sa treads dec 2010

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Leading Tyre Industry Magazine

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  • Vol 1

    6 Decem

    ber 2

    010

    The Pirelli 2011 Calendar!

    Focus on APo

    LLo TYR

    Es

    Conversations with Indian tyre mogul Onkar S. Kanwar

    Apollo set to become a global player

    TDAFA honours 2010 top achievers

    ContiPartner Win an Audi Competition a big hit

    Customer Service more than skin deep?

  • 10027 Bandag AS SA Treads.indd 1 10/7/10 12:25:26 PM

  • Editor LianaShaw

    Technical consultant WrayShaw

    Reproduction DianevanNoort

    Printing TYPOColourPrintingSpecialists

    Distribution PrestigeBulkMailers

    Advertising LianaShaw

    Contentsone-on-oneConversationswithIndiantyremogulOnkarS.Kanwar........................ 3

    Focus on Apollo TyresToday,theyareamultinational,multimillionUSdollarcompanythatisnotafraidoftakingbigrisksontheroadtobecomingaglobalforcetobereckonedwith............................................................................... 9

    competition WINThe2011PirelliCalendar!............................................................ 17

    Industry newsTDAFAhonourstopachieversfor2010............................................... 19SAsBestSupplierofTyresServicesAnnounced.................................. 21AlgoraxJointWinnerofResponsibleCareAward............................... 21LeaderRubberCompanyConsumableDepartmentUpgrade............... 21BotobrandOTRRadialsexceedperformanceexpectations.................. 23TandemTyresexhibitsatElectraMiningExhibition................................ 25

    Manufacturing SATyremanufacturerscomeunderfire................................................ 29DunlopvotedSouthAfricasMostIconicTyreBrand............................ 29GrabberATislaunchedinEurope......................................................... 30Goodyearsuniqueofferingturnspublicwasteintocommunityvalue.. 32Tyresafetysurveyshowssafertyres..................................................... 34

    conti cornerTheContiPartnerWinanAudiCompetitionabighit!......................... 36

    Dealer Profile SupaQuickgetssupacreative............................................................... 39

    Goodyear newsSpiritofAfricarollsonGoodyearWranglers......................................... 42FantasticfirstretailstoreforNairobi...................................................... 43

    Talking TyresCustomerServiceMorethanskindeep............................................. 47

    World newsPirelliconfirmedasexclusiveF1supplierfrom2011............................ 50Contigivesemployeesacashthankyou............................................. 50HankookannouncessixthglobalmanufacturingplantinChina............ 50GoodyearandNASAhonouredforinnovativespringtyre.................. 50

    competition, subscription, Website ........................................ 52

    A note fromthe editor2010 is drawing to a close and as

    we begin winding down for the

    festive season, its time to reflect on

    some of the years most prominent

    events.

    The recession is far from over

    yet were beginning to see small

    signs of recovery in the vehicle

    manufacturing sector (always a

    good indication that consumer

    confidence is on its way up). For

    the tyre industryhowever, itsbeen

    a tumultuousyear,whatwith labouractionandwagedisputes tomore

    recentallegationsof tyreprice fixingwhichareabout tobebrought in

    frontoftheCompetitionsCommissionTribunal.Withallfourofthelocal

    tyremakers implicated, there could be some hefty penalties in store.

    Only time will tell what the findings will decide, but we will keep you

    updatedonthisandotherstoriesastheyhappen.

    Further afield, Indian-based tyre manufacturer, Apollo Tyres, shows

    itsmettlewith long-termstrategies inplace that thecompanybelieves

    will not only raise its position in the world tyre rankings, but more

    importantlyperhaps,propelittowardsbecomingaseriousglobalplayer.

    We bring you an in-depth account of the companys manufacturing

    and operational activities,which suffice to say, did not fail to impress

    ona recent visit to India. For the full story, togetherwithanexclusive

    Interviewwithcompanyfounder,OnkarSinghKanwar,turntopage3.

    Also in this issue, we cover the recent TDAFA awards, take you to

    GermanyforthelaunchofthenewGrabberATbyGeneralTire,andoffer

    youtheopportunitytowinacopyofthecoveted2011PirelliCalendar

    viaourquarterlycompetition.Allthisandmuchmore!

    Happyholidaysandsafemotoringuntilwemeetagainin2011.

    I n t r o d u c t i o n 1

    Publishers SkyPublicationscc POBox702

    Douglasdale,2165

    Tel: (011)6580011

    Fax: (011)6580010

    Cell: 0828516777

    E-mail: satreads@mweb.co.za

    Website: www.satreads.co.za

    FrontCover:CourtesyApolloTyres

  • 34952 SA Treads Ad_DSK.fh11 11/30/10 4:42 PM Page 1

    Composite

    C M Y CM MY CY CMY K

  • O n e - o n - O n e 3

    conversations with Indian tyre mogul onkar s. Kanwar

    Curiositycombinedwithahealthydoseof

    scepticism,wouldbestdescribemymood

    asIboardanEmiratesflightandtravelhalf

    wayaroundtheworldtotheIndiancapital

    NewDelhi,tomeetupwithIndiasleading

    tyremaker,ApolloTyres. InSouthAfrica,

    very little is known about Apollo Tyres

    prior to its acquisition of Dunlop Tyres

    in 2006, (incidentally, one of only two

    Dunlopaffiliatesintheworldtobeexempt

    from the Goodyear-Dunlop acquisition),

    therebypossiblygivingrisetoamisleading

    impressionofacompanythatsurprisingly,

    notonlyhasanimpressivetrackrecordon

    homesoil,butiswellonitswaytobecoming

    aglobalplayerineverysenseoftheword.

    AtleastthatswhatImabouttodiscover.

  • 4 O n e - o n - O n e

    At Apollos Head Office in Gurgaon (Delhis burgeoning business

    hub) a remarkably striking building that has gained international

    recognition for its architectural design and environmentally-friendly

    featuresImeetfounderandChairmanOnkarS.Kanwar.Iminstantly

    struckbythewarmthandhumilitythatemanatesfromthemanwhos

    notonlyresponsibleforthesuccessofApolloTyres,butalsohappens

    to be a prominent world figure that frequently rubs shoulders with

    internationalpoliticians,dignitariesandbusinessiconsalike.Heinvites

    meintohisspaciousofficeforabriefinterview.

    ThankyouformeetingwithmeMrKanwar.Afteragrandtourofthe

    ApolloHeadOfficepremisesthismorning,Imextremelyimpressedby

    whatIveseen.Asidefromtheaestheticandarchitecturalintegrityof

    thespace,yourheadquartersboastamyriadofwelcomefacilitiessuch

    asastaffcanteen,awellequippedgym,exquisitelymanicuredgardens

    andtheservicesofadoctorwhoisavailabletoyourstaffonaweekly

    basis.Impressive,tosaytheleast!

    Thankyou.ApolloTyreshasaproudheritageandwillalwaysstriveto

    excel,bothinproductqualityaswellasinthecareandupliftmentof

    itsvaluedstaffandthecommunityatlarge.Providingaspacethatis

    environmentallyfriendlyaswellascomfortableforourApollofamily

    wasattheforefrontofmymindintheoriginalplanningphaseofour

    headquarters.

    Personnel who are healthy and well looked after is something Im

    particularlypassionateabout.

    Tell me, how did it all start?

    Bydefault,myfatherenteredthetyrebusinessin1977bybuildingand

    commissioningasmall tyreplant in thesouth IndianstateofKerala.

    Back then India was a controlled economy so when this business

    opportunity arose, complete with a validmanufacturing licence (no

    easyfeatatthetime),myfatherfeltitwastoogoodtopassup.

    Buthe lived inNewDelhiandhadnoknowledgeor real interest in

    tyre production, not tomention that his core business interests lay

    insteelpipeandtubetrading,anentrepreneurialventurewhichkept

    himverybusy.

    Given that hewas not all that interested in what was happening in

    faraway Kerala, management and other problems soon emerged,

    culminating inahalt inproduction. Itwas then that Isuggested that

    heallowmetheopportunitytotakeoverthetyrebusiness.Thankfully,

    heagreed.

    WhenIfirstarrivedinKeralaasayoungman,itwasnottoanenthusiastic

    receptionbuttoanti-managementslogans.Tyreswerebeingreturned

  • 4 O n e - o n - O n e

    fasterthantheywerebeingproducedandtotallossesaccumulatedtoRs

    300million(US$6.5million)!Worsestill,Ihadnoknowledgewhatsoeverof

    theindustrythatIhadjustentered.

    How did you find the strength to press on in the face of such adversity?

    Asdauntingastheprospectwas,Iwasdeterminedtofindawaytomakeit

    work.Sufficeittosaythatyouthanddeterminationwereonmyside.

    Firstwasthechallengingprocessofidentifyingandcommunicatingwitha

    despondentstaff force. Idecidedthathonestyandtransparencywasthe

    bestwayforwardsoIlaidoutthefactsbeforethem:wecouldeitherclose

    ourdoorsthereandthenorworktogethertobuildApolloTyresintoaRs1

    billion(US$22millionapprox)companyintheverynearfuture?

    Notsurprisingly,manywereincredulousatmydeclaration.ButIwasnot

    deterred.Disbelieverswereinvitedtoleavewithnohardfeelings.Manydid

    leave,butthosewhostayedwereexcitedaboutanewbeginningandwere

    preparedtoexercisetheirtalentsandtyreknowledgeinhelpingmetosteer

    thecompanytowardssuccess.

    AndsoIfoundmyselfwithayoungteamthatwaswillingtostretchitself.

    Nextcamethearduous taskofsecuring thenecessaryfinance torestart

    thebusiness,somethingthatwasultimatelyachievedviaaseriesofvisitsto

    banksandfinancialinstitutions.

    What other initiatives were implemented?

    Backattheplantwetookthedecisiontoonlyfocusonthebigticketitems

    -particularsizesoftruckandagriculturaltyresthatwerethehighestsellers

    -whichmeant thatwith immediate effect,wewould stopproducing the

    v