Apollo Tyres opens new Dubai office, warehouse
Dubai, June 9, 2011
India’s leading tyre manufacturer, the $2 billion Apollo Tyres, has opened a 12,000 sq ft office and warehouse in Dubai, making it the regional hub for its Middle East operations.
The region has traditionally been one of Apollo’s strongest export markets, out of India, accounting for about 30 per cent of export revenues. The company already has a distribution network in the Middle East, spanning 14 countries and 23 Business Partners.
Dubai itself is the largest tyre distribution hub in the region, and provides a booming domestic market with 1 car to every 1.8 individual, the company said.
“As a company we are currently in our 2nd phase of global expansion. The Middle East region has always been a natural extension of our markets in India. Our tyres have enjoyed a very high demand in the region, for years now,” said Satish Sharma, chief, India Operations, Apollo Tyres.
This 2,000 square feet office located in the Jafza Free Economic Zone will be the company’s base in Dubai, and the reporting base for employees in Iran, Saudi Arabia and Turkey.
Apart from an office, the company has also taken up an expandable 10,000 square feet warehousing space in Dubai, to stock its tyres locally for speedy demand fulfillment in the region.
“This is a high potential market, where the Dubai tyre distribution and re-export trade is valued at $1.5 billion, and expected to grow by 30 per cent in the next 5 years. In that time frame I am looking at Apollo garnering a high single digit, if not 10 per cent of this market’s share,” he added.
Apollo Tyres has already invested around $2,50,000 in creating appropriate permanent infrastructure for its business needs in Dubai; and is projecting investments and expenses of around $1.5 million on an annual level, starting this year.-TradeArabia News Service