Apollo to invest Rs. 4,000 Crore to enhance production capacity.
Apollo Tyres is gearing up to invest up to Rs. 4,000 crore in the next fiscal to enhance production capacity at its plants in India & abroad. Apollo, who announced its foray into the two-wheeler market today, will start rolling out tyres from its upcoming plant in Hungary by January 2017.
“We plan to spend around $500-600 million as part of our capital expenditure in the next fiscal on our two plants in Chennai and Hungary,” said Apollo Tyres Vice-Chairman and Managing Director Neeraj Kanwar. He further said the company is doubling the capacity of its Chennai plant to 12,000 truck and bus radials (TBR) a day from 6,000 earlier.
Commenting on the company’s foray into the two-wheeler segment, he said it is a part of a move to offer a complete range of products for the automotive industry. Initially, the company will sell its Apollo Acti series of tyres for motorcycles and scooters in the aftermarket.
“We are, however, confident of doing well in the two-wheelers segment considering our brand equity. We entered TBR late in 2008 but we are leaders today. Similarly, we entered passenger cars in 1999-2000 and are among top two players,” Kanwar said.
In the first phase, Apollo Tyres will offer two-wheeler tyres which are “coverage oriented”, followed by performance- oriented range in the second phase.