INDIA: Apollo Tyres to set up Rs 5200-million plant near Chennai
Source: Daily "The Hindu Business Line", New Delhi; 8 Aug 2006
Chennai , Aug. 7
Apollo Tyres Ltd plans to set up a Rs 5200-million
automobile tyres manufacturing plant near Chennai.
According to a Tamil Nadu Government press release,
the company has entered into an agreement with the
State Government to set up the project, which would
generate employment for over 2,000 persons.
The 135-acre facility is to come up at the Oragadam
Industrial Park promoted by the State Industries
Promotion Corporation of Tamil Nadu (SIPCOT) near
Kanchipuram on the Chennai-Bangalore route.
The agreement was signed by Apollo Tyres Chairman and
CEO, Mr Onkar S. Kanwar, and the Tamil Nadu Industries
Secretary, Mr Shaktikanta Das, in the presence of the
Chief Minister, Mr M. Karunanidhi.
The company will make car, bus and truck tyres at the
facility. Apollo Tyres, which is developing the
technology for bus and truck radial tyres
indigenously, will apply this technology at the
facility, the release said. The New Delhi-based tyre
manufacturer has factories in Kerala, Pune and
Gujarat. It recently acquired two Dunlop tyre plants
in South Africa and two in Zimbabwe.
In a communication to the stock exchanges, Apollo
Tyres said it intended to invest about Rs 3000 million
in fixed assets in the first phase within three years,
going up to Rs 4500-5200 million within five years
from the date of the MoU.
A company press release available on its web site
quoted Mr Kanwar as saying "we intend to build one of
the finest and most progressive radial tyre
manufacturing units here in Oragadam."
He said "the radial technology which will be used, is
currently being developed by us in Apollo, using our
internal R&D expertise. This fresh capacity will allow
us to produce technology products across categories
for both the OE (original equipment) and replacement
The release said that the Tamil Nadu unit would be
used exclusively for manufacturing truck, bus and
light truck radial tyres, along with high and
ultra-high performance passenger car radial tyres for
the domestic and export markets.
Tamil Nadu was chosen as a location, the release said,
due to its proximity to the rubber growing region, the
presence of automobile manufacturers in the State,
good connectivity to the domestic market and proximity
to a port for ease of import of raw materials and
export of finished products.
(Syed Rashid Ali, Karachi, Pakistan)