Apollo faces hurdles in SA

Apollo faces hurdles in SA If you think that labour unrest is the problem which is unique to India in the past few years, it's better to give it a second though as Apollo tyres has recently said that its two units in South Africa have gone on strike thereby completely disrupting production.

Apart from this issue, the South African Competition Commission has also charged the company with anti-competitive pricing and it has asked the home-grown tyre manufacturer to pay 10 per cent of its turnover as penalty.

However, the company has in return said that it is seeking a legal advice to defend its case in the market. It is to be mentioned here that the company said in a filing on the Bombay Stock Exchange that as the tyre industry in South Africa is facing an overall strike, workers at its two plants have also gone on a strike.

The spokesperson of the company also confirmed that the two plants has have stopped production since September 1 which has a combined production capacity of 180 tonnes per day. It may be recalled here that the domestic tyre manufacturer got these plants by the acquisition of Dunlop Tyres International Ltd (South Africa) in a Rs 290 crore all-cash deal in 2006.