Apollo Tyres to invest over Rs 2,000 crores in India
World’s 17th largest producer of tyres, Apollo Tyres will be upgrading their manufacturing facilities in India, to enhance output. The company operates from two plants in India situated in Oragadam, Chennai and Kalamassery, Kerala. A total of $340 (INR 2,050 crores) investment has been sanctioned for this purpose.
Apollo Tyresâ€™ Board of Directors have already approved this added investment and plan to raise $200 million (INR 1,191 crores) through securities, rights issues and other modes.
Apollo Tyres plant in Oragadam, Chennai, from where the company produces truck and bus radial tyres has a present capacity of manufacturing 6,000 tyres bus radials per day. With augmented facilities, this figure will increase to 8,900 tyres per day. Current capacity utilisation of the plant stands at 70-75%, catering to both domestic and export markets.
Increased investment into Kalamassery plant in Kerala will see the unit branch out from truck tyres to speciality industrial tyres. This plant in Kerala currently manufactures 30 tonnes of off-way tyres which will be increased to 110 tonnes in the coming two years. This increased capacity is basically for global markets where demand is high. These tyres are used in special vehicles such as loaders, golf vehicles, agricultural equipment, etc.
Besides plants in Kalamassery, Kerala and Oragadam, Chennai, the company also has manufacturing units in South Africa, Zimbabwe and Netherlands and a network of over 4,000 dealerships in India our of which 2,500 are exclusive outlets. Ambitious plans are in store as Apollo Tyres aims at becoming the 10th biggest tyre manufacture in the world by 2016.
Source – Economic Times via PTI