All in the process of making ‘quality’ tyres inside the Baroda Steel Plant

IIPM PUBLICATION

Another threat to the company is the alarming rise in prices of raw materials, conspicuously reducing the bottom-line growth. Even if we talk about just the price of rubber and crude oil (which are the main raw materials), the combined cost-to-company due to procurement of these two raw materials have soared (from an already dangerous 62% during 2001-02) to a spine-chilling 70% during 2005-06 – proving a major headache for Apollo and other big players in the industry which hope to control costs through increase in scale of production. And the problem only seems to be getting worse with domestic rubber prices increasing by 59% y-o-y during 2005-06. The problem internationally too does not seem alleviated, as there too, prices increased by 76% over the same period! Talking about the threats, Onkar Kanwar said, “It has not been a smooth journey but it definitely has been fruitful. We follow stringent quality processes to ensure product quality. As a company, we have constantly increased our capacity without additional capital expenditure. We are very costconscious. Fuel efficiency, energy usage & conservation is a major thrust at Apollo Tyres to ensure both conservation and cost savings.”

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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