Apollo Tyres is planning to invest as much as 400 million euros (more than Rs.2,500 crores) in two new manufacturing facilities in Europe and Brazil as part of its plans to increase its global foot print. Apollo Tyres already has a European subsidiary named Apolloy Vredestein.
Apollo Tyres chairman Onkar S Kanwar revealed his company's plans in the ongoing Geneva Motor Show. According to him, the company is in the look out for a location for a green field tyre plant in Eastern Europe. The plant is expected to be operational in 2-3 years and will cost about 200 million Euros.
The company is planning to begin building passenger car radial tyres with an initial production capacity of 7-10 million units per year. Apollo Tyres is also planning to acquire a Latin American tyre manufacturer to begin its commercial operations in that region.
This is the second time Apollo is planning a European venture. It had announced an investment of 200 million Euros for a plant in Hungary but the plant did not materialize due to political issues in Hungary.
Mr Kanwar while speaking about the company's plans for Latin America said: “We have set up a small office in Brazil and currently we are testing our tyres. We are looking to set up a plant and hope to start construction in the next two years.” He added that he was open for a partner or a joint venture.
The Brazilian venture will also require an investment of about 200 million Euros according Mr. Kanwar.