Infrastructure and tire usage in the Middle East is very similar to that in India, says Apollo Tyres, and this is the reason why the company’s products have enjoyed a high level of acceptance throughout the region. 
In total, the Middle East accounts for some 30% of the Indian tiremaker’s export revenues, and in the last years it has built up a 23-partner distribution network there spanning 14 countries. Now, Apollo Tyres has extended its Middle East presence with the opening of its first office outside the company’s operations in India, the Netherlands and South Africa. This new Dubai-based office will serve as a hub for distributing Apollo’s India-manufactured tires.
“As a company we are currently in our second phase of global expansion,” said Satish Sharma, who is chief of Apollo Tyres’ India Operations and also responsible for the company’s “Zone I” (Asia, the Middle East, Asian CIS, Turkey, Australia and New Zealand).
“The Middle East region has always been a natural extension of our markets in India. Our tires have enjoyed a very high demand in the region for years now. However, due to capacity constraints at our end we have not been able to fulfill the local demand. I am happy that we have crossed that. With an active sales and service team based here, we will now be able to provide our customers in the Middle East the service and operational excellence they deserve.”
Dubai is the world’s largest free trade zone and Apollo cites its “strong financial systems and legislation” as reasons why it is the “perfect business destination” for the tiremaker. Dubai is also strategically located with easy access to the 1.5 billion-strong consumer market in the Gulf Cooperation Council states, Western Asia, Africa and Eastern Europe.
Dubai itself is the largest tire distribution hub in the region, and its ratio of one car to every 1.8 individuals makes it a booming domestic market.
The company has also taken up an expandable 10,000 square feet of warehousing space in Dubai to enable rapid regional supply from stock and to free its Business Partners from the need to hold large inventories. Apollo Tyres says it has already invested around $250,000 in creating appropriate permanent infrastructure for its business needs in Dubai and projects, starting this year, annual investments and expenses of around $1.5 million.
“The office, network of employees and local warehousing facility will allow us to address customer demands effectively; while our entire range of tires tuned to this market, along with our service proposition, will allow us product leadership over time,” commented Sharma. “This is a high potential market, where the Dubai tire distribution and re-export trade is valued at $1.5 billion and expected to grow by 30% in the next five years. In that timeframe I am looking at Apollo garnering a high single-digit, if not 10%, of this market’s share.”
The full range of Apollo commercial vehicle – both cross-ply and radial – and consumer tires will be offered through the Dubai operation. (Tyres & Accessories)
