Apollo Tyres Vice-Chairman Neeraj Kanwar expressed strong confidence in the Indian market during the World Economic Forum 2026 in Davos-Klosters, Switzerland, projecting double-digit growth for 2026. The optimistic outlook comes as recent GST cuts have strengthened consumer spending power and improved tyre replacement demand, which Kanwar directly linked to enhanced road safety.

Strong Indian Market Performance

Kanwar highlighted Apollo's robust performance across multiple vehicle segments in India, with the company expanding its presence in two-wheelers while gaining market share in traditional segments. The GST reductions have created a favorable environment for increased consumer spending, directly benefiting the tyre replacement market.

The company's sponsorship of the national cricket team since October has proven effective in expanding brand recognition in rural markets, boosting distribution for passenger cars and two-wheelers. Kanwar noted that 2026 marks Apollo's 50th year since its first hire in November 1976, emphasizing the company's long-term commitment to the market.

European Market Challenges

In stark contrast to India's promising outlook, Apollo faces significant headwinds in Europe. The company is achieving only 1-2% growth in the region, operating primarily in the niche, high-end segment of ultra-high-performance tyres of 17 inches and above. Despite outperforming the broader market, profitability remains under pressure.

Kanwar identified rising imports of cheaper Chinese tyres as a structural challenge for Europe, noting that while India benefits from protective tariffs, Europe lacks such protection. He stated he sees no indication of recovery in the European market yet.

Strategic Restructuring

To address European challenges, Apollo is implementing significant operational changes. The company plans to shut its Netherlands plant by June or July 2026, shifting production to Hungary and India. This restructuring aims to lower the cost base and improve margins over time.

Additionally, Apollo has begun cutting overheads and reducing advertising and publicity spend in Europe. The company is investing more heavily in research and development and brand building to compete on technology rather than price, differentiating itself from lower-cost Chinese competitors.

Raw Material Outlook

Regarding input costs, Kanwar reported that raw material costs have stabilized after earlier increases. He expects costs to remain broadly at current levels, with a possible 1-2% rise over the next two quarters, providing some predictability for operational planning.

Market Performance

Apollo Tyres shares were trading marginally lower at ₹506.90 on January 20, reflecting mixed market sentiment amid the company's contrasting regional outlooks and strategic restructuring plans.

Apollo Tyres has successfully concluded its postal ballot process with all three special resolutions receiving overwhelming shareholder approval. The company announced the results on January 19, 2026, with scrutinizer P.P. Zibi Jose confirming the passage of resolutions related to private placement of non-convertible debentures and appointment of two independent directors.

Postal Ballot Results Overview

The remote e-voting process concluded on January 16, 2026, with strong participation from shareholders across all categories. Out of 409,092 total shareholders on record, significant voting participation was recorded through the electronic platform.

Private Placement of Non-Convertible Debentures - Approved

The primary resolution for raising funds through private placement of unsecured/secured non-convertible debentures received unanimous support with 100.00% votes in favor.

The approved funds will be utilized for reimbursement of capital expenditure, ongoing capital expenditure, or other purposes permitted under applicable law. The Board retains authority to determine issue terms including investor class, number of debentures per tranche, issue price, tenor, interest rate, and listing requirements.

Independent Director Appointments - Both Approved

Mr. Rajendra Chitale Appointment

The appointment of Mr. Rajendra Chitale (DIN: 00015986) as Independent Director received strong approval with 99.93% votes in favor.

Mr. Tapan Mitra Appointment

The appointment of Mr. Tapan Mitra (DIN: 08445248) as Independent Director was approved with 98.06% votes in favor.

Voting Pattern Analysis

The voting results demonstrated strong support across different shareholder categories, with promoter and promoter group showing 100% support for all resolutions.

Regulatory Compliance and Next Steps

The postal ballot was conducted in compliance with Section 110 of the Companies Act 2013, SEBI Listing Regulations, and MCA circulars. The company appointed Mr. P.P. Zibi Jose, Practicing Company Secretary, as scrutinizer for the voting process. All resolutions met the special resolution requirement of receiving more than three times the votes in favor compared to votes against.

With shareholder approval secured, Apollo Tyres can now proceed with the private placement of NCDs up to ₹10,000 crores and formalize the appointment of both independent directors effective February 9, 2026. The company has filed the results with BSE and NSE in compliance with regulatory disclosure requirements.