Apollo Tyres Planning Big Investments In India

By Rajkamal

Apollo Tyres have announced that their board has given the green signal to go ahead with their investment plans in India. They have proposed to invest USD 340 million to upgrade their manufacturing facilities in Chennai and Kerala.

The company recently held a board meeting in which they are to consult their shareholders to raise $200 million for corporate use. Apollo has planned to increase the limit of investments from 40% to 45%.

The board approved the expansion for their commercial tyre production from 6,000 tyres to 8,900 tyres per day at their Chennai plant. The Kerala unit is to concentrate and specialise on industrial tyres. The plant currently manufactures 30 tons of tyres and they plan to increase it to 110 tons in 24 months.

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This capacity expansion in Kerala is mainly focused for the international market to keep up with their demands. The Chennai plant was expected to reach break even point in seven years, but reached the mark in three years itself.

Apollo tyres were to acquire US based Cooper tyres for a massive USD 2.5 billion in 2013. This deal would have boosted Apollo to become the world's seventh biggest tyre manufacturer. But the deal was dropped.
They were worried about the Chinese venture splitting up, which would have been a big blow.

The tyre manufacturer however, has not revealed any time frame for the investment or for raising money.

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Article Published On: Saturday, July 5, 2014, 11:47 [IST]
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