Apollo Tyres Ltd. on song to open Hungarian plant in 2017.
Apollo Tyres has indicated that its Hungary greenfield project is on track and will roll out the first tyre from the new factory by first quarter of 2017.
With strong cost advantages through the new unit, the company hopes to take on global giants on their own turf in Europe.
“Our globalisation journey continues as the Hungary greenfield plans are on schedule and we will roll out the first tyre in the last quarter of the current fiscal. With the plant, we will be able to serve the European market with a larger product portfolio. Our game plan for Europe includes increasing the dealer network and the acquisition of the Germany-based reifencom GmbH last year fits well into that strategy,” Onkar S Kanwar, Chairman and Managing Director, said in the company’s latest annual report.
The company had said it will invest more than €400 million for the new unit.
The company is engaging with leading OEMs in Europe and will also leverage its OEM associations in India.
To make an entry in the OEM market, the company has opened a new R&D office in Frankfurt, to be closer to its customers in the region.
Apollo will look at consolidating its position in existing markets, seek new markets and new segments. It will continue to invest in both the Apollo and Vredestein brands and capacity expansion via greenfield factories and brownfield expansions. It will also scan other growth opportunities.
“We envision the company to be a premier tyre company with a diversified and multinational presence,” said Neeraj Kanwar, Vice-Chairman and Managing Director.
For the Asia-Pacific, West Asia and Africa operations, the Chennai plant will provide additional capacities in the fast growing truck and bus radial segment.
The company remains bullish and expects double-digit growth from these markets.