Onkar S Kanwar, Chairman and Managing Director (CMD ) of Apollo Tyres states that the period of uncertainty caused by Corona virus pandemic has made him believe that it will continue and he does not see an end to the "new normal" anytime in the near future.
The Global pandemic has made Apollo, Leading tyre manufacturer adopt a caution regarding the situation and is focusing on the safety of the employees, re-engineering the methods of production and a reduction in costs where ever it can be avoided. While such measures are considered, the company does not fallback its expenditure on R&D, building the brand and e-training.
Kanwar further stated that the financial year 2020 has definitely been a tough year for business. The Automobile industry had been slow in growth while considering the FY19 which proved to be a tough time.It is said to be in trouble due to the increased cost of ownership that had resulted from higher insurance cost and higher finance cost. This has resulted in a crisis in the sector of non-banking financial company (NBFC).
CMD of Apollo tyres added that the company had believed to see a development in economy as it was seeing signs of recovery in the third quarter. However, the fourth quarter witnessed the crisis that was brought in the form of COVID-19 pandemic and the lockdown that was executed throughout the country.
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Further, the country saw the growth reaching 11-year low 4.2 percent in the financial year 2020 and the automobile industry also witnessed a drop in sales by 18 percent which had a huge negative impact on the tyre manufacturing industry which showed a decline by 8 percent in the total tyres manufactured.
Kanwar added that "it is reasonable to assume that the uncertainty will continue. I personally do not see an early end of this 'new normal'. Yet, the show must go on and we are already adapting and finding opportunities for growth."
Apollo tyres mentioned that, "OEMs (original equipment manufacturers) in India are forecasting a de-growth of 30-40 per cent in FY21 demand given the BS-VI implementation and price increase, COVID-19 impact, poor consumer sentiment and liquidity crunch, which in turn will seriously impact the tyre industry,"
Apollo Tyres Vice-Chairman and Managing Director Neeraj Kanwar said, "Looking ahead at FY21, we are aware that the COVID-19 pandemic and the lockdown will have serious implications on the business. It has been a difficult few months for us having to temporarily close our plants and making tough decisions on cost-cutting across the board."
He further added that "We are learning from the pandemic experience and will make this our new normal as we energise the entire company to achieve higher productivity."
