Apollo Tyres to invest up to $600 million on two plants

New Delhi, March 7

Apollo Tyres will invest up to $600 million (about Rs 4,000 crore) next fiscal to enhance capacity at its plants in India and abroad.

The company, which today announced its foray into the two-wheeler market, will start rolling out tyres from its upcoming plant in Hungary by January 2017.

“We plan to spend around $500-600 million as part of our capital expenditure in the next fiscal on our two plants in Chennai and Hungary,” Apollo Tyres vice-chairman and managing director Neeraj Kanwar said.

He said the company is doubling the capacity of its Chennai plant to 12,000 truck and bus radials (TBR) a day from 6,000 earlier.

Commenting on the company’s foray into the two-wheeler segment, he said it is a part of a move to offer a complete range of products for the automotive industry.

Initially, the company will sell its Apollo Acti series of tyres for motorcycles and scooters in the aftermarket.

“Today, we are selling all types of tyres except two-wheelers. The Indian two-wheeler industry has been growing and it was time that we entered the segment,” Kanwar said. — PTI