Apollo Tyres will spend Rs 1,100 cr to expand capacity

Business Standard
8 June 2010

http://www.thehindubusinessline.com/2010/06/09/stories/2010060952430200.htm

Apollo Tyres Ltd announced on Tuesday that it will be spending Rs 1,100 crore for increasing production capacity at its facilities in India and overseas during the 2010-11 fiscal.

“Our local capacity will rise to 1,400-1,500 tonnes a day,” said Mr Neeraj Kanwar, Vice-Chairman and Managing Director, Apollo Tyres, on the sidelines of a FICCI event.

“In India, we would increase capacities at Chennai, Baroda and Kochi. We would also raise production capacity at our Netherlands and South Africa units,” he added.

Out of the total expenditure, the company will spend Rs 300 crore in its factory in Chennai and Rs 150 crore in total on its facilities in Vadodara in Gujarat and Kochi in Kerala.

“Passenger car radial capacity would be raised to 16,000 tyres a day at Chennai, apart from the 6,000 truck, bus radials it makes every day,” said Mr Kanwar.

As regards to expenditure on its South African and Netherlands' facilities, Mr Kanwar said the company will spend $ 30 million (Rs 141 crore) in its unit in South Africa and € 7 million (Rs 39 crore) in its Netherlands' factory.

The investment in its Netherlands' factory will help Apollo produce 6 million tyres a year from the factory said Mr Kanwar. He added that the company's expansion programme will be funded by a combination of debt and internal accruals.