Apollo Tyres Limited, the world’s 17th biggest tyre manufacturer, has announced investment to the tune of INR 2,700 crores at the company plant in Chennai.
As a part of the company’s vision of ‘Building Leadership in India by 2020’, production is set to double from a current 6,000 units to 12,000 units per day over the next 24 months. The increase in capacity will be a gradual process, starting from October 2016.
With such expansion plans on for the company’s Oragadam plant in Chennai, exports are also slated to increase from a current 10% to 15% over the same 2 year period while the company plans expansion of markets into rural areas as well.
Apollo Tyres plant in Baroda from where the company plans manufacture of radial tyres for two wheelers will also see production of tyres for the SUV segment with a new assembly line set up for the purpose. This is particularly being planned in view of the increased demand for SUVs in the country while the company targets younger and more adventurous buyers for such SUV radial tyres.
The two wheeler segment is a new area into which Apollo Tyres ventured earlier this year in May. As on date, the company has sold 1 lakh units of two wheeler tyres. Earlier they had hoped to end 2016 with 3 lakh two wheeler tyres sold, but now they hope to sell 2 to 2.5 lakh of the same.
Apollo Tyres commands a market share of 17% in the passenger vehicle segment and 20% in the agriculture sector while in the commercial vehicle segment, Apollo Tyres targets 30-33 %.