homebusiness Newscompanies NewsDavos 2023 | Apollo Tyres' Neeraj Kanwar optimistic as utilisation rates reach 80 85% in India
Davos 2023 | Apollo Tyres' Neeraj Kanwar optimistic as utilisation rates reach 80-85% in India
As the global economy continues to recover from the impact of the COVID-19 pandemic, many businesses are finding themselves in a state of flux. In an exclusive interview with CNBC-TV18, Neeraj Kanwar, Managing Director and Vice Chairman of Apollo Tyres highlighted that despite these challenges, the company is seeing some positive developments in the European market.
Many of the world's business leaders and policymakers gather in Davos for the 2023 World Economic Forum. Among those in attendance was Neeraj Kanwar, Managing Director and Vice Chairman of Apollo Tyres.
As the global economy continues to recover from the impact of the COVID-19 pandemic, many businesses are finding themselves in a state of flux. In an exclusive interview with CNBC-TV18, Kanwar highlighted that despite these challenges, the company is seeing some positive developments in the European market.
He informed that Apollo Tyres is gaining market share in Europe, which is helping to offset some of the difficulties the company is facing elsewhere.
He further noted that in India, the company is currently running at 80-85 percent capacity. While this is not ideal, the company is hopeful that utilisation will return to 90 percent in the near future.
Additionally, the firm has implemented AI and machine learning technologies at its Hungarian plant, which has led to a 20 percent increase in productivity.
Kanwar also said that the company's margins are expected to expand, owing in part to a shift towards a richer product mix.
This is a significant achievement as it demonstrates the company's ability to adapt to the current market conditions and increase its competitiveness by using advanced technologies, he said, adding that the company's management team is optimistic that this will enable them to continue to grow and thrive in the years to come.
However, one of the biggest concerns for the company is the current level of demand. The company is facing a slowdown in demand for its products, which is affecting its bottom line. Additionally, the rising cost of energy is also a significant concern for the company, he informed.
The company also faced challenges in their supply chain, but the situation has started to soften. It is still a significant concern for the company as disruptions to the supply chain can have a major impact on the company's operations.
Despite these challenges, Kanwar noted that the company's management team is aware that it will be a challenging time ahead, but they are looking inward to control costs in order to 'weather the storm and emerge stronger on the other side'.
The company is taking steps to address these issues and position itself for long-term success.
(Edited by : Priyanka Deshpande)
First Published: Jan 17, 2023 11:08 PM IST
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