Shares of Apollo Tyres Limited slid over 2 percent to Rs 369 in early trade on September 21 after the company announced a temporary halt of its bias off-the-road (OTR) tyre production at its manufacturing facility located in Limda, Gujarat. The halt comes amid concerns from shop floor employees over the renewal of a long-term settlement agreement.
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"The company is in discussions and negotiations with the labour union representatives to address their concerns and find an amicable resolution," Apollo Tyres said in an exchange filing on September 20. "While the company is monitoring the situation closely, there are plans in place to mitigate any supply disruptions."
Apollo also added that this situation will have no material impact on the company's operations.
A major player in the tyre industry, Appollo Tyres' products are sold in 170 countries across the world, with India and Europe being the two major markets. In 2022-23, the company clocked consolidated revenue from operations of Rs 24,568 crore against Rs 20,948 in 2021-22.
Bias ply tyres are constructed with a sidewall that runs diagonally from one bead to the other, utilising multiple layers of rubber-coated fabric plies arranged at various angles to each other and to the tyres' centerline.
On the other hand, radial tyres feature a sidewall that runs vertically, creating a straight up-and-down orientation. They are constructed with a single layer of steel cord plies that run at a 90-degree angle to the centerline of the tyre.
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