Apollo Tyres explores new alternatives to natural rubber. These efforts aim to address rising costs and reduce environmental impact. To achieve this, the company collaborates with research institutions and sustainability-focused partners. Additionally, it has partnered with Tyromer to use recycled rubber from end-of-life tyres in production.
Rising costs push Apollo Tyres towards sustainability
The volatility in natural rubber prices and India’s domestic shortfall of 550,000 tonnes have created significant challenges. As a result, Apollo Tyres is increasing investments in research and development. Its goal is to improve product quality and adopt more sustainable practices.
By 2030, the company plans to source 40% of its materials from renewable or recycled sources. According to Gaurav Kumar, CFO of Apollo Tyres, this approach reflects their commitment to a greener future. It also helps tackle cost pressures while aligning with global sustainability efforts.
Industry-wide challenges impact growth
The tyre industry faces major difficulties due to unpredictable natural rubber prices. For example, prices have dropped by 13% and later surged by 55%. Shashi Singh, President of the All India Rubber Industries Association, noted that manufacturers struggle to manage such fluctuations. Furthermore, high tariffs on imported rubber worsen the situation. These factors disrupt supply chains and reduce profit margins.
Despite these hurdles, companies like Apollo are innovating. Anurag Singh, MD of Primus Partners, highlighted an increase in R&D activities across the sector. Efforts now focus on greener chemistries and improved rolling resistance. This results in better-quality tyres for consumers.
International markets offer resilience
Developed markets, such as Europe and the US, provide Apollo Tyres with some relief. These regions use more synthetic rubber, reducing dependence on natural rubber. Moreover, they offer flexibility for manufacturers to pass on cost increases to consumers.
Through sustainable material innovations and global market opportunities, Apollo Tyres continues to adapt. This strategy helps the company address challenges, reduce costs, and meet its long-term sustainability goals.
