Shares of Apollo Tires Limited fell over 2 per cent to Rs 369 in early trade on September 21 after the company announced temporary suspension of off-road tire (OTR) tire production at its manufacturing plant located at Limda, Gujarat. The ruling comes amid concerns among mill employees about the extension of the long-term settlement agreement.
“The company is in discussions and negotiations with union representatives to address their concerns and find an amicable solution,” Apollo Tires said in a Sept. 20 exchange filing. “While the company is closely monitoring the situation, plans are in place to minimize any supply disruptions.
Apollo also added that this situation will not significantly affect the company’s operations.
As a major company in the tire industry, Apollo Tires products are sold in 170 countries around the world, of which India and Europe are the two main markets. In 2022-23, the company recorded consolidated operating revenue of Rs 24,568 crore compared to Rs 20,948 crore in 2021-22. Bias tires are constructed with sidewalls that run diagonally from bead to bead, using multiple layers of rubber-coated fabric arranged at different angles to each other and to the centerline of the tire.
Radial tires, on the other hand, have sidewalls that stretch vertically, creating a straight line from top to bottom. They are constructed of a single layer of steel cable that forms a 90-degree angle to the centerline of the tire.
