Apollo Tyres Plans Rs 3,000 crore Investment in Next 5 Years

Apollo TyresIndian tyre manufacturer Apollo Tyres, has announced an investment of Rs 3,000 crores in the next five years to establish greenfield plants in India as well as abroad, along with expansion of existing production units.

The company, by doing so, is targeting to join the league of top six tyre makers internationally. Apollo is aiming at a $4 Billion turnover in the next five years, by setting up units in Chennai and East Europe.

The company is looking at Slovakia and Poland for setting up a plant to manufacture 7 million passenger radial tyres, with an investment of Rs 1,200 crore, after it pulled out from Hungary. Neeraj Kanwar, Apollo Tyres Vice-Chairman and Joint MD said "After Chennai plant is commissioned, we would produce 35,000 passenger radial tyres and 1,800 truck/bus radial tyres per day. By then we would account for 25-28 per cent of the total tyre production in the country,"

In addition to this, the investment will also go into expansion of the Vadodara unit for manufacturing off-the-road tyres, for which the firm has entered into an agreement with construction equipment maker BEML, to supply to Coal India. The company registered $1.2 billion turnover in the last fiscal year and plans to take its revenues to $2 billion by 2010 and then double it in the next three years. Shares of the company closed down Rs 0.4, or 1.59%, at Rs 25.

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