Apollo tags $100 million for 2 new plants in India

Gurgaon, India -- Over the next two years, Apollo Tyres Ltd. plans to spend nearly $100 million building two plants in India for radial consumer and commercial tyres and off-the-road tyres.

Apollo has acquired 135 acres of land near Chennai, Tamil Nadu, for a "world class" radial tyre plant. The first phase, for which the company has allocated $68 million, could be complete within 18 months, Apollo said.

The plant's product mix is still being evaluated, Apollo said. The project is being devised to allow the firm to double the plant's size as demand warrants it.

The OTR tyre plant will be built on the grounds of its Limda, Gujarat, factory complex. Plans call for a capacity of 10 metric tons a day, starting with cross-ply tyres and then gradually adding radial capacity. The product range will be from 35- to 57-inch rim diamters.

The OTR tyre plant represents an investment of $31 million.

Apollo also approved $12 million to set up a wind energy project in Gujarat, which would double the company's power generation capacity from wind energy to 16 megawatts.

Apollo disclosed the projects in its third quarter financial results. For the nine months ended Dec. 31, Apollo reported a 126.4-percent increase in net income to $49.5 million on 13.4-percent higher sales of $836.6 million.

From Tire Business (A Crain publication)

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