Delhi-based Apollo Tyres, India's second largest tyre manufacturer, has decided to spend Rs 700 crore in 2009-10, mainly for completion of its Chennai greenfield facility.

The company is presently setting up a greenfield tyre producing facility in Chennai with an initial capacity of 150 tonnes per day, expandable up to 450 tonnes per day.

Earlier, the company had announced an investment worth Rs 550 crore in the facility while starting the construction work in September, 2008.

In a separate release, Apollo Tyres has made an offer to fully acquire Vredestein Banden B. V (VBBV), a Netherlands-headquartered premium tyre maker, for an undisclosed sum.

VBBV is a 100 per cent subsidiary of Russia's largest tyre manufacturer Amtel-Vredestein N. V (AVNV).

In recently announced results, Apollo Tyres has posted standalone net profit of Rs 108 crore, down 50.68% compared to Rs 219 crore in the previous fiscal, due to high input cost and sluggish demand in the domestic auto market.

However, the company has registered a growth of 10% in its net sales for 2008-2009 to Rs 4,070 crore, against Rs 3,694 crore in the previous fiscal.