global risks. The adverse impacts of
population explosion, urbanisation, industrial development
and climate change have increased the water demand. The
enhancement of water availability is identified as a key
initiative under the environmental sustainability journey.

Access to purified drinking water

The Company has set up a purified drinking water RO plant at
Oragadam village and benefitting over 506 households (2024
people).

Eco restoration and improvement of water bodies

The projects are designed for improving water bodies with
focus on restoring and enhancing aqua biodiversity. Under this
initiative, the Company undertook pond restoration projects at
Chennai, Limda and Perambra locations.

River conservation project

As a novel community initiative, the Company launched a
participatory conservation project for Chalakudy river in
Kerala, which was implemented in three phases, spanning a
three-year period (2016 to 2019).

During the first year, students and teachers from eight During the second year, the Company’s community initiatives
schools were involved in activities such as biodiversity were introduced. These included awareness generation
survey, exploring river and riparian biodiversity with related initiatives such as classes for various community groups,
traditional knowledge. The cleaning drive removed plastic riverbank protection, tree plantation, cleaning drive, rainwater
debris from the riverbed and banks, planting of bamboo harvesting, promotion activities like recharging wells, among
shoots and releasing fingerlings of native fish species. others. During the third year of the reporting fiscal, the
activities were extended to the watershed area of the river
and restored one rivulet of the river (Thalikathodu), a tributary
of the Chalakudypuzha.

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SUSTAINABILITY SNAPSHOT: ENVIRONMENT

Environmental Issue 3: Climate change mitigation and

adaptation
Apollo Tyres is committed to combating the impacts of global
climate change. It has initiated various projects towards the
mitigation of climate change. The flagship programme under
this initiative is the ‘Afforestation Project’. This project helps
control carbon emissions and generates livelihood for farmers
in water-starved areas of the country. Under the afforestation
project, the Company has planted a total of 3,50,000 trees in
Tamil Nadu. According to estimates, around 10,100 tonnes of
CO2 have been sequestered from these trees.

Use of Biogas
The use of renewable energy proliferation is critical to
address the issue of climate change, and this project supports
the cause. The Company is promoting the use of biogas in
its communities around the Limda plant in Gujarat. In the
reporting year, 39 biogas units were installed.

Environmental Issue 4: Protection of the environment,

biodiversity and restoration of natural habitats

Mangrove conservation
The Company partnered with the Wild Life Trust of India Other aspects of the project include a mangrove nursery and
(WTI) for the implementation of its mangrove conservation community-based initiatives to enhance public awareness and
project. The actual site of the mangrove conservation project reduce threats to mangroves. The Company reached out to
is Kunhimangalam village in Kannur district, Kerala’s largest 26,000+ people through its various awareness initiatives.
mangrove village.
The organisation in partnership with WTI organised an
The project has established a hub located in the natural Environment and Nature quiz for college students to
ecosystem for mangrove-based education, serving as an create awareness in mangrove, environment and nature
open-air laboratory for research and promoting restoration conservation. In the reporting year, around five acres were
through community and government participation. planted with mangrove saplings at four locations. Over 6,000
mangrove saplings were raised in the mangrove conservation
nursery.

Initiatives in Europe
To conserve and promote biodiversity in the vicinity of the
factory in Enschede, Apollo Tyres is working on the Stadsbeek
project. The project’s objective is to address issues related
to rainwater and groundwater and improve the surrounding
environment. It involves digging of a ‘stadsbeek’ or city creek,
from Bruggertstraat to the Volkspark. The project will be
implemented in several phases. A monitoring and evaluation
mechanism has been set up to keep track of the project.

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SUSTAINABILITY SNAPSHOT: COMMUNITY

INVOLVEMENT AND DEVELOPMENT
The Company’s CSR initiatives aim to bring about a positive
impact on everyday lives of stakeholders – employees, customers,
dealers, suppliers and communities, who are based around our
manufacturing locations.
The programmes are developed in partnership with the community
to ensure that they cater to specific requirements and to inculcate
a sense of ownership among community members.

Apollo Tyres constituted its CSR policy in 2014 in line with the The break-up of the CSR spend(%)
Companies Act, 2013 and complies with the requirements of
Section 135 of the Act. The CSR programmes are implemented 4 5
4
by the Apollo Tyres Foundation. During FY2019, the Company 4
invested 2% of its net profit in CSR initiatives, amounting to 40
7
D21.4 crore.
Healthcare for Trucking
Community
Solid Waste Management &
Sanitation
Livelihood for Women
14 Biodiversity Conservation
Local Initiatives
Philantrophy
Kerala Flood Relief
22
Administrative Cost

The organisation’s CSR initiatives are linked with the National

LIVELIHOOD FOR UNDERPRIVILEGED WOMEN
and International Development objectives. The Company has
categorised its CSR initiatives in two themes - Environment The Company is committed to creating opportunities for
and Social (which has health and community development). underprivilged women by providing skill-building and income-
Within the two broad themes, the Company works in four generation training in farm and non-farm based activities. This
core areas. is described in detail under Issue 5 below.

HEALTHCARE PROGRAMME FOR THE TRUCKING BIODIVERSITY CONSERVATION

COMMUNITY
Based on the Environment theme, Biodiversity Conservation
This continues to be the Company’s flagship programme and is a global initiative for Apollo Tyres, wherein projects are
caters to its key customers - truck drivers. The preventive undertaken in India, Hungary and the Netherlands. In India,
healthcare programme is implemented at 31 healthcare the Company has taken up the Mangrove Conservation project
centres, based in various transhipment hubs of India. The in Kerala. To further contribute towards climate change
programme is described in detail below under Issue 6. mitigation, an afforestation project is being implemented in
Tamil Nadu.
SOLID WASTE MANAGEMENT AND SANITATION
In addition to the core themes, the Company also conducts
Based on the Environment theme, this initiative is in line
local initiatives in a 25-30 km radius of the manufacturing
with the Company’s efforts towards contributing to the
locations and include Watershed Management, Renewable
government’s clarion call - ‘Swachh Bharat Abhiyan’. It has
Energy Proliferation, Road Safety Awareness, Educational
been running various projects on solid waste management and
initiatives viz. computer literacy in schools and ITI-based
safe sanitation to promote a healthy and sustainable lifestyle
skilling of young people and philanthropic endeavours. In
among local communities. Clean My Transport Nagar, Clean My
FY2019, the Company also supported the disaster relief work
Village, Sanitation Management and ELT playgrounds are four
in Kerala.
initiatives initiated under this theme.

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 Apollo Tyres Ltd Annual Report 2018-19

SUSTAINABILITY SNAPSHOT: COMMUNITY INVOLVEMENT

AND DEVELOPMENT
The Company continues to implement its sustainability Community Involvement and Development Issue 3:
framework according to the international standard on Social Employment creation and skills development
Responsibility, ISO 26000:2010. Taking our Sustainability
journey forward, we integrated the provisions of the standard
in the form of SOP for the Core Subject of Community
Involvement and Development last year. We also streamlined
the reporting parameters in line with the requirements of the
Core Subject in the same period. The section presented below
follows the above structure.

Of the seven issues stated in the core subject, the following

four have been aligned to our themes of work.

• Community Involvement and Development Issue 1:

Community involvement Apollo Tyres considers skill development, accompanied by
employment opportunities as a powerful tool to empower
• Community Involvement and Development Issue 3:
individuals, reduce poverty and promote economic and social
Employment creation and skills development
development. Therefore, the Company has initiated various
• Community Involvement and Development Issue 5: programmes to develop specialised skills among various
Wealth and income creation community groups.

• Community Involvement and Development Issue 6: Under this issue, it provides career counselling, employability
Health skills to ITI and graduate students for better job opportunities
at Chennai and Kochi location. This is part of the local initiatives
Community Involvement and Development Issue 1:
bucket of CSR. During the reporting year, 719 students were
Community involvement
trained under this initiative.
The Company engages directly with its communities for
mapping their requirements and expectations. The initiatives
are designed by involving the local community to ensure Community Involvement and Development Issue 5:
that they are aligned to their expectations. At Apollo Tyres, Wealth and income creation
community involvement is aimed at preventing or solving
problems and fostering partnerships with local organisations
and stakeholders. At the project designing stage, the
organisation consults with local leaders, government bodies,
community-based organisations, underprivileged community,
specially the women groups, through various formal and
informal methods.

Apollo Tyres contributes positively to wealth and income

generation through entrepreneurship programmes, as well
as capacity building through wider efforts. The objective is to
strengthen economic resources and social relationships that
facilitate economic and social welfare or generate community
benefits. The issue is a core area of intervention under its
Livelihood for underprivileged women – Programme Navya
initiative.

Under this programme, Self Help Groups (SHGs) are formed

or the Company supports the strengthening of existing SHGs
to empower women and address the issues related to women
both in livelihood and social sectors. The programme follows
the SHG guidelines, objective and functioning, namely savings,
credit, thrifts, meetings livelihood and income generation
activities and social mobilisation.

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 Corporate Overview Statutory Reports Financial Statements

Women are trained in agriculture and non-agriculture activities is the first of its kind initiative in Gujarat for organic produce.
such as rubber sheet making, mushroom cultivation, apiculture Around 50 women have received certificates for production and
(honey production), khakhra making, tailoring, organic farming, marketing of organic items. In the reporting year, a total of 615
livestock care and management and others for income women received training in organic farming.
generation.
In addition, a month-long campaign, Ek Naam, was organised
During the fiscal, various capacity-building sessions were to felicitate eight women achievers, who were the change
adopted to build the core strengths of beneficiaries. The trained agents selected on the criteria of their intervention in the
beneficiaries were further linked with the market and service community by way of providing further livelihood opportunities
sector for employment. to more women or by bringing social change in their community.
These change agents received award from the Collector and
As an outcome, the beneficiaries started their own business
Mayor of Vadodara city. A symposium (Ek Naam) was organised
and they are now extending livelihood opportunities to other
to celebrate International Women’s Day with all change
women, leading to large-scale women empowerment. The
agents.
programme also provided credit linkage with banks/financial
institutions for setting up of the business. The programme has In addition, during the fiscal, a total of 2,012 women were
established linkages and leveraging government schemes. outreached and 1,158 received income generation training
in farming and non-farming activities. Of the total trained
Under livelihood initiative the organisation achieved two
population, 1,030 women are currently engaged in income
significant milestones.
generation.
The organisation has achieved Food Safety Certification (FSSC
In addition to programme Navya, the Company also provides
22000) Ver. 4.1 for a honey production unit in Kottayam. FSCC
livelihood support to male farmers by providing technical skills
standard is internationally recognised under food safety and
and knowledge in improved farming practise and livestock
ATF is one of the very few entities and presumably the first CSR
care and management. During the reporting year, the farmers
Foundation to have achieved this feat.
received training in various composting methods, fodder
The second achievement has been the registration of first management, organic farming, cattle rearing and others.
women organic farming co-operative society at Baroda. A Around 733 farmers benefitted during the year.
total of 332 active members are part of the co-operative. This

Community Involvement and Development Issue 6: Health

THE COMPANY ACKNOWLEDGES THE NEED TO ADDRESS

THE HEALTH ISSUES EXPERIENCED BY ITS KEY
CUSTOMERS, TRUCK DRIVERS. HENCE, A PREVENTATIVE
HEALTHCARE PROGRAMME FOR THE TRUCKING
COMMUNITY WAS ESTABLISHED IN 2000.

The Company acknowledges the need to address the health healthcare services such as prevention of HIV-AIDS, vision
issues experienced by its key customers, truck drivers. care, integration of tuberculosis and other non-communicable
Hence, a preventative healthcare programme for the trucking diseases such as diabetes, high blood pressure and general
community was established in 2000. treatment facility.

The programme addresses perils linked to their continuous and To expand the outreach, mobile medical units (Apollo Tyres
long travel, coupled with lack of access to healthcare facilities. Health Care Express) have also been introduced in two
To provide healthcare services at their vicinity, the Company locations to improve access to cost-effective and quality
has established 31 healthcare centres in the transhipment healthcare. The Company also organised health camps
hubs spanning 18 Indian states. The programme provides (Sakushal Saarthi) for employees of its fleet owners.

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 Apollo Tyres Ltd Annual Report 2018-19

SUSTAINABILITY SNAPSHOT: COMMUNITY INVOLVEMENT

AND DEVELOPMENT
Services under healthcare programme

HIV-AIDS awareness and prevention programme total of 13,290 people were screened, of which 10,215 were
truck drivers. A total of 6,064 truck driver were detected
with refractive errors and 5,413 pair of spectacles were
distributed.

Awareness on Tuberculosis (TB)

The risk of progressing from latent to active TB is estimated

to be between 12 and 20 times greater in people with HIV
infection than those without. Truck drivers are more vulnerable
to this disease. Under this initiative, services like sputum
testing, linking beneficiaries who are found positive with
(DOTs) facility and conducting regular awareness sessions to
prevent TB are offered. In FY2019, Apollo Tyres partnered
with The Union (US AIDS) for technical partnership in creating
awareness related to TB. The Union provided technical training
The Company’s healthcare centres are equipped with qualified related to TB to Apollo Tyres Foundation (ATF) staff. The Union,
doctors, paramedic staff, counsellors and outreach workers as a technical partner facilitates the coordination between
for awareness generation. The service provided under ATF and the Central TB Division/ state TB cell for hassle-free
HIV awareness and prevention includes behaviour change implementation of the project.
communication, sexually transmitted infection diagnosis
Other non-communicable diseases
and treatment, counselling, condom promotion, integrated
counselling testing centre support and awareness through peer Due to the nomadic lifestyle of truck drivers, there is an
educators (volunteers). increase in lifestyle related diseases such as diabetes and
hypertension. Diabetes and high-blood pressure were identified
Vision Care
as two significant risks that challenge truck drivers. To address
the problem, the Company added testing facility for both risks
and diabetes screening and blood pressure check-ups are
conducted during the fiscal.

General healthcare and treatment

• Due to long distance travel and poor working conditions

truck drivers are vulnerable to vision related diseases.
Apollo Tyres has initiated the vision testing programme
in its healthcare centres, where vision testing facility is
established; and also periodic eye care camps are organised.

• The major feature of this initiative is that spectacles are

distributed at low-cost rate to people identified with Other generic treatment facilities are also provided at each
refractive error issues. Cataract patients are linked with healthcare centre such as fever, cough, cold, flu and other basic
nearby hospitals for further treatment. During the fiscal, the First Aid features.
Company organised a week-long campaign in transhipment
In the reporting year, a total of 4,91,382 people were
hubs in partnership with Essilor Vision Foundation to
outreached from awareness activities and 1,60,574 received
commemorate the International Sight Day.
treatment facility, a 34.8% increase in FY2019. Of the total
• Under this campaign, vision testing camps were organised at number of people treated in the reporting year, 44,741 opted for
all healthcare centres and truck drivers who were identified HIV testing, 58,128 for vision screening and 43,823 for diabetes
with refractive error issues received free spectacles. A testing. A total of 966 TB tests were conducted during the year.

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 Corporate Overview Statutory Reports Financial Statements

Other Programmes

Road safety

Kerala Disaster Relief

The Company provided relief support to
Kerala flood victims. Flood relief support was
provided in three areas: conducting health
camps, organising cleaning drives, distributing
food and first aid kits in Chalakudy, Aluva,
Kodakara, Kalamassery and Airapuram,
Kerala.

Around 750 families received home cleaning

and First Aid kits, 1,250 families received
food kits. Total 16 free health camps were
conducted and around 1,233 people were
benefitted. Through waste collection and
Under this initiative, the Company observed road safety week
cleaning drive around 200 families were
and conducted awareness programmes with school students,
supported and 200 metric tons (MT) of waste
truck drivers and commuters, along the 15 km stretch from
was collected.
Perambra plant up to Chalakudy. As a part of the initiative, road
safety awareness signboards were installed.

Computer literacy

The Company’s computer literacy project was rolled out

in 2016 to provide basic computer education and skills and
enable access to the necessary contemporary educational
tools and resources to government school students around its
manufacturing unit in Orgadam, Chennai. Currently, the project
is running at Mathur, Sennakuppam, Vallakottai , Eraiyur and
Serapanancheri villages, along with laboratory facility and a
tutor to train the students. In the reporting year, 475 students
were outreached.

Philanthropic initiatives

The organisation also supports underprivileged and deprived

communities by undertaking philanthropic initiatives through
the Taru Foundation. The initiatives range from providing
education support to underprivileged girls to providing
healthcare facilities for rural people and distributing food
items to eradicate hunger and poverty. During the fiscal, the
education of 33 underprivileged girls was supported, around
4,383 poor people received healthcare facility and around 525
destitute people received food on a monthly basis.

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 Apollo Tyres Ltd Annual Report 2018-19

SUSTAINABILITY SNAPSHOT: RESEARCH

& DEVELOPMENT
Apollo Tyres is driven by the vision to develop path breaking technology
and products that exceed customer expectations. With its two global
Research & Development centres in India and Europe, the Company
focuses on minimizing the environmental impact of its activities,
development of environment friendly materials and innovative ways to
reduce the environmental damage caused by the accumulation of end
of life tyres.

The Company strives to develop new materials complying

with the latest amendments in Registration, Evaluation,
Authorisation and Restriction of Chemicals (REACH)and
Polycyclic-aromatic hydrocarbons (PAH) free materials list.
Use of renewable raw materials or recycled materials results
in more sustainable products, leading to reduced consumption
of natural resources, thereby, reducing the dependency on the
fossil fuel based materials. Some of the innovations done by
Apollo Tyres are enumerated below.

A new series of fuel efficient tyres known as EnduRace nRG

has been developed, reducing the fuel consumption by up to
10%. The series comprises of 10.00R20 EnduRace RA nRG,
10.00R20 EnduRaceRAT nRG, 295/90R20 EnduRace RA nRG.

Further in line with Government of India’s plan to promote

sustainable mobility through Electric vehicles, Apollo Tyres expensive radial Tyres in UGM. Further, addition of traction
has developed a complete range of tyres exclusively for pattern in earth-mover segment will help in solving the
Commercial Electric Buses which not only provide superior slippage problems in muddy applications.
mileage but also have low rolling resistance and noise.
COMPLYING WITH REGULATIONS
Apollo works towards harmonising the economic growth with
We are committed to meet all the current and future tyre
environmental sustainability. In this regard, as an initiative
labelling requirements as and when applicable. In compliance
to reduce plastic material usage, the company eliminated
to REACH, we ensure that all our raw material supplies
application of polythene from gum in apex and sidewall.
are tested on Substance of Very High Concern (SVHC) and
Cure time reduction by approximately 1.5 minutes created
PAHs and these reports are refreshed on annual basis for
additional production around 12MT / day resulting in huge
revised list of SVHC. New vendors are approved based on the
savings in energy and reduction in CO2 emissions
compliance to this regulation. Further, all the tyres being
Apollo Tyres are widely used in the tractors by farmers for exported to EU are tested and certified by certifying agencies
agricultural purposes. Tractors in India are put to different to ensure REACH compliance.
terrains supporting soft soil, hard soil and to various purposes
COMPLIANCE WITH CONFLICT MINERAL RULE
including haulage. Understanding these needs of the farmers,
Apollo took up the challenging task of developing radial tyres Conflict minerals can be extracted at many different locations
for agricultural vehicles. These tyres can perform equally well around the world including the Democratic Republic of Congo
on both soft as well as hard soils and for haulage, improving (DRC). SEC rules define conflict minerals as 3TG metals
the overall productivity. These tyres also provide an added (tantalum, tin, tungsten & gold), wherever extracted. In the
advantage of puncture resistance, reduced fuel consumption, SEC rule, ‘DRC conflict-free’ is defined as minerals that were
proper soil compaction, better product life and superior ride extracted and did not directly or indirectly benefit armed
comfort. groups in the covered countries. To ensure compliance with
this rule, we enabled our supply chain system for traceability
Underground mining (UGM) tyres with new innovative carcass
of origin of these minerals supplied to our downstream
construction resulting in through cut resistance is expected to
supplier up to the smelter levels and mines. These updated
strengthen our presence in the UGM segment.
declarations are submitted to our OEMs annually.
This new product will help the customers to replace the

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 Corporate Overview Statutory Reports Financial Statements

SUPPORT TO GADSL OBJECTIVES

Global Automotive Declarable Substance List (GADSL) covers
declaration of certain information about substances relevant
to parts and materials supplied by supply chain to automobile
manufacturers. GADSL is a summary list of all substances
likely to be in vehicles and which are restricted in some parts
of the world. The information is applicable to the use of these
parts or materials in the production of a vehicle up to its
usage and relevant to the vehicle’s re-use or waste disposal,
which in turn applicable to tyres as well. In accordance with
ELV objectives, the Company supports its OEMs by providing
IMDS (International Material Data System) declarations
which contains information on the materials and substances
in the tyres supplied to them.

COMPLIANCE TO ROHS
Apollo complies with the Restriction of Hazardous
Substances (RoHS) regulation and usage of hazardous
substances such as lead, mercury, cadmium and hexavalent
chromium in tyres is completely banned.

In addition to the above, the Company ensures none of

the Persistent Organic Pollutants (POPs) are used for tyre
manufacturing. Some specific effects of POPs can include
cancer, allergies and hypersensitivity, damage to the central
and peripheral nervous systems, reproductive disorders and
disruption of the immune system. These are also considered
to be endocrine disrupters which can damage the reproductive
and immune systems of exposed individuals as well as their
offspring. In addition, they can also have developmental and
carcinogenic effects.

THE NEXT CHAPTER

The Company’s journey ahead is about mapping all ongoing
initiatives and aligning those with international standards
and best practices across the sector. Its Sustainability
roadmap 2020 provides directional inputs into driving
the agenda across the company including independent
assessment of its efforts. As we envisage our roadmap for
2025, we aim to explore collaborations with partners across
the value chain on initiatives with a shared vision.

The Company shall strive to exercise its goodwill and

influence its stakeholders to build a community connected
by common purpose giving rise to Sustainability embedded
operations. It plans to take up a stewardship role as it
charts a journey to build a long lasting Institution.

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 Apollo Tyres Ltd. Annual Report 2018-19

BOARD’S REPORT
Dear Member,

Your Directors have pleasure in presenting the 46th Annual Report on the business and operations of Apollo Tyres Ltd. (“the Company”),
together with the audited financial statements for the financial year ended March 31, 2019.

FINANCIAL PERFORMANCE
The financial performance of the Company for the financial year ended March 31, 2019 is summarised below:
(` Million)

Year ended Year ended

Particulars March 31, 2019 March 31, 2018 March 31, 2019 March 31, 2018
Standalone Consolidated
Net Sales 120,896 101,332 172,734 146,741
Other Income and Other Operating Income 3,756 2,883 3,986 2,830
Operating Profit (EBIDTA including Other Income) 15,906 13,692 20,818 17,678
Less: Depreciation/Amortisation Exp. 4,463 3,644 8,127 5,926
Finance Cost 1,379 1,375 1,811 1,629
Provision for Tax 2,143 2,449 2,083 2,884
Net Profit before share of Profit in Associate/ Joint Venture 7,921 6,224 8,797 7,239
and Exceptional Items
Add: Exceptional Items (2,000) - (2,000) -
Add: Share of Profit in Associate/ Joint Venture - - 1 -
Net Profit 5,921 6,224 6,798 7,239

OPERATIONS million for FY2019 as against ` 7,239 million for the previous
financial year.
As the economy stepped back in the 7% plus zone and despite the
slow growth by the overall automotive sector, the tyre industry had a
RAW MATERIALS
good run during FY2019. As per the estimates by ICRA, the revenue
growth for tyre industry was pegged at 14-15% for the fiscal, with This fiscal saw an increase in raw material cost by approx. 5% over
operating margin and net margin of 14% and 7% respectively. last year with rise in Carbon Black, Synthetic Rubber, Nylon Fabric,
The Commercial Vehicle (CV) industry, aided by good monsoon and Steel Cord, Bead Wire and Chemicals prices.
an uptick in the economy, followed a growth path in line with the
auto industry. The CV segment continues to account for the highest Oil based raw materials were on the increase due to the rise in
value within the industry. crude oil prices. Brent Crude prices were 21% higher in FY2019
over FY2018. OPEC together with Russia agreed and implemented
The European market witnessed a small increase (1%) in production cuts which kept the crude prices buoyant during the year.
the replacement market for passenger car tyres due to a
strong increase in the growing market for all-season tyres. The weakening of the rupee against the US Dollar by 8% during the
However, the market for consumer tyres from the OEMs declined by year under review also added to the raw material cost push.
4%. Agricultural tyre sales posted its fifth year of negative growth
of 4%. Strong legislations hit the imports of Truck Bus Radial (TBR) The strong demand in the first half of the year provided a solid
tyres significantly and resulted in a strong 9% growth in aftermarket momentum to domestic Natural Rubber (NR) requirement.
TBR tyres and 4% growth for the OEM TBR segment. The domestic NR production got impacted by the unfortunate Kerala
floods in August 2018. However, the entire NR production value
On a standalone basis, your Company achieved a net sales of chain bounced back quickly in a couple of weeks time. India had a
` 120,896 million as against ` 101,332 million during the previous shortfall of around 5.0 lakhs MT of NR in FY2019 which had to be
financial year. EBIDTA was at ` 15,906 million as compared to met through imports. The inverted duty of 25% on NR continued
` 13,692 million during the previous financial year. The Net Profit for through the year. The shortfall in domestic availability was met
the year under review was ` 5,921 million, as against ` 6,224 million through imports from Thailand and Indonesia. The Company in
in the previous fiscal. order to improve the quality of domestic NR has set up Dirt Free
Centres where loose sheets are sourced, inspected and graded
The consolidated net sales of your Company was ` 172,734 million using international practices and made suitable for use in our
during FY2019, as compared to ` 146,741 million in FY2018. radial applications. The port restrictions on NR and also the pre
The consolidated EBIDTA was ` 20,818 million for FY2019 as import condition on NR imports under Advance Licences continued
compared to ` 17,678 million for the previous financial year. during the year.
On consolidated basis, Apollo Tyres earned a Net Profit of ` 6,798

84
 Corporate Overview Statutory Reports Financial Statements

Carbon Black supply situation improved over the last fiscal aided by rotation and to hold office for a second term of 5 consecutive
capacity expansion/ debottlenecking by the local industry towards years with effect from May 15, 2019 to May 14, 2024, through
the fourth quarter and also moderation in automobile demand in the Postal Ballot on March 18, 2019. The Board noted that
later part of the year. The anti-dumping duty on imports of Carbon her continuous association would be of immense benefit
Black from China continues. to the Company.

Nylon fabric and rubber chemicals showed an upward trend in


Pursuant to the provisions of Section 161(1) and 178
FY2019 owing to increase in crude based derivatives. The customs
of the Companies Act, 2013 and rules related thereto,
duty on nylon fabric imports continues at 20%. The anti-dumping
Mr. Satish Sharma (DIN: 07527148) was appointed as an
duty continues on imports of nylon fabric from China and rubber
Additional Director (Non-Independent) of the Company with
chemicals from China, Korea and Europe. China’s focus on pollution
effect from April 1, 2019 to hold office of Director upto the
control and bank loan recoveries has forced some companies out of
date of the ensuing Annual General Meeting of the Company.
business which will lead to consolidation in the supplier industry in
He was also appointed as Whole-time Director (Pursuant to
China in the medium term.
the provisions of Sections 196, 197 and any other applicable
The anti-dumping duty imposed on imports of Styrene Butadiene provisions of the Companies Act, 2013) of the Company for a
Rubber from Korea, Thailand and Europe in August 2017 continued period of 5 years with effect from April 1, 2019 to March 31,
during the year. The conventional grades of Synthetic Rubber – 2024, for which the approval is being sought in the ensuing AGM.
Styrene Butadiene Rubber (SBR) are being produced in India leading
to import substitution. The Solution SBRs used in the manufacture Pursuant to the provisions of Section 152(6) of the Companies
of tyres with low rolling resistance and Ultra High Performance Act, 2013, Mr. Robert Steinmetz (DIN: 00178792) and
tyres are not produced in India and have to be sourced from Europe Mr. Francesco Gori (DIN: 07413105) Directors of the Company,
and South East Asia. are liable to retire by rotation and being eligible offer themselves
for re-appointment.
DIVIDEND

None of the aforesaid Directors are disqualified under
Your Company has a consistent track record of dividend payment.
Section 164(2) of the Companies Act, 2013. Further, they are
In compliance with the latest Dividend Distribution Policy of the
not debarred from holding the office of Director pursuant to
Company, the Directors are pleased to recommend a dividend of
order of SEBI or any other authority.
` 3.25 (325%) per share of Re. 1/- each on Equity Share Capital of the
Company for FY2019 for your approval. There will be no tax deduction
B) Changes in Directors and Key Managerial Personnel
at source on dividend payments, but certain specified shareholders
During the year under review and between the end of the
(resident in India) receiving a dividend income exceeding ` 1 million,
Financial Year and date of this report, the following are
would become liable to pay additional tax @ 10% (plus applicable
the changes in Directors and Key Managerial Personnel
surcharge and cess). Your Company would continue to bear tax on
of the Company:-
dividend @ 20.56 %, inclusive of surcharge and cess.

(i) Resignation of Mr. A. K. Purwar, Independent Director with

The dividend, if approved, shall be payable to the Members holding
effect from August 1, 2018, due to personal reasons.
shares as on cut-off date, i.e. July 24, 2019.

(ii) 
Appointment of Mr. Satish Sharma (DIN: 07527148),
RESERVES
President (APMEA) as Whole-time Director (Additional
The amount available for appropriations, including surplus from Director) with effect from April 1, 2019.
previous year amounted to ` 39,859 million. Surplus of ` 36,208
million has been carried forward to the balance sheet. A debenture (iii) Mr. Nimesh N. Kampani & Dr. S. Narayan, Independent
redemption reserve of ` 410 million and general reserve of ` 1,000 Directors, tenure would end on August 5, 2019. They have
million has been provided. requested not to propose their re-appointment considering
their age and long association with the Company.
BOARD OF DIRECTORS
(iv) 
Re-appointment of Mr. Akshay Chudasama
A) Appointment/Re-appointment of Director
(DIN: 00010630) and Mr. Vikram S. Mehta
Mr. Neeraj Kanwar (DIN: 00058951), Managing Director was
(DIN: 00041197) Independent Directors, for a further
re-appointed for a period with effect from May 28, 2019 till
period of 5 years from August 6, 2019 to August 5, 2024,
March 31, 2024, by way of a Postal Ballot on December 20, 2018.
for which the approval is sought at the ensuing AGM.
The Company has received approval of Central Government
dated April 30, 2019, for appointment of Mr. Neeraj Kanwar as
(v) The Company has received an order from Government of
Managing Director of the Company.
Kerala (GOK) withdrawing nomination of Dr. M. Beena, IAS
pursuant to her appointment as Chairperson, Cochin Port
Ms. Pallavi Shroff (DIN: 00013580) was re-appointed as an
Trust. She ceases to be a Director w.e.f. May 9, 2019.
Independent Director of the Company, not liable to retire by

85
 Apollo Tyres Ltd. Annual Report 2018-19


There are no changes in the Key Managerial Personnel F) Remuneration Policy
of the Company. The Board has, on the recommendation of the Nomination
& Remuneration Committee, laid down a Nomination &
C) Declaration by Independent Directors Remuneration Policy for selection and appointment of the
In terms with Section 149(7) of the Companies Act, 2013, Directors, Key Managerial Personnel and Senior Management
Independent Directors of the Company have submitted and their remuneration. The extract of the Nomination and
declarations that they meet the criteria of Independence. Remuneration Policy provided in the Corporate Governance
The Independent Directors have also complied with the Report forms part of Board’s Report.
Code for Independent Directors as per Schedule IV of the
Companies Act, 2013.  he Nomination & Remuneration policy of the Company is
T
available on the website of the Company and the weblink
D) Formal Annual Evaluation is : https://corporate. apollotyres.com/investors/corporate-
Pursuant to the provisions of the Companies Act, 2013, governance/?filter=CodesPolicies
the Board is required to carry out annual evaluation of its
own performance and that of its Committees and individual G) Code of Conduct for Directors and Senior
Directors. The Nomination and Remuneration Committee Management
(NRC) of the Board also carries out evaluation of every The Company has formulated a Code of Conduct for Directors
Director’s performance. Accordingly, the Board and NRC of and Senior Management Personnel and has complied with all
your Company have carried out the performance evaluation the requirements mentioned in the aforesaid code.
during the year under review.
PRODUCT & MARKETING
For annual performance evaluation of the Board as a whole, it’s
In FY2019, the APMEA (Asia Pacific, Middle East and Africa)
Committee(s) and individual Directors including the Chairman
operations continued its focus on key themes for the Indian market
of the Board, the Company has formulated a questionnaire to
- consolidating its leadership position and expanding market share
assist in evaluation of the performance. Every Director has to
by introducing new products across segments. The Vision 2020
fill the questionnaire related to the performance of the Board,
for the Indian business aims at building leadership in multiple
its Committees and individual Directors except himself by
segments of the industry. Committed investments in R&D and brand
rating the performance on each question on the scale of 1 to 5,
building continued to fuel the growth journey of the region to attain
1 being Unacceptable and 5 being Exceptionally Good.
its vision. The region has seen continued OEMs approvals with high
satisfaction as well as increased customer acknowledgements.
On the basis of the response to the questionnaire, a matrix
For other countries in the APMEA region, it continued seeding the
reflecting the ratings was formulated and placed before
markets with country specific products, building brand salience and
the Board for formal annual evaluation by the Board of its
expanding distribution networks.
own performance and that of its Committees and individual
Directors. The Board was satisfied with the evaluation results.
In the CV segment, the Company became the first tyre Company
in India to introduce a range of fuel efficient tyres in the later part
E) Separate Meeting of Independent Directors
of the FY2019 which highlights the role played by its R&D team in

In terms of requirements under Schedule IV of the
creating first to market products. With the emergence of electric
Companies Act, 2013 and Regulation 25(3) of SEBI(Listing
vehicles, the fiscal saw the Company becoming the exclusive
Obligations and Disclosure Requirements) Regulations, 2015,
supplier to the Tata Motors’ ultra-electric buses. On similar lines,
a separate meeting of the Independent Directors was held on
the Company saw its tyres fitted on the 9 Mtr electric buses of
March 26, 2019.
Ashok Leyland – both the wins validating the role played by the
Company’s R&D team.
The Independent Directors at the meeting, inter alia, reviewed
the following:-
In the PV tyres segment, the Company banking on its cutting edge
R&D introduced SUV tyres - Apterra White Lettered - with white
• Performance of Non-Independent Directors and
lettering on the sidewall. A key technology advancement, the Apterra
Board as a whole.
White Lettered tyre marks Apollo Tyres’ entry into high visibility
SUV tyres market and had the distinction of the few manufacturers
• Performance of the Chairman of the Company, taking
in India with this technology capability. The fiscal saw the Company
into account the views of Executive Directors and
expand its co-branded tyre range with Manchester United Football
Non-Executive Directors.
Club and the tyre was available to Man Utd fans driving fast selling
cars like Brezza, Nexon, BRV-WRV, XUV 500, Duster and Scorpio/
• Assessed the quality, quantity and timeliness of flow of
XUV 500. Further, the Company was extremely successful in
information between the Company Management and the
growing its premium range – Apollo Alnac 4G, meant for premium
Board that is necessary for the Board to effectively and
hatchbacks and sedans. To make deeper inroads in the luxury tyre
reasonably perform their duties.

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 Corporate Overview Statutory Reports Financial Statements

segment, the Company expanded its range of Aspire 4G branded segment and all its sub-categories - summer, winter and All Season
tyre. With multiple branding initiatives and a focus on increasing segments. Importantly, the Company will focus on getting OEMs on
distribution for the brand, the Company grew this business by 6x board and move away from its replacement only strategy in the past.
over the corresponding previous fiscal. The Company achieved an With the initial positive feedback of the TBR tyres from its Hungary
important milestone as it was ranked #1 in the JD Power 2018 India plant, the region will see an aggressive focus on this segment.
Original Equipment Tyre Customer Satisfaction Index in small cars However, the region is gearing to pricing pressure for its All Season
segment and #2 in the midsize cars or sedan segment category. tyres given increased competition in the segment. The Company
For the segment, the fiscal ended with a bang as it concluded its has ended the year with a showcase of its highly rated Quatrac Pro
inaugural edition of #BadRoadBuddies, an initiative to build and be for the UHP and Ultra-UHP segments. For India, the Company plans
connected with the SUV/4x4 community. to continue to maintain its leadership position in TBR segment.
With increased brand building activities and on-ground activations
In the two-wheelers tyre segment, the year saw the launch around key initiative like ‘Bad Road Buddies’, the Company aims for
of Apollo Alpha, India’s first ‘zero-degree steel motorcycle the leadership position in PV tyres segment. The Company plans to
radial tyre’ in the country. Designed and developed at Apollo replicate its radialization success story in the truck/ bus segment in
Tyres’ Global R&D Centre, Asia in Chennai, the tyres cater to the the two wheeler segment with its Alpha range of radial tyres.
biking enthusiasts. The launch was accompanied by a high-voltage
campaign #ThrillUpYourBeast. MATERIAL CHANGES AND COMMITMENTS
No material changes and commitments affecting the financial
The Company adopted a 360 degree approach to strengthen its
position of your Company have occurred between the end of the
brand awareness. To target the biking community, the Company
financial year of the Company to which the financial statements
used OOH media across major biking routes including Manali to
relate and on the date of this report.
Leh, Mumbai to Lonavala etc. The Company participated in the
Kumbh Mela with wall paintings, parking lots service / safety
SIGNIFICANT MATERIAL ORDERS PASSED BY
activations. The Company continued to use its association with Man
REGULATORS
U and related football associations for social media and on-ground
activations. All these brand awareness efforts have yielded results No significant material orders have been passed during the year
as the Company moved to the #1 position in brand awareness in India under review by the regulators or courts or tribunals impacting the
and #2 position in overall Brand Equity as per the commissioned going concern status and Company’s operations in future.
Brand Track Study.
CHANGE IN THE NATURE OF BUSINESS, IF ANY
In Europe, the Company’s strategy to move from a replacement
There is no change in the nature of business of your Company during
only player and get associated with OEM players in Europe saw
the year under review.
good traction as Vredestein Quatrac 5 was chosen as a standard
fitment for Ford Fiesta and the Vredestein Quatrac 5 (All Season)
INTERNAL FINANCIAL CONTROLS
and Vredestein Ultrac Satin (summer tyre) became part of the new
Volkswagen Touareg in Europe. With a sharp focus on performance Internal Financial Control (IFC) means the policies and procedures
and design, the Company’s Vredestein Wintrac Pro was declared adopted by the Company for ensuring the orderly and efficient
winner in 2018 Auto Bild test with the prestigious exemplary conduct of its business, including adherence to Company’s policies,
(Vorbildlich) rating, a testimony to the R&D prowess of Apollo Tyres. the safeguarding of its assets, timely prevention and detection of
frauds and errors, the accuracy and completeness of the accounting
FUTURE OUTLOOK records and the timely preparation of reliable financial information.

Against this background of global and Indian outlook, Apollo Tyres

The Company has identified and documented key internal financial
will continue its three-pronged strategy:
controls as part of standard operating procedures (SOPs). The SOPs
are designed for critical processes across all plants, warehouses
• To consolidate market position in existing markets and seek new
and offices wherein financial transactions are undertaken. The SOPs
markets/segments.
cover the standard processes, risks, key controls and each process
is identified to a process owner. In addition, the Company has a well
• To continue investment in both brands – Apollo and Vredestein –
defined Financial Delegation of Authority (FDOA), which ensures
and capacity expansion via organic expansions.
approval of financial transaction by appropriate personnel.

As part of its strategy, the Company will continue to seed existing

The Company uses SAP-ERP to process financial transactions
and new markets in APMEA and will continue to seed other
and maintain its books of accounts. The SAP has been setup to
important markets across the globe including the Americas.
ensure adequacy of financial transactions and integrity & reliability
However, the Company will stay focussed on its key markets
of financial reporting. SAP was implemented in the European
– India and Europe. For Europe region, the focus will remain
operations in year 2016. SAP was also implemented at Company’s
around premiumization in the sizes 17” and above for the PV tyres
Greenfield plant in Hungary.

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 Apollo Tyres Ltd. Annual Report 2018-19

The financial controls are evaluated for operating effectiveness will also be kept for inspection by any shareholder at the Registered
through management’s ongoing monitoring and review process, and Office and Corporate Office of your Company. A statement in Form
independently by Internal Audit. The testing of controls by Internal AOC-1 containing the salient features of the financial statements of
Audit are divided into three separate categories; a) automated the Company’s Subsidiaries, Associates and Joint Venture is also
controls within SAP, b) segregation of duties within SAP and attached with financial statements.
restricted access to key transactions, c) manual process controls.
MATERIAL SUBSIDIARIES
The SOPs, FDOA, SAP-ERP and independent reviews by the Internal
Your Company has following material unlisted Subsidiaries viz.
Audit help in establishing adequate internal financial controls with
Apollo Vredestein B. V., Apollo Tyres (Hungary) Kft., Apollo Tyres
reference to its financial statements and such internal financial
B. V., Apollo Tyres Cooperatief U. A. and Apollo Tyres Holdings
controls are operating effectively.
(Singapore) Pte Ltd. as on March 31, 2019.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Pursuant to Regulation 24(1) of the SEBI (Listing Obligations
As required by Regulation 34(2) of the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018,
and Disclosure Requirements) Regulations, 2015, a detailed Mr. Akshay Chudasama, an Independent Director of the Company
Management Discussion and Analysis Report is presented in a was nominated as Director on the Board of Apollo Vredestein B.V.,
separate section forming part of the Annual Report. Apollo Tyres (Hungary) Kft., Apollo Tyres Holdings (Singapore)
Pte Ltd. and Ms. Pallavi Shroff, an Independent Director of the
SUBSIDIARY/ ASSOCIATE COMPANIES Company was nominated as Director on the Board of Apollo Tyres
B. V. & Apollo Tyres Cooperatief U. A, with effect from April 1, 2019.
As the Company follows its vision to become a global tyre brand of
choice, it has multiple Subsidiaries for facilitating these operations
a) Apollo Vredestein B.V.
in various countries. As on March 31, 2019, your Company had 37
Apollo Vredestein B. V. focuses on manufacturing, marketing,
Overseas Subsidiary Companies (including step subsidiaries), 2
sales and distribution of tyres and supplies tyres for passenger
Associate Companies and 1 Joint Venture.
cars, commercial vehicles, agricultural and industrial vehicles
and bicycles. The Company’s distribution network extends
Reifencom GmbH, Hannover (RCH), a wholly owned Step Subsidiary
through Europe.
was merged into its parent Company, Reifencom GmbH, Bielefeld
(RCB) w.e.f. August 16, 2018. Pursuant to the merger, the name of
During the FY2019, Company’s Passenger Car Tyre volume
RCB was changed to Reifencom GmbH, Hannover. Also, Reifencom
improved over the last year in line with overall market trend.
Einkaufsgesellschaft GmbH & Co. OHG, Hannover (equally owned
The Company registered a strong improvement in SUV
by RCH and RCB) was merged with RCB.
and Light Truck categories and continued on its strategy of
premiumization. The manufacturing capacity in Company’s
Retail Distribution Holding B.V., wholly owned Subsidiary of Apollo
Enschede plant during the year was fully utilized for Agriculture
Tyres Cooperatief U.A., was wound up on November 27, 2018.
tyres and Spacemaster tyres. The Company achieved overall
7% increased turnover for the year.
Apollo Vredestein Italia Srl, a Subsidiary of Apollo Vredestein B.V.,
was wound up on December 06, 2018.
The Company has launched two important new product
lines in the Passenger Ultra High Performance segment, viz.
Apollo Tyres (Cyprus) Pvt Ltd, wholly owned Subsidiary of the
Wintrac Pro being Winter UHP and Quatrac Pro, being All
Company, was wound up on January 19, 2019.
Season UHP. In agricultural sector, it introduced the new
compact tyres and Optimal product range, at prestigious SIMA
Vredestein Marketing B.V. & Co. KG, a Subsidiary of Apollo Vredestein
show in Paris, France. In addition, the Company performed very
GmbH, was wound up on January 31, 2019.
well on the product quality & performance and was honoured
with podium positions by leading auto magazines.
During the year, the Company had invested ` 22.50 million in KT
Telematic Solutions Private Ltd., an Associate of the Company.
b) Apollo Tyres (Hungary) Kft.
Apollo Tyres (Hungary) Kft. was established in June 4, 2014
As per the provisions of Section 129 of the Companies Act, 2013, the
with an aim to set up a ‘state of the art’ automotive tyre
consolidated financial statements of the Company, its Subsidiaries
manufacturing facility in Hungary which will produce both
and Associates are attached in the Annual Report. A statement
passenger car tyres and commercial vehicle tyres.
containing brief financial details of all the Subsidiaries and
Associates of the Company for the year ended March 31, 2019, forms
During FY2019, the Company ramped up the production
part of the Annual Report. The annual accounts of Subsidiaries and
capacity for passenger car tyres. Full capacity ramp up for
Associates will be made available to shareholders on request and
this product line is expected to complete by the following

88
 Corporate Overview Statutory Reports Financial Statements

financial year. The commercial vehicle tyre production started COST AUDIT
during the year and capacity ramp up is expected to continue
M/s. N.P. Gopalakrishnan & Co., Cost Accountants, were appointed
in the next year.
with the approval of the Board to carry out the cost audit in respect
of the Company’s plants at Perambra (Kerala), Limda (Gujarat) and
c) Apollo Tyres B.V.
Chennai (Tamil Nadu) as well as Company’s lease operated plant at
Apollo Tyres B.V. incorporated in Netherlands is a Holding
Kalamassery (Kerala) for FY2019.
Company with two Subsidiaries, Apollo Vredestein B.V.
and Apollo Tyres (Hungary) Kft.
Based on the recommendation of the Audit Committee,
M/s. N.P. Gopalakrishnan & Co., Cost Accountants, being eligible,
d) Apollo Tyres Cooperatief U.A.
have also been appointed by the Board as the Cost Auditors for
Apollo Tyres Cooperatief U.A. a direct Subsidiary of the
FY2020 subject to Members’ approval. The Company has received
Company is incorporated in Netherlands. The Company is
a letter from them to the effect that their re-appointment would
primarily acting as a holding Company.
be within the limits prescribed under Section 141(3)(g) of the
Companies Act, 2013 and that they are not disqualified for such
e) Apollo Tyres Holdings (Singapore) Pte. Ltd.
re-appointment within the meaning of Section 141 of the Companies

The Company is a private company limited by shares
Act, 2013. The remuneration to be paid to Mr. N.P Gopalakrishnan
incorporated and domiciled in Singapore. The principal
& Co. for FY 2020 is subject to ratification by the shareholders at
activities of the Company is that of sourcing raw materials
the ensuing AGM.
for Apollo manufacturing plants in India and Europe. 50% of
the procurement is done for Natural Rubber. Major sourcing
Cost records as specified by the Central Government under
countries are Thailand, Indonesia and China.
Sub-Section (1) of Section 148 of the Companies Act, 2013 are
made and maintained by the Company.
In addition, Global Supply Chain team based out of Singapore
is managing Global Ocean Freights, Transport Optimization,
SECRETARIAL AUDITOR
Offtake activities, Supply Chain Cost Reviews, Mould
Managements and Certification Projects. Pursuant to the provisions of Section 204 of the Companies Act,
2013 and the Companies (Appointment and Remuneration of
DEPOSITS Managerial Personnel) Rules, 2014, your Company has re-appointed
M/s. PI & Associates, Company Secretaries as Secretarial
During the year under review, your Company did not accept deposits
Auditor of the Company for FY2019 to undertake secretarial audit
covered under Chapter V of the Companies Act, 2013.
of the Company.

AUDITORS
The Secretarial Audit Report does not contain any qualification,
M/s. Walker Chandiok & Co LLP, Chartered Accountants, Firm reservation or adverse remark. Secretarial Audit Report given by
Registration No. 001076N/N500013 (the firm licenses audit Secretarial Auditors is annexed with the report as Annexure I.
software as well as audit methodology from Grant Thornton
International Ltd), had been appointed as Statutory Auditors of MEETINGS OF THE BOARD OF DIRECTORS
your Company for a period of 5 years from FY2018 to FY2022 at the
A calendar of meetings is prepared and circulated in advance to
Annual General Meeting held on July 5, 2017.
the Directors. During the year, six Board meetings were convened
and held. The intervening gap between the meetings was within the
AUDITORS’ REPORT
period prescribed under the Companies Act, 2013 and SEBI (Listing
The report given by M/s. Walker Chandiok & Co LLP, Chartered Obligations and Disclosure Requirements) Regulations, 2015.
Accountants, Statutory Auditors on financial statements of the The details of all Board/ Committee meetings held are given in the
Company for FY2019 is part of the Annual Report. The comments Corporate Governance Report.
on statement of accounts referred to in the report of the Auditors
are self explanatory. The Auditors’ Report does not contain any AUDIT COMMITTEE
qualification, reservation or adverse remark.
The details of the Audit Committee including its composition and
terms of reference mentioned in the Corporate Governance Report
During the year under review, the Auditors had not reported any
forms part of Board’s Report.
matter under Section 143(12) of the Companies Act, 2013 therefore
no detail is required to be disclosed under Section 134(3)(ca) of the
The Board, during the year under review, had accepted all
Companies Act, 2013.
recommendations made to it by the Audit Committee.

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 Apollo Tyres Ltd. Annual Report 2018-19

VIGIL MECHANISM RELATED PARTY TRANSACTIONS

The Company has formulated a vigil mechanism through Whistle All contracts/ arrangements/ transactions entered by the Company
Blower Policy to deal with instances of unethical behaviour, actual during the financial year with related parties were in the ordinary
or suspected, fraud or violation of Company’s code of conduct or course of business and on an arm’s length basis and do not attract
ethics policy. The details of the policy are explained in the Corporate the provisions of Section 188 of the Companies Act, 2013. During the
Governance Report and also posted on the website of the Company. year, the Company had not entered into any contract/ arrangement/
transaction with related parties which could be considered material
COMMITTEES OF BOARD in accordance with the policy of the Company on materiality of
related party transactions.
Pursuant to requirement under Companies Act, 2013 and SEBI
(Listing Obligations and Disclosure Requirements) Regulations,
Suitable disclosures as required by the Indian Accounting Standards
2015, the Board of Directors has constituted various Committees
have been made in the notes to the financial statements. The policy
of Board such as Audit Committee, Nomination & Remuneration
on related party transactions as approved by the Board is uploaded
Committee, Stakeholders Relationship Committee, Business
on the Company’s website.
Responsibility Committee, Risk Management Committee and
Corporate Social Responsibility Committee. The details of
MANAGERIAL REMUNERATION
composition and terms of reference of these Committees are
mentioned in the Corporate Governance Report. a) The details required pursuant to Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel)
SHARE CAPITAL Rules, 2014, are provided in the Corporate Governance Report.

During the year under review, the Issued, Subscribed and Paid-up
b) 
During the year under review, Mr. Neeraj Kanwar (DIN:
Share Capital of the Company was 572,049,980 equity shares of ` 1/-
00058951), Vice Chairman & Managing Director also received
each. There was no change in the capital structure of the Company.
remuneration from Apollo Tyres (UK) Pvt. Ltd., wholly owned
Subsidiary of the Company.
a) Issue of equity shares with differential rights
Your Company has not issued any equity shares with differential
PARTICULARS OF EMPLOYEES
rights during the year under review.
Particulars of employees as required in terms of the provisions
b) Issue of sweat equity shares of Section 197 of the Companies Act, 2013, read with Rule 5(2)
Your Company has not issued any sweat equity shares during of the Companies (Appointment and Remuneration of Managerial
the year under review. Personnel) Rules, 2014, are set out in Annexure A to the
Board’s Report.
c) Issue of employee stock options
Your Company has not issued any employee stock options PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
during the year under review.
Your Company has in place a formal policy for prevention of sexual
harassment of its employees at workplace and the Company has
d) Provision of money by Company for purchase of
complied with provisions relating to the constitution of Internal
its own shares by employees or by trustees for the
Committee under the Sexual Harassment of Women at Workplace
benefit of employees
(Prevention, Prohibition and Redressal) Act, 2013.
Your Company has not made any provision of money for
purchase of its own shares by employees or by trustees for the
During the year under review, there were no cases filed pursuant
benefit of employees during the year under review.
to the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
UNDER SECTION 186
HEALTH, SAFETY & ENVIRONMENT
During the year under review, your Company has not given any loan
As a firm commitment to Health, Safety and Environment (HSE),
or guarantee which is covered under the provisions of Section 186
the year saw multiple initiatives to implement and review the HSE
of the Companies Act, 2013. However, details of investment made
plans and achieve the defined KPIs. For details on HSE, please refer
during the year, are given under notes to the financial statements.
to Management Discussion and Analysis Report.

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 Corporate Overview Statutory Reports Financial Statements

AWARDS AND RECOGNITIONS

In its constant quest for growth and excellence, your Company was honoured and recognised at various forums. The prominent Awards
are listed below for your reference.

Name of the Award Category Awarded by

Excellence in Customer Delight 2017 Hyundai Motors India
FGI Award for Outstanding Work Place Limda Plant Federation of Gujarat Industries
Comprehensive Excellence, Consistent High Quality & Maruti Suzuki
Systems and Audits
Tyre Customer Satisfaction Small Car Segment; Midsize Cars JD Power
India’s Best Companies to Work for 2018 Manufacturing and Production Great Place to Work
Mahindra Supplier Excellence Award 2018 Vehicle Proprietary Commodity- Mahindra & Mahindra
Automotive Division
Golden Peacock Award for Excellence in Corporate Corporate Governance and India’s Institute of Directors (IoD)
Governance 2018 Sustainability
Best Corporate Social Responsibility (CSR) Film Woodpecker International Film
Festival (WIFF)
Kerala State Energy Conservation Award 2018 Large Scale Energy Consumers Energy Management Centre (EMC)
Under Department of Power Govt. of
Kerala
Best Overall Performance Award Tyre Manufacturer Maruti Suzuki

RISK MANAGEMENT Companies (Corporate Social Responsibility) Rules, 2014 forms

part of this Report as Annexure II.
The Board at its meeting held on February 5, 2019, had constituted
a Risk Management Committee (RMC) of the Board comprising
The CSR Policy of the Company is available on the website of the
of Directors and Senior Executives of the Company. The terms of
Company and the weblink is: - https://corporate.apollotyres.com/
reference of the Committee including its composition are mentioned
investors/corporate-governance/?filter=CodesPolicies
in the Corporate Governance Report which forms part of the
Board’s Report.
BUSINESS RESPONSIBILITY REPORT
CORPORATE SOCIAL RESPONSIBILITY SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 mandates the top 500 Listed Companies by
Your Company has been taking initiatives under Corporate Social
market capitalisation to include Business Responsibility Report
Responsibility (CSR) for society at large, well before it has been
(“BR Report”) in their Annual Report.
prescribed through the Companies Act, 2013. The Company has a
well defined Policy on CSR as per the requirement of Section 135 of
Your Company falls under the top 500 Listed Companies by
the Companies Act, 2013 which covers the activities as prescribed
market capitalisation. Accordingly, a BR Report describing the
under Schedule VII of the Companies Act, 2013. The Company has
initiatives taken by the Company from an environmental, social and
an in-house department which is exclusively working towards that
governance perspective, forms part of this Report as Annexure III.
objective. The Company is carrying out its CSR Activities through
Registered Trusts, created by the Company, for this purpose and the
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
Trust is monitored by CSR Committee.
FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year under review, the Company has carried out activities Particulars required under Section 134(3)(m) of the Companies
primarily related to promoting preventive healthcare, ensuring Act, 2013 read with Rule 8 of the Companies (Accounts) Rules,
environmental sustainability, livelihood enhancement projects, 2014, regarding conservation of energy, technology absorption and
rural development projects, promoting education and eradication of foreign exchange earnings and outgo, are given in Annexure IV,
hunger and poverty. forming part of this report.

Corporate Social Responsibility Report, pursuant to clause (o)

of Sub-Section (3) of Section 134 of the Act and Rule 9 of the

91
 Apollo Tyres Ltd. Annual Report 2018-19

ANNUAL RETURN (c) 

the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance
The extract of the Annual Return in Form MGT-9 is enclosed
with the provisions of this Act for safeguarding the assets of
herewith as Annexure V, forming part of this report.
the Company and for preventing and detecting fraud and other
irregularities;
As per Section 134(3)(a) of the Companies Act, 2013, the Annual
Return referred to in Section 92(3) has been placed on the website
(d) 
the Directors had prepared the annual accounts on a
of the Company www.apollotyres.com under the Investors Section.
going concern basis;

CORPORATE GOVERNANCE REPORT

(e) the Directors had laid down internal financial controls to be
Your Company always places major thrust on managing its affairs followed by the Company and that such internal financial
with diligence, transparency, responsibility and accountability controls are adequate and were operating effectively; and
thereby upholding the important dictum that an organisation’s
corporate governance philosophy is directly linked to (f) the Directors had devised proper systems to ensure compliance
high performance. with the provisions of all applicable laws and that such systems
were adequate and operating effectively.
The Company is committed to adopting and adhering to established
world-class corporate governance practices. The Company SECRETARIAL STANDARDS
understands and respects its fiduciary role and responsibility
During the year under review, your Company had complied with all
towards its stakeholders and society at large, and strives to
the applicable Secretarial Standards.
serve their interests, resulting in creation of value and wealth for
all stakeholders.
ACKNOWLEDGEMENT
The compliance report on corporate governance and a certificate Your Company’s organisational culture upholds professionalism,
from M/s. Walker Chandiok & Co LLP, Chartered Accountants, integrity and continuous improvement across all functions, as well
Statutory Auditors of the Company, regarding compliance of the as efficient utilisation of the Company’s resources for sustainable
conditions of corporate governance, as stipulated under Chapter and profitable growth.
IV of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 is attached herewith as Annexure VI to this report. Your Directors wish to place on record their appreciation to the
respective State Governments of Kerala, Gujarat, Haryana, Tamil
DIRECTORS’ RESPONSIBILITY STATEMENT Nadu and Andhra Pradesh and the National Governments of
India, Netherlands and Hungary. We also thank our customers,
As required by Section 134(3)(c) of the Companies Act, 2013, your
business partners, members, bankers and other stakeholders for
Directors state that:
their continued support during the year. We place on record our
appreciation for the contribution made by all employees towards
(a) in the preparation of the annual accounts for the financial year
the growth of your Company.
ended March 31, 2019, the applicable accounting standards
had been followed along with proper explanation relating to
For and on behalf of the Board of Directors
material departures;

Place: Gurgaon ONKAR S. KANWAR

(b) the Directors had selected such accounting policies and applied
Date: May 9, 2019 Chairman & Managing Director
them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year
and of the profit and loss of the Company for that period;

92
 Corporate Overview Statutory Reports Financial Statements

FORM NO. MR - 3 ANNEXURE I

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2019
[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To, c. The Securities and Exchange Board of India (Issue of

The Members, Capital and Disclosure Requirements) Regulations, 2018
Apollo Tyres Limited and amendments from time to time (not applicable to the
(L25111KL1972PLC002449) Company during the audit period);

We have conducted the secretarial audit of the compliance d. The Securities and Exchange Board of India (Share Based
of applicable statutory provisions and the adherence to good Employees Benefits) Regulations, 2014;
corporate practices by Apollo Tyres Limited (hereinafter referred
to as “the Company”). Secretarial Audit was conducted in a manner e. 
The Securities and Exchange Board of India (Issue
that provided us a reasonable basis for evaluating the corporate and Listing of Debt Securities) Regulations, 2008 (not
conducts/statutory compliances and expressing our opinion thereon. applicable to the Company during the audit period);

Based on our verification of the Company, books, papers, minute f. The Securities and Exchange Board of India (Registrars to
books, forms and returns filed and other records maintained by an Issue and Share Transfer Agents) Regulations, 2018
the Company and also the information provided by the Company, regarding the Companies Act and dealing with client;
its officers, agents and authorized representatives during the
conduct of secretarial audit. We hereby report that in our opinion, g. The Securities and Exchange Board of India (Delisting of
the Company has, during the audit period covering the financial Equity Shares) Regulations, 2009 (not applicable to the
year ended on March 31, 2019, complied with the statutory Company during the audit period);
provisions listed hereunder and also that the Company has proper
Board-processes and compliance-mechanism in place to the extent h. The Securities and Exchange Board of India (Buyback
based on the management representation letter/ confirmation, in of Securities) Regulations, 2018 (not applicable to the
the manner and subject to the reporting made hereinafter. Company during the audit period); and

We have examined the books, papers, minute books, forms and i. 

The Securities and Exchange Board of India (Listing
returns filed and other records maintained by the Company for Obligations and Disclosure Requirements) Regulations,
the financial year ended on March 31, 2019, according to the 2015, (hereinafter referred to as ‘LODR/ Listing
provisions of: Regulations, 2015’).

(i) 
The Companies Act, 2013 (‘the Act’) and the rules (vi) We, further report that with respect to the Compliance of the
made thereunder; below mentioned laws, we have relied on the representation
made by the Company and its officers for system and
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and mechanism framed by the Company for compliances under
the rules made thereunder; general laws (incl. Labour Laws, Tax Laws, etc.) and the
following Specific Laws applicable to the Company:
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws
framed thereunder; a. 
Pneumatic Tyres and Tubes for Automotive Vehicles
(Quality Control), Order, 2009; and
(iv) Foreign Exchange Management Act, 1999 and the rules and
regulations made thereunder to the extent of Foreign Direct b. Bureau of India Standards Act, 1986 and the Rules made
Investment, Overseas Direct Investment and External thereunder as applicable to Tyre Industry;
Commercial Borrowings;
We have also examined compliance with the applicable clauses of
(v) The following Regulations and Guidelines prescribed under the the following:
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
(i) 
Secretarial Standards issued by The Institute of Company
a. The Securities and Exchange Board of India (Substantial Secretaries of India;
Acquisition of Shares and Takeovers) Regulations, 2011;
(ii) The Listing Agreements entered into by the Company with the
b. The Securities and Exchange Board of India (Prohibition of Stock Exchange(s).
Insider Trading) Regulations, 2015;

93
 Apollo Tyres Ltd. Annual Report 2018-19

 uring the period under review, the Company has complied with the
D Non – Convertible Debentures of ` 15,000 Million on private
provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. placement basis to be allotted in one or more tranches.
mentioned above.
II. 
That the Company through Postal Ballot passed on
We further report that: December 20, 2018 approved re–appointment of
The Board of Directors of the Company is duly constituted with Mr. Neeraj Kanwar (a foreign national of Hungary) as Managing
proper balance of Executive Directors, Non-Executive Directors Director with effect from May 28, 2019 to March 31, 2024 for
and Independent Directors. The changes in the composition of the which the Central Government approval has also been obtained.
Board of Directors that took place during the period under review
were carried out in compliance with the provisions of the Act. III. 
The Adjudicating Officer of SEBI has passed an order on
November 22, 2018 wherein a penalty of ` 65,00,000/- (Rupees
Adequate notice is given to all Directors to schedule the Board Sixty Five Lakh Only) has been imposed on the Company for
Meetings, agenda and detailed notes on agenda were sent at least violation of the provisions of Regulations 4(1), 5A and 19(7) of the
seven days in advance, and a system exists for seeking and obtaining Buy Back Regulations, 1998 pertaining to the buy back scheme
further information and clarifications on the agenda items before launched in the year 2003. Further, the Company has also paid
the meeting and for meaningful participation at the meeting. penalty amount under protest to SEBI and simultaneously,
an appeal has been filed before Securities Appellate Tribunal
Majority decision is carried through while the dissenting against the order which is pending for disposal.
members’ views are captured and recorded as part of the minutes.
For PI & Associates,
We further report that there are adequate systems and processes Company Secretaries
in the Company commensurate with the size and operations of the
Company to monitor and ensure compliance with applicable laws, Ankit Singhi
Partner
rules, regulations and guidelines.
Place: New Delhi ACS No.:A20642
Date: May 6, 2019 C P No.: 16274
We further report that during the audit period the Company had
following events which had bearing on the Company’s affairs This report is to be read with our letter of even date which is
in pursuance of the above referred laws, rules, regulations, annexed as “Annexure A” and forms an integral part of this report.
guidelines, standards etc.

I. That the Company had passed Special Resolution in the Annual

General Meeting held on August 01, 2018 for issuance of

“Annexure A”

To, 4. 
Wherever required, we have obtained the Management
The Members, representation about the compliance of laws, rules and
Apollo Tyres Limited regulation and happening of events etc.

Our Secretarial Audit Report of even date is to be read along 5. 

The compliance of the provisions of corporate and other
with this letter. applicable laws, rules, regulations, standards are the
responsibility of management. Our examination was limited to
1. Maintenance of secretarial records is the responsibility of the the verification of procedures on test basis.
management of the Company. Our Responsibility is to express
an opinion on these secretarial records based on our audit. 6. 
The Secretarial Audit Report is neither an assurance as
to future viability of the Company nor of the efficacy or
2. 
We have followed the audit practices and processes as effectiveness with which the management has conducted the
were appropriate to obtain reasonable assurance about affairs of the Company.
the correctness of the contents of the secretarial records.
The verification was done on test basis to ensure that correct For PI & Associates,
facts are reflected in secretarial records. We believe that the Company Secretaries
processes and practices, we followed provide a reasonable
basis for our opinion. Ankit Singhi
Partner
Place: New Delhi ACS No.: A20642
3. We have not verified the correctness and appropriateness of Date: May 6, 2019 C P No.: 16274
financial records and Books of Accounts of the Company.

94
 Corporate Overview Statutory Reports Financial Statements

ANNEXURE II

ANNUAL REPORT ON CORPORATE SOCIAL

RESPONSIBILITY (CSR) ACTIVITIES
1. Outline of Company’s CSR Policy 3) Livelihood for underprivileged women: Expansion at Baroda
and Kottayam location (ongoing). Introduction of agriculture
Apollo Tyres, has developed a CSR framework of identifying
based livelihood project at Chittoor district, Andhra Pradesh.
and prioritising its key stakeholders; Customers, Employees,
Supply Chain Partners and Community. This framework clearly
4) 
Biodiversity Conservation: Mangrove conservation project at
revolves around the principle of three I’s i.e. to Involve, Influence
Kannur, Kerala. Conservation and maintenance of biodiversity
and Impact its key stakeholders, and have a positive impact on
parks in Kochi Tree plantation with objective of carbon
their everyday lives. The CSR activities are particularly aligned
sequestration at Tamil Nadu (ongoing).
with International and National Development agenda.

5) Local Initiatives: Expansion of job counselling and

The programmes are categorised into two broad themes:
employability training for ITI and other Graduates in Kochi
Environment and Social (which has health and community
and Chennai. Computer literacy projects in the villages around
development). Within the themes, there are 4 core areas of work:
Chennai plant. Road safety awareness project at Perambra.
Watershed management project such as pond conservation
1. Healthcare Programme for trucking community
and drinking water project around manufacturing units.

2. Solid Waste Management and Sanitation

6) Philanthropic Initiatives: Support to Kabiliji Hospital for the
treatment of underprivileged rural people, Sponsorship of
3. Livelihood for underprivileged women
education of underprivileged girls in Dehradun, Uttrakahand
(Himjyoti School), Feeding of people outside AIIMS hospital
4. Biodiversity Conservation
(Delhi Langar Society), Medicine support to underprivileged
(Delhi Commonwealth Women’s Association) and others
In addition to above, there are few local initiatives around
during the year.
manufacturing locations such as Watershed Management,
Renewable Energy Proliferation Projects, Road Safety
Web Link:
Awareness and Computer Literacy.
The Company has framed a CSR Policy in compliance with the
provisions of the Companies Act, 2013 and the same is placed on the
CSR policy of Apollo covered all the activities which are
Company’s website and the web link for the same is https://corporate.
mentioned in Schedule VII of Companies Act, 2013 but does
apollotyres.com/en-in/responsibility/policies-documents/
not include the following:

2. The Composition of the CSR Committee.

1. Activities undertaken in pursuance of normal course of
business of the Company. A. Mr. Onkar S. Kanwar- Chairman of the CSR Committee

B. Mr. Sunam Sarkar- Member of the CSR Committee

2. Activities that benefit only the employees of the Company
and their families. C. Mr. General Bikram Singh (Retd.)- Member of the CSR
Committee
3. Contribution to any political party.
D. Ms. Anjali Bansal- Member of the CSR Committee

Programmes proposed to be undertaken

3. 
Average net profit of the Company for last three
Following are the proposed initiatives which will be undertaken
financial years:- ` 10,690.02 million
by the Company:

4. 
Prescribed CSR Expenditure (two per cent of the
1) 
Healthcare Programme for trucking community at 31
amount as in item 3 above):- ` 213.80 million
transhipment locations (ongoing). (Incorporate more health
services at the locations)
5. 
Details of CSR spent during the financial year:-
` 213.83 million
2) 
Solid Waste Management and Sanitation Programme
(SPARSH) in different transhipment hubs and communities
(a) 
Total amount to be spent for the financial year:-
around manufacturing locations (ongoing). Introduction of
` 213.80 million
up-cycle products from waste. End of Life Tyre Playgrounds at
selected location. (b) Amount unspent, if any :- Nil

95
 Apollo Tyres Ltd. Annual Report 2018-19

(c) Manner in which the amount spent during the financial year is detailed below:
(` Million)

(1) (2) (3) (4) (5) (6) (7) (8)

Amount spent on
Projects or programs the projects or
(1) Local area or other programs Sub – Cumulative
Amount outlay Amount spent:
Sr. CSR project or activity Sector in which the (2) Specify the State and heads: (1) Direct expenditure up
(budget) project Direct or through
No. identified Project is covered district where projects expenditure to the reporting
or programs wise Implementing agency
or programs was on projects or period
undertaken programs (2)
Overheads
1 Play structure in Ensuring Chinnapanduru 0.68 0.68 0.68 Frames Creations
Govt. schools Environmental Gram Panchayath
Sustainability
2 Community solid Ensuring Clean My Village, 5.72 5.64 5.64 Harsidhdhi
waste management Environmental Gujarat Corporation Pvt.
project; Clean My Sustainability Ltd.
Village
3 Pond Restoration Ensuring Dolapura, Baroda, 0.31 0.61 0.61 Sahil Traders
project Environmental Gujarat
Sustainability
4 Community solid Ensuring Clean My Transport 3.08 3.08 3.08 Adarsh Seva
waste management Environmental Nagar, Agra, Uttar Samiti
project; Clean My Sustainability Pradesh
Transport Nagar
5 Community solid Ensuring Clean My Transport 2.03 2.02 2.02 Real Charitable
waste management Environmental Nagar, Chennai, Trust
project; Clean My Sustainability Tamil Nadu
Transport Nagar
6 Community solid Ensuring Clean My Transport 4.95 5.23 5.23 Apollo Tyres
waste management Environmental Nagar, Delhi Foundation
project; Clean My Sustainability
Transport Nagar
7 Community solid Ensuring Clean My Transport 2.13 2.13 2.13 R K Sansthan
waste management Environmental Nagar, Jaipur,
project; Clean My Sustainability Rajasthan
Transport Nagar
8 Community solid Ensuring Clean My Transport 2.03 2.03 2.03 Gramin
waste management Environmental Nagar, Jodhpur, Swabhiman
project; Clean My Sustainability Rajasthan Sansthan
Transport Nagar
9 Community solid Ensuring Clean My Transport 2.50 2.50 2.50 Adarsh Seva
waste management Environmental Nagar, Kanpur, Uttar Samiti
project; Clean My Sustainability Pradesh
Transport Nagar
10 Community solid Ensuring Clean My Village, 1.57 1.50 1.50 Help Foundation
waste management Environmental Chennai, Tamil Nadu
project Sustainability
11 Community solid Ensuring Clean My Village, 5.19 4.81 4.81 World Heritage
waste management Environmental Chennai, Tamil Nadu Trust
project Sustainability
12 Play structure in Ensuring Mehboob Nagar 0.50 0.50 0.50 Anthill Creations
Govt. schools Environmental Foundation &
Sustainability Frames Creations
13 Play structure in Ensuring Oragadam, 1.69 1.33 1.33 Sri Sun Flower &
Govt. schools Environmental Sennakuppam & Frames Creations
Sustainability Mathur Village,
Kancheepuram
District, Chennai,
Tamil Nadu
14 Biodiversity-Greening Ensuring Oragadam, 1.43 1.39 1.39 Sri Sun Flower
work near pond and Environmental Sennakuppam &
water plant area Sustainability Mathur Village,
Kancheepuram
District, Chennai,
Tamil Nadu

96
 Corporate Overview Statutory Reports Financial Statements

(` Million)

(1) (2) (3) (4) (5) (6) (7) (8)

Amount spent on
Projects or programs the projects or
(1) Local area or other programs Sub – Cumulative
Amount outlay Amount spent:
Sr. CSR project or activity Sector in which the (2) Specify the State and heads: (1) Direct expenditure up
(budget) project Direct or through
No. identified Project is covered district where projects expenditure to the reporting
or programs wise Implementing agency
or programs was on projects or period
undertaken programs (2)
Overheads
15 Pond & Lake Ensuring Sennanthangal 2.48 2.48 2.48 Daya Charities,
management project Environmental & Eraiyur, SMB Engineering
Sustainability Kancheepuram & Frames
District, Chennai, Creations
Tamil Nadu
16 Livelihood project for Ensuring Sennakuppam 1.20 1.19 1.19 National Agro
farmers Environmental & Valakottai Foundation
Sustainability panchayat, Chennai,
Tamil Nadu
17 Tree plantation & Ensuring Sennakuppam 3.38 3.38 3.38 TIST Tree
Livelihood project Environmental & Valakottai Planting India
Sustainability panchayat, Chennai, Private Limited
Tamil Nadu
18 Community solid Ensuring Clean My Village, 5.32 5.39 5.39 Plan@Earth
waste management Environmental Kodakara Panchayat,
project; Sustainability Kerala
19 Community solid Ensuring Clean My Village, 2.53 2.53 2.53 Plan@Earth
waste management Environmental Chalakudy
project; Sustainability Panchayat, Kerala
20 Pond management Ensuring Pond management 0.65 0.65 0.65 Tropical Institute
project Environmental project, Kodakara, of Ecological
Sustainability Kerala Science
21 Mangrove Project Ensuring Trissur, Kerala 4.20 5.09 5.09 Wildlife Trust of
Environmental India & Apollo
Sustainability Tyres Foundation
22 Water conservation Ensuring Chalakudy, Kerala 1.04 1.04 1.04 Tropical Institute
project of Chalakudy Environmental of Ecological
river Sustainability Science
23 Chalakudy park Ensuring Chalakudy, Kerala 0.21 0.21 0.21 Tropical Institute
maintenance Environmental of Ecological
Sustainability Science
24 Baseline for rainwater Ensuring Kodakara Panchayat, 0.03 0.03 0.03 Tropical Institute
harvesting project Environmental Perambra, Kerala of Ecological
Sustainability Science
25 Kerala flood Relief Eradication Chalakudy, Kerala 15.00 8.22 8.22 Plan@Earth &
work Hunger, Poverty & Apollo Tyres
Malnutrition Foundation
26 Monthly Ration Eradication New Delhi 1.50 1.50 1.50 Delhi Langar Seva
support for the under Hunger, Poverty & Society
privileged people Malnutrition
27 Blanket distribution to Eradication Delhi, Delhi 0.09 0.11 0.11 Taru Foundation
under privileged rural Hunger, Poverty &
community Malnutrition
28 Monthly Ration Eradication Gurgaon, Haryana 0.90 0.87 0.87 The Earth
support for the under Hunger, Poverty & Saviours
privileged people Malnutrition Foundation
29 Monthly Ration Eradication Delhi, Delhi 0.42 0.38 0.38 DAVO NGO
support for the under Hunger, Poverty &
privileged people Malnutrition
30 Skill building & Livelihood Waghodiya Taluka, 9.84 11.39 11.39 Apollo Tyres
income generation Enhancement Baroda, Gujarat Foundation
projects for the Projects
community
31 Baseline for skill Livelihood Kottayam, Kerala 0.19 0.19 0.19 Tropical Institute
enhancement project Enhancement of Ecological
Projects Science

97
 Apollo Tyres Ltd. Annual Report 2018-19

(` Million)

(1) (2) (3) (4) (5) (6) (7) (8)

Amount spent on
Projects or programs the projects or
(1) Local area or other programs Sub – Cumulative
Amount outlay Amount spent:
Sr. CSR project or activity Sector in which the (2) Specify the State and heads: (1) Direct expenditure up
(budget) project Direct or through
No. identified Project is covered district where projects expenditure to the reporting
or programs wise Implementing agency
or programs was on projects or period
undertaken programs (2)
Overheads
32 Skill generation in Livelihood Kottayam, Kerala 4.29 4.35 4.35 Jawaharlal
various trades for Enhancement Memorial
women Projects Social Welfare
and Public
Co-Operation
Centre, Quality
Certification
Advisor, TUV
India Pvt. Ltd.
& Rubber Board
RRII Research
Account
33 Terrace farming Livelihood Kodakara Panchayat, 0.11 0.11 0.11 Tropical Institute
project in Kodakara Enhancement Perambra, Kerala of Ecological
panchayat Projects Science
34 Skill generation in Livelihood Kottayam, Kerala 0.15 0.07 0.07 South Asian
various trades for Enhancement Rubber & Beta
women Projects Rubbers
35 Education support Promoting Delhi 0.70 0.70 0.70 Christel House
to under privileged Education India
children
36 Education support to Promoting Dehradun, 2.48 2.48 2.48 Himalayan School
50 under privileged Education Uttrakhand Society
girls
37 Education support Promoting Gurgaon, Haryana 0.70 0.70 0.70 Madhavrao
to under privileged Education Scindia
children Foundation
38 Skill Development Promoting Sennakuppam 2.41 2.13 2.13 Magic Bus,
Programme-Youth Education & Valakottai Frames Creations
panchayat, Chennai,
Tamil Nadu
39 Computer literacy to Promoting Sennakuppam 1.90 1.80 1.80 Bhumi
Govt. School children Education & Valakottai
panchayat, Chennai,
Tamil Nadu
40 Skill Development Promoting Kodakara Panchayat, 0.74 0.95 0.95 3J Consulting
Programme-Youth Education Perambra, Kerala Private Limited
41 Road Safety Promoting Kodakara Panchayat, 0.53 0.53 0.53 Graphin
Awareness Education Perambra, Kerala Communications
Programme
42 HIV-AIDS awareness Promoting Apollo Tyres Health 2.33 2.34 2.34 Global
& prevention Preventive Health Care Centre, Delhi, Organisation for
programme (Migrant Delhi Life Development
Project)
43 HIV-AIDS awareness Promoting Apollo Tyres Health 2.73 2.75 2.75 Jan Chetna Sewa
& prevention Preventive Health Care Centre, Agra, Samiti
programme (Targeted Uttar Pradesh
Intervention)
44 HIV-AIDS awareness Promoting Apollo Tyres 3.36 3.01 3.01 Hindustan Latex
& prevention Preventive Health Health Care Family Planning
programme (Targeted Centre, Bangalore, Promotion Trust
Intervention) Karnataka
45 HIV-AIDS awareness Promoting Health Care Centre, 1.15 1.09 1.09 Himachal Pradesh
& prevention Preventive Health Barmana, Himachal Voluntary Health
programme (Targeted Pradesh Association
Intervention)

98
 Corporate Overview Statutory Reports Financial Statements

(` Million)

(1) (2) (3) (4) (5) (6) (7) (8)

Amount spent on
Projects or programs the projects or
(1) Local area or other programs Sub – Cumulative
Amount outlay Amount spent:
Sr. CSR project or activity Sector in which the (2) Specify the State and heads: (1) Direct expenditure up
(budget) project Direct or through
No. identified Project is covered district where projects expenditure to the reporting
or programs wise Implementing agency
or programs was on projects or period
undertaken programs (2)
Overheads
46 HIV-AIDS awareness Promoting Apollo Tyres 2.52 2.55 2.55 Confederation of
& prevention Preventive Health Health Care Centre, Surface Transport
programme (Targeted Chennai, Tamil Nadu Tamil Nadu
Intervention)
47 HIV-AIDS awareness Promoting Apollo Tyres 1.79 3.31 3.31 Young Men’s
& prevention Preventive Health Health Care Centre, Christian
programme (Targeted Chhindwara, Madhya Association &
Intervention) Pradesh Apollo Tyres
Foundation
48 HIV-AIDS awareness Promoting Apollo Tyres Health 8.45 8.26 8.26 Apollo Tyres
& prevention Preventive Health Care Centre, Delhi, Foundation
programme (Targeted Delhi
Intervention)
49 HIV-AIDS awareness Promoting Apollo Tyres Health 3.22 3.20 3.20 Nav Srishti
& prevention Preventive Health Care Centre, Delhi,
programme (Targeted Delhi
Intervention)
50 HIV-AIDS awareness Promoting Health Care Centre, 1.34 1.33 1.33 Ambuja Cement
& prevention Preventive Health Farakka, West Foundation
programme (Targeted Bengal
Intervention)
51 HIV-AIDS awareness Promoting Apollo Tyres 3.30 3.25 3.25 Global
& prevention Preventive Health Health Care Centre, Organisation for
programme (Targeted Guwahati, Assam Life Development
Intervention)
52 HIV-AIDS awareness Promoting Apollo Tyres 1.86 3.19 3.19 Child Survival
& prevention Preventive Health Health Care Centre, India & Apollo
programme (Targeted Gurgaon, Haryana Tyres Foundation
Intervention)
53 HIV-AIDS awareness Promoting Apollo Tyres 2.46 2.45 2.45 Jan Chetna Sewa
& prevention Preventive Health Health Care Centre, Samiti
programme (Targeted Gwalior, Madhya
Intervention) Pradesh
54 HIV-AIDS awareness Promoting Apollo Tyres 3.01 3.09 3.09 Telugu Network
& prevention Preventive Health Health Care of People Living
programme (Targeted Centre, Hyderabad, With HIV/AIDS
Intervention) Telangana
55 HIV-AIDS awareness Promoting Apollo Tyres Health 3.11 3.10 3.10 Adarsh Jan Seva
& prevention Preventive Health Care Centre, Indore, Sansthan
programme (Targeted Madhya Pradesh
Intervention)
56 HIV-AIDS awareness Promoting Apollo Tyres Health 2.47 2.45 2.45 Institute
& prevention Preventive Health Care Centre, Jaipur, for Global
programme (Targeted Rajasthan Development
Intervention)
57 HIV-AIDS awareness Promoting Apollo Tyres 2.79 2.73 2.73 Pahal
& prevention Preventive Health Health Care Centre,
programme (Targeted Jalandhar, Punjab
Intervention)
58 HIV-AIDS awareness Promoting Apollo Tyres 2.45 2.36 2.36 Meera Sansthan
& prevention Preventive Health Health Care Centre,
programme (Targeted Jodhpur, Rajasthan
Intervention)
59 HIV-AIDS awareness Promoting Apollo Tyres Health 3.30 3.36 3.36 Jan Kalyan Maha
& prevention Preventive Health Care Centre, Kanpur, Samiti
programme (Targeted Uttar Pradesh
Intervention)

99
 Apollo Tyres Ltd. Annual Report 2018-19

(` Million)

(1) (2) (3) (4) (5) (6) (7) (8)

Amount spent on
Projects or programs the projects or
(1) Local area or other programs Sub – Cumulative
Amount outlay Amount spent:
Sr. CSR project or activity Sector in which the (2) Specify the State and heads: (1) Direct expenditure up
(budget) project Direct or through
No. identified Project is covered district where projects expenditure to the reporting
or programs wise Implementing agency
or programs was on projects or period
undertaken programs (2)
Overheads
60 HIV-AIDS awareness Promoting Health Care Centre, 1.56 1.56 1.56 Ambuja Cement
& prevention Preventive Health Kolkata, West Foundation
programme (Targeted Bengal
Intervention)
61 HIV-AIDS awareness Promoting Apollo Tyres 2.77 2.67 2.67 Alert India
& prevention Preventive Health Health Care
programme (Targeted Centre, Mumbai,
Intervention) Maharashtra
62 HIV-AIDS awareness Promoting Apollo Tyres Health 3.06 2.94 2.94 Shree Sevanidhi
& prevention Preventive Health Care Centre, Delhi, Trust
programme (Migrant Delhi
Project)
63 HIV-AIDS awareness Promoting Apollo Tyres Health 2.58 2.58 2.58 Young Men’s
& prevention Preventive Health Care Centre, Nagpur, Christian
programme (Targeted Maharashtra Association
Intervention)
64 HIV-AIDS awareness Promoting Health Care Centre, 1.68 1.62 1.62 Ambuja Cement
& prevention Preventive Health Nalagarh, Himachal Foundation
programme (Targeted Pradesh
Intervention)
65 HIV-AIDS awareness Promoting Apollo Tyres Health 2.06 2.07 2.07 Confederation of
& prevention Preventive Health Care Centre, Delhi, Surface Transport
programme (Migrant Delhi Tamil Nadu
Project)
66 HIV-AIDS awareness Promoting Apollo Tyres Health 2.81 2.81 2.81 Step Foundation
& prevention Preventive Health Care Centre, Patna,
programme (Targeted Bihar
Intervention)
67 HIV-AIDS awareness Promoting Apollo Tyres Health 2.34 2.36 2.36 Magmo Welfare
& prevention Preventive Health Care Centre, Pune, Sanstha
programme (Targeted Maharashtra
Intervention)
68 HIV-AIDS awareness Promoting Apollo Tyres Health 2.56 2.39 2.39 Indian Society
& prevention Preventive Health Care Centre, Pune, of Healthcare
programme (Targeted Maharashtra Professionals
Intervention) & Kalyani
Social Welfare
& Research
Organization
69 HIV-AIDS awareness Promoting Health Care Centre, 0.99 0.96 0.96 Ambuja Cement
& prevention Preventive Health Surat, Gujarat Foundation
programme (Targeted
Intervention)
70 HIV-AIDS awareness Promoting Apollo Tyres Health 1.58 1.53 1.53 Telugu Network
& prevention Preventive Health Care Centre, Karim of People Living
programme (Targeted Nagar, Telangana With HIV/AIDS
Intervention)
71 HIV-AIDS awareness Promoting Apollo Tyres Health 2.35 2.41 2.41 Jan Kalyan Maha
& prevention Preventive Health Care Centre, Varansi, Samiti
programme (Targeted Uttar Pradesh
Intervention)
72 HIV-AIDS awareness Promoting Apollo Tyres 3.03 3.03 3.03 Vasavya Mahila
& prevention Preventive Health Health Care Centre, Mandali
programme (Targeted Vijayawada, Andhra
Intervention) Pradesh

100
 Corporate Overview Statutory Reports Financial Statements

(` Million)

(1) (2) (3) (4) (5) (6) (7) (8)

Amount spent on
Projects or programs the projects or
(1) Local area or other programs Sub – Cumulative
Amount outlay Amount spent:
Sr. CSR project or activity Sector in which the (2) Specify the State and heads: (1) Direct expenditure up
(budget) project Direct or through
No. identified Project is covered district where projects expenditure to the reporting
or programs wise Implementing agency
or programs was on projects or period
undertaken programs (2)
Overheads
73 TB awareness Promoting Apollo Tyres Health 1.94 1.77 1.77 German Leprosy
& prevention Preventive Health Care Centre, Delhi, & TB Relief
programme Delhi Association -
India
74 Impact Assesment of Promoting Kanpur (Uttar 0.66 0.66 0.66 Knight Frank
Targeted Intervention Preventive Health Pradesh), Agra India Pvt Ltd &
projects at 3 clinics (Uttar Pradesh), Jojo Thomas
in India Delhi (New Delhi)
75 Baseline of Targeted Promoting Namakkal(Tamil 1.22 1.22 1.22 Karvy Insights
Intervention projects Preventive Health Nadu), Mundra Limited, Subodh
at 5 locations in India Port (Gujarat), Tondon & Jojo
Chhindwara (Madhya Thomas
Pradesh), Gurgaon
(Haryana), Karim
Nagar (Telangana)
76 Sanitation project- Promoting Chinnapanduru 0.25 0.25 0.25 Zion research
Toilet construction & Preventive Health Gram Panchayath Consultants,
Geo Tagging Frames Creations
77 General Health Promoting Baroda, Gujarat 0.29 0.19 0.19 Apollo Tyres
camps for community Preventive Health Foundation
people
78 General health & Promoting Gurgaon, Haryana 3.00 3.00 3.00 Sardar Ram Singh
eye care treatment Preventive Health Kabli and Sardarni
support to the under Harnam Kaur
privileged rural Trust
community
79 General health Promoting Delhi, Delhi 0.10 0.10 0.10 Delhi
treatment support to Preventive Health Commonwealth
the under privileged Women’s
rural community Association
80 Sanitation project- Promoting Mathur & Eraiyur 6.53 6.42 6.42 Help Foundation,
Toilet construction & Preventive Health Panchayat, Chennai, Frames Creations
Geo Tagging Tamil Nadu
81 HIV AIDS Awareness Promoting General Health 0.03 0.02 0.02 Apollo Tyres
Activity Preventive Health Project, Perambra, Foundation
Kerala
82 Promoting livelihood Rural Development Chinnapanduru 2.52 2.50 2.50 National Agro
generation activities Projects Gram Panchayath Foundation
83 Bio-gas project Rural Development Baroda, Gujarat 2.22 2.22 2.22 Sintex Industries
Projects Limited
84 Improved Farming Rural Development Baroda, Gujarat 5.75 5.75 5.75 Shrishti Organics
Practices for Projects
community
85 Improved Farming Rural Development Baroda, Gujarat 3.08 3.08 3.08 Shrishti Organics
Practices for Projects
community
86 Sustainable Rural Development Chennai, Tamil Nadu 1.80 1.80 1.80 National Agro
Agriculture project Projects Foundation
Total 203.65
Administrative Cost 5% of total expense 10.18
Grand Total 213.83

6. The CSR Committee confirms that the implementation and monitoring of CSR Policy is in compliance with CSR objectives and Policy
of the Company.

Place: Gurgaon ONKAR S. KANWAR NEERAJ KANWAR

Date: May 9, 2019 Chairman of CSR Committee Vice Chairman & Managing Director

101
 Apollo Tyres Ltd. Annual Report 2018-19

ANNEXURE III

BUSINESS RESPONSIBILITY REPORT (BRR)

Business Responsibility Report of the Company for the financial year ended on March 31, 2019, pursuant to Regulation 34(2)(f) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015 is as follows:-

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY

1 Corporate Identity Number (CIN) of the Company L25111KL1972PLC002449
2 Name of the Company APOLLO TYRES LTD
3 Registered address 3rd floor, Areekal Mansion, Near Manorama Junction, Panampilly
Nagar, Kochi- 682036 (Kerala)
4 Website apollotyres.com
5 E-mail ID [email protected]
6 Financial Year reported 2018-19
7 Sector(s) that the Company is engaged in (industrial activity Tyres manufacturing
code-wise)
8 List three key products/services that the Company Tyres, Tubes and Flaps
manufactures/provides (as in balance sheet)
9 Total number of locations where business activity is 138 locations
undertaken by the Company
A Number of International Locations Apollo has business activity undertaken in about 102 international
(Provide details of major 5) locations. The major ones are Netherlands, Hungary, Middle East,
Thailand, and Singapore. The Company has manufacturing units in
Netherlands and Hungary.

B Number of National Locations Apollo has business activity carried out in about 36 domestic locations.
The manufacturing units are located at Gujarat (Limda), Kerala
(Perambra and Kalamassery) and Tamil Nadu (SIPCOT Industrial
Growth Centre Oragadam, Chennai).
10 Markets served by the Company – Local/State/National/ National and International
International/

SECTION B: FINANCIAL DETAILS OF THE COMPANY 2. Do the Subsidiary Company/ Companies participate in
the BR Initiatives of the parent Company? If yes, then
1. Paid up Capital (INR) ` 572.05 million
indicate the number of such Subsidiary Company(s):

At present, the BR initiatives have been undertaken at
2. Total Turnover (INR) ` 120,896 million
parent Company level.

3. Total profit after taxes (INR) ` 5,921 million

3. Do any other entity/ entities (e.g. suppliers, distributors
etc.) that the Company does business with, participate
4. Total Spending on Corporate Social Responsibility (CSR) as
in the BR initiatives of the Company? If yes, then
percentage of profit after tax (%) ` 213.83 million
indicate the percentage of such entity/ entities? [Less
than 30%, 30-60%, More than 60%] :-
5. 
List of activities in which expenditure in 4 above has

At present, the BR initiatives have been undertaken
been incurred:-
at Company level.

During the year under review, the Company has carried out
SECTION D: BR INFORMATION
activities primarily related to promoting preventive healthcare,
ensuring environmental sustainability, livelihood enhancement 1. Details of Director/ Directors responsible for BR
projects, rural development projects, promoting education and a. 
Details of the Director/ Director responsible for
eradication of hunger, poverty & malnutrition. implementation of the BR policy/ policies

SECTION C: OTHER DETAILS i. DIN Number :- 00058859

ii. Name :- Mr. Sunam Sarkar
1. 
Does the Company have any Subsidiary Company/
iii. Designation :- Director
Companies?
Yes

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 Corporate Overview Statutory Reports Financial Statements

2. Details of the BR head Principle 4: Businesses should respect the interests of, and be
responsive towards all stakeholders, especially those who are
No Particulars Details
disadvantaged, vulnerable and marginalized.
1 DIN Number (if applicable) NA
2 Name Ms. Seema Thapar
Principle 5: Businesses should respect and promote human rights.
3 Designation Company Secretary
4 Telephone number 0124-2721000
5 E-mail ID [email protected] Principle 6: Business should respect, protect, and make efforts to
restore the environment.

LIST OF PRINCIPLES
Principle 7: Businesses, when engaged in influencing public and
Principle 1: Businesses should conduct and govern themselves regulatory policy, should do so in a responsible manner.
with Ethics, Transparency and Accountability.
Principle 8: Businesses should support inclusive growth and
Principle 2: Businesses should provide goods and services that are equitable development.
safe and contribute to sustainability throughout their life cycle.
Principle 9: Businesses should engage with and provide value to
Principle 3: Businesses should promote the well-being of all their customers and consumers in a responsible manner.
employees.

2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)

P1 P2 P3 P4 P5 P6 P7 P8 P9
1. Do you have a policy /policies for... Y Y Y Y Y Y Y Y Y
2. Has the policy being formulated in consultation with the relevant Y Y Y Y Y Y Y Y Y
stakeholders?
3. Does the policy conform to any national /international standards? Y Y Y Y Y Y Y Y Y
If yes, specify? (50 words)(1)
4. Has the policy being approved by the Board? If yes, has it been Y Y Y Y Y Y Y Y Y
signed by MD/owner/CEO/appropriate Board Director?(2)
5. Does the Company have a specified Committee of the Board/ Y Y Y Y Y Y Y Y Y
Director/Official to oversee the implementation of the policy?(3)
6. Indicate the link for the policy to be viewed online?(4) Y Y Y Y Y Y Y Y Y
7. Has the policy been formally communicated to all relevant Y Y Y Y Y Y Y Y Y
internal and external stakeholders?
8. Does the Company have in-house structure to implement the Y Y Y Y Y Y Y Y Y
policy/policies?
9. Does the Company have a grievance redressal mechanism Y Y Y Y Y Y Y Y Y
related to the policy/policies to address stakeholders’ grievances
related to the policy/policies?
10. Has the Company carried out independent audit/evaluation of the Y Y Y Y Y Y Y Y Y
working of this policy by an internal or external agency?

The policies are in compliance with applicable national/international laws, rules, regulations, guidelines and standards. The policies are in conformance to the
(1)

spirit of international standards like ISO 9001, ISO 14001 and OHSAS 18001.
(2)
As per Company practice, the policies that are approved by the Board are posted on the website of the Company www.apollotyres.com.
(3)
The Business Responsibility(BR) Committee shall oversee the implementation of the Policies.
(4)
https://corporate.apollotyres.com/en-in/investors/corporate-governance/?filter=CodesPolicies.

2a. If the answer to S. No. 1 against any principle, is ‘No’, please explain why: (Tick upto 2 options)-Not Applicable
P1 P2 P3 P4 P5 P6 P7 P8 P9
1. The Company has not understood the Principles
2. The Company is not at a stage where it finds itself in a position to
formulate and implement the policies on specified principles
3. The Company does not have financial or manpower resources
available for the task
4. It is planned to be done within next 6 months
5. It is planned to be done within the next 1 year
6. Any other reason (please specify)

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 Apollo Tyres Ltd. Annual Report 2018-19

3. Governance related to BR Principle 2

(a) Indicate the frequency with which the Board 1. List up to 3 of your products or services whose design
of Directors, Committee of the Board or CEO to has incorporated social or environmental concerns,
assess the BR performance of the Company. risks and/or opportunities.
Within 3 months, 3-6 months, Annually, More than At Apollo Tyres, we follow state of the art and efficient
1 year. manufacturing practices. Our Passenger Car Radial tyres
The Business Responsibility (BR) Committee reviews the and Truck / Bus Radial Tyres are designed to meet all the
business performance annually and as and when required. international norms and are duly certified for that. These tyres
do not contain any conflict materials and all materials used for
(b) Does the Company publish a BR or a Sustainability making these tyres are REACH compliant. Also, all the tyres
Report? What is the hyperlink for viewing this are aligned to the requirements of ELV norms. In FY2019,
report? How frequently it is published? Apollo introduced fuel efficient TBR tyre as nRG range,

Yes, the Company publishes Annual Sustainability High life and fuel efficient Van tyre as Altrust and also High
Report as a part of the Annual Report. From FY2017, the performance 2W radial tyres for higher safety. Also, all PCR
BR Report was also part of the Annual Report. Both BR tyres are tuned to meet European norm of R117 R2 and be
and Sustainability Report are published on the website ready for implementation of BS VI / CAFÉ norms.
https://corporate.apollotyres.com/en-in/responsibility/
policies-documents. 2. For each such product, provide the following details in
respect of resource use (energy, water, raw material
SECTION E: PRINCIPLE-WISE PERFORMANCE etc.) per unit of product(optional):
a) Reduction during sourcing/production/distribution
Principle 1
achieved since the previous year throughout the value
1. Does the policy relating to ethics, bribery and
chain?
corruption cover only the Company? Yes/ No. Does

Comparative Details for FY2019 against reference
it extend to the Group/Joint Ventures/ Suppliers/
of FY2018 on
Contractors/ NGOs/ Others?
The Company has designed a global “Code of Conduct Policy”
(i) 
Steam consumed per kg of product [Kg/kg]: PCR
(“Code”) to conduct its business with honesty and integrity
–4.3% reduction
and in compliance with all applicable legal and regulatory
requirements. This Code sets out the fundamental standards
(ii) Electricity consumed per kg of product [KwH/Kg]:
to be followed by all employees of the Company including
PCR –6.8% reduction
Associates, Subsidiaries and Joint Ventures.

(iii) Water consumed per kg of product [Litre/Kg]: PCR -

The Code is also to act as a deterrent from unethical doings
15.5% reduction
and to promote ethical values and is the manifestation
of the Company’s commitment to successful operation
(iv) 
Tyre weight of PCR tyres reduced by 10%
of the Company’s business in the best interest of the
progressively: Thus, consumption of Hydrocarbon
shareholders, creditors, employees, other business associates
reduces and reduced carbon footprint per tyre.
and stakeholders.

(v) 
Silica based tyre production for PCR category
The Company has rolled out Code of Conduct mandatory
increased by 200% in last years and reduced
online training for all the employees. The Code of Conduct
fossil fuel based reinforcing agent carbon
explicitly guides our people on ethical dealings with
black consumption.
external stakeholders.

(vi) 
Recycled material usage started for inner liner
2. How many stakeholder complaints have been received
of PCR tyres to the tune of 25 phr to reduce virgin
in the past financial year and what percentage was
material consumption.
satisfactorily resolved by the management? If so,
provide details thereof, in about 50 words or so.
b) Reduction during usage by consumers (energy, water)
During the year under review, there were no cases on the
has been achieved since the previous year?
violation of the Company’s Code of Conduct. During the past
The rolling resistance of the PCR tyres are reduced
financial year, 19 Shareholders Complaints were received
through the year from 13.0 Kg/T to 8.0Kg/T. This translates
and no complaints are pending as on March 31, 2019. All the
into reduction of rolling loss and reduce fuel consumption
Complaints were attended and resolved to the satisfaction of
without compromise in any other performances.
the shareholders.

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 Corporate Overview Statutory Reports Financial Statements

Retreading of Truck tyres is continuously being supported The Company encourages its suppliers to implement
with more efficient techniques to provide extended life environmental standards at their work place with ultimate
cycle of the tyre body material to 2-3 times, thus avoiding objective of getting certified for ISO 14001 – Environmental
the need for frequent replacement. Management Standard. Currently, most of its suppliers
are ISO 14001 certified, complying with local government
Introduction of 1 Lakh KM car tyres improved re-use of laws and regulations. Apollo Tyres is continuously working
the non-consumable part of tyres to a longer period. on optimizing transportation, logistics and packaging so as
to reduce carbon footprint and environmental impacts.
Product failure rate is reduced by almost 25% for PCR The Company also emphasises on usage of environment
tyres, thus, enhancing the application life of tyres and friendly, re-usable, recyclable packing material like
improve usage of tyres for longer period. returnable pallets, returnable metal boxes, returnable
metallic spools for the supply of raw material to its
In FY2019, Apollo launched its range of Pick up radial manufacturing plant locations globally. The packaging of
tyres for Light Commercial Vehicles with a low rolling raw material should be “wood-free”. It also ensures that
resistance for the category. This would contribute the raw material sourced is free from chemicals impacting
increased fuel efficiency for the pick-up trucks. environment and complying with international norms.

3. 
Does the Company have procedures in place for Along with the guidelines to safeguard the environment,
sustainable sourcing (including transportation)? the Company has set-up natural rubber processing units
a) If yes, what percentage of your inputs was sourced to support the community nearby and empower women.
sustainably? Also, provide details thereof, in about 50 Furthermore, health check-up facilities were provided by
words or so. the Company to promote socially responsible practices
The Company has laid down Sustainable Supply Chain amongst partners in the region.
Policy for its RM vendors, which includes guidelines
for conducting its business by reducing impact on 4. Has the Company taken any steps to procure goods
environment, adopting Good Governance, ethics and and services from local & small producers, including
adhering to Human Rights. communities surrounding their place of work?
a) If yes, what steps have been taken to improve their
The Company believes that supply chain is a key capacity and capability of local and small vendors?
contributor to the development and implementation of its Apollo’s purchasing guiding principles states that all other
Corporate Social Responsibility Programme. Apollo Tyres things being equal, the organisation prefers domestic
expects its Business Partners to emphasize on social suppliers because of benefits like proximity to our plants,
and environmental responsibilities as they conduct their lower transit time, lower inventory and carbon footprint.
businesses. The focus in the upstream supply chain
extends to sourcing of raw materials, their processing, The Company has initiated and established natural rubber
and their use in the manufacture of intermediate and collection centres near its plant and provide employment
final products. opportunities to the community nearby. The Company
has also been providing training to the employees in
In order to align its upstream supply chain with this aforesaid centres to improve their capability.
objective, Apollo’s Partnership Pact (APP) is enforced.
Suppliers are expected to comply with Apollo’s Partnership 5. 
Does the Company have a mechanism to recycle
Pact (APP) and integrate environmental, occupational products and waste? If yes what is the percentage of
health & safety, human rights as well as labour policies recycling of products and waste (separately as <5%,
into their business and decision-making processes. 5-10%, > 10%). Also, provide details thereof, in about
50 words or so.
At present, most of the business partners have committed Yes, the Company has always been encouraging its RM Vendor’s
to our Partner code of conduct which consist of suppliers consciousness towards reduce, reuse and recycle concepts in
in all raw material categories. The compliances to APP their operations. Monitoring the finite resource consumption
are verified during on-site audits for existing suppliers. trends and actions taken to reduce have also been initiated.
The scope of audits covers various elements like In addition, reclaimed rubber usage stands at 1-2 % to replace
quality management system, environment standards, virgin rubber for compounds.
occupational health and safety standards as well as others
as per our Green Procurement Standards and Partner
Code of Conduct. Supplier audit is conducted by our
trained professionals periodically as per the audit criteria.

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 Apollo Tyres Ltd. Annual Report 2018-19

Principle 3 3. Are there any special initiatives taken by the Company

1. Please Indicate Total number of employees- 7,691 to engage with the disadvantaged, vulnerable and
marginalized stakeholders. If so, provide details
2. Please indicate the Total number of employees hired
thereof, in about 50 words or so.
on temporary / contractual / casual basis- 4,612

CSR Programmes are undertaken for the identified
3. 
Please indicate the Number of permanent women stakeholders. These are developed in partnership with them
employees- 96 to inculcate a sense of ownership and ensure that specific
needs are addressed. The CSR programmes and activities
4. Please indicate the Number of permanent employees
are aligned to national and international development goals.
with disabilities- 25
The organisation’s vision is to create value for its stakeholders
5. Do you have an employee association that is recognized by bringing about positive change in their lives through the
by management? intervention. A few programmes are -
Yes
1. Healthcare for Trucking Community (customers);
6. 
What percentage of your permanent employees is
2. Sanitation Management in Chennai (community,
members of this recognized employee association?
environment);
Limda - 53.60%
Perambra - 90% 3. Livelihood and income generation for underprivileged
Chennai - 59.60% women (Community);

4. Improved farming practices (Community);

7. Please indicate the Number of complaints relating to
child labour, forced labour, involuntary labour, sexual 5. Computer Literacy project, Chennai (community).
harassment in the last financial year and pending, as
on the end of the financial year. The Company also does some philanthropic work like –
No complaints relating to child labour, forced labour, involuntary
labour, sexual harassment has been received during the last 1) Supporting a hospital for underprivileged rural people;
financial year ending on March 31, 2019.
2) Supporting education for underprivileged girls;

8. What percentage of your under mentioned employees 3) Monthly ration support to the underprivileged;
were given safety & skill upgradation training in the
4) Support the education of the disabled children.
last year?
Permanent employees 80% erala Flood Relief: In FY2019, the organisation also
K
Permanent women employees Not Captured undertook relief activities for flood affected areas of Chalakudy,
Casual/Temporary/Contractual Employees 100% Aluva, Kodakara, Kalamassery and Airapuram in Kerala.
Employees with Disabilities Not Captured The organisation provided support in three areas: distribution
of supplies such as food and first aid kits, conducting health
Principle 4 camps and cleaning drive. Around 750 families received home
1. Has the Company mapped its internal and external cleaning and First Aid kits, 1,250 families received food kits.
stakeholders? Yes/No Total 16 free health camps were conducted and around 1,233
Yes, employees, customers (OEM), consumers (replacement) people were benefitted. Through waste collection and cleaning
and dealers, suppliers, investors and analysts, shareholders, drive, around 200 families were benefitted and 200 metric tons
regulatory bodies and community are identified stakeholder for (MT) waste was collected.
the organisation.
Principle 5
2. 
Out of the above, has the Company identified the 1. Does the policy of the Company on human rights cover
disadvantaged, vulnerable & marginalized stakeholders. only the Company or extend to the Group/Joint Ventures/
Yes, community (Women and Children), consumers (replacement: Suppliers/Contractors/NGOs/Others?
Truck Drivers) are identified as vulnerable and marginalized Respect for human rights is fundamental part of the DNA of
stakeholders by the organisation. the Company and the communities in which we operate. In our
Company and across our system, we are committed to ensure
that people are treated with dignity and respect. The Company

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 Corporate Overview Statutory Reports Financial Statements

promote the awareness and realization of human rights across 3. 

Does the Company identify and assess potential
our value chain and among our stakeholders. environmental risks? Y/N
Yes, environmental aspect & impact is assessed and reviewed
The Company believe in core Apollo Value of “One Family” periodically by the management. Organization strive to
where every individual is respected and is treated equally, minimize impact on environment by developing environmental
regardless of caste, color, nationality etc. improvement programs and operational control procedures.
All manufacturing plants are certified for ISO 14001: 2015
2. 
How many stakeholder complaints have been and environmental risk and controls reviewed by third
received in the past financial year and what percent party auditors.
was satisfactorily resolved by the management?
The Company did not receive any Stakeholder Complaint 4. Does the Company have any project related to Clean
during the past financial year regarding Human Rights. Development Mechanism? If so, provide details
thereof, in about 50 words or so. Also, if Yes, whether
Principle 6 any environmental compliance report is filed?
1. Does the policy related to Principle 6 cover only the No
Company or extends to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/others. 5. 
Has the Company undertaken any other initiatives
Policy related to principle 6 is limited to parent Company. on – clean technology, energy efficiency, renewable
All manufacturing plants are ISO 14001:2015 certified. energy, etc.? Y/N. If yes, please give hyperlink for web
Environmental indicators are part of vendor assessment page etc.
criteria for upstream suppliers. Yes, combining effective strategy with practical measures is
key to achieving successful energy management. We focus on
2. 
Does the Company have strategies/ initiatives to reducing our energy consumption by being energy efficient.
address global environmental issues such as climate There are several initiatives that were undertaken during
change, global warming, etc.? Y/N. If yes, please give the reporting period in the Indian Operations which resulted
hyperlink for webpage etc. in energy savings of 22,602 GJ. We are continuously making

Yes, the Company has strategies to address global efforts to achieve energy efficiency through improvements in
environmental issues. The Company also has a sustainability our process design, conversion and retrofitting of equipment
statement that covers the aspects of environment conservation and use of energy efficient equipments.
and community development. Various sustainability initiatives
taken by the Company includes energy management, waste 6. Are the Emissions/Waste generated by the Company
reduction, emission reduction, water management, and within the permissible limits given by CPCB/SPCB for
biodiversity conservation. Below are the projects to mitigate the financial year being reported?
climate change:- Emissions concentration across all our operating units are
under prescribed limit.
a) Tree plantation and Livelihood Generation Programme
Our afforestation project has a two pronged focus on 7. Number of show cause/ legal notices received from
carbon sequestration and livelihood generation for farmers CPCB/SPCB which are pending (i.e. not resolved to
in the water starved areas of Tamil Nadu. This project is satisfaction) as on end of Financial Year.
being carried out in Kanchipuram, Tiruvannamalai and There were no show cause notices issued or pending in the
Tiruvallur districts in Tamil Nadu. Through this project, reporting period.
a total of 350,000 trees have been since the inception of
this project in 2013. We have been able to sequester over Principle 7
10,100 tonnes of CO2 from the plantation project. 1. Is your Company a member of any trade and chamber
or association? If Yes, Name only those major ones
b) Renewable Energy: Use of Biogas that your business deals with.
Within the Climate change mitigation, we are promoting Yes, The Company actively engages with Industry bodies.
the use of biogas in villages near our manufacturing The major bodies in which the Company is a member are
location in Limda, Gujarat. Apart from providing an listed below –
eco-friendly alternative source of energy, the programme
offers additional benefits of organic manure from slurry, a. Confederation of Indian Industry [CII]
utilization of cow dung (which is a solid waste) and b. Federation of Indian Chamber of Commerce and
savings accruing from fuel replacement from LPG to Industry [FICCI]
Biogas. We provide individual household type Biogas units. c. PHD Chamber of Commerce and Industry
In the reporting year, total 39 Biogas units were installed. d. Society of Indian Automobile Manufacturers
Since the inception of the project in 2016, total 230 units e. Automotive Tyre Manufacturers’ Association
have been installed.

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 Apollo Tyres Ltd. Annual Report 2018-19

2. 
Have you advocated/lobbied through above nature of their work, makes them vulnerable to various
associations for the advancement or improvement of health hazards. The programme provides health care
public good? Yes/No; if yes specify the broad areas services such as Awareness and Prevention of HIV-AIDS,
(drop box: Governance and Administration, Economic Vision Care, Awareness on Tuberculosis, Detection of
Reforms, Inclusive Development Policies, Energy other Non-Communicable Diseases such as Diabetes and
security, Water, Food Security, Sustainable Business High Blood Pressure and General Treatment facility.
Principles, Others)
Yes, The Company through various Industry associations, This programme is one of the biggest initiatives under
participates in advocating matters for the advancement of the the Company’s CSR work, and is aligned with Sustainable
Industry and Public Good. As a member of the Automotive Tyre Development Goals (Goal 3- Good Health and well-being).
Manufacturers Association (ATMA), the Company strives to be The programme has established 31 Healthcare
an active participant in policy making process of ATMA and also Centres in large transhipment hubs across the country.
is a frequent participant in the meetings with the Government The Healthcare Centres (HCC) are staffed with qualified
departments to discuss the challenges being faced by the doctors, paramedics, counsellors and outreach workers.
industry in the ever-changing economic environment. Mr. Satish
Sharma, President (APMEA) and Whole-time Director of the Under HIV Awareness and Prevention, services include
Company was the past Chairman of ATMA. Behaviour Change Communication (BCC), Sexually
Transmitted Infection (STI) Diagnosis and Treatment,
The Company has a Public and Regulatory Policy to ensure that Counselling, Condom Promotion, Integrated Counselling
the highest standards of business conduct are followed while Testing Centre (ICTC) support and awareness through
engaging with aforesaid Trade associations/ Industry bodies. peer educators (volunteers).

Principle 8 Under Vision care, 58,218 beneficiaries were tested,

1. Does the Company have specified programmes/ and 29,856 were identified with refractive error issues.
initiatives/projects in pursuit of the policy related to The service provides spectacles distribution at low cost
Principle 8? If yes, details thereof. to beneficiaries and in addition, the cataract patients
All CSR programmes are developed in partnership with the are linked with nearby hospitals for further treatment.
stakeholders to ensure that they cater to specific needs, and ATF has partnered with Essilor Foundation for provision of
further inculcate a sense of ownership amongst the community spectacles and training of staff.
members. The CSR programmes and activities are aligned to
national and international development goals. CSR activities Under awareness on Tuberculosis, Healthcare Centre
in India are routed through the Apollo Tyres Foundation offers services like sputum testing, regular awareness
(registered in 2008). sessions and linkage of beneficiaries who are positive with
Directly Observed Treatment Short Term Course (DOTs)
The initiatives are categorised in two themes-Environment facility. The organisation has partnered with The Union
and Social (which has health and community development). (US AID) for technical support and awareness generation
Within the themes, there are 4 core areas of work activities related to TB.
highlighted below:
For Diabetes, there is rapid sugar testing kit at each
1. Healthcare for trucking Community; centre, where based on the signs and symptoms, sugar
2. Solid Waste Management and Sanitation; test is undertaken for the beneficiary. Following that the
3. Livelihood for under privilege women; beneficiary is provided information on further medical
4. Biodiversity Conservation. help. Similarly for high BP, there is a facility at each centre
to detect and subsequently provide medication.
In addition to the above, there are a few Local Initiatives across
around our manufacturing locations. These are Watershed In addition to the above services, there are various other
Management and Renewable Energy Proliferation projects generic treatments provided for seasonal cough, flu,
under Environment, and Road Safety Awareness, Computer stomach dysentery, and other basic First Aid features.
Literacy under Social.
To enhance connectivity, in the reporting year the

Further, the organisation also undertakes philanthropic organisation also launched mobile medical unit (Apollo
initiatives through Taru Foundation. Tyres Health Care Express) for the health check of truck
drivers and allied population at four locations in Delhi,
1. Healthcare for Trucking Community: Nammakkal, Chindwara and Gurugram.

Apollo Tyres have initiated preventive healthcare
programme for its key stakeholder, its customer - truck The organisation also conducts health camps for its fleet
drivers, who by virtue of the lifestyle associated with the and their drivers under the banner SakushalSarthi.

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 Corporate Overview Statutory Reports Financial Statements

The important feature of Health programme is Peer toilet cum bathing space in Chennai. Around 600 people
Educators (PEs). They are the dhaba owners, mechanics are directly benefitted from the newly constructed toilets
etc. who are based at transhipment locations and remain
in close contact with truck drivers. They actively help in Last but not the least, to promote recycling of waste the
reaching out to the target audience to raise awareness organisation has constructed play grounds made out of
on the perils of HIV AIDS. So far, the programme has end of life tyres (ELT) at Chennai. Total 02 new ELT play
mobilised 861 active PEs across locations. structures were made using 696 waste tyres.


In the reporting year, total 491,382 people were 3. 
Livelihood Initiative for underprivileged women
outreached from awareness activities and 160,574 (NAVYA):
received treatment facility. There is 34.80 % increase in To address the problem of poverty and poor social status
the people treated from the reporting year FY2019. Out of of women in the community, the organisation decided to
the total treated in the reporting year, 44,741 people opted start the skill building and income generation programme
for HIV testing, 58,128 for vision screening and 43,823 for namely Navya, for the women in the villages around
diabetes testing. Total 966 TB tests were conducted (as it its manufacturing locations (they are agriculture and
was only a pilot in Delhi). non-agriculture based initiatives).

2. Solid Waste Management and Sanitation (SPARSH): Under this, women are reached through Self Help Group
SPARSH stands for – (SHGs) formation or strengthening of existing SHGs.

S – Segregate Waste; P – Practise Composting; Women are trained on financial literacy, book keeping,
A – Awareness Generation; R – Reduce, Reuse & Recycle; documentation, leadership etc. through SHGs trainings.
S – Safe Sanitation; H – Hygiene for All The strategy of The main objective of this initiative is to create livelihood
SPARSH remains to engage with its stakeholders create opportunities at door step and develop entrepreneurship
awareness on the 3 R’s, i.e., Reduce, Reuse and Recycle. capabilities of underprivileged women.

There are four projects under SPARSH: Clean My The training includes vocational skills such as apparel
Transport Nagar (CMTN), Clean my Village (CMV), making, jewellery designing, nursing, beautician,
Sanitation Management and End of Life Tyres Playground housekeeping, khakhra making, sanitary napkin making,
(ELT). These projects are running under the umbrella sheet making, mushroom cultivation, apiculture etc.
Programme SPARSH, SwachhBanao - Our endeavour The trained beneficiaries are further linked with the market
to promote Waste Conscious Societies in a resource and service sector for employment. As a result of this
constrained World and Hygienic Lifestyle by Crusading initiative, trained women have started their own business
against Open Defecation. where they are not only supporting their own families but
also providing employment opportunities to other women
To address the need of solid waste management, the of their villages.
organisation started an initiative named Clean My
Transport Nagar (CMTN) and Clean my Village (CMV) in In the reporting year total 2,012 women were outreached
the year 2013. CMTN caters to needs of the customers and 1,158 received income generation training in farming
in transport hubs and CMV targets towards communities and non-farming activities. Out of the total trained
around our manufacturing locations. The main features of beneficiaries, 1,030 women are engaged in income
this initiative are door to door waste collection, cleaning of generation, about 89% engagement.
roads/lanes, segregation of waste, composting from wet
waste and awareness generation. In extension to the programme, there is support for the
farming community (male farmers) through capacity
In the reporting year, total 18,122 people were outreached building activities like livestock care and management
from awareness generation and 24,607 people were and scientific agriculture practices. It strengthens the
outreached from door to door waste collection activities. knowledge of the farmers related to modern techniques
Total 2,606 metric ton (MT) waste was collected of farming, increased crop yield skills and agricultural
from CMV and CMTN projects. Out of the collected practices expertise. Programme establishes linkages with
waste, 298 MT was biodegradable and 2,308 MT was the market to ensure direct financial benefit. Around 733
non-biodegradable waste. farmers were outreached under sustainable agriculture
initiative through trainings and awareness activities.

Further, to support the Swachh Bharat Abhiyan,
organisation has also constructed toilet cum bathing space Further, another extension to the core programme is
for the underprivileged communities around Chennai provision of career counseling, employability skills to
manufacturing location. The organisation constructed 150 the ITI and graduate students for better job opportunity

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at Chennai and Kochi location. Total 719 students local stakeholder requirement. These include, Watershed
student were trained. Management Projects (Access to purified drinking water,
Eco restoration and improvement of water bodies and River
4. Biodiversity Conservation conservation project), Computer Literacy, Road Safety.
Mangrove conservation is a key initiative under the
Biodviersity theme in the year FY2019. The ogranisation 
Philanthropic Initiatives: The organisation also supports
has partnered with Wildlife Trust of India (WTI) for the underprivileged and deprived communities by
project implementation. The actual site of the mangrove undertaking philanthropic initiatives through Taru
conservation project is located in Kunhimangalam Foundation. The initiative ranges from providing education
village in Kannur district, which is the largest mangrove support to underprivileged girls, to providing healthcare
village in Kerala. As a part of the project, a nodal centre facilities to rural people and distributing food items to
has been set up for mangrove-based nature education, eradicate hunger and poverty.
research and restoration at project site. A mangrove
nursery and community based initiatives to enhance 2. Are the programmes/projects undertaken through in-
public awareness and reduce threats to mangroves, are house team/own foundation/external NGO/government
other aspects of the project. The organisation engages structures/any other organization?
with youth, local community, researchers, local bodies The programmes are carried out by the organisation’s own
and policy enforcement personnel for awareness Foundation - Apollo Tyres Foundation (ATF). All the CSR
generation. Total 26,000 people outreached from various activities of Apollo Tyres are routed from Apollo Tyres
awareness activities. Foundation (ATF) which was registered in 2008. The clear
objective of CSR activities is to have a positive impact on
The programme organised an Environment and Nature everyday lives of our key stakeholders and on business.
Quiz for college students with the objective of creating The implementation of the projects is with the help of expert
awareness on mangrove, environment and nature organisations and local Non-Governmental Organisations.
conservation. In the reporting year, around 5 acre of
area outside the project area was planted with mangrove The CSR Programmes and activities are aligned to national and
saplings at 4 locations. More than 6,000 mangrove saplings international development goals.
have been raised in mangrove conservation nursery.
The organisation has also partnered with likeminded corporates
The organisation has also contributed towards mitigation and government bodies for technical and programme
of climate change with the help of projects like usage of implementation support. For e.g. under healthcare theme, the
biogas units and afforestation, whereby the organisation organisation has partnered with Ambuja Cement Foundation,
has planted a total of 350,000 teak and red sandal trees ACC Cement and Ashok Leyland, Essilor Foundation for
in Tamil Nadu for emission reduction. As per estimation, establishing healthcare centres and vision care facilities,
around 10,100 tonnes of CO2 has been sequestered whereas for technical partnership is established with The
from these trees. Union (US Aid) for TB control programme and State AIDS
Control Society (SACS) for integrated counselling and testing
The usage of biogas units, in communities around the centre facility.
Limda plant in Gujarat, helps to reduce the carbon
footprints. The women who are engaged in income Similarly under environment theme, the organisation has
generation activities (agriculture based) are linked partnered with Wildlife Trust of India (WTI), for mangrove
with this initiative. This helps in saving time and cost in conservation and local municipality for sanitation initiatives
collecting the firewood. Slurry from the biogas is used for in transport nagar. Additionally for rubber crumb research,
organic farming purpose thus, resulting in limited or no as a part of End of Life Tyre Management strategy, we have
use of chemical fertilisers. The use of Renewable energy tied up with Rubber Research Institute, Kottayam Kerala
proliferation is a key to address the issue of climate change, focused on establishing usability of crumb rubber for jogging
and this project supports the cause. In the reporting year, tracks and such use.
total 39 Biogas units were installed. (Since the inception of
the project in 2016, total 230 units have been installed). 
Under community development linkages developed with
National Rural Livelihood Mission for credit linkage, NABARD
In addition to the above four core themes, within the radius for livelihood training for underprivileged women, Agriculture
of 25-30 kms of our manufacturing locations, various Universities for agriculture and livestock development related
local initiatives are implemented which are based on trainings and others.

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3. 
Have you done any impact assessment of your 2. 
Does the Company display product information on
initiative? the product label, over and above what is mandated

The organisation conducts periodic assessments of the as per local laws? Yes/No/N.A. /Remarks(additional
programmes. Initiatives which complete 3 years of work, a mid information)
line assessment is conducted; and initiative which compile 5 The Company adheres to all legal requirements with respect
years of work, an impact assessment is conducted. to product labelling and display of product information.
All data as per current laws are available on the tyre sidewall.
4. 
What is your Company’s direct contribution to Product labels are available on PCR Tyres as of now basis
community development projects- Amount in INR and current laws in India
the details of the projects undertaken?
Broad Areas of CSR Programs (` Million)
3. Is there any case filed by any stakeholder against
Ensuring environmental sustainability 73.51
the Company regarding unfair trade practices,
Eradication hunger, poverty & 2.84
irresponsible advertising and/or anti-competitive
malnutrition behaviour during the last five years and pending as on
Livelihood enhancement projects 31.60
end of financial year. If so, provide details thereof, in
Promoting Education 6.32
about 50 words or so.
In various Consumer cases complainants allege about unfair
Promoting Preventive Health 89.38
trade practice by Apollo on warranty policies. No indent of such
Total 203.65
complaint in Competition Commission except a pending CCI
Administrative Cost (5% over total 10.18
expense) case initiated on the complaint of a dealers’ federation i.e. AITDF.
Grand Total 213.83
4. Did your Company carry out any consumer survey/
consumer satisfaction trends?
5. Have you taken steps to ensure that this community
The Company regularly engages with customers through call
development initiative is successfully adopted by the
center to get their feedback on the resolution provided for
community? Please explain in 50 words, or so.
complaints registered through various channels to gauge their

Under Clean My Village programme in the communities
satisfaction levels. The Company has also empowered dealers
around the manufacturing locations, we identified and trained a
with AQS (Apollo Quick Service) App for on the Spot complaint
set of beneficiaries (women) on awareness generation activities.
disposition resulting in quick turn around and enhanced
The trained women conduct periodic awareness activities on the
satisfaction trends for year under review. The findings of
field. This initiative has not only provided a livelihood opportunity
the feedback study are used to improve existing systems &
to women but it also provides a local connect with the community,
processes in alignment to organizational goals.
inculcating community ownership.

For and on behalf of the Board of Directors

Principle 9
1. What percentage of customer complaints/consumer
Place: Gurgaon ONKAR S. KANWAR
cases are pending as on the end of financial year.
Date: May 9, 2019 Chairman & Managing Director
The Company has a robust system for addressing customer
complaints. As on March 31, 2019, there are no customer
complaint pending. The total number of legal cases pending
are 245 at Pan India level.

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 Apollo Tyres Ltd. Annual Report 2018-19

ANNEXURE IV

CONSERVATION OF ENERGY, TECHNOLOGY

ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGO
A) CONSERVATION OF ENERGY As part of heat recovery projects potential of installing back
pressure turbine as energy conservation projects was also
(i) The steps taken or impact on conservation of energy
looked, reviewed & suitable potential identified.
ISO Energy Management Standard (EnMS 50001) deployment
activities were also strengthened up across Apollo plants
(iii) Additional investment and proposal for reduction of
to improve & sustain energy performance at Work Centre &
energy usage: (Investment in Energy Front to reduce
necessary preparation was made for adopting improved version
cost and consumption)
of ISO 50001 from next year.
This year received a special drive to identify energy saving
projects that will improve & sustain Apollo’s profitability with a
The Energy Saving Projects (energy consumption reduction,
quick payback time.
improving utility generation efficiency, heat recovery
projects) identified for deployment across locations are
• Deployment of energy efficient products to reduce
nearing completion.
fixed consumption.

Energy Projects & Activities strengthened up:-

• Energy saving projects identified for more efficient
usage of utilities.
• Study of Utility (Water, Steam & Air) Distribution network to
identify gap & opportunities for improvement.
• Replacing old energy inefficient equipments with more
energy efficient equipment with quick & attractive payback
• LED deployment activities strengthened up across plants to
period along with proper life-cycle assessment done.
reduce fixed consumption.

• Enhancement of condensate recovery and waste heat

• Forward planning for optimized usage of energy sources
recovery to reduce energy requirement at generation source.
(Direct & indirect) to control cost.

• Energy saving projects related to heat conservation identified.

• Monitoring, analysis & control strengthened up to reduce
specific consumption in process side as well as utilities side.
B) TECHNOLOGY ABSORPTION
• Horizontal deployment of identified energy saving projects (i) Efforts made towards Technology Absorption
analyzed & reviewed for improving group’s energy foot Apollo, as a leading tyre manufacturer with global aspirations
prints. considers Research and Development as one of the major
pillars of its growth. Developing path breaking technology and
• Improvement opportunity strengthened up at coal fired creating products that exceed customer expectations being
boilers to improve asset management & performance the vision of R&D, customer centric product development is
monitoring. central to Apollo’s growth. Apollo’s commitment to realizing its
vision has led to the development of many innovative products
• Energy saving projects identified last year successfully in 2018-19 and the one needs special mention here is Alpha H1,
implemented. India’s first Zero Degree Steel Belted Motorcycle Radial tyre for
premium bikes with an assured high performance with safety.
• New Projects related to energy conservation identified. This development has fetched our Company, the prestigious
and coveted ‘Golden Peacock award’ in the innovative
(ii) Steps taken by the Company for utilizing alternate product and service category. This award was given to Apollo
sources of energy at a glittering function held at Al Habtoor Palace, Dubai in the
In this year Solar Energy generation was increased for the presence of eminent personalities and business persons.
manufacturing process in addition to the capacities built up
earlier. An additional indirect benefit of implementing solar roof The year gone by has seen Apollo achieving a significant growth
top projects came as reduction in HVAC power. Overall potential in PCR OEM market and an undisputed leadership position
of solar energy is mapped and detailing completed to scale up in supplying more than 5,00,000 tyres to OEM per month in
capacity at right time. India and also in the fastest growing premium Hatch and
Compact SUV segments. Apollo is present in 15 out of the top
20 vehicles (by volume) sold in India. Apollo is the sole supplier

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for some large selling vehicles in India and also the single development expected to be completed in the current year.
source for many ongoing development projects for some of the The department has also developed BLE (Bluetooth low energy
prestigious models of Skoda, VW, Hyundai etc. In appreciation based) TPMS systems for two wheelers with user friendly
of our association, Apollo was given several awards by interfaces and functionalities. These products are scheduled to
OEMs- Comprehensive Excellence, Consistent High Quality & go to market in the current year. The department is working
Systems and Audits by Maruti Suzuki. Achieved global supplier on several key projects which will drive and spread Apollo’s
status from Suzuki, Hyundai and preferred supplier status business also to tyre plus products.
from Suzuki, Mahindra, Renault, Nissan, Skoda, Volkswagen
and Toyota. New OEMs in India like KIA, MG Motors, Peugeot/ The R&D department has also enhanced its technical capability
Citroen etc. have preferred us as a development partner. to validate tyre performance by the addition of several new test
Several collaborative research work has also been initiated equipments like Force & Moment tester for commercial vehicle
with various reputed universities and institutes in India such tyres, Flat spot testing for Off Highway tyres, Impact air loss
as; IITs, BITS, CUSAT, MIT etc., and overseas universities test for PCR tyres. To meet customer demands in improved
such as; IPF, Centire Virginia Tech etc. As a recognition of ride comfort, Commercial vehicle Ride & Handling subjective
partnership with universities, our Chief Advisor of R&D, Mr. P. K. testing to assess tyre performance. Simulations were
Mohamed was awarded with “Outstanding Industrial Partner“ developed to assess and find solutions for field failures like
award by the International and Inter University Centre for Ply separation and Turn-up separation. Two wheeler contact
Nanoscience and Nanotechnology (IIUCNN) of Mahatma pressure distribution was quantified using a novel test method,
Gandhi University in Kottayam, Kerala. which can measure foot print pressure of up to 45 degree lean