Apollo Tyres has set a target of becoming one of the top 10 tyre makers globally by clocking sales of $6 billion by 2016.
The company, which will invest USD 1 billion in the next five years to expand the global footprint, is also shifting its research and development centre for passenger car tyres to Holland from India, apart from setting up a new marketing office in the UK as part of its strategy.
"The vision for us is to clock a revenue of USD 6 billion by 2016, which will put us among the top ten tyre makers in the world," Apollo Tyres Vice-Chairman and Managing Director Neeraj Kanwar said.
The company had posted a turnover of USD 2.5 billion last fiscal, placing it at the 16th position globally. The top three players are Bridgestone, Michelin and Goodyear, followed up by Continental and Pirelli at fourth and fifth positions.
"With the strategy that we have put in place in terms of capacity expansion, scaling up R&D and marketing, we are confident that we will achieve the target," Kanwar said.
Apart from expanding the manufacturing footprint globally, Kanwar said R&D and marketing would be the other two key pillars in the company's pursuit for global eminence.
"That's why we are moving our R&D centre for passenger car tyres to Holland. We want to be where the technology is. This will become the hub for our research on passenger car tyres and will supply to our global operations," he said.
The centre will have a strength of 175 and already 25 expatriates have moved along with their families, he said, adding that the R&D centre for commercial vehicles would, however, remain at the company's Chennai centre.
In order to scale up the company's worldwide visibility, Kanwar said: "We are also setting up a global marketing office to be based in the UK. This will mainly focus on branding and communication strategy."
He further said Apollo Tyres will also be increasing its spending on R&D and marketing.
"The top global companies spend about 7 per cent of sales on R&D and marketing. Compared to them, ours is at about 2 per cent. Going forward we will also look to scale this up as both R&D and marketing are very important aspects of the business,"
When asked if the company will be looking only for organic growth to meet its 2016 target, Kanwar said: "As of now our focus is on growing