Indian Apollo Tyres plans to invest Rupees 2,000 crore ($470 million) in the next three years to increase its production capacity both in the country and abroad.
The firm, which plans a greenfield facility in Hungary, is also setting up a plant in Chennai, while increasing the capacity at its Vadodara plant. “We will invest Rupees 2,000 crore in next three years including €200 million for our upcoming plant in Hungary,” Apollo Tyres Chief of India Operations Satish Sharma told PTI. He said the company would invest around Rupees 1,350 crore ($317.3 million) in setting up the facility in Hungary for which it had bought about 45 hectares of land earlier this year.
The Hungary plant would be the company’s hub to service its passenger car radial tyre buyers in Europe, North America as well as other countries. The company also plans to augment capacity of passenger car tyre production at its Vadodara unit from the existing 10,000 tyres a day to 15,000 tyres a day by the mid-2009. Apollo would also increase its truck-bus radial tyres manufacturing capacity at Vadodara near four-fold from the present 300 tyres a day to about 1,100 tyres a day by the middle of next year. The Vadodara plant would also manufacture off-the-road tyres for which the firm has entered in to a tripartite pact with construction equipment maker BEML and Coal India. (The Hindu News)