Apollo Tyres. plans 32,000 crore capital expenditure.
INDIAN tyre manufacturers Apollo Tyres has set aside a planned capital expenditure of Rs 3,200 crore for the current financial year. According to company sources, a large portion of the capex will be funneled towards its plant in Chennai and a brand new manufacturing facility in Hungary, Europe.
The announcement on the company’s investment plans for the year was made by the company;s Chief Financial Officer in an analysts’ call on Monday.
The capex is a mix of funding for both the firm’s domestic as well as overseas operations. The capex for domestic operations will be Rs 1,700 crore and an additional 200 million Euro (over Rs 1,510 crore) for the European operations in the current financial year.
“In India we should have capex of around Rs 1,700 crore and in Europe it would be around Euro 200 million, in FY 2017,” Apollo Tyres Chief Financial Officer Gaurav Kumar said. However, Kumar did not go so far as to specify the projects and objectives towards which this capex would be allotted. Sources within the company say that the major portion of the investment would be funneled into its Chennai-based manufacturing facility and its upcoming plant in Hungary.